INDIA COUNTRY BRIEF 111014

Basic Political Developments

L K Advani today accused the Congress-led UPA government of discriminating non-Congress parties especially the BJP-ruled states.

Rashtriya Swayamsevak Sangh on Friday said it will stand behind any individual or organisation taking up the fight against corruption.

Eight Congress MPs from Telangana on Wednesday met Lok Sabha Meira Kumar to press for acceptance of the resignations that they have submitted demanding separate Telangana.

Chief Minister Oommen Chandy told the media that the happenings in the Assembly on Friday brought disgrace upon the House as well as people of Kerala.

National Economic Trends

Inflation staying stubbornly outside the RBI's comfort zone and girding the market for another interest rate rise.

The International Monetary Fund (IMF) has supported the RBI's monetary tightening strategy for taming inflation.

Business, Energy or Environmental regulations or discussions

Power plants in India are rapidly running out of coal and some thermal plants have already stopped generation.

The government has approved amendments in two banking laws.

Polaris India today said it plans to set up an assembly plant in the country within the next four to five years and is eyeing revenues of USD 100 million by 2016.

Activity in the Oil and Gas sector (including regulatory) India-focused oil and gas explorer Oilex has said its Gujarat block has been

independently assessed to hold in-place natural gas reserves of 1.3 trillion cubic feet and 1.6 billion barrels of oil.

The Comptroller and Auditor General (CAG) has asked the petroleum ministry to be extra vigilant and maintain strict "compliance and control" while signing contracts with private companies for exploration and production of oil and gasfields in the country.

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

Two persons were injured on Friday when a hand-made bomb buried in the compound of a house exploded at Sarmoti in upper Assam's Lakhimpur district.

The Commander-in-chief of the ULFA Paresh Barua, who leads the anti-talk camp, has hit out at his one-time ‘close friend’, General Secretary of National Socialist Council of Nagaland (Issac Muivah) (NSCN-IM), Thuinglang Muivah accusing him of disintegrating the Northeast insurgent movements by siding with the Indian Government and, thereby, failing to keep his promise made to the people of Nagaland.

India Friday issued a nationwide terror alert, particularly for metros such as Delhi and Mumbai, after security agencies found a car laden with five kg of explosives meant for the Indian capital at the railway station in Ambala, Haryana.

In what could be read as terror’s penetration into the heartland India, an Inter Services Intelligence (ISI) agent was arrested from Bihar by the intelligence officials on Friday.

Labor/Social Unrest

Maruti workers continued their sit-in strike on the premises of Maruti Suzuki India’s Manesar plant for the eighth consecutive day.

Full Text

Basic Political Developments

Advani accuses UPA govt of discriminating against BJP-ruled states http://www.uniindia.com/Satna, MP, Oct 14 (UNI) Senior BJP leader L K Advani today accused the Congress-led UPA government of adopting deliberate discriminating approach towards the states ruled by non-Congress parties especially the BJP-ruled states."The Central government is deliberately discriminating against the BJP-ruled states. This is not a casual thing.

This is a very important and serious matter from the point of constitution," Mr Advani told reporters here.

Mr Advani, who is on a 38-day nationwide Jan Chetna Yatra for "good governance and clean politics", said when the BJP-led NDA government was in power, even a single Chief Minister did not complain of any kind of discrimination.

The senior BJP leader added that the Centre had not yet cleared three acts, passed by the Madhya Pradesh government in relation with protection of cow and to check corruption.

"The state government has passed these acts several months ago but the Centre has not given its accent on the acts yet.

BJP governments in MP and Gujarat passed acts on line of MACOCA in Maharashtra but the Centre has not cleared those acts.

I regard this a clear discrimination against the state governments which have different political character that of the Centre. I strongly object this as the federalism is being undermined by the UPA government," he said.

