Spotlight

New Delhi, 15  January 2007

TELANGANA STATEHOOD DEMAND PICKS UP

NEW DELHI, January 16 (INFA): The demand for Statehood of the Telangana region is fast picking up, even among the leaders of the ruling Congress in the region.

In fact, several Congress MLAs and other leaders of the party have in a meeting decided to impress upon Chief Minister Rajasekhara Reddy the need to consider the separate Statehood demand.

The latest situation has arisen after the resounding victory of the Telangana Rashtra Samiti (TRS) Chief, Chandrasekhar Rao’s in the recent Lok Sabha byelection for the Karimganj seat.  Rao won by a record margin of 2,01,562 votes.

The byelection, remember, was caused by Rao’s resignation from the Manmohan Singh cabinet and withdrawal of the TRS support to the UPA Government at the Centre.

The Chief Minister, who has been on his Government’s development efforts in the region to counter the Statehood demand, has now been alarmed because more and more Congress leaders from the region may join forces with the TRS. This has forced Reddy to finally acknowledge the strong sentiments for a separate State.

Politically dominated by the Reddy and Kamma communities, another OBC in the State is backing the Telangana demand in an effort to refashion the caste equations in Andhra politics. They feel that both the Reddys and Kammas would lose their hegemony to the numerically sizeable OBC lobby in the new dispensation.

The man really left out in the cold is Y.S. Rajasekhara Reddy (YSR).  A staunch supporter of united Andhra, YSR was forced to admit that his party is not opposed to Telangana. YSR tried to pitch the development agenda against the Telangana card, but positive agendas never work in Indian elections.  His hands were also tied by indications from the Congress headquarters that it was not opposed to Telangana.

The CM’s hour of reckoning may not have yet arrived, but now onwards his clout will be seen to be diminished. Strangely enough, but in the Congress tradition, this comes just as he completes half his term. 

Chandrababu Naidu, whose Telugu Desam Party is largely an Andhra area outfit, will have to make inroads by floating a sub-unit catering basically to Telangana area issues. In other words, the TDP will have to adopt a “run with the hare, hunt with the hounds policy”.

In the last two years, Rao has not distinguished himself in taking up the Telangana issue with zeal.  In the coming months too, he need not exert himself too much.  With the thinking in the Congress headquarters that if Telangana is created the honours must go to the Congress, Rao would not have to do much.  Since most of the electorate cast their vote actually for Telangana and nominally for him, he will not have to lead the movement. The movement will push him and egg him on.---INFA

Spotlight

New Delhi, 13 January 2007

COMPANIES ACT TO BE REVISED

NEW DELHI, January 14 (INFA): A comprehensive revision of the Companies Act, 1956, is under the active consideration of the Government of India. It is intended to enable the Indian corporate laws to keep pace with changes in the economic environment.

Initially, to enable a broad-based consultation on the issues involved with the stakeholders, a concept paper on company law was published on the website of the Union Ministry of Company Affairs for the information and comment of the stakeholders.

Thereafter, an Expert Committee, including several experts and representatives of professional and trade bodies, regulators etc. headed by Dr. J.J. Irani, was constituted to advise the Government on revisions required to the Companies Act, 1956.

The Committee submitted its report on May 31, 2005.  Taking into consideration various inputs, including recommendations made by the Irani Committee, a Bill is being finalized for introduction in Parliament during its Budget Session. 

The Committee recommendation included those relating to incorporation of companies, raising and management of capital, audit and disclosure of accounts, management and governance, mergers, reconstructions, compromises and amalgamations, protection of minority shareholder interest, investigations and prosecution for offences, winding up, liquidation of companies etc.---INFA

NO PARASAILING AT HUSSAINSAGAR

HYDERABAD, January 14 (INFA): Parasailing at Hussainsagar Lake in the heart of Hyderabad city which began as a tourism promotion activity by the AP Tourism Development Corporation three years ago has not been happening for over a year now.

The two parasail boats imported from Vietnam at a cost of Rs.30 lakhs each have been in disuse for very long with visitors being refused a sortie. While one is being used as a speed boat, the other has been under repair on and off. The repairs have to be done by a German firm.

Meanwhile, the intensified anti-Parval measures taken up by the civic authorities during the recent outbreak of Chikungunya and Dengue in the twin cities of Hyderabad and Secunderabad do not seem to have had a positive impact.

Several areas continue to be mosquito-breeding centres on a large scale, researchers of the Vector Biology and Control Laboratory of the Hyderabad-based Osmania University have found.

The laboratory officials have found large density of mosquito larva in the water samples collected from different localities of the twin cities.---INFA

Spotlight

New Delhi, 10 January 2007

POWER POLITICS IN ANDHRA

HYDERABAD, January 11 (INFA): Andhra Pradesh Government today finds itself in a tight spot on the power front with farmers on the warpath in protest against inadequate free power supply for agricultural pumpsets. 

