STRATFOR:india brief



INDIA COUNTRY BRIEF

07/10/23

 

Basic Political Developments

• The UPA government leadership told Left Front allies that the Indo-Us Nuke deal was off (but not dead yet) and the next meet of UPA-Left committee's will be in Mid November (Nov 16).

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• In their bid to woo other political groupings to consolidate non-Congress and Non BJP forces againt Nuke deal, the Prakash Karat, CPI(M) General Secretary met UNPA leaders Chandrababu Naidu and Samajwadi party leaders Mulayam Singh and Amar Singh.

• The three-day SAARC conference in Delhi begins to focus focus on institutionalising the mechanism for greater regional interaction and cooperation to fight terrorism, organized crimes and money laundering. Thsi meet is being held immediately after the meeting of SAARC Terrorist Offences Monitoring Desk and Drug Offences Monitoring Desk, October 20, in Islamabad and India Pak Joint Anti Terror mechanmism meet in Delhi on Oct 22.

• Congress party Presdient Sonia gandhi’s visit to China (Oct 25) likly to ease border tension between the two nations.

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National Economic Trends

• Observers believe that India’s plan to restrict anonymous foreign investments in stock market could see a short-term net outflow.

• India’s FM P Chidambaram urged rich nations to restore normalcy in financial markets.

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Business, Energy or Environmental regulations or discussions

• India’s Minister of State for Commerce, Jairam Ramesh indicated that Pakistan has agreed to allow basmati rice and fruits, along with other seven items for trade across the Line of Control in disputed J & K.

• According to Indian Industry and Commerce Minister Kamal Nath , The EU and India are discussing a Free trade agreement to boost trading ties with doing away with import duties and other tariffs on certain items of trade.

• Trilogy plans to expand operations in India looking for USD 100 million in revenues in five years. CEO Joe Liemandt was optimistic about the growth of Trilogy.

• Suzlon Energy looking for INR 5,000 crore increase through issue of equity-linked instruments in domestic and overseas markets for expansion purposes, including raising production capacity. Its board approved investment of INR 2,600 crore over next two years for raising the company's global manufacturing capacities.

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Activity in the Oil and Gas sector (including regulatory)

• US based Global Infrastructure Partners (GIP) is forming a joint venture to acquire 74 per cent stake in Vizag-based East India Petroleum Ltd. The financial terms of the deal are not being disclosed yet.

• Indian Finance Minster reiterated commitment to Iran-Pakistan-India gas pipeline which according to him is doable. Pakistan too invited New Delhi for talks regarding the IPI issues in November.

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Militant Activity/Terrorism (particularly Bangalore, Mumbai, Noida, Chennai, Coimbatore)

• In a major blow to ULFA over thirty ULFA and Karbi militants surrendered at the Tamulpur Army base with arms and ammunition.

• The Union government and Andhra Pradesh govt. declared Deendar Anjuman as an unlawful association due to its alleged activities. DA was involved in bomb blasts in places of worship in AP Karnataka and Goa.

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Basic Political Developments

Three-day SAARC conference begins

Asian News International / October 23, 2007 02:24:03



New Delhi, October 23: The three-day SAARC conference that begins here Tuesday will focus on curbing the menace of terrorism, organised crimes, narcotics smuggling and human trafficking.

On the opening day, the Sixth SAARC Conference on Cooperation in Police Matters will be held.

This will be followed by the Second Meeting of SAARC Home Secretaries and the Second Meeting of SAARC Interior/ Home Ministers.

These meetings will continue the exchange of apex level ideas/ perspectives on issues of criticality and work towards enhancement of cooperation in security management and related issues.

India, as host, will chair the meetings.

Capacity building, institutional arrangements and multi-lateral agreements will be at the core of these deliberations at all the three levels.

The forthcoming meetings are, thus, expected to deliberate on among others, a network of cooperation amongst police chiefs, SAARC visa exemption scheme, a Draft Convention on Mutual Legal Assistance in Criminal Matters, greater strength to existing mechanisms of cooperation in drugs, terrorism and trafficking.

As SAARC member States are signatories to the SAARC Regional Convention on Suppression of Terrorism and its additional Protocol and SAARC Convention on Narcotic Drugs and Psychotropic Substances, the deliberations are expected to witness increased dynamism within the existing and newly set up institutional mechanisms, namely, the SAARC Terrorism Offences Monitoring Desk (STOMD) and the SAARC Drug Offences Monitoring Desk (STOMD) flowing from these conventions.

All member States will participate in these meetings. The newest member State of SAARC, Afghanistan, would be participating in the three meetings for the first time.

The meeting assumes significance in the light of a series of terror attacks in India, including in Ludhiana, Ajmer and Hyderabad.

At the 14th SAARC Summit held in New Delhi, the Heads of Government emphasised the importance of increased cooperation in security related areas, especially the need to combat terrorism, narcotics and psychotropic substances, trafficking in women and children and other trans-national crimes.

They had also expressed their commitment to take every possible measure to prevent and suppress, in particular, financing of terrorist acts and counter trafficking of narcotic drugs and illicit arms.

India seeks Pak. support to tackle terror



New Delhi, (PTI): India on Monday sought Pakistan's cooperation in tracking down the suspects in the recent bomb blasts in Hyderabad, Ajmer and Ludhiana, as it provided evidence of the cross-border linkages to these incidents at the Joint Anti-Terror Meeting (JATM) here.

New Delhi also sought to know what action Islamabad had taken on information provided about persons believed to be behind the cross-border Samjhauta Express blasts and other terror attacks in India over the last two years.