RSS backs Hazare's anti-corruption crusadehttp://www.rediff.com/news/report/rss-backs-hazares-anti-corruption-crusade/20111014.htmIn another gesture of support to Team Anna, Rashtriya Swayamsevak Sangh on Friday said it will stand behind any individual or organisation taking up the fight against corruption. At the three-day national executive meeting of the RSS in Gorakhpur, the Sangh's head of pracharaks (propagators) Manmohan Vaidya said "full support" would be given to all organisations and individuals who fight against corruption.

This statement has come at a time when Gandhian Anna Hazare has said there was no support from RSS to his campaign for a Jan Lokpal Bill and the fast that he undertook at Ramlila grounds in New Delhi [ Images ]. He has even attacked Congress General Secretary Digivjaya Singh for making this suggestion.

"Not a single member of the RSS was present at my agitation and this could be a joint attempt by the Congress and the RSS to defame me," Hazare had said.

While Hazare has tried to distance himself from the RSS, the latter has emphasised on several occasions that its cadre was present in big numbers at the civil society activist's fast. The RSS also spoke against the attack on Bhushan two days back in the lawyer's chamber in the Supreme Court.

"The Sangh does not support the violent act against a member of Team Anna," Vaidya said, in reply to a question. However, the Sangh is clear about its policy on Kashmir [ Images ] and maintains it is an integral part of India [ Images ].

Bhushan was beaten up by members of a right-wing outfit, which was opposed to his view that a plebiscite should be held in Kashmir to decide its fate.

Incidentally, Hazare has himself differed with Bhushan on this issue, saying the lawyer's opinion is personal and does not reflect the views of Team Anna.

Hazare said Kashmir is a part of India and will continue to be so. The RSS is holding a three-day conclave in Gorakhpur that commenced on Friday.

A resolution on Chinese intrusions into India and the growing threat from the neighbouring country as well as the need to strengthen border security is expected to be passed during the meet. The proposed Communal Violence Bill will also be discussed.

The RSS is opposed to it as it feels the majority community is being targeted and will be held accountable for any communal riot that takes place.

The Sangh founthead will take stock of its organisational functioning and discuss ways to improve it during the conclave, Vaidya said.

Telangana Congress MPs to take part in rail roko Express News Service http://ibnlive.in.com/news/telangana-congress-mps-to-take-part-in-rail-roko/192954-60-114.htmlHYDERABAD: Eight Congress MPs from Telangana on Wednesday met Lok Sabha Meira Kumar to press for acceptance of the resignations that they have submitted demanding separate Telangana.

However, the MPs refused to divulge details of what transpired in the meeting.

“I heard you and seized of the matter,” that is what the Speaker has reportedly told the Congress MPs as conveyed to the media by Nizamabad MP Madhu Yashki Goud.

Besides Madhu Yashki, other Congress MPs Ponnam Prabhakar, G Vivek, K Ra j a gopa l Reddy , G Sukhender Reddy, Manda Jagannatham, S Rajaiah and Balram Naik met the Speaker.

Similarly, Rajya Sabha MP and Telangana Congress steering committee convenor K Keshava Rao, who also met the Speaker, refused to elaborate.

Zaheerabad MP Suresh Shetkar did not meet the Speaker along with others.

Talking to reporters later, Karimanagar MP Ponnam Prabhakar appealed to the Congress workers to make three-day rail roko agitation starting from October 15 a success.

He also advised the state government not to use coercive methods to suppress the agitation.

He said that in the coming days they would intensify the movement and would prepare an action plan after the rail roko.

The T Congress MPs had earlier announced that they would participate in the rail roko agitations on October 15, 16 and 17.

While Madhu Yashki will participate in the agitation in Nizamabad, Manda Jagannatham in Gadwal, Rajagopala Reddy in Bhongir, Vivek in Ramagundam, Suresh Shetkar in Zaheerabad, Sukhender Reddy in Nalgonda, Ponnam Prabhakar in Jammikunta, Balram Naik in Mahboobabad and S Rajaiah will participate in the rail roko agitation in Warangal.

