EDITORIAL

Spot the spot

Can we spot the spot where Jambulochan has seen a lion and a goat together drinking water from the Tawi? This rare sight had inspired him to establish our city. So goes the history. It seems he alone was lucky to have been exposed to a divinely spectacle. It is difficult to imagine otherwise a predator and prey standing close to one another. One can extend the same analogy in other spheres. Beauty and the beast may coexist in works of fiction. They are an exception to come by in real life. Saints and philanthropists do care for the less fortunate. They are an entirely different class altogether. It will be demeaning to drag them into lowly materialistic pursuits including those related to setting up new kingdoms. To that extent one should give credit to Jambulochan for having sold to his subjects the dream of living jointly and peacefully in a world of unequal opportunities. It is possible that one of his bards may have invented the lion-and-goat story to immortalise him. Nevertheless, the idea is worth it and can do proud to any social order. Jambulochan has not given us an imposing fort of the kind his brother has left behind on the other side of the Tawi. He has given us something greater. We have followed his advice to the hilt at least in this city in the face of grave provocations during the peak of militancy. Our unity has proved impregnable in spite of clearly communal overtones of terrorist misdeeds. We have thus erased the bitter memory of our meek surrender to the agents of murder and mischief in 1947 who had then succeeded in dividing the majority of us on religions lines. .more

State reorganisation

By Jagdish Dwivedi

The 1956 States Reorganisation Commission (SRC) was a flawed exercise as states were carved out on linguistic basis. As a result some of the states are large and administratively ungovernable; ....more

Indo-Russian trade

By Nitya Chakraborty

Indian Government will take up the latest ban imposed by the Russian authorities on the Indian exports of agri commodities in bulk. Though the ban was partially lifted within 48 hours after THE notification, the essential reasons for the ban remain, and the Indian companies are apprehensive .more.

Will Pak polls be fair ?

By S. Sethuraman

The world's two fastest-growing economies, India and China, will experience varying, though modest impact, of the global slowdown in the near term with India's growth moderating to 8.25 per cent in 2008 while it will be relative .more

Call a halt to intimidating cricket

By Tushar Charan

La affaire Harbhajan might have come to an end after the ICC-appointed Appeals Commissioner, New Zealander John Hansen overturned the three Test ban on the ......more

EDITORIAL

Spot the spot

Can we spot the spot where Jambulochan has seen a lion and a goat together drinking water from the Tawi? This rare sight had inspired him to establish our city. So goes the history. It seems he alone was lucky to have been exposed to a divinely spectacle. It is difficult to imagine otherwise a predator and prey standing close to one another. One can extend the same analogy in other spheres. Beauty and the beast may coexist in works of fiction. They are an exception to come by in real life. Saints and philanthropists do care for the less fortunate. They are an entirely different class altogether. It will be demeaning to drag them into lowly materialistic pursuits including those related to setting up new kingdoms. To that extent one should give credit to Jambulochan for having sold to his subjects the dream of living jointly and peacefully in a world of unequal opportunities. It is possible that one of his bards may have invented the lion-and-goat story to immortalise him. Nevertheless, the idea is worth it and can do proud to any social order. Jambulochan has not given us an imposing fort of the kind his brother has left behind on the other side of the Tawi. He has given us something greater. We have followed his advice to the hilt at least in this city in the face of grave provocations during the peak of militancy. Our unity has proved impregnable in spite of clearly communal overtones of terrorist misdeeds. We have thus erased the bitter memory of our meek surrender to the agents of murder and mischief in 1947 who had then succeeded in dividing the majority of us on religions lines. Jambulochan apparently understood: "No beast has ever conquered the earth; and the natural world has never been conquered by muscular force."
Is it too late to initiate an exercise to locate the place that has motivated Jambulochan? The common sense says that it is impossible. History has wiped out several layers of sand of the Tawi. One can't even be sure whether the river follows the same course that it had done in the past. One worthy person has created a replica of our city at the crossing outside the Ranbireshwar Temple on the Shalamar Road near the New Secretariat. It is a laudable effort. Unfortunately, however, its position at an extremely busy traffic inter-section does not permit people to notice leave alone enjoy it to their hearts' content. In no event can many sight-seers stand in a huddle at the same time to have a look at it. Suffice it to say for our immediate purpose that this grand depiction too shows the lion and the goat in an unspecified corner of the Tawi. The reason is simple: the exact spot that the two animals have chosen to become part of our folklore is not known. Where is this blessed site? Is this not a brain-teaser waiting to be resolved by researchers, historians and archaeologists in particular? One may point out that Haryana has announced a cash award for any person who can pinpoint the spot where Krishna has delivered the message of Gita to Arjuna in Kurukshetra. Krishna has spoken the eternal truth about life and Karma inspiring doers down the generations. However, the place He has chosen for the purpose is not traceable except that it has to be in Kurukshetra, the epic battlefield. One trusts that Gita has stirred the imagination of many enquiring minds. They will one day spot the spots that keep haunting us. .