"Both sides shared new information on terrorist incidents, including those which have occurred since the last meeting," a joint statement issued after the second JATM said.

At the meeting, the Indian side provided evidence about involvement of Pakistan-based elements in the bomb blasts at Mecca Masjid in Hyderabad, Ajmer Mosque and Ludhiana cinema hall over the last few months.

Security agencies have blamed some Pakistan-based terrorists for these attacks. National Security Adviser, M K Narayanan, recently said Pakistani linkages were common to all these terror incidents.

"The Pakistani side assured that it will look into the evidence," a source said after the meeting.

The Indian delegation was led by K C Singh, Additional Secretary (International Organisations) in the External Affairs Ministry, while the Pakistani side was headed by Khalid Aziz Babar, Additional Secretary (UN) in the Foreign Ministry.

India also sought to know what Pakistan had done to track down those believed to be behind a bomb blast on Samjhauta Express in February that killed 68 passengers, comprising nationals of both the countries.

At the first meeting of the JATM in Islamabad on March 6, the Indian side had handed over a photo of a suspected Pakistani national believed to be involved in the terror strike on the train when it was heading for Lahore.

During that meeting, Pakistan was also given the photograph of an unclaimed body recovered from the site of the Mumbai train blasts in July last year.

New Delhi had also given evidence with regard to the involvement of Pakistan-based terror groups in the attacks in Delhi, Varanasi and Ayodhya besides in Hyderabad in 2005.

"The two sides reviewed the follow-up steps taken on the information shared during the first meeting of the JATM... and the intervening period," the statement issued on Monday said.

At the March meeting, the Indian side had forwarded "confessions" by a Lashker-e-Taiba militant and Pakistani national on his role in the 2005 bombing of the police headquarters in Hyderabad, and requested for an update on the probe at the next round of talks.

Pakistan had agreed to share "specific information" on terror-related acts through the mechanism to help investigations and prevent more such incidents.

The next meeting of the JATM will be held in Islamabad, but the dates were not decided.

Earlier, it had been agreed that the ATM would meet on quarterly basis, but the second meeting of the mechanism took place after seven months.

The meeting could not take place as per the agreed schedule as Pakistan said its pointsman had retired and it took time to decide his successor

Samajwadi Party, TDP, CPI(M) meet to discuss strategy

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New Delhi, Oct 23 (PTI) Samajwadi Party, TDP and CPI(M) today held a meeting here to discuss their joint strategy in the prospect of a special session of Parliament being called on the Indo-US nuclear deal issue.

The three parties held a more than hour-long meeting.

The meeting was attended by Amar Singh of Samajwadi Party, TDP leader Yerran Naidu and CPI(M) General Secretary Prakash Karat.

The meeting also discussed the problems being faced by farmers.

Samajwadi Party and TDP are constituents of the Third Front.

A meeting of all members of the Third Front will take place at former Haryana Chief Minister Om Prakash Chautala's residence here this evening. PTI

Nuclear deal not off, but certainly off-track: Left

23 Oct 2007, 0510 hrs IST,Akshaya Mukul,TNN



NEW DELHI: ‘‘The Indo-US nuclear deal is not dead yet but the timeframe worked out by the government with the US has gone off-track,’’ is how a senior Left leader summed up the outcome of the fifth round of Left-UPA committee’s meeting on Monday.

But the hope of extracting a commitment from the government, as CPI general secretary AB Bardhan had demanded, did not come by. It is believed that NCP leader Sharad Pawar did mention Bardhan’s demand for a formal clarification and said it would clear the confusion.

The written statement after the meeting clearly stated that the deal would be operationalised by taking into account the committee’s findings. Now the panel will meet on November 16 to finalise the findings. ‘‘We know government had an understanding with the US to go to the IAEA by mid-November. This schedule will not be adhered to,’’ a senior Left leader said, adding there could be more than one meeting to conclude the findings. ‘‘The deal is open-ended till findings are arrived at which we will try to do on November 16,’’ Bardhan said.

As for the findings, Left leaders are clear that there has been absolutely no meeting ground in five sittings so far. ‘‘You can guess what the findings would be,’’ a Left leader said. Another senior Left leader put it in perspective: ‘‘The fate of the deal should be seen in the context of what’s been happening outside. Government has to take a political decision. Because of the PM’s continuing unhappiness, the government is trying to salvage something. Let’s see.’’

In the meeting, when Left leaders raised the issue of conflicting statements from the PM, foreign minister Pranab Mukherjee read out what Manmohan Singh and Congress president Sonia Gandhi had said about the nuclear deal at a function a few days ago. Mukherjee also told Left leaders about the PM’s phone conversation with US president George Bush. Mukherjee said the PM only told Bush that there were some problems which were still being discussed.

The Left also gave a fresh note on foreign policy. It had earlier given a note on October 20. The government will respond to both notes soon.

As for debate on the nuclear deal in Parliament, Mukherjee told Left leaders that the government was willing to do so. As for the timing of the debate, everyone felt that it should be decided by the Speaker. It was felt that due to Gujarat election, leaders of all parties might demand a change in the schedule of winter session. A senior Left leader said, ‘‘No discussion on calling a special session of Parliament took place.’

N-deal: UPA-Left panel to meet on Nov 16

22 Oct 2007, 2015 hrs IST,PTI



NEW DELHI: Under pressure from the Left parties to make clear whether the Indo-US nuclear deal is on or off, government on Monday said the operationalisation of the deal will take place in accordance with the UPA-Left committee's findings.