Bhongir MP Komatireddy Rajgopal Reddy said that Congress leadership may announce its decision on Telangana before October 31.

But,he said they would continue to fight for Telangana state.

Peddapalli MP G Vivek demanded that the paramilitary forces be withdrawn the from the region.

He also demanded the state government to postpone Group-II exams.

“We brought all these issues to the notice of AICC general secretary Ghulam Nabi Azad, But, he did not give any assurance,” he added.

Clash in Kerala Assembly; “disgrace,” says Chandyhttp://www.thehindu.com/news/states/kerala/article2537271.eceChief Minister Oommen Chandy told the media here on Friday that the happenings in the Assembly on Friday brought disgrace upon the House as well as people of Kerala.

He also urged Speaker G. Karthikeyan to examine the video recordings of the proceedings in the presence of Opposition leaders and media and punish the guilty. Examination of the videos would bring out the truth about the Opposition allegation that the Watch and Ward had used force against the Opposition members. Opposition members had attacked the watch and ward and tried to attack others.

Mr. Chandy said that the Opposition was trying to create controversies by making false allegations. But, the people should know the truth. It had raised a controversy over voting in the Assembly but had failed to turn up for the examination of the video footage to establish the truth.

He said that the government would follow all the democratic norms and would uphold rights of the Opposition. However, stalling of Assembly proceedings every day and demanding discussions on adjournment motions on the same subject again and again could not be countenanced. Minister for Finance and Law K. M. Mani said that the allegation that the watch and ward had attacked K. K. Lathika MLA was a cooked up story. The member, who usually participated in violent protests, was standing aside on Friday.

Industries Minister P. K. Kunhalikutty said that he had seen a woman member of the watch and ward being beaten by an Opposition member and her cap flying off from her head.

Mr. Chandy recalled that they had been members of the Assembly for long and they had never seen something like this happening in the House before.

Earlier, addressing a press conference, CPI (M) members T. V. Rajesh and K. K. Lathika said that they had been pushed and beaten by the watch and ward. Mr. Rajesh said that he had been beaten with a walkie talkie while Ms. Lathika said she had been jabbed on the face and stomach. CPI members E. S. Bijimol and Geetha Gopi were also present at the press conference.

Earlier, they gave a petition to the Speaker complaining that they had been attacked by the watch and ward. Members of the Watch and Ward V.S. Rajini and V. Abhilash have also submitted complaints to the Speaker saying that they had been attacked by Opposition members.

The Speaker told the media that he would arrange for examination of the video recordings this evening itself if the Oppositions consent to be present.

National Economic Trends

Inflation stays stubbornly high; rate rise seenhttp://economictimes.indiatimes.com/news/economy/indicators/inflation-stays-stubbornly-high-rate-rise-seen/articleshow/10351790.cmsNEW DELHI: Inflation barely budged in September, staying stubbornly outside the RBI's comfort zone and girding the market for another interest rate rise even as policymakers around the world mull easing rates to stimulate a weak global economy.

The Reserve Bank of India (RBI) has raised rates a dozen times since March 2010, but price rises have not slowed.

The market has factored in one more rate rise this year, even if the RBI decides not to tighten rates at its next policy meeting on Oct. 25.

The bank has vowed to keep up its inflation fight despite heavy resistance from business leaders and politicians over an industrial slowdown and weaker investment demand.

After the data release, a deputy governor of the RBI, K.C. Chakrabarty, said inflation was still too high due to external factors, adding industrial production costs needed to come down to fight prices.

A jump in fuel prices drove the wholesale price index up 9.72 per cent versus a year earlier, government data showed on Friday, almost in line with a Reuters poll of analysts and inching up from 9.78 per cent in August.

"Even if regional policymakers shift towards an accommodative bias, India's unique circumstances, amidst structural bottlenecks, will make it difficult for the RBI to toe their line," said Radhika Rao, economist at Forecast PTE in Singapore.