State reorganisation

By Jagdish Dwivedi

 

The 1956 States Reorganisation Commission (SRC) was a flawed exercise as states were carved out on linguistic basis. As a result some of the states are large and administratively ungovernable; while some are very small unable to generate sustainable taxes to run the administration. Once again in a mini reorganisation in 2000 the NDA government divided Bihar, Uttar Pradesh and Madhya Pradesh, and Jharkhand, Uttarakhand and Chhattisgarh were carved out. The question is if "small is beautiful" why these three new states are lagging behind on development indices?
As state assembly elections in nine states and parliament is drawing closer fresh demands are being made for creation of five states: Uttar Pradesh chief minister, Ms. Mayawati promising to bifurcate the state in three parts, Andhra Pradesh to be divided into two as well as Maharashtra partitioned into two, namely, Vidarbha and Marathwada as separate states because these regions are backward. There is also a muted demand for bifurcating the state of Jammu & Kashmir in three independent units, namely, the Kashmir Valley, Jammu and Ladakh, the latter given the status of a Union Territory. Is it economic backwardness or political expediency?
The Congress in Andhra Pradesh finds itself in a quandary. Chief minister Rajasekhara Reddy staunchly opposes bifurcation of the state. Many Congress elected representatives from Telangana, knowing fully well that they stand no chance of retaining their seats unless they take a firm stand on separation, have threatened to resign en masse unless the party leadership in Delhi declares its intention to bifurcate Andhra Pradesh. To add to the woes of the Congress, the UP chief minister Mayawati, who is trying to spread the wings of her BSP in the south, told a massive rally in Hyderabad recently that if her party was voted to power at the Centre, it would concede the long-pending demand of the people of Telangana.
Telangana is the home of most of the backward castes. No party in Andhra Pradesh can aspire to come to power in the next election. While the CPI has realised the mood of the people and changed its opposition to statehood for Telangana, the CPM is the main stumbling block in the UPA to granting the demand. Waiting in the wings and watching these developments is Chandrasekhara Rao, leader of the Telangana Rashtra Samiti who had resigned from the UPA government for its betrayal of the promise of statehood for Telangana made at the time of the last Lok Sabha election.
Sixty years on, India has come a long way from being a collective of 562 princely states scarred by Partition to a self-assured nation of 28 states. However, once again, the Indian polity is faced with a question that was posed to Prime Minister Jawaharlal Nehru: Should India be divided into smaller states if the people of a region so demand? Nehru was a well-known opponent of creating states on linguistic lines. But a fast-unto-death forced him to change his mind.
It all started with Potti Sriramulu, a freedom fighter and a follower of Mahatma Gandhi. In 1952, Sriramulu fasted for 50 days demanding a separate state for Telugus (today's Andhra Pradesh) and died. Moved by the death of the 51-year-old Sriramulu, Nehru formed a three-member SRC in 1953 to look into regional demands. Chaired by Justice Fazl Ali K.M. Pannikar and H.N. Kunzru were the other members-the SRC redrew India's internal boundaries. Three years later new states, including Andhra Pradesh, were formed.
