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Reforms to continue, says Chidambaram

          New Delhi: Finance Minister Palaniappan Chidambaram said on Monday he would continue reforms to keep Asia's third- largest economy on a growth path and that his government was committed to fiscal responsibility. He told reporters soon after assuming office that the Indian economy was in a good shape as far as inflation and balance of payments were concerned. "The economy is in a resiliant mood, in terms of growth, inflation and balance of payments. I am confident that there is great scope for consoliating the growth momentum with special emphasis on agriculture, manufacturing sector, and employment," Chidambaram said. The Harvard-educated Chidambaram whose appointment as the finance minister was cheered by financial markets, said fiscal consolidation would continue although efforts would be made to step up public investment. The benchmark Bombay share index was up more than three percent in the afternoon trade as uncertainty on the future of economic reforms faded after Prime Minister Manmohan Singh named Chidambaram as his finance minister. Analysts say the deficit -- which has hit five to six percent of GDP in each of the past five years -- is holding India back economically and restricting the funds available to fight poverty.

Manmohan team causes dismay to CPM, Cong in Bengal (Go To Top)
by Gautam Ghosh

          Kolkata: The composition of the much-touted Cabinet headed by Dr. Manmohan Singh has reasons to cause dismay both to the state Congress and CPI(M) leadership in Bengal. While the state units of both the parties have been disheartened for different reasons by Sonia Gandhi's decision not to offer home to Pranab Mukherjee, the inclusion of some tainted politicians in the Singh Cabinet has also come as a shock. Opposition parties like the Trinamul Congress and the BJP, however, intend to politically exploit the new equations between the Congress and the Marxists to make their presence felt in the state's post-Lok Sabha election political scenario.

         PCC chief Mukherjee, who was initially tipped  for the prestigious post of the union home minister, had to make way for Shivraj Patil from Maharashtra ostensibly due to opposition from veteran party leader from Madhya Pradesh Arjun Singh. While Congress workers in West Bengal, reeling under the post-poll violence unleashed by the CPI(M), had welcomed reports about Mukherjee getting the home portfolio, the CPM leaders, on their part, felt the latter would not be able to defy their directive as far as the state was concerned. The Congress leaders here concede that Patil, as union home minister, will be more concerned about the Congress interests in Maharashtra which goes to Assembly polls next year and may not be in a position to pay much attention to the CPI(M)'s "political terror in Bengal."

           The sudden spurt in post-election violence in the state has put the PCC leadership in the soup. Aware of the Manmohan Singh Cabinet's growing dependence on the left parties for its continuance at the Centre, the state Congress cannot expect it to take really hard steps against the CPI(M)-led Left Front government. In the circumstances Mukherjee's induction as the union home minister would have come as a relief to the beleaguered Congress here.

           The Marxists, however, are not quite happy over the appointment of P. Chidambaram as Union finance minister. They have better equations with Prime Minister Singh who recently described them as "great patriots." The CPI(M) obviously expected him to retain the all-important portfolio and go slow on the reforms front, keeping in mind "the common people's interests."

          Old buildings on high alert as heavy rains lash Mumbai (Go To Top)

          Mumbai: As heavy pre-monsoon showers lashed Mumbai, authorities have gone on a red alert fearing the city's many dilapdiated constructions, many of them illegal, might collapse. Monsoon rains in the city have witnessed many age-old buildings with major cracks giving in, killing scores and injuring many. Residents, compelled to stay in dangerous structures, said the clouds of fear always loom large. "We are always ready to shift from here, otherwise whoever stays back, would die. Especially in rainy season it is very risky. Just anything keeps on falling from anywhere. We are even planning to buy helmets out of fear. It's very risky," said Gadkari, a resident of a decades old "Chawl" or small apartments complex. Chawls, housing about a hundred families, are poorly maintained as they lack residents' associations and are often owned by landlords wanting to get rid of tenants occupying these flats through generations. Residents, however, complained that the red tape forces them to continue living in dilapidated buildings. There are around 19,000 dilapidated buildings in the sprawling city, India's financial capital. Last year a commercial building at Grant Road collapsed killing four people and injuring around ten. The civic authorities admit some of the buildings were in a bad shape. However, due to unavailability of an alternative accommodation, many people refuse to shift their residence. Despite federal laws for safe construction and healthy maintenance of the residential buildings, many such buildings in Indian metro cities are under the threat of collapse. Apart from this, illegal construction continues to be rampant as red tapism, poor enforcement of law coupled with massive influx of immigrants from interiors in search for jobs puts immense pressure on the authorities, who often neglect the complaints from the residents.