"Steep depreciation in the rupee in Q3 also complicated the authorities' anti-inflationary stance, with 25 bps hike baked into the October rate meet," Rao said.

Other central banks in Asia and Latin America have turned dovish as growth weakens under the weight of debt problems in the United States and the euro zone. Indonesia jumped ahead of its neighbours on Tuesday with a quarter per centage point cut.

Not everybody expects India to raise rates again, however. Pressure is mounting for a pause in monetary tightening that has pushed the repo rate to 8.25 per cent, the highest in three years.

IMF endorses RBI's monetary tightening policyhttp://economictimes.indiatimes.com/news/economy/policy/imf-endorses-rbis-monetary-tightening-policy/articleshow/10353324.cmsWASHINGTON: Ahead of the credit policy review meeting of the Reserve Bank later this month, the International Monetary Fund (IMF) has supported the RBI's monetary tightening strategy for taming inflation.

"In economies where such overheating pressures remain high, inflation remains above target and inflation expectations have continued to rise, such as in China, India, and Korea, the current pace of monetary tightening remains appropriate," the IMF said in its Regional Economic Outlook for the Asia-Pacific.

The RBI has already hiked interest rates 12 times since March, 2010, to control inflation, which is currently hovering near the double-digit mark.

With the rise in key interest rates by 350 basis points over the past 20 months resulting in a slowdown in industrial output, there has been a widespread demand for a pause in the rate hikes. The RBI is slated to conduct its second quarter policy review on October 25.

"Inflation has been driven by commodity prices, but also in many economies by sustained demand pressures," the IMF said.

It said that commodity price rise has fed to generalised inflation in countries like the Hong Kong special administrative region, India, Indonesia, Korea, Malaysia and Thailand.

"Inflation expectations have also risen since the first quarter of 2011 in a number of economies," it said.

The report further said that Asian economies are facing a rising risk to growth on account of increased financial worries in the euro area and the growth slowdown in the US.

Business, Energy or Environmental regulations or discussions

Coal crunch may trip power plants including those of NTPChttp://economictimes.indiatimes.com/news/news-by-industry/energy/power/coal-crunch-may-trip-power-plants-including-those-of-ntpc/articleshow/10346396.cms

NEW DELHI | AHMEDABAD: Power plants in India are rapidly running out of coal and some have already stopped generation, plunging vast parts of the country into darkness and interrupting industrial output in many regions.

The dark spell is expected to continue for 4-5 days. With floods, strikes and the Telangana agitation crippling mining operations, half of India's 85,000 mw of thermal power capacity is running on 'super critical' fuel stocks, or enough coal to produce electricity for less than four days. Another 12% of the capacity is operating on coal stocks that will last for less than a week.

The plants are supposed to stack up fuel for an average of 25 days. Top producer NTPC has been forced to shut down 5,000 mw of capacity because of coal shortage and technical issues. Worsening the shortage is planned maintenance of plants operating on other fuels and low water level in rivers that has hurt hydroelectricity production in some states.

The only winners are merchant power plants, which had seen power rates drop to below Rs 2 per unit before the crisis. Since these plants do not have long-term power sale agreements with utilities, they are free to charge market rates, which have soared to Rs 8.

They are selling electricity at Rs 8-11 per unit, four times the price a month ago. The coal ministry is trying to step up supplies to meet the shortfall in several states, including West Bengal, Maharashtra, UP, J&K, Haryana and Punjab.

The worst affected are the southern states, where power stations have enough coal for barely three days, forcing utilities to resort to load shedding in Hyderabad for up to four hours a day. In other parts of Andhra, which is bearing the brunt of the Telangana agitation, the state government has stopped supply of subsidised power for three days in a week, crippling industries in the region.

"In the past month, the industries in the state have incurred a loss of Rs 5,000 crore and if this continues, we will have to shut manufacturing plants here," said VS Raju, president of the Federation of Andhra Pradesh Chambers of Commerce & Industry.