Over the last few years, the scene has once again shifted to Andhra Pradesh. The demand for a separate state of Telangana is as old as the state of Andhra Pradesh. Though the first SRC had also explored the pros and cons of Telangana, it had ruled in favour of a "Vishal Andhra" (United or Greater Andhra), observing public opinion in Telangana had not "crystallised". Telangana leader K. Chandrashekhar Rao. Cine-star Chiranjeevi, who hails from Telangana, is also keen to peg his political ambitions on the issue. With the BJP supporting the cause of a separate Telangana, the Congress has been cornered. This is a promise the Congress had made in its manifesto for the Andhra Pradesh elections in 2004. It had also been mentioned in the UPA government's National Common Minimum Programme (NCMP).
Close on the heels of Telangana is the demand for splitting Uttar Pradesh. Though Panikkar had written a note of dissent in the final SRC report and recommended breaking up Uttar Pradesh, he had invited the wrath of Nehru and Govind Ballabh Pant. The senior politicians thought this was an attempt to reduce the clout of Uttar Pradesh and was absolutely unnecessary. A half-century later, the Congress, which is battling to inch back into Uttar Pradesh's political arena, has pulled this rabbit out of the hat. In the process it has surprised its own functionaries. After BSP czarina Mayawati swept the state and gave the Congress a scare as a spoiler in Gujarat and Himachal Pradesh, the Congress has found this new formula to reinvent itself in Uttar Pradesh. However, as soon as the Congress proposed Bundelkhand and while heir-apparent Rahul Gandhi was still mouthing the "we want smaller states" line, Mayawati called for trifurcation of Uttar Pradesh, with a Harit Pradesh being carved out of 23 districts in the western part of the state.
The Left's reluctance has seen the Congress eat its words. On January 9, party spokesman Shakeel Ahmed said at the official Press briefing that there would be no new state without an SRC. Five days later, his colleague Abhishek Manu Singhvi was equally categorical: "The issue of setting up an SRC or creation of a state is a matter for the government to decide. In the event that the government believes that the demand for creation of states is valid, then the Congress would have absolutely no objection. And if it indeed thinks it is a better route to set up an SRC, because issues of economic viability, historical claim, sustainability… (these would) would be looked at by an expert body."
Formation of an SRC could trigger demands other than Bundelkhand and Telangana. There could be a demand for Gondwana, comprising portions of Chhattisgarh, Andhra Pradesh and Madhya Pradesh; Kodagu from Karnataka's coffee belt, Bodoland from Assam; Garoland from Meghalaya and Mithilanchal from Bihar.
Creation of more states on linguistic basis will prove divisive and the politics of the "sons of the soil" will gain momentum as exemplified what is happening in Mumbai, where the slogan is "Maharashtra is only for Maharashtrians". INAV


