Eleventh Five Year Plan gives thrust on human resources

Education is finally going to get a long waited attention. The planning commission in its final document for the eleventh five year plan will propose an increase in allocation for education to 19.9% of the total planned expenditure. This represents 270% increase over the 7.4% allocation in tenth five-year plan. The Plan document was finalized on November 8, 2007 and now awaits nod of National Development Council. The good news is not over yet. The plan also increased allocation in health substantially. The plan reflects UPA government’s determination to strengthen India’s human resource. Around Rs. 2.85 lakh crores has been set aside for education, this constitutes Rs. 1.25 lakh crores for elementary education, Rs. 53000 lakh crores for secondary education, Rs. 84000 lakh crores for higher and technical education and Rs. 6000 lakh crores for adult education.The plan has set aside resources for a massive expansion for higher education. It proposes to establish 30 new central universities, of which 16 will be set up in areas, which doesn’t a central university. The rest 14 will be made model universities with world-class infrastructure and facilities, this will cost around Rs. 1000 crores excluding land. There are plans for 7 new IITs and IIMs each, 10 National Institute of Technology, 5 Indian Institutes of Science, Education and Research, 2 schools of architecture and 20 IIITs. All in all India will set to become a leader in human resources. Its all thumbs up to eleventh plan

Pension money to get into Indian equity markets.

The early moths of next fiscal year could see an additional Rs. 2500 crores flowing into the debt and equity markets and the entire corpus is domestic and for long-term investment. The money will come from the corpus held by the government under the New Pension System (NPS) applicable for the central government employees who joined the services on or after January 1, 2004. The major sum of this corpus will go to debt market but the equity market will also get substantial part. The NPS will ensure a steady flow of funds in the markets with a long time investment horizon and this will eventually minimize the dependency of markets on FIIs. As per the market estimates while contributions from central corpus will be around Rs. 2500 crores, 19 other states have also joined in the move and will deploy the pension fund money in the market taking the sum to around Rs 4000 crores. The works towards the deployment of the funds have already started. PFRDA mandated UTI Mutual Fund, Life Insurance Corporation of India and State Bank of India to act as fund managers. It will soon sign an agreement with National Security Depository Limited (NSDL), to act central record keeping agency (CRA). NSDL have already received nod from Securities exchange board of India (Sebi) to act as CRA.

Oil spill in Black Sea

The oil spill came from Volgoneft-139, a small Russian oil tanker off the Ukrainian port of Kerch. It had spilled at least 1300 tonnes of oil. The tanker was carrying 4000 tonnes of oil in total when it was hit by a storm. A spill of over 700 tonnes is considered large. In the cold waters the thick oil will sink to the bottom making the cleaning task even more difficult. At the coastal settlement of Ilyich about 100 workers are working on the beach to scrape the oil globules off the sand. Birds seeking shelter on the shore during storm were covered with oil and seaweeds. A flock of rails huddle on the beach unable to fly because of oil coating on their feathers. Rails were becoming easy prey for wild dogs as they wee unable to fly and protect themselves. Oleg Mitvol, deputy head of environment agency Rosprirodnadzor said the spill could take years to fix.

Nandigram battle over

The battle over Nandigram in West Bengal has created a nation wide ripple. The trouble started with declaration of the intention to build a chemical hub in Nandigram because of its close proximity to Haldia Petrochemicals and also Haldia Port. The proposed SEZ (Special Economic Zone) by Central and State government saw a mass resentment because of the unwillingness of the people to vacate their lands for industry. Though a handsome compensation package was declared the people stick to their ground. This led the government to rethink on its strategy of SEZ and a new site was proposed for the chemical hub. This should have meant restoration of peace but unfortunately the battle continued. During the mass resentment lead by Trinamul Congress, the main opposition of West Bengal Government, the Trinamul party workers have dispelled their oppositions from their lands in Nandigram. CPM party workers were massacred in the battle and their lands taken away by Trinamul Congress men. Trinamul virtually made Nandigram a separate entity without any administrative control and police. They joined hands with Maoists and led land mines through out the Nandigram. These happened over last 11 months in spite of the State Chief Minister Mr. Buddhadev Bhattacharya requesting and urging his opposition to come to an all-party meeting and to return to peace. Trinamul time and again has denied all invitations to meet the Chief Minister (CM) for the meetings. This led to the CM in consultation Prime Minister of India, Dr. Manmohan Singh to bring CRPF (Central Reserve Police Force) to Nandigram to bring peace. But suddenly a burst of outrage occurred among the CPM party workers in Midnapore. They entered the Nandigram this time massacred their opposition and claimed all land. This final bloodshed for power once again made Nandigram a strong hold of CPM.
But who suffers at the end? There is a saying when elephants fight it is the grass which suffers. The worst sufferers have been the hapless poor, the innocent children and women. The people were blundered, their homes set ablaze and lands destroyed. The people are the sufferers. All the politicians and so-called intellectuals who are up roaring against this perhaps haven’t even sent a rupee to restore their normal livelihoods. This shortsighted politics meant only for power is bringing down the state to its knees. The State image has suffered. But the parties are interested more in blame game than in truly standing by the people in their need. All parties need to stop this mindless war and restore confidence among people.