New government gets to work (Go To Top)

          New Delhi: New cabinet in ministers took charge of their offices on Monday. Former Lok Sabha Speaker Shivraj Patil who became Home Minister. Patil said talks with Kashmiri separatists will continue. "We will asses on what basis the talks with All Parties Hurriyat Conference were held and we will carry them forward. If we think there is a need for a change in the stand then we will think about it also," Patil told reporters. Pranab Mukherjee, the new Defence Minister, also took charge of the office. In respect of procurement of equipments and other materials which are necessary, it should be done expeditiously," Mukherjee told reporters. The previous government had received much flak after a website uncovered irregularities in arms purchase procedures and alleged foulplay in the purchase of coffins during the Kargil conflict of 1999. The then Defence Minister George Fernandes had to quit after the Tehelka scam broke out in March 2001.

          The new Railway Minister Laloo Prasad Yadav said safety to passengers would be his top priority. "Our top priority will be safety and measures to avert accidents. So that people can travel in trains without any fear," said Yadav. Meanwhile, Human Resources Development (HRD) Minister Arjun Singh preferred autonomy for all higher educational institutions. "Definition of autonomy has been rightly explained and autonomy should be given to all the institutions providing higher education," Singh told reporters. Former HRD minister Murli Manohar Joshi had slashed tuition fees of top management insitutes by 80 percent - Rs. 30,000 from Rs. 150,000. The new Information and Broadcasting Minister, Jaipal Reddy, also took charge of office. Speaking to reporters, Reddy said his ministry planned to form an autonomous regulatory authority to oversee a host of issues. "There can be no two opinions about the need for an autonomous regulatory authority. I am aware there are explosive disputes among people who run cable, among people who run channels on issues of foreign equity caps," said Reddy.

Congress seeks more time to form Karnataka Govt (Go To Top)

          Bangalore: The Congress party on Monday sought more time from governor TN Chaturvedi to form a government in Karnataka. The Congress party, which had not received majority to return to power in the state in the just concluded assembly election, has been negotiating with the Janata Dal (Secular) JD(S) for the formation of a coalition government. HD Deve Gowda, former Prime Minister and JD(S) chief, held three rounds of talks with Congress president Sonia Gandhi in New Delhi. Janardhan Poojari, chief of the state Congress party, said no agreement has been announced yet. "I did not know what has happened (in the talks) between the High Command and Deve Gowda so far. Vilas Rao Deshmukh (the Congress leader in charge of Karnataka) will be coming, P.M Sayeed (federal minister) will also be here. They will be in a position to highlight this. So whatever may be, as far as I am concerned, there is no indication about anything," Poojari told reporters after his meeting with the state Governor T.N. Chaturvedi in Bangalore. While outgoing Congress prefers a power sharing agreement like in Maharashtra where the bigger partner would head the government leaving the deputy chief ministerial post to its ally, the JD(S) insists the mandate was for change and wants the chief minister's post. The election results were announced on May 13 and produced a hung assembly. The Bharatiya Janata Party (BJP), which alongwith its ally Janata Dal (United), emerged as the largest group with 82 seats in the 224-member legislature but fell well short of a majority. The Congress won 65 and the JD(S) 58. While no government is possible without the JD(S)' participation, it is impossible for JD(S) to ally with the BJP.

We will strengthen ties with Pakistan, US: Natwar (Go To Top)

          New Delhi: India's new foreign minister Natwar Singh in his first official media briefing after taking charge on Monday said peace process with Pakistan would continue. The two countries are in nascent stages of talks to solve all disputes, including the vexed Kashmir issue. "The dialogue for friendship and good neighbourliness with Pakistan will continue in all areas. Differences will be ironed out through negotiations," Natwar Singh said. Prime Minister Manmohan Singh as well has affirmed he would take the dialogue forward from where his predecessor Atal Behari Vajpayee, left it. Natwar Singh also stressed that New Delhi would have the "closest" relations with the United States, indirectly dismissing media reports that his government would be more restrained in support of the U.S and Israel than the outgoing BJP who saw a natural alliance with the two nations. "This government will have the closest relations with the United States in all areas. It is important that the two great democracies of the world should engage each other in creative and constructive discussions and deliberations. And if there be differences, they are ironed out with a spirit of goodwill and cooperation," Singh said.

SC dismisses petition on Sonia as PM (Go To Top)

          New Delhi: The Supreme Court today dismissed a petition seeking a direction to the President not to appoint Congress president Sonia Gandhi as Prime Minister of the country. A vacation bench headed by Justice Ruma Pal imposed a cost of Rs 30,000 on petitioner Ashok Pandey, a Lucknow-based advocate, after he insisted that the matter be referred to a five-judge Constitution Bench.