External Affairs Minister Pranab Mukherjee made this clear after a meeting between leaders of the Left parties and the UPA coalition formed to go into the concerns of the allies on the nuclear deal.

The minister announced that the committee would meet again on November 16.

Reading out from a statement, Mukherjee said the deliberations in the committee were held in a constructive and cordial atmosphere.

He said the discussions covered the implications of the proposed Indo-US bilateral agreement on civil nuclear cooperation, including the implications of the Hyde Act on India's nuclear programme and its pursuit of independent foreign policy.

The committee had before it further information provided by Left parties. The UPA will reply to them in due course.

The members of the committee expressed the hope that the issues currently before it would be addressed in an appropriate manner and the operationalisation of the deal will take into account the committee's findings, the statement said.

China hopes Sonia's visit will boost bilateral ties

23 Oct 2007, 1645 hrs IST



BEIJING: China on Tuesday hoped that Congress President Sonia Gandhi's upcoming visit to the Communist nation would promote mutual understanding between the two countries and enhance bilateral ties as well as cooperation in various fields.

"We wish her visit a success," Chinese Foreign Ministry spokesman Liu Jianchao told reporters here when queried about Gandhi's five-day visit from October 25 at the invitation of Chinese President and the ruling Communist Party of China (CPC) General Secretary Hu Jintao.

During his visit to India last year, Hu had met Gandhi, also the UPA Chairperson, and invited her to visit China.

"We hope the visit will promote mutual understanding between the two countries and enhance our relations as well as cooperation in various fields," Liu said.

Her visit would be the first by a foreign leader after the conclusion of CPC's National Congress, its most important five-yearly event, at which Hu was re-elected the party boss for another five-year term.

She had last visited China in 1996 and her planned trip in 2003 was cancelled. The CPC has said it attaches "great importance" to Gandhi's visit and is apparently quite keen to host the Congress chief, who had visited China in 1988 also along with her husband, late Rajiv Gandhi, when he was Prime Minister, in a path-breaking event in Sino-India relations.

Defence Commanders to review security

New Delhi | October 23, 2007 4:11:22 PM IST



Army, Naval and Air Force Commanders are meeting here separately today and will review the security situation in the region, ahead of a common national security conference to be chaired by Prime Minister Manmohan Singh.

The Combined Commanders' Conference will commence here tomorrow. Besides the Prime Minister, it will be addressed by Defence Minister A K Antony and National Security Advisor M K Narayanan.

Chief of Army staff, General Deepak Kapoor, addressed an Army Commanders' Conference, to focus on key policy, conceptual and doctrinal issues in the light of the prevailing and developing security environment.

All Army Commanders and senior officers of the Army attended the conference. The deliberations of the conference are to continue till October 27.

The conference reviewed the nation's security environment, status of operational readiness and also took note of the situation in Jammu and Kashmir and the North-east.

Aspects of force modernisation, including battlefield transparency, long range precision engagement and integral air-mobility are being discussed in detail as part of the overall review.

One critical issue on the agenda is the Army's Space Vision 2020.

The Army realises the importance of space as a vital arena for future exploitation and has already established a "Space Cell" in the Army HQ to coordinate space-based applications in a joint services operational environment.

The appraisal of the progress made in transforming the Army from platform centric to network-enabled and finally to a fully network centric force was also a part of the discussions.

"Besides discussing various issues, we shall be carrying out a holistic review of the entire operations situation with specific reference to the analysis of the situation in Jammu and Kashmir and in the eastern region," Lt. General Sushil Gupta, Deputy Chief of Army Staff, said.

"We shall also be discussing issues related to force modernisation, certain issues on battlefield transparency as also the necessity of having an integral transport fleet as far as the air aviation wing is concerned," he added.

Air Force commanders, led by Air Chief Marshal Fali Homi Major met to take stock of new acquisitions that are expected over the next six months.

Meanwhile, Admiral Sureesh Mehta met with senior officials of Indian Navy. (ANI)

India promises to do more against Myanmar - envoy

Tuesday October 23, 04:45 PM



NEW DELHI (Reuters) - Giant neighbour India has given an undertaking to do all it can to push for democracy in Myanmar, a U.N. envoy said on Tuesday, amid growing pressure on New Delhi to take a tough line against its military regime.

Ibrahim Gambari is trying to forge a united front in Asia to prod the junta in the former Burma to end its crackdown on pro-democracy activists.

But while he did not doubt India's commitment, he said countries could not be stopped from pursuing their own methods.

"I am very encouraged by their response," Gambari said at the end of a two-day visit to New Delhi, part of an Asian tour to drum up support for action in Myanmar.

"I am encouraged by the undertaking which they have given to do everything possible ... use their influence to encourage the authorities in Myanmar to continue their cooperation and to deliver tangible results," he told a news conference.

New Delhi would spell out how it could help to get Myanmar's generals to free prisoners arrested during last month's pro-democracy rallies and make a process of national reconciliation inclusive, he said.

"There are several issues that have been put on the table," Gambari said after talks with Prime Minister Manmohan Singh and Foreign Minister Pranab Mukherjee.

"If all of us can club our efforts to get the government of Myanmar to continue to respond positively to that, then I think that will be very good," he said before heading to China.

India, along with China, is considered to have some sway over the junta in Myanmar, which has kept a tight lid on the country since crushing Buddhist monk-led protests that began last month.

The demonstrations grew into the biggest against the military regime in 20 years and official media said 10 people had died. Diplomats and pro-democracy activists, however, say the death toll could be much higher.

Thousands more were beaten and arrested, although state media said last week that only 377 were still detained.