Indo-Russian trade

By Nitya Chakraborty

Indian Government will take up the latest ban imposed by the Russian authorities on the Indian exports of agri commodities in bulk. Though the ban was partially lifted within 48 hours after THE notification, the essential reasons for the ban remain, and the Indian companies are apprehensive about the adverse impact of the decision on the Indian industry.
The issue will be taken up by the Indian officials during the high-level talks here between the delegations of the two countries during the visit of the Russian Prime Minister next week.The Indian side will take up some issues which are impeding the growth of Indo- Russian trade. The Commerce Ministry has got the feedback from the exporting community, and the Russian officials will be apprised of the sentiments of Indian businessmen in dealing with Russia.
The pharma companies of India have mentioned their difficulties in getting registration of generic pharmaceutical products in Russia. It takes almost two years for getting genric products registered in Russia. While this is the case for Indian companies, applications for registration of products made by pharma companies from the eastern European region are normally cleared in about a year's time, Indian pharma companies feel that if the dossiers are submitted by them as per guidelines, then the ministry of health can reduce the registration time from up to two years to about one year.
Further, some of the pharmaceutical companies have reported that in January 2007, a new bill was introduced in Russia requiring companies to first get their products inspected and certified and then cleared by customs. Prior to introduction of this rule, goods were first customs cleared and then sent for inspection. The reversal of the procedure has added to the cost of the companies. Under the new procedure, until the process of inspection is completed, the Indian exporter has to bear the charges of keeping the stock at the port.Under the earlier system,when the goods were first customs cleared, the Russian distributor of the consignment was responsible for the inspection formalities. The cost of keeping the stock/consignment at the distributor's warehouse is much lower.
Companies have also reported that in case the certification department does not clear the consignment, then it has to be brought back to the country of origin.The process of bringing back the consignment and complying with re-export formalities is very tedious and takes a minimum of two to three months. During this period, again, it is the supplier who has to pay demurrage charge at the respective ports.
Indian companies also want their business investments in Russia to be protected and there should be safeguards in respect of that. This measure will lead to higher Indian investments in Russia since many of the interested companies may then set up a manufacturing base. Indian businessmen point out that if such a safeguard is worked out, there will be a surge in investments in sectors like textiles, pharmaceuticals, diamond cutting etc.
As regards mining, Indian companies see huge possibilities. A few Indian steel companies have expressed their desire to enter into joint ventures with Russian companies to acquire coal mines, set up beneficiation plant for reducing impurities as well as set up coke oven plants for further processing of coal to convert into coking coal. Indian companies feel that while the Russian partner can do the mining, the Indian company will undertake the marketing of coal. A few Indian companies have also shown interest to enter into a JV agreement with Russian companies for developing a source of muriate of potash(MOP) which is used as a potassium fertiliser.With no indigenous production of MOP in India,the country is completely dependent on imports with annual imports being in the range of 3.5 to 4 million mt.As Russia has huge reserves of MOP, Indian and Russian companies can enter into a JV, and India can develop a reliable source of supply.(IPA)



Will Pak polls be fair ?