Congress, DMK in hectic parleys on Cabinet berth (Go To Top)

          New Delhi: Hectic parleys are reported to be going on between the Congress Party and Tamil Nadu's Dravida Munnetra Kazhagam (DMK) to resolve the crisis emanating out of the allocation of ministries to seven DMK ministers in the Manmohan Singh government. Apparently peeved over the Congress party and Singh's overnight change in portfolios, DMK president M.Karunanidhi has indicated that none of the party members selected in the cabinet will take charge of their respective ministries till the matter is discussed and sorted out.

           Karunanidhi, who issued this broadside in Chennai on Sunday, is reported to have flown back into the Capital today to discuss the matter with the UPA and Congress chief Sonia Gandhi and Prime Minister Manmohan Singh, besides other Congress stalwarts like Kamal Nath. The DMK chief and former Tamil Nadu chief minister is likely to address a press conference later today on the status between the two parties after the deliberations. When Nath was asked by a television channel about the pressure being put on the UPA by the DMK over the issue, he said that every ally had a right to discuss matters, but not to demand. He expressed confidence about the matter being sorted out by the end of the day. "We are not taking charge today," said senior DMK leader TR Baalu, who was allocated Road Transport and Highways, told reporters on Monday. Karunandhi had said on Sunday that the portfolios announced for the DMK went against the assurances given by senior Congress leader N Janardhan Reddy to the DMK.

           Reports had it that the party was peeved over not getting the Shipping and MoS Revenue portfolios as promised by the Congress. The DMK has seven ministers in the Congress-led coalition government with three of them holding the cabinet rank. These include T R Baalu (Road Transport and Highways), A Raja (Environment and Forests), Dayanidhi Maran (Communication and IT). Apart from the cabinet berths, the DMK has four ministers of state in the Union council of ministers, out of 12 berths secured by the state. Minister of States are S S Palani Manickam (Commerce and Industry), S Raghupathi (Home Affairs), K Venkatapathi (Law and Justice) and Jagadeesan (Social Justice and Empowerment).

Re-polling in Bettiah, Siwan constituencies (Go To Top)

          Patna: Re-polling was held in two of Bihar's politically sensitive constituencies, Bettiah and Siwan. Official sources were quoted by wire reports as saying that voting was taking place at 622 polling stations (429 in Bettiah and 193 in Siwan), and that no untoward incidents had been reported so far. The Election Commission ordered the re-polling after it detected irregularities in the conduct of polls in these two areas on April 26. RJD strongman Mohammad Shahabuddin is seeking re-election for the fourth term from Siwan. He is facing challenge from Om Prakash Yadav of JD-U and Amarnath Yadav of CPI-ML (Liberation). In Bettiah, apart from Madan Prasad Jaiswal of BJP, Ragunath Jha (RJD) and noted filmmaker Prakash Jha (independent) are in the fray.

Musharraf, Manmohan vow to accelerate rapprochement (Go To Top)

           Islamabad: India's new Prime Minister, Dr Manmohan Singh, and Pakistan President Pervez Musharraf have vowed to accelerate the rapproachment process initiated almost a year ago, during Atal Bihari Vajpayee's regime. "Both leaders expressed the desire for the continuation of dialogue to resolve all issues, including Jammu and Kashmir," the News quoted FO spokesman Masood Khan as saying. It added that they also expressed a strong desire for promoting peace and harmony in the region as well as development of economic and commercial ties between Pakistan and India. During a 20-minute telephonic conversation on Sunday, the duo pledged to improve ties and continue the peace process, Pakisan Foreign Office said Sunday. This was the first direct contact between the two after the change of government in India, the report added. According to the report, Musharraf also conveyed his greetings to the Congress president Sonia Gandhi, who was instrumental in installing Manmohan Singh as India's next prime minister. Besides Musharraf, Singh also received congratulatory calls from other international leaders, including British Prime Minister Tony Blair and Russian President Vladimir Putin.

Bangla ferry mishap toll 50 (Go To Top)

          Dhaka: The death toll in Sunday's ferry accident in Bangladeshi river Meghna rose to 50 as rescuers salvaged the sunken vessel from the river bed on Monday, the district administration said. The rescuers recovered eight bodies from the vessel and fund 42 more bodies, most of whom were trapped in the ferry. More people still remained missing. "We got most of the bodies trapped in the vessel," a Navy officer who conducted the rescue operation said on phone from the scene. The Dhaka-bound ferry, MV Lighting Sun, with over 250 passengers was caught in a violent storm and overturned in the mighty river early Sunday.