LIMITED INFLUENCE?

New Delhi has courted the military rulers since the early 1990s in a bid to counter Beijing's influence in Myanmar and access its rich gas reserves, in a turnaround of a policy that initially supported democracy leader Aung San Suu Kyi.

India has come under significant pressure in recent weeks, including from U.S. President George W. Bush and UN Secretary-General Ban Ki-Moon, to influence the junta to ease up on repression of protesters and open talks with Suu Kyi.

But India has hedged its bets and played a delicate diplomatic game, calling for political reform while opposing sanctions and underlining that it would not help to openly condemn a neighbour.

Indian analysts have been divided over whether New Delhi can afford to change its policy towards Myanmar while pursuing its economic and strategic interests.

Most, however, agree that they do not expect any change to come about, if at all, due to Gambari's visit.

Indian diplomats frequently say that the world overestimates New Delhi's influence over Myanmar's generals.

Thant Myint-U, grandson of former UN Secretary-General U Thant from the then Burma, and who teaches history at Cambridge University, said he partly agreed with that assessment.

"My guess is that outside influence may not be enough to move the regime forward on political reforms," he told the Hindu newspaper in an interview during a visit to New Delhi this week.

"But it can help move the regime on other issues such as economic reforms and humanitarian issues. On some of these issues it has enough leverage to make a positive impact," he said referring to India.

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National Economic Trends

India's proposed investor curbs could have bite

Tue Oct 23, 2007 2:55pm



MUMBAI (Reuters) - A plan by India to restrict an avenue that allows foreigners to invest anonymously in India's soaring stock market may prove effective at moderating the unwanted side-effects of an unprecedented inflow of capital.

Indian authorities have watched a tide of portfolio investment enter the world's fastest-growing economy after China with increasingly mixed feelings, ratcheting up efforts to ensure the funds don't push the rupee out of control.

Analysts say the measures, if implemented by the regulator on Thursday, could see a short-term net outflow of about $6 billion from Indian equity derivatives.

That's roughly a fifth of the underlying value of derivatives purchased through so-called participatory notes, which allow anonymity, based on regulatory figures.

When the curbs were first announced last week, stocks initially dropped a sharp 9 percent on fears that a flood of foreign investment would pull out of the market.

Reaction since has been calmer as investors tried to gauge the impact of the measures. The main Mumbai stock index is now down a little over 4 percent since the announcement.

Participatory notes, or P-notes, are issued by foreign investors registered in India to investors overseas.

The regulator, the Securities and Exchange Board of India, wants to phase out P-notes on underlying derivatives over 18 months and restrict the issuance of new P-notes on cash positions.

It wants sub-accounts -- vehicles set up by registered foreign investors to issue P-notes -- to wind up their positions altogether although it has also said some can convert to registered foreign investors.

India's finance minister says restricting P-notes is aimed at warding off a bubble in the stock market, which has jumped as much as 39 percent this year.

But many analysts believe the central bank, struggling to contain a rise in the rupee , up 11 percent against the dollar this year, is behind the decision.

"(Flows) should moderate to the point of being less severe than before this, but I don't think it will moderate to the point of being a drag on the Indian markets," said V. Anantha Nageswaran, head of research, Asia Pacific at Bank Julius Baer.

P-notes have had a dramatic impact on India's stock trading.

Over the past 3-½ years, the number of registered foreign investors and their sub-accounts has jumped to 34 from 14.

The outstanding notional value purchased through P-notes has exploded to 3.5 trillion rupees from 318.8 billion rupees.

Most of the buyers using these notes were hedge funds, Citigroup says.

WINNER AND LOSERS

Foreign holdings in local shares stood at 20 percent, or $204 billion, of total institutional holdings in August, and P-notes made up 34 percent of the foreign holdings, excluding derivatives, the U.S. bank said.

JP Morgan estimates nearly $10 billion of the $17 billion of foreign capital inflows into stocks in 2007 was purchased using P-notes.

One of the bank's economists, Rajeev Malik, wrote in a recent note that unwinding P-notes on derivatives could lead to an outflow of up to $7 billion.

The Bombay Stock Exchange says that until last Tuesday, foreign portfolio inflows had reached a net $17.9 billion so far this year. In the following three days, a net $1.2 billion had left.

The biggest beneficiary of the change is likely to be the central bank because the steps will ease some upward pressure on the rupee.

The currency has risen this year to its highest levels since 1998, an appreciation the Reserve Bank of India (RBI) has struggled to contain.

With an eye on economic stability and export competitiveness, the central bank sold as much as $40 billion worth of rupees in the first eight months of the year as the rupee was rising.

But the intervention also complicated its own anti-inflation fight by flooding the domestic money market with cash.

"If net portfolio inflows slow as a result of these measures, the need for the RBI to intervene in the currency market will also reduce, which, in turn, could slow the pace of accretion of domestic liquidity," JP Morgan's Malik said.

Still, the currency and the central bank may not be out of the woods yet.

ABN Amro said one of the main avenues of inflows was foreign direct investment, of which private equity had formed a large part this year, and in the long run upward pressure on the rupee was likely to continue, driven by a balance of payments surplus.

India attracted roughly $11.13 billion in FDI in 2006, more than almost $8 billion in portfolio investment.

ABN did not rule out more capital controls in the future.

"Continued strong foreign exchange inflows could see further controls, as large-scale sterilised intervention will likely become more and more difficult," it said. [Additional reporting by C.J. Kurrien)

Chidambaram asks rich nations to take steps to cool markets

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Washington, Oct 23 (PTI) India has asked the world's rich countries to take measures quickly to cool down volatile financial markets, while apprehending uncertainty in 2008 with turbulence spreading from its epicenter in the US to Europe.