Faced with the spectre of losing their rabi crop, farmers are resorting to dharnas, rasta rokos, gheraos and attacks on transformers and electricity sub-stations and Discom personnel.

The Opposition parties---the Telugu Desam, the Telengana Rashtra Samiti, the CPI(M) and the CPI are adding fuel to fire and the ruling Congress is feeling the heat.

The TDP and the CPI laid siege to sub-stations across the State recently, demanding nine-hour uninterrupted supply for farm operations.

The TRS organized a day-long “maha rastra roko” (mother of all road blockades) on the 250 km Rajiv Rahadari from Hyderabad to Mancherial mobilizing 2.5 lakh farmers. Elsewhere, the rampage continued with irate farmers targeting sub-stations and illegally confining discom officials. Several Ministers were gheroed. The Police exercise restraint in tackling farmers protest, lest it unleashes a furious backlash.

Peak demand for the State grid has reached 7,500 mega watts (MW) while the supply has topped 153 million units. Though the State has installed capacity of 11.151 MW, including share in Central sector, power generation has dipped due to tripping of several thermal stations and non-operations of four gas-based power stations owing to non-availability of gas.

On the other hand, agricultural demand has soared to 41 million units a day due to increase of four lakh hectares in area under rabi crop and the existence of 2.2 lakh unauthorized farm connections.  AP Transco officials predict that the power crisis will persist through January to April, 2007. 

Verily, the saddest man is the Congress Chief Minister. But he is putting up a brave face.---INFA

 GLOBAL SUGAR REVIEW

NEW DELHI, January 11 (INFA): World sugar production in 2006=07 is expected at 160.01 million metric tonnes raw value, (mtrv) or 8.35 million mtrv, higher than in 2005-06. 

World sugar consumption in 2006-07 is expected to rise by 2.88 million mtrv to 148.26 million mtrv.  Imports in 2005-06 are estimated at about 48.09 million mtrv, 3.88 million mtrv lower than in the last year. Exports are estimated at 51.36 million mtrv, 2.32 million mtrv lower than in the last season.

The current season is expected to close with a stock of 72.64 million mtrv, or 8.45 million mtrv higher than the closing stock last year.  The stocks amount to 48.995 of the estimated consumption, while last year it was 44.14 per cent.---INFA

Spotlight

New Delhi, 2 January 2007

DATABASE FOR PRIVATE TEACHING CENTRES

NEW DELHI, January 3 (INFA): The Public Accounts Committee of Parliament has expressed concern about the Ministry’s failure to have an updated database in respect of the financial positions of private educational institutions and coaching centres in the country.

The Committee had earlier strongly recommended the need for the Ministry to create a reliable database.  It had pointed out that there were a number of irregularities in the finances of private schools, colleges and coaching centre.

It has been noticed that non-availability of database of private educational institutions, bulk of their income-tax assessments were completed in a summary manner. The Income-Tax Department was thus unable to widen the tax base by identifying such institutions.

In their original report on the subject, the Committee had observed that adequate steps had not been taken by the concerned authorities to bring all the private educational institutions into the tax net through adequate and focussed use of the powers to conduct surveys.

Expressing their concern over the insufficient utilization of the power of survey given to the assessing officers, the Committee had desired to be apprised of the details of the cases, which were brought under the tax net during the preceding two years, assesses that have been brought to tax net and the amount of additional revenue realized from them.

The Committee has noted that no progress has been made by the Income-Tax authorities in identifying the new assesses and in collection of additional revenue from the survey of private educational institutions conducted during the year 2004-05.

Considering the fact that the private schools, colleges and other educational institutions have consistently been collecting huge fees and other charges from the students, the Committee has desired the Ministry of Finance (Department of Revenue) to closely monitor survey operations at the highest level, with a view to realizing the potential tax from these institutions.

While observing that separate yet overlapping clauses in the Income-Tax Act providing exemption for educational institutions are being misused, the Committee in their original Report had recommended that the existing tax laws should be made simpler and clearer in consultation with the Ministry of Law and the lacunae in the law, if any, should be plugged suitable. ---INFA

GOLCONDA FORT WORLD HERITAGE SITE

HYDERABAD, January 3 (INFA): The magnificent Golconda Fort on the outskirts of Hyderabad city could well be on its way to become a world heritage site.

A dossier about not only the Fort but also the Qutab Shahi tombs is being prepared to be submitted to the UNESCO, Paris, for including them in the world heritage site’s list.

If this bears fruit, they would be the first in Andhra Pradesh to get such a recognition, a feather in the cap of the State. ---INFA