Andhra Pradesh has been allocated some additional natural gas, which will help step up output at gasfired power plants, but only by 130 mw. Several parts of Delhi faced power cuts and the two plants that feed the city have barely enough coal to last 1-2 days.

Still, these units are better off than a 2,000 mw plant in neighbouring Uttar Pradesh and a 3,260 mw pithead station in central India, where coal stocks are down to zero. Infrastructure companies such as Lanco Infratech, JSW and Reliance Infrastructure are suffering due to the coal crisis as many plants are running at low capacity.

"People who have coal can make a killing," said a senior executive at a Hyderabad-based power company. Several companies are rushing to power exchanges to buy the available electricity at higher rates. India Energy Exchange, the country's largest power trading platform, has seen a 100% rise in demand for power over the past two weeks.

Government approves changes in two banking laws for banks to recover dues and deal with non-performing loanshttp://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/government-approves-changes-in-two-banking-laws-for-banks-to-recover-dues-and-deal-with-non-performing-loans/articleshow/10347182.cmsNEW DELHI: The government has approved amendments in two banking laws to allow banks to recover their dues and deal with their non-performing loans effectively without compromising borrowers' rights.

The Cabinet approved the introduction of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011, in the winter session of Parliament, Information and Broadcasting Minister Ambika Soni said.

"The proposed amendments would enable banks to improve their operational efficiency, deploy more funds for credit disbursement to retail investors, home loan borrowers, etc without fearing for recovery, thus bringing about equity," a government release said. "Further, mandatory registration of subsisting security interest (equitable mortgages) would promote innovation in credit information," the release added.

The bill will amend the Securitisation and Reconstruction of Financial Assets and Enforce ment of Security Interest (SARFAESI) Act and Recovery of Debts due to Banks and Financial Institutions (RDBF) Act so as to strengthen the regulatory and institutional framework related to recovery of debts due to banks and financial institutions.

The government had enacted the RDBF Act in 1993 and SARFAESI Act in 2002 for expeditious recovery of non-performing assets (NPAs) of the banks and financial institutions.

The reworking of the law is timely as banks' non-performing assets are likely to spike because of the slowdown.

The suggested amendments would strengthen the ability of banks to recover debts due from the borrowers, enhance the ability of banks to extend credit to both corporate and retail borrowers, reduce the cost of funds for banks and their customers and reduce the level of non-performing assets, Soni said.

The minister noted that banks and financial institutions were facing numerous problems in recovery of defaulted loans on account of delays in disposal of recovery proceedings.

Banks had sent suggestions for further strengthening of secured creditor rights acknowledging that these two acts had helped in reducing NPAs.

According to Department of Financial Services Secretary DK Mittal, four sections of the RDBF Act, 1993, and six sections of the SARFAESI Act, 2002, will be amended.

Polaris India eyes $100 mn revenues in 5 yrs, to set up plant

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/polaris-india-eyes-100-mn-revenues-in-5-yrs-to-set-up-plant/articleshow/10354203.cmsMUMBAI: Off-road vehicle maker Polaris India today said it plans to set up an assembly plant in the country within the next four to five years and is eyeing revenues of USD 100 million by 2016.

"We see significant growth over the next five years here and are eyeing USD 100 million revenue during the same period. We are a world leader in off-road and all-terrain vehicles and will dominate the market here also," Polaris India Managing Director Pankaj Dubey told reporters here.

Once sales increase, the company will look at setting up a manufacturing plant in India, Dubey said but declined to reveal other details.

Polaris India, a wholly-owned subsidiary of the US- based Polaris Industries, today launched its off-road and all- terrain vehicles here, priced between Rs 2.78 lakh and Rs 20 lakh.

At present, its flagship products include ATVs, Polaris Ranger, side-by-side vehicles and Snowmobile, which are imported from the US and Mexico as completely built units.

"We will focus on the utility application of our vehicles in areas of construction, mining, farming, military and coastal patrolling," Dubey said.