By S. Sethuraman

The world's two fastest-growing economies, India and China, will experience varying, though modest impact, of the global slowdown in the near term with India's growth moderating to 8.25 per cent in 2008 while it will be relatively sharper for China from 11.4 per cent in 2007 to 9.6 per cent, according to latest IMF/World Bank projections.
Export demand in both countries would dampen, much more for China, world's third largest exporter, which also faces higher inflation at 6.5 per cent or more for months now.
IMF, which concluded its Article IV consultations with India recently, says after four years of "dream run of strong growth" averaging 8.5 per cent led by investment and productivity, the economy is slowing from over 9 per cent to 8.75 in 2007 and to a likely
8.25 per cent in 2008.
In its latest quarterly review of China's economy, the World Bank notes global slowdown should affect China's export and investment in tradable sectors. But domestic demand remains robust and strong fiscal position could stimulate demand while a modest global slowdown could contribute to rebalancing of China's economy, which has, unlike India, excessively relied on exports and got into trade tensions with USA and EU. According to the Bank, wage cost pressures would make it difficult for Chinese authorities to bring down soon a record high inflation.
The key policy challenges for India, IMF says, are the surge in capital flows, complicating monetary policy, fiscal consolidation, with public debt high around 80 per cent of GDP squeezing fiscal space for public investments in line with the 11th Plan, and structural reforms to ease supply constraints (infrastructure), boost competitiveness and ensure that benefits of growth are widely shared (inclusive growth).. By and large, IMF concurs with the present monetary policy stance, leaving policy rates unchanged, in view of conflicting signals for prices and demand growth. RBI's management of rupee appreciation and capital flows is "appropriate" though it would like India not to swerve from the path toward capital account convertibility.
Coming before India's Budget for 2008-09 is presented to Parliament on February 29, the IMF's Executive Board noted the key challenge facing the authorities is to sustain rapid and inclusive growth, foster job creation, and maintain macroeconomic and financial stability in the context of large capital inflows.
Over the medium term, IMF staff report says India would sustain growth rate of 8 per cent, its current potential, contain inflation and enjoy continued economic and financial stability. India's growth is driven by investment and demand and IMF does not expect any major impact from the global turmoils given its level of high capacity utilisation, buoyant corporate profits and business confidence, and rise in productivity.
While India's rupee appreciation has affected exports to some extent, particularly select labour-intensive sectors, IMF views the present exchange rate as being in line with fundamentals, reflecting the strength of the Indian economy, and appropriate for medium-term perspective. It has not broadly hampered competitveness.
IMF says India's favorable outlook with sustained growth and macro-economic stability has attracted record capital inflows, which help finance investment but also present challenges to managing capital markets integration/ Large capital flows, especially from the latter half of 2007, complicated the conduct of monetary policy generating liquidity and pressures on the exchange rate, especially with the wide interest rate differentials.
IMF favours further rupee flexibility as the most effective way to address exchange rate stability, monetary independence and financial openness. Avoiding large and prolonged foreign currency purchases would reduce the need for costly sterilisation. In the discussions, Directors emphasised that broader and deeper financial markets could better intermediate capital inflows, accommodate exchange rate volatility, and support financial stability and economic growth. They encouraged the authorities to press ahead with developing domestic corporate bond and derivatives markets, and to implement more market-based monetary operations.
IMF recommendations on fiscal policy include expenditure reforms to create space for priority spending, mainly by phased reduction of the growing fuel subsidy while ensuring that adequate and well-targeted safety nets are in place to protect the poor. Directors welcomed plans for a national goods and services tax, and noted that cutting tax exemptions, increasing user fees and further improving tax administration would improve the tax base. It is on fiscal consolidation that IMF strikes a view different from what the Finance Minister Mr Chidambaram has been saying, namely that the consolidation targets are on track in 2007/-8 (3.3 per cent of GDP fiscal deficit). It says fiscal consolidation has been mixed, and slowed in 2006/07. Including off-budget bond issuance (oil bonds and other liabilities) the general government deficit (Centre & States) held steady at about 7¼ percent of GDP. The Central Government deficit remained at 4½ per cent of GDP, with buoyant tax revenue offset by higher expenditure while the states' aggregate fiscal deficit rose marginally to 2¾ per cent of GDP. Revenues performed well, though expenditure rose faster on the back of rising public investment. Public debt remainshigh, at nearly 80 per cent of GDP in March 2007.
For 2007-08, IMF projections are GDP growth at 8.7 per cent, savings and investment at 36 and 37.3 per cent respectively, fiscal deficit 3.1 per cent (according to Government) and 4.3 per cent (according to IMF staff including the off-budget bonds), exports 155 billion dollars and imports 240 billion dollars, current account deficit 16 billion or -1.4 per cent of GDP, FDI (net) 10.6 billion as against 8.9 billion last year), portfolio investment (equity and debt) 33.4 billion (7.1 billion) and overall balance 82.9 billion (36 billion in 2005-06). Total reserves at the end of March 2008 projected at 290 billion dollars but as per RBI data, it was already 288 billion dollars as on January 25. (IPA)