"We urge the advanced economies to take appropriate measures to restore full normalcy in financial markets," Finance Minister P Chidambaram said at a joint meeting of the World Bank and International Monetary Fund here.

He said downside risks have increased due to spreading of turbulence in financial markets. The risks continue to unfold and the prospects for 2008 are somewhat uncertain.

Last week, Chidambaram had said that developed countries had injected a considerable amount of liquidity into their markets to overcome their own problems, part of which had spilled over into India and some other countries.

Referring to the spurt in global food and crude oil prices, he said global imbalances, supply-side inflationary pressures and protectionism continue to pose risks to growth.

Chidambaram's plea found an echo in IMF Managing Director Rodrigo Rato's warning that an "earthquake" in credit markets sparked by rising defaults in the US mortgage market could tip the global economy into recession, ending a five-year boom.

Pointing out that China and India continue to remain the engines of global growth he said the world GDP growth is projected to cross 5 per cent this year. But supply-side inflationary pressures and protectionism continue to pose risks to growth, he said. PTI

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Business, Energy or Environmental regulations or discussions

Pak agrees for nine items for trade through LoC



New Delhi (PTI): Pakistan has agreed to allow nine items, including basmati rice and fruits, for trade across the Line of Control in Jammu and Kashmir.

While India had proposed that 14 items be allowed for trade across LoC, Pakistan has allowed nine, Minister of State for Commerce Jairam Ramesh said here on Tuesday.

He said India has requested Pakistan to send a team of officials to finalise the fineprint of the trade through LoC.

The items which will trade via this route are carpets, furniture, silk, Kashmiri fruits and spices, aromatic plants, coriander (dhania), moong, basmati rice and Kashmiri saffron.

"More than the number of items, the volumes in which the trade is carried across LoC matter a lot for India," Ramesh said.

He said LoC trade is a good beginning. "If this succeeds, we may expand the list," he said. The items not approved for trade through this channel are leather and leather products, juices and jams, copper and silver, tinned food and fabricated items like gold ornaments.

Pakistan expressed its interest in trade across LoC when the Pakistani Commerce Secretary visited India in August.

India heading towards free trade agreement with EU

By IANS



Tuesday October 23, 04:53 PM

New Delhi, Oct 23 (IANS) Although India and the European Union (EU) are facing major differences at the World Trade Organisation (WTO), they might 'head' towards concluding a free trade agreement (FTA) by end of 2008, said Indian Industry and Commerce Minister Kamal Nath.

The EU and India are currently in discussion to conclude the FTA, the main objective of which is to do away with import duties and other tariffs on certain items of trade.

'This (FTA) will be one of the easier agreements to conclude ... We should be heading towards conclusion by the end of next year,' the minister said, adding that bilateral agreements such as the FTA provide a conducive platform for multilateral discussions at the WTO table.

During his meeting with Finland's Minister for Foreign Trade and Development Paavo Vayrynen, Kamal Nath also raised the issue of some European NGOs' recent campaigns against Indian industries, accusing them of violating human rights and labour laws.

'European NGOs have been extensively campaigning and writing articles, charging Indian industries of not following the rules. These charges are causing trade disruptions. Hence, we are taking up the issue with the EU as these are not healthy for our relations,' Kamal Nath emphasised.

The FTA is expected to boost trade between India and the EU that currently stands at over $50 billion (Rs.1.98 trillion) a year

 US-based Trilogy eyes USD 100 million revenue from India

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Bangalore, Oct 23 (PTI) Trilogy, a US-based firm providing technology-powered business solutions, is aggressively pushing to expand operations in India, where it aims at garnering USD 100 million in revenues in five years.

"We believe India is going to be up to the US size both in telecom and automotive markets. It's time for explosive growth (for Trilogy)", the privately-held company's Chief Executive Officer Joe Liemandt told PTI here.

"Over the next five years, we believe it (revenues in India) should be a USD 100 million business, accounting for 20-25 per cent of our global revenues", he added.

Trilogy's business model is such that it only gets paid once the customer receives the promised business value.

In the automotive sector, Trilogy provides pre-launch demand signal service and helps acquire additional customers for a slow moving model of an OEM and gives Web empowerment service to increase sales.

Director-Automotive Business of Trilogy in India, Sanjay Nigam, said the company began supporting Indian companies within the automotive and telecom sectors last year, and it has already signed five automotive OEMs (overseas equipment manufacturers). "We are in the process of signing three more Indian firms this year." India is the global hub of R&D for Trilogy, which has a 50,000 sq ft facility here that houses 300 professionals.

"Over 80 of the nearly 90 patents in the process are being driven out of India," said Liemandt.

Meanwhile, Trilogy is hosting Fortune Global CEO Forum to be held in New Delhi from October 28 to 31, as it seeks to raise its profile in this country. PTI

Swiss firm bites into India's food retail pie



By IE

Tuesday October 23, 04:03 AM

Geneva-based Global Franchise Architects (GFA), a group that builds, operates and franchises a portfolio of speciality food service brands, is betting big on the Indian retail market. GFA is planning to set up 40 large The Donut Baker stores (measuring 1,000 sq ft) and kiosks (60 sq ft).

Also on the anvil are 20 The Cream & Fudge Factory ice-cream outlets and 100 The Pizza Corner stores by the end of 2009.