The company has already started a technical centre in the country in association with engineering major L&T and has tied up with TCS for IT services, he added.

Activity in the Oil and Gas sector (including regulatory)Guj block independently assessed to hold natural gas res:Oilex

http://news.in.msn.com/business/article.aspx?cp-documentid=5514218New Delhi, Oct 14 (PTI)India-focused oil and gas explorer Oilex has said its Gujarat block has been independently assessed to hold in-place natural gas reserves of 1.3 trillion cubic feet and 1.6 billion barrels of oil.

Discovered gross in-place reserves in the Cambay basin block near the town of Khambat, 160 km south of Ahmedabad, have been independently evaluated by Netherland Sewell and Associates Inc to hold 1.314 Tcf of gas and 1.633 billion barrels of oil, the company said in a statement.Of these, 484.7 billion cubic feet of gas and 83.3 million barrels of oil were deemed not risked and recoverable.Oilex had drilled many wells on the Cambay field and announced that the evaluation of them has been concluded that there are undiscovered gross in-place volumes of 12.644 Tcf of gas and 11.592 billion barrels of oil.Netherland Sewell and Associates completed an independent hydrocarbon in-place evaluation and recoverable resources assessment of six potential Eocene reservoirs in the Cambay Production Sharing Contract.

Oilex Managing Director Bruce McCarthy said said the tests backed the Australian firm''s view that "the Cambay Eocene tight reservoirs contain significant quantities of oil and gas".

"In the context of the strong Indian market for energy, particularly in Gujarat, the assessment of the resources at Cambay reinforces our focus to deliver the full potential value of this asset," he added.

The assessment will continue to the next stage once sufficient production data becomes available from the company''s Cambay 76H well.

Oilex is the operator of the Cambay production sharing contract with a 30 per cent stake. Its wholly owned subsidiary Oilex NL Holdings has a 15 per cent interest and Gujarat State Petroleum Corporation holds the remaining 55 per cent.The exploration and development work in the Cambay contract area is described by Oilex as "potentially low risk and high reward". The area hosts much of India''s heavy industry and the demand for gas and oil still substantially outweighs domestic supply.

CAG warns govt on private oil dealsAnupama Airy, Hindustan TimesNew Delhi, October 13, 2011 Email to Author

http://www.hindustantimes.com/CAG-warns-govt-on-private-oil-deals/Article1-756978.aspxThe Comptroller and Auditor General (CAG) has asked the petroleum ministry to be extra vigilant and maintain strict "compliance and control" while signing contracts with private companies for exploration and production of oil and gasfields in the country. In a recent letter to the petroleum ministry dated October 3, the CAG has re-emphasised the need to protect government's financial interests. It has also pointed out "numerous deficiencies in compliance and control issues vis-à-vis the provisions of the contracts" by the petroleum ministry and the Directorate General of Hydrocarbons with private developers of oil and gas fields in India.

"Our (CAG's) audit indicated that there is considerable scope for improvement in the management of hydrocarbon exploration and production with private sector participation..," deputy CAG Rekha Gupta said in a letter to petroleum secretary GC Chaturvedi. "Government representatives should protect Government of India's financial interests at the time of review and approval of development plans in the Management Committee."

The letter has also asked the petroleum ministry to investigate eight contracts awarded on a single-bid basis by Mukesh Ambani-led Reliance Industries Ltd (RIL) in its KG-D6 gas field to Aker Group.

"The expertise, ownership pattern and experience of the Aker group needs to be ascertained," Gupta's letter said.

The letter follows the government auditor's recent findings criticising the working of some of India's private oil and gas companies. The report was tabled in Parliament on September 8.

It is being currently examined by the Parliament's Public Accounts Committed under the chairmanship of Murli Manohar Joshi.

An RIL spokesperson did not offer any comments.

The company, however, in a recent letter to the government had justified its position over the awards made by it on single-tender basis. The "three tender processes held up by CAG as the hallmark of good competition is un-achievable," RIL said in a September 26 letter.

