Search NEWS you want to know

Saturday, January 5, 2013

Reversing Bank Nationalisation

Column Photo of Prakash Karat
THE passage of the Banking Laws (Amendment) Bill in the winter session of Parliament marks a turning point.  The Manmohan Singh government has undone what the Indira Gandhi government did.  The Bank Nationalisation Act nationalized all the major private banks in 1969. Many of these banks were linked to industrial houses.  The 2012 amendment to the banking laws paves the way for the entry of corporate houses into banking.  Thus the wheel has turned full circle.
The Manmohan Singh government has effected this retrograde step after repeated efforts since 2005.  During the first term of the UPA government, this move could not succeed because of the firm opposition of the Left parties.

The Banking Laws (Amendment) Bill sought to achieve two goals.

After denied US prassure Tehran posits itself as provider of energy security

Seeking closer economic ties, Iran posited itself as an attractive transit destination to other countries and a net provider of energy security at a press conference by top official Saeed Jalili, who is being spoken as a presidential candidate to replace Mahmoud Ahmadinejad on his completion of two terms in office.
India has been deeply interested in using the Iranian territory as transit route into Afghanistan, Central Asia and Europe. But Mr. Jalili’s stress was more on energy security despite stalled talks on Indian equity participation in the Farzad gasfield and a gas pipeline to run through Pakistan.
“Iran’s capability is not just supplying oil and gas. Providing security of energy is one of the principles of Iran’s policy in this respect. We have the best capability [among all neighbouring countries] in providing energy security for the region,” he said. Iran had been active in combating piracy in the Persian Gulf, Sea of Oman and the Indian Ocean.
“Our effort has been exemplary. We provided security for our ships and went to the help of ships from other countries when they were attacked. It shows Iran’s power and determination to secure the safety of the region and energy routes.”

Opposition call for new polls rejected by Venezuela VP

Venezuela’s Vice-President said on Friday that President Hugo Chavez could be sworn in by the Supreme Court later on if he’s not able to take the oath of office next week before legislators because of his struggle with cancer.
Vice-President Nicolas Maduro made the comment in a televised interview on Friday night, dismissing the argument by some opposition leaders that new elections must be called if Mr. Chavez doesn’t take office as scheduled on Thursday. His stance appeared likely to generate friction between the government and opposition over the legality of putting off the swearing-in, which the Constitution says should occur on Thursday before the National Assembly.
Mr. Maduro says Mr. Chavez, as a re-elected President, remains in office beyond the inauguration date stipulated in the Constitution, and could be sworn in if necessary before the Supreme Court at a date to be determined.

Tuesday, January 1, 2013

ASSOCHAM does not see turnaround in the economy in the short-term

  Govt  already lowers growth projection for current fiscal to 5.7%
India’s economic growth is unlikely to cross 6 per cent during the current fiscal due to the global uncertainties, an Assocham report said on Tuesday.
The chamber said that its report on the 2013 “economic situation does not see India’s growth exceeding six per cent in the current fiscal, it may not exceed 6.2-6.5 per cent even in the FY’14”.
The Indian economy registered a GDP growth of 5.3 per cent for the quarter ended September. The economy grew by 5.5 per cent growth in the June quarter and 6.7 per cent in the quarter ended September 30, 2011.
It said the economy is still grappling with the key problems of high inflation and interest rates, lack of investor confidence and a terrible situation for exporters.
It said that issues like quality of governance, inflation and fiscal situation will remain the key differentiators this year between India managing to cope up with the global slowdown and further erosion in the economic growth.
The report, which is based on inputs from economists and industry leaders, “does not see turnaround in the economy in the short-term, as uncertainty in the US and Europe has only increased denting the investor confidence worldwide”.
“Under these circumstances, it is the quality of governance and the political leadership which only can make a big difference,” Assocham President Rajkumar Dhoot said in a statement.
It also said with the fiscal deficit crossing 80 per cent of the budgeted for the entire year in the first eight months of the current financial year and the current account deficit widening to 5.4 per cent of the GDP in July-September quarter, signals about the state of government finances are not quite comforting.
The chamber expects that it would take at least another 18 months “before we can expect a complete turnaround, that too if the global situation improves”.