GFA is also planning to launch new international brands such as Golden Pretzel baked snacks and New York Deli sandwiches and salads in India in two years. The Donut Baker will sell 47 varieties of donuts.

Fred Mouawad, chairman & CEO, GFA, told FE, "GFA Global Corp is planning to invest $12 million in the Indian market over the next five years." It may also consider raising equity within the country to help its brands grow.

"The first stores will all be corporate owned. We are also looking at appointing area franchisees after opening our first cluster of 20 stores in Bangalore in phase-I," he added. GFA plans to set up The Donut Baker stores in shopping malls, airports, high street locations, IT parks, corporate sites and petrol pumps.

The first Cream & Fudge factory, which is positioned as a super-premium brand, is due to open by November-end in Koramangala, Bangalore.

GFA is talking to a large number of Indian retailers that are interested in its franchisees, apart from joint venture agreements, and providing GFA with locations for their stores.

No need to fear China: Indian minister

Posted : Tue, 23 Oct 2007 10:54:03 GMT



Johannesburg, Oct 23 - Indian manufacturers need not fear burgeoning growth in China as India had its own unique competitiveness in the global market, Indian Minister of State for Industry Ashwani Kumar said here Monday.

Kumar was inaugurating the first India Engineering Centre (IEC) in South Africa, established by the Engineering Export Promotion Council of India (EEPC), which is also only the second one in the world after Chicago.

'This fear of China and goods from China is unfounded. Our manufacturers and entrepreneurs tell me again and again that we have nothing to worry about from China,' Kumar said.

'We are a skills-based manufacturing nation and because of our competitiveness in this sector, we will certainly have a market. The global markets and free trade in good and services will, I think, over time expand economies and ensure that the workforce from developing countries get integrated into the global production processes, thereby ensuring better standards of life and better growth prospects.

'This global expansion of the economy is certainly a factor which we must take notice of and use and leverage it to ensure that Indian goods, including engineering goods, reach across the world.'

Kumar said the government was conscious and mindful of the new dimensions of globalisation, with its 'transitional problems'.

'But I have faith in the resilience and capability of our Indian entrepreneurs who, I am certain, will in time be able to find ways to overcome this difficulty.'

Reflecting on the shift in focus in the new world economy from products to production, Kumar said: 'If our industrialists are able to ensure fusion between their technological capabilities and production processes, and dovetail their marketing strategies into these processes, we will be able to conquer the world even in the manufacturing sector, as we have done in the services sector.'

Lauding the efforts of EEPC and the Indian mission here, Kumar said: 'I have no doubt that this facility will be a window for India in South Africa and the southern African development community just as South Africa will be able to reach out to Indian entrepreneurs and manufacturers through this centre.

'But most important, this office will serve the compelling need of small and medium industries to have an office away from home without having to incur establishment expenditure.'

Kumar said the Indian engineering industry has traditionally been a high export earner for India, and there was no doubt that the African continent provides a huge opportunity for India's industry.

'We know that India has been attaining high growth rates in the manufacturing sector. Manufacturing will continue to be the principal driver of India's economic growth.(c) Indo-Asian News Service

Suzlon plans to raise Rs 5,000 cr

23 Oct 2007, 1347 hrs IST,PTI



MUMBAI: Country's largest wind power equipment maker Suzlon Energy today said it will raise up to Rs 5,000 crore through issue of equity-linked instruments in domestic and overseas markets for expansion purposes, including raising production capacity to 5,700 MW.

The company had earlier received approval from shareholders for raising Rs 5,000 crore in international and Indian markets. Of this, the company has utilised about Rs 2,000 crore by issuing Foreign convertible currency bonds (FCCBs) of USD 500 million.

"Considering the expansion requirements, the board has enhanced the unutilised limit of Rs 3,000 crore to Rs 5,000 crore for issuance of equity shares, FCCBs, Global Depository Receipts and American Depository Receipts," it said in a statement to BSE.

The company also plans to list its Belgium-based wholly-owned subsidiary Hansen Transmissions International NV on the London Stock Exchange (LSE), for which the board's approval has been received at a meeting held today.

The company had acquired Hansen Transmissions International, a wind turbine gearbox manufacturer, in March last year for Euro 465 million.

Suzlon's board also approved investment of Rs 2,600 crore over next two years for raising the company's global manufacturing capacities by 3,000 MW to 5,700 MW to cater to the increasing market share and demand.

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Activity in the Oil and Gas sector (including regulatory)

US firm to acquire majority stake in East India Petroleum



London (PTI): Global Infrastructure Partners (GIP), a private equity firm backed by Credit Suisse and General Electric, is forming a joint venture to acquire 74 per cent stake in Vizag-based East India Petroleum Ltd, a media report said here on Monday.

"GIP is forming a joint venture to acquire a 74 per cent stake in East India Petroleum (EIP), a privately owned company based close to India's biggest port, in the south-eastern state of Andhra Pradesh," the Telegraph newspaper reported.

GIP, which owns stakes in London City Airport and Great Yarmouth port, would hold 80 per cent stake in the joint venture, while Zeus Infra-management, a specialist Indian investor, would own the remaining 20 per cent.

"EIP has significant opportunities for growth as energy consumption increases in India and it builds storage capacity in line with global capacity levels," GIP's chairman and managing partner Adebayo Ogunlesi was quoted as saying by the daily.

GIP is backed by international financial services group Credit Suisse and American conglomerate General Electric.

East India Petroleum provides liquid storage services for petroleum, oil and lubricant products, petrochemicals, liquefied petroleum gas and biodiesel.