CII survey reveals 17 sectors have negative growth

A survey released on Sunday, 11 November, 2007 said that 17 out of the 91 manufacturing sectors showed a dip in production, while another 37 grew at single digit rates, mainly due to rising cost of credit and an appreciation of rupee against dollar. Only 15 sectors reported over 20% growth while another 22 grew at 10% or more in the first half of this fiscal.
CII (Confederation of Indian Industries) blamed free trade agreements (FTA) signed in the last two years, though a framework, a bilateral pact, was the deal only recently clinched. Most other FTAs have been on the backburner due to political opposition.
The CII survey comes a day before the government releases the industrial growth data for the first half. But the economists are predicting a robust growth of around 9%.
While the scare of slowdown because the industrial growth rate slipped to 7.2% in July was proved a false alarm as the August figures showed a double digit rates, a fresh worry has set in with the trade data for September estimated import growth around 2%. Economists however dismissed the rate of import growth as a statistical blip.

Apollo ties up with Mahindra and Mahindra for the two British Marques

American private equity group, Apollo teaming up with Mahindra and Mahindra (M&M) has joined the race for Jaguar and Land Rover. Bidders will make presentations to John Hutton, the secretary of state for business and enterprise and to union leaders. Jaguar and Land Rover are being sold as single unit. Together they employ 15000 in UK and have large plants in Castle Bromwich and Solihull in Midlands and Halewood on Merseyside. Ford is likely to raise more than one billion pounds from the sale although bidders have to assume a sizeable pension deficit. The winning bidder is likely to have to secure an agreement with the trustees of the pension funds on how the current deficit will be funded before being able to complete the deal.

Apollo ties up with Mahindra and Mahindra for the two British Marques

American private equity group, Apollo teaming up with Mahindra and Mahindra (M&M) has joined the race for Jaguar and Land Rover. Bidders will make presentations to John Hutton, the secretary of state for business and enterprise and to union leaders. Jaguar and Land Rover are being sold as single unit. Together they employ 15000 in UK and have large plants in Castle Bromwich and Solihull in Midlands and Halewood on Merseyside. Ford is likely to raise more than one billion pounds from the sale although bidders have to assume a sizeable pension deficit. The winning bidder is likely to have to secure an agreement with the trustees of the pension funds on how the current deficit will be funded before being able to complete the deal.

Russia needs green signal from IAEA and NSG

India was hoping to get Russia to work out an inter-governmental deal under the 1989 agreement but have to wait until it gets nod from IAEA and NSG (Nuclear Suppliers Group). In the meantime China has been galloping. Last week China signed an agreement with Russia, where Russia will supply uranium, enrichment capacity and two new power reactors to China. India will have to be satisfied with memorandum of intent (MOI) signed with Vladimir Putin in January 2007. The truth that Russia, post the breaking of USSR cannot help India in its nuclear ambitions has been realized pretty late. Russia has been India friend from the country’s inception even if wants to come forward and supply nuclear technology and uranium to India will require nod from IAEA and NSG.

RPL edges out L&T to bag ultra-mega power project

Reliance Power Ltd is poised to bag a contract to set up 4000 MW mega power project in Krishnapatnam in Andhra Pradesh as it has emerged as the lowest bidder. Reliance Power Ltd (RPL) quoted a levelised 25-year tariff of Rs.2.336 per unit against L&T’ s Rs.2.68 and Sterlite Industries’ Rs.4.81. The project will use imported coal and is estimated to cost over Rs.16000 crores. The company may foray into market for Rs.12000 crores to meet the needs. Earlier this year government has awarded Sasan ultra mega power project to RPL after Lanco’s bid was disqualified.
Interesting there were nine qualified bidders of which Tata Power, Sumitomo, CLP-GMR, DS Construction and Essar Power bid not put a financial bid due to spiraling cost of coal in international markets. The coal breached $102 per ton-mark in Europe owing to shortfall in supply.

Japan likely to ban seafood from Vietnam

Japan withheld 6 consignments of seafood from Vietnam as chloramphenicol content in the consignments exceeded the permitted level. Due to this Japanese government has made the law more stringent and likely to ban imports from Vietnam. 5 Vietnamese companies--- Thuan Phuoc Seafood and Trading Company, Quy Nhon Frozen Seafood Company, Cadvimex Seafood Import-Export, Nha Trang Seafood Processing Company and Hai Nam Co. exported the 6 consignments comprising of shrimp and cuttlefish.

In recent times Japan has purchased greater amounts of jumbo and processed shrimp from Thailand and material shrimp from India and Indonesia. Japan is the second largest destination of Indian seafood, next only to EU. In the first nine months of the current year Japan imported seafood worth $525.6 million from Vietnam down by 12.2% compared to last year. The drop in seafood exports to Japan has been attributed to strict quality norms, though the numbers of sub-standard consignments have decreased. In second half of 2006, 4.6 % of the consignments were found to be containing greater than accepted levels of antibiotic residues. That figure has decreased to 1.6% in first half of 2007. In July 2007, only 0.75% was rejected.