Moreover, the procurement procedures in the contracts are designed differently from normal government contracting procedures, the letter said.

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

Assam: 2 injured in a LED explosion in Lakhimpurhttp://ibnlive.in.com/news/assam-2-injured-in-a-led-explosion-in-lakhimpur/192877-3.htmlLakhimpur: Two persons were injured on Friday when a hand-made bomb buried in the compound of a house exploded at Sarmoti in upper Assam's Lakhimpur district.

The bomb was found abandoned by a little boy about three days ago and brought it home where the adults kept it inside an underground dustbin, the police said.

The bomb went off under pressure around 7.30 am causing minor injuries on two tenants living in the compound, sources said.

The country-made bomb containing splinters, cycle ball bearings and plastic bits was wrapped with coir, they said.

The injured were Gopal Bora and Jatin Gogoi, sources said.

Barua guns at Muivah for disintegrating insurgent movements

Ahead of formal talks with ULFA, Barua criticizes Muivah’s choice to go alone and not unite with other rebel outfits

Ratnadip ChoudhuryGuwahati

http://www.tehelka.com/story_main50.asp?filename=Ws141011Northeast.asp Riding close on the heels of the first ever formal peace talks between United Liberation Front of Asom (ULFA)’s pro talk faction and the Centre, the Commander-in-chief of the banned outfit Paresh Barua, who leads the anti-talk camp, has hit out at his one-time ‘close friend’, General Secretary of National Socialist Council of Nagaland (Issac Muivah) (NSCN-IM), Thuinglang

Muivah accusing him of disintegrating the Northeast insurgent movements by siding with the Indian Government and, thereby, failing to keep his promise made to the people of Nagaland.

The NSCN(IM) has been involved in a peace parley with New Delhi since 1997. Union Home Ministry insiders have confirmed to TEHELKA that a new settlement of the long-continuing Naga conflict will be achieved before Christmas. In such a scenario a snub from Paresh Barua will leave Muivah and his team in utter discomfort.

“Muivah is responsible for the disintegration of Northeast insurgent struggle for sovereignty. The Government for long has been taking advantage of the discord among various outfits of the region. Way back in 1985, ULFA has proposed to NSCN (IM) general secretary Th.Muivah to initiate a unity move among Northeast rebel groups since ULFA feared that Government will try to divide and encourage fratricidal killings. But Muivah sided with the Government of India. Thus Muivah has failed to keep his promise to the people of Nagaland,” reads the statement issued by Arunoday Dohutia, press secretary of Paresh Barua led anti-talk faction of ULFA.

The statement further referred to the 10 October incident where there was a huge gun battle between the NSCN (IM) and Zeliangrong United Front (ZUF) in Manipur. The Barua faction feels Muivah’s decision to go alone and not unite the various rebel outfits of Northeast had dealt a blow to the survival of the underground insurgent movements in the region and, in the process, he has betrayed other rebel outfits and people of Northeast.

Independent watchers feel that by issuing such statements the anti-talk faction of ULFA is making a mistake. “The problem of division among various rebel groups in the Northeast is nothing new. It has been there because of high assertions of ethnicity that reduced the ground for the outfits to come closer. The Indian State has always been able to take advantage of this situation, thus by making such statement Paresh Barua is falling into the same trap which he accuses Muivah of falling into,” explained Subir Bhaumik, Editor, Seven Sisters Post.

Between 1985 and 1990 ULFA’s cadres were baptised in terror by the NSCN. They used to share camps in the head quarters of undivided NSCN in Kesan Chanlam on the other side of the Indo-Myanmar border across from Nagaland. After NSCN got divided, the military wing of ULFA under Barua’s leadership has maintained close ties with both the factions. “We have come to know from surrendered ULFA cadres that once Paresh was fond of Muivah but friction developed between the two outfits after Paresh became close to the rival faction of Khaplang-led NSCN-IM. ULFA and NSCN once got engaged in a gun fight over control of a corridor in NC hills,” a senior military intelligence officer said. NSCN(IM) top leader Anthony Shimray, who was in charge of the outfits arms procurement, was hand-in-gloves with Barua before his arrest in Nepal.