According to the daily, although the financial terms of the deal are not being disclosed, it proves that infrastructure-related transactions remain relatively immune from the credit markets seizure which put the brakes on the European and US buyout industries.

India committed to Iran-Pakistan-India gas pipeline: FM

23 Oct 2007, 1152 hrs IST,PTI



WASHINGTON: India is committed to the Iran-Pakistan-India gas pipeline said Finance Minister P Chidambaram, who is in Washington the annual meetings of the International Monetary Fund and the World Bank.

The issue of Iran-Pakistan-India gas pipeline was discussed when Chidambaram met the Iranian Finance and Economic Affairs Minister Davood Danesh Jafari.

"He asked me about our commitment to the pipeline. I said we remain committed to the pipeline. We would have to sort out one or two issues relating to the transit charges. He urged us to resolve these as quickly as possible", Chidambaram said.

"It is completely doable. We should do it. Iran has the gas and we need the gas. We have a problem on the transit charges and that is a problem India and Pakistan would have to resolve. I don't know of any other problems. It is a commercial negotiation, a commercial matter and should be dealt with as a commercial matter," the finance minister said.

Chidambaram also had a number of bilaterals with finance ministries or deputies from countries including Russia, Spain, Nepal and Iran.

He also had discussions with the Secretary of State of the UK and the Minister of Economic Cooperation of Germany.

Pakistan invites India to resolve IPI pipeline transit fee issue

23 Oct, 2007, 1126 hrs IST, AGENCIES



ISLAMABAD: In a bid to break the deadlock over the transit fee issue regarding the $7.4 billion Iran-Pakistan-India (IPI) gas pipeline project, Islamabad has invited New Delhi for talks in November.

Sources said that Pakistani Petroleum Secretary Farrakh Qayyum sent a letter on October 18 to his Indian counterpart, MS Srinivasan, inviting him for talks sometime between November 1-3 or November 12-14 in Islamabad.

India has not yet responded to the invitation, a newspaper quoted the sources, as saying.

Both sides have reached some understanding on the transportation tariff payable to Islamabad for transportation of natural gas through the 1,035-km pipeline segment in Pakistan, but they are yet to arrive at an agreement on the fee issue.

Last month, India refused to attend a trilateral meeting held in Tehran, saying it wanted to first resolve the issue of transit fee with Pakistan. This resulted in speculations that India had pulled out of the project.

Later, Iran dismissed it, saying New Delhi was waiting for the restoration of political stability in Pakistan.

Iran's Foreign Ministry spokesman Mohammad-Ali Hosseini said New Delhi had declared that expert delegations of the two countries would discuss the gas transit fee.

While proposing a ten-yearly revision, Pakistan told Iran that the agreement should be signed not later than December this year. The Iranian side promised to respond to the offer by the first week of next month, and agreed that the early signing of the agreement would be in the larger interests of both sides.

Under the trilateral contract, Iran will export 60 million cubic meters of gas to Pakistan and India each per day

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Militant Activity/Terrorism (particularly Bangalore, Mumbai, Noida, Chennai, Coimbatore)

'Relentless operations' to cont in Assam; 33 militants surrender

Tamulpur(Assam) | Tuesday, Oct 23 2007 IST/ -- (UNI) -- 23CA25.xml



Even as 33 ULFA and Karbi militants surrendered at the Tamulpur Army base today, Gajraj Corps GoC Lt Gen B S Jaswal asserted that Army operations would continue relentlessly until normalcy was restored. Altogether, 31 ULFA militants, including two women cadres, of the 109, 709 and 27 battalions of the outfit and two militants of a Karbi outfit KLNLF laid down their arms in the presence of the Army, police and state government authorities. Besides Lt Gen Jaswal, Assam DGP R N Mathur, Principal Secretary (Home) B L Das, IGP (Intelligence) Khagen Sharma, GOC Red Horn Division Gyan Bhusan were also present at the surrender ceremony, stated to be the biggest in the last three years. The militants were led by 'senior second lieutenant' Nagen Rabha and sergeant major Bhavesh Patgiri. They also deposited arms and ammunition, including one AK 47, one AK 56, one muzzle loaded gun, 10 pistols, five grenades, five revolvers, magazines, detonators, explosives and a radio set. Talking to reporters after the surrender ceremony, Lt Gen Jaswal said the growing discontentment in the militant ranks, coupled with the security forces persuasive methods, have led to the return of many militants to the mainstream in recent times. He added that the ULFA had received major blows in the recent past with the arrest and surrender of many of its top rank leaders. The Gajraj Corps GoC also underlined the rehabilitation facilities, including training, stipend and other facilities that would be provided to the surrendered militants.

The Rehabilitation Training Centre was also inaugurated at the venue today. Reacting to media reports that the Army was against any dialogue with the militants, Lt Gen Jaswal said, '' We are not against the peace process. My comments urging the militants to return to the mainstream had been distorted as a threat.'' He said political resolution had to be ensured by thegovernment and the Army has no part in it. '' Insurgency is not fought militarily,'' he said. He, however, reiterated that the Army would continue with relentless operations till normalcy was restored. To a question, Lt Gen Jaswal said militant outfits of the North east did not have camps in neighbouring countries, but the matter had to be handled by the External Affairs Ministry and not the Army on ground.

Navy detains four Lankans

Rameshwaram | Tuesday, Oct 23 2007 IST/ UNI



Indian Navy detained four Sri Lankans, suspected to be LTTE caders, at Devil point near here today. Police said a naval patrol vessel spotted a fibre glass boat fitted with a five speed engine entering the Indian water this morning. The naval patrol team chased the boat and detained the four occupants of the boat Sudarsanan(24), Kandeepan(21), Ilayaraja(29) and Guhaneshwaran(28), hailing from Jaffna in Sri Lanka.