The slowdown in Vietnamese marine exports to Japan makes a new opportunity for India, helping India to increase its exports to Japan in recent times.

Silver likely to outperform Gold

According to GFMS forecast the prices of silver will move in the range of $13.2 to $16.5 per ounce in the next 12 months. The average price in the first ten months of the current year was up 17% on year-on-year basis at $13.16 per ounce. During the same period he metal remained volatile in the Indian market and went as low as Rs.16, 800 a Kg and to a peak of Rs.20, 715 a Kg. Mine production of silver for the year is forecasted to be up by 725 tonnes, a rise of 3.6%. This is mainly due to higher production in Chile, Bolivia and Mexico. However, the decline in production in Canada, Peru, Russia and Kazakhstan could partially offset the increase. On the other hand, scrap supply could see a fall on the back of reductions in recovery of silver from photographic wastes.

India’s wheat stock up 51% from last year

The government had 9.02 million tonnes of wheat in the central pool as on November 1, 2007 up from 5.99 million tonnes a year ago that is an increase in stock by 51%. Wheat stocks were unusually low last year due to low production and poor procurement. This year wheat stocks are enough to meet the domestic demand till March next year. The government’s current monthly wheat allocation for public distribution and other state run welfare schemes is about 1.2 million tonnes. As per this rate government will require 6 million tonnes wheat to meet the requirements till March. The government has also made an additional ad-hoc allocation of 294,000 tonnes wheat for sale to above poverty families till December, which would make the requirement to around 6.3 million tonnes. According to government norms, after wheat allocation for various welfare programmes there should be a buffer stock of 4 million tonnes as on April 1. Government has asked MMTC, PEC and State Trading Corp to import about 330,000 tonnes wheat during January to March. Though the stocks appear comfortable as of now, its rice stock that may become a matter of concern. As on November 1, 2007 rice stock was 10.65 million tonnes down from 12.51 million tonnes last year. The government has bought 8.08 million tonnes of rice from farmers till date as against 8.55 million tonnes last year. To ensure higher rice procurement the government has already banned export of non-basmati rice from the country and announced a bonus of Rs.50 a quintal in addition to minimum support price. Government may announce a second bonus to increase rice procurement.

Whitehouse only interested to make Benazir Pakistan’s PM

The White house on Friday called for the release of its prime ministerial candidate Benazir Bhutto from house arrest. A White house spokesman said it is “crucial for Pakistan’s future that moderate political forces work together to bring Pakistan back on the path to democracy.” Washington wants its game plan of engineering the election of Bhutto as Prime Minister under a continued Musharraf presidency to remain on track, not withstanding the general’s crackdown on Pakistani civil society.
The Bush administration has so far winked at Musharraf’s sacking of Supreme Court judges, whose presumed ruling against the general’s re-election as president caused him to impose emergency. Bush till date has quietly endorsed Musharraf’s continuation as president although that is yet to be legally upheld. American media have ridiculed the Bush administration’s shallow response to Pakistan’s crisis time and again even then; the Bush administration has been notably silent on the large-scale arrest and incarceration of lawyers and civil right activists except for generic calls for their release. In contrast, the American civil society and human rights activists have been campaigning vigorously to free lawyers and civil right activists. Even the United Nations has put pressure on Musharraf. But predictably Washington’s only agenda appears to be to ensure that Benazir Bhutto is not harmed and she arrives at a “power sharing arrangement” with Musharraf.

India needs exchange for carbon credit.

India, a leading seller of carbon credits under the clean development mechanism (CDM) of the Kyoto protocol on climate change, does not have an internationally-linked domestic exchange for the undertaking spot and futures trading in carbon credits. The Indian Clean Technology based projects are denied full financial benefits from this multi-billion dollar global business that is expanding. What is worse, the valuation of certified emission reductions of Indian origin is further discounted because of the relatively low financial and credit rating of the Indian companies concerned, most of which are small in size. In its present form, the Forward Contracts (Regulation) Act, 1952, which governs futures trading in commodities, does not allow trading in CERs since it is not clear whether CERs can be deemed as deliverable goods. The confusion over the exact nature of carbon credits deters the commission from giving its consent to launch of futures contracts, putting the ball firmly in the government’s court. The problem is not in setting up the regulator. The environment ministry already has a cell for giving the host country approvals for carbon trading. This can also function as the regulator for exchange-based transactions. The decision, ultimately, has to be taken by the government.

Biocon eyes US and Europe markets

India’s largest biotechnology company Biocon is planning to tap the potential of biosimilars in the regulated markets of the US and Europe, besides taking Insugen, its own version of insulin, to the global markets in a big way. The launch of biosimilars in the US and Europe is planned over the next 2 or 3 years, by which time proper laws would evolve for biosimilars in these regions. Biocon is in the process of registering with the regulatory authorities in the developed markets for the launch of Insugen. Insugen has already been licensed to a US market and to Bayer for China.