Terror alert in metros ahead of Diwali Published: Friday, Oct 14, 2011, 18:02 IST http://www.dnaindia.com/india/report_terror-alert-in-metros-ahead-of-diwali_1598811India Friday issued a nationwide terror alert, particularly for metros such as Delhi and Mumbai, after security agencies found a car laden with five kg of explosives meant for the Indian capital at the railway station in Ambala, Haryana.

The alert has been issued by intelligence agencies following information that the explosive consignment was meant for the capital, ahead of Diwali festival later this month.

"The alert states that terrorists are planning to strike during Diwali," government sources said here.

Following the alert, police forces in New Dehi, Mumbai, Chennai, Kolkata, apart from major cities such as Bangalore and Hyderabad, have ramped up security, sources added.

The explosives recovered in Ambala were procured by the Lashkar-e-Taiba (LeT) and were meant for the Babbar Khalsa International (BKI) to set off bomb blasts in the capital, Delhi police had said Thursday.

ISI agent arrested from BiharLast Updated: Friday, October 14, 2011, 17:39

http://zeenews.india.com/news/nation/isi-agent-arrested-from-bihar_736588.htmlZeenews Bureau

Patna: In what could be read as terror’s penetration into the heartland India, an Inter Services Intelligence (ISI) agent was arrested from Bihar by the intelligence officials on Friday. According to reports, the name of the arrested agent is Pramod Kushwaha who was the front man of ISI in India.

Kushwaha reportedly operated from Nepal and was a key man used by the ISI to push fake currency into India. Police have recovered several documents from him that establishes his link with the Pakistan’s intelligence agency.

Police also recovered ten fake passports from him together with six Nepalese sim cards. Kushwaha is being interrogated by six intelligence officials in Bihar and is likely to reveal key information about the fake Indian currency and other terror activities of the ISI.

Labor/Social Unrest

Maruti workers defy High Court orders, strike enters 8th dayhttp://www.thehindu.com/business/companies/article2536941.eceDefying the high court’s orders, workers continued their sit-in strike on the premises of Maruti Suzuki India’s Manesar plant for the eighth consecutive day on Friday, with production activities at a complete standstill.

The strike by workers at Suzuki Powertrain India Ltd (SPIL) in support of their colleagues at the Manesar plant has made the situation even more precarious for the Maruti Suzuki India management.

The company has decided to stop production at its main factory in Gurgaon on Friday and Saturday on account of a severe shortage of engines and transmissions due to the strike at SPIL. Workers at Suzuki Motorcycle India Pvt Ltd (SMIPL) have also resorted to a strike to press their colleagues’ demands.

“The Manesar plant is still under workers’ control. No production is taking place there today,” a Maruti Suzuki India (MSI) spokesperson told PTI.

Meanwhile, shares of the company were trading 2.14 per cent down at Rs 1,033.80 apiece on the Bombay Stock Exchange in the morning on Friday.

On Thursday, the Punjab and Haryana High Court had directed that there would be no sit-in strike within 100 metres of the premises of MSI’s factory at Manesar. Justice Surya Kant of the High Court issued further directions that striking workers on dharna (sit-in protest) in the plant should be taken out.

He had also directed that willing workers should be allowed to join duty and those on strikes should not be allowed to stop them.

The court also asked the police authorities to ensure that workers who wish to join the dharna are not stopped.

Workers at MSI’s Manesar plant went on a stay-in strike on October 7 afternoon, completely affecting production at the unit. They were demanding the reinstatement of over 1,000 casual staff that were not allowed to rejoin work after an earlier 33-day stand-off that started on August 29, besides 44 suspended permanent employees.