They were later handed over to Rameswaram town police for interrogation and the boat was seized.

Manipuris protest against kidnapping of engineers

Imphal | October 23, 2007 3:46:40 PM IST



Work in Manipur's Public Health Engineering Department (PHED) has come to a standstill since Saturday due to the indefinite sit-in protest by engineers and staff of the department against the kidnapping of three officials by Kuki Revolutionary Army (KRA) cadres.

The three PHED officials -- Executive Engineer L.Ibomcha Singh, Assistant Engineer O. Meino Singh and Section officer N. Upendro Singh -- posted at Imphal East PHED Division have been missing since October 12.

They were reportedly kidnapped by the KRA cadres between Napetpali and Nongren under Lamlai Police Station's jurisdiction while they were on their way back after inspecting water supply schemes being undertaken at Lamlai and surrounding areas in Imphal.

The families of the abducted officials said that they were informed over telephone that the officials were in the custody of the KRA.

When contacted by the officials of PHED, KRA demanded Rs. 10 million in exchange for the safe release of the three engineers.

The officials at the PHED have expressed their anger at the growing incidents of such kidnappings.

"We have to stop work on water supply to the public as our people have been abducted. The kidnappers have demanded a huge amount of money for the release of our colleagues. I fail to understand from where we get so much money to meet the abductors' demands," said R S Very Pam, Additional Chief Engineer, PHED.

This incident is not the first of its kind to hit the department. In February, an Assistant Engineer and a Section Officer were also kidnapped by the same group and later released after negotiations and the ransom amount was paid. (ANI)

Member of Dawood's gang arrested in Delhi

Tue, 10/23/2007 - 11:52/ By IANS



New Delhi : Anil Iqbal, an alleged sharp shooter and member of India's most wanted fugitive Dawood Ibrahim's gang, has been arrested in the capital, police officials said Tuesday.

Iqbal was arrested late Monday after the police were tipped off that he would come to south Delhi to meet his acquaintances.

"We have arrested Iqbal and are interrogating him at length," Deputy Commissioner of Police (south Delhi) Anil Shukla told IANS.

Among many other crimes, Dawood is accused of having masterminded the 1993 Mumbai serial bombings that killed 257 people, one of India's worst terror attacks.

Deendar Anjuman declared unlawful

23 Oct 2007, 0800 hrs IST,TNN



HYDERABAD: The central and state governments have declared Deendar Anjuman as an unlawful association due to its alleged activities which are pre-judicial to the security of the country. The organisation was declared unlawful under Section 3 of the Un-Lawful Activities (Prevention) Act, 1967.

City police commissioner Balwinder Singh, in a press release issued here on Monday , said, “Deendar Anjuman is indulging in activities which are pre-judicial to the security of the country having the potential to disturb peace and communal harmony and to disrupt the secular fabric of the country”.

“Deendar Anjuman is continuing to indulge in activities for which it was banned on earlier occasions,” he added.

Deendar Anjuman was allegedly involved in bomb blasts in places of worship belonging to a particular community in several places in the state apart from Karnataka and Goa in 2000.

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Labor/Social unrest

Landless marchers near Delhi for the real challenge



Submitted by Mudassir Rizwan on Tue, 10/23/2007 - 10:59. India News

By IANS

New Delhi : The 25,000-strong army of the landless marching on the national capital are now close to their destination. Soon, they will face their real challenge - a positive response to their demand for access to land.

The Janadesh Yatra (march for the rights of the people) -- aimed at sensitising the government on issues related to land and resolving land disputes -- started Oct 2 in Gwalior, Madhya Pradesh.

The marchers, who were 80 km from the national capital Tuesday morning, are expected to reach New Delhi Oct 30.

They have come from 17 different states, including Madhya Pradesh, Orissa, Jharkhand, Chhattisgarh, Bihar, Uttar Pradesh and Maharashtra.

Organised by Gandhian organisation Ekta Parishad, the march, in which there are 11,000 women participants, has been joined by a sprinkling of supporters from other countries.

Ramesh Sharma, who is one of the campaign coordinators, said that the marchers have four major demands.

"One of the primary demands is that the National Land Reforms Policy and the National Land Reforms Commission must be announced on Oct 28 as the government has promised.

"We have already met Congress president Sonia Gandhi and have submitted a letter to Raghuvansh Prasad Singh, the rural development minister. If there is a delay even after this, the marchers have decided to hold an indefinite strike here," Sharma told IANS.

The second demand is that land should be given to the landless people -- the Dalits, tribals, migrants and those of the agricultural community. The marchers also demand that courts clear pending land dispute cases quickly and that women's land rights be documented.

"There should be changes in the land acquisition policy," Sharma said.

Fighting fatigue, braving the heat during the day and the chilly nights, the march has obviously not been easy. But the organisers have ensured all possible arrangements to make the journey less taxing.

Harbhajan, an activist marching along, said: "The organisers have set up community kitchens, and have water tankers and generators to keep the whole area lit in the night as volunteers patrol camp sites.

"Every hundred metres they have public toilets -- makeshift polythene-covered cubicles. Half a dozen ambulances with doctors take care of the health needs as well."

He added that the marchers are getting a lot of support from the locals in the places where they camp.

"Many farmers have donated wheat and vegetables to us. NGOs have been distributing blankets, as temperatures fall sharply at night," he said.

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