Call a halt to intimidating cricket

By Tushar Charan

La affaire Harbhajan might have come to an end after the ICC-appointed Appeals Commissioner, New Zealander John Hansen overturned the three Test ban on the Indian off spinner while awarding him a 'lesser' punishment of imposing a fine of half his match fee. Yet, it may be too early to believe that the ugly fall-out of the incident or incidents during the third cricket Test between India and Australia at Sydney will be quickly erased from memory.
Cricketing bodies everywhere need to sit together urgently to go to the root of the problem that leads to the kind of bitterness witnessed in Sydney. The top of the agenda should be an agreement to stop players from using provocations against adversaries in any form, be it through abusive language or aggressive body language or vulgar gestures, during the course of a match.
This business of ban or suspension from matches is a bit weird. In football or hockey, for instance, a player found guilty of a very serious infringement of the rules of the game is ordered off the field. Not only the player but his team is also chastised instantly. The idea behind that kind of rigorous punishment seems to be that not only the player concerned but his team should also know that no one can get away with serious breach of the playing rules on the field. In cricket, no matter how serious the charge against the player, he gets the punishment after the match.
That the unpleasantness from Sydney may be far from over became clear from the vile reaction among the Australian cricketers and the media. In no uncertain terms the Australians were upset because the serious charge of 'racism' against Harbhajan Singh had not been upheld only because, in their opinion, the Indian cricket board had used its financial muscle to get a diluted verdict. If the furious Australians could help it they would have settled for nothing less than a life ban, not just three Test ban on the Indian bowler.
In contrast to the Australian shenanigans, the reaction in India was generally sober. Perhaps that was only to be expected as it was a big relief for everyone in the country to see that the absurd charge of 'racism' against Harbhajan had fallen through. If, as the Australians said, the Indian cricket board was able to influence the verdict because of its financial clout not many in India would resent it. After all, a country like India hardly has for long been denied any say in running the affairs of cricket and other sport, including hockey where the country had reigned supreme for more than a decade. A feeling exists in India that the sporting administration in world is still largely controlled by the developed 'white' world.
The disparity in the views expressed in India and Australia over the Harbhajan verdict may come to the fore again when the Australians visit India later this year, as scheduled. One of the matches they will be playing in India will in all probability be played at Mohali in Punjab, which is bound to attract a big contingent from nearby Jalandhar, hometown of Harbhajan. How this group will behave is not difficult to imagine, considering that the people in Punjab and Jalandhar in particular were deeply hurt when the Australians branded Harbhajan a 'racist' on the totally imaginary ground that he had described the Australian all-rounder Andrew Symonds a 'monkey.'
And not just on the field. They would have, as is always the case with visiting 'white' teams, they would have blasted the 'heat' in India, the 'disagreeable' and 'unhygienic' food, the mayhem on the streets and 'unsporting' crowds and so on. All this is old hat and Indians have not paid much attention to these issues, which are not really justified. But bad words spoken by Australians will be in danger of reviving the Sydney memories, at least in Punjab.
If it is part of the 'culture' of the 'macho' Australian cricketers to show off their aggression that to others looks offending and repulsive why can't they put up with retaliation in kind? Is it because the Australians have come to believe that they are invincible and they cannot face the prospect of defeat, as no cricketing team in the world should even entertain the thought of beating them?
Cricket is certainly a game of fluctuating fortunes and uncertainties, though there can be no doubt that for long the Australian team has looked the best in the world. But the Australians would have to be super humans to think that they would remain unbeatable for all time to come.
There are many, not just in India, who believe that the Sydney Test that India had lost could have ended differently had it not been for some remarkable inapt umpiring.
Cricket may not exactly be called a gentlemen's game today since the original allusion was not to courteous on-field behaviour by the men in flannels but their privileged background. The Australians could well say in their defence that they were the victims of some boorish behaviour by their rivals during the 'bodyline' series which saw the head of the greatest cricketer of all times, Sir Donald Bradman, being picked as the regular target for the English fast bowlers in the pre-War Test series played down under.
It is interesting that the cricketing authorities have put a brake on intimidating tactics by fast bowlers by limiting the number of bouncers and banning beamers, but not enough attention has been paid to curb the now widespread practice of sledging or abusive on field exchanges by players.
Even the use of stump microphones, which can pick up the players' conversation, has failed to subdue the more vocally aggressive players. It can be said that the stump mike may have prevented the Sydney fracas had Harbhajan used an English expletive, understood by the match referee who clearly took a one-sided decision at Sydney, South African Mike Proctor, and the Australians, instead of a 'racist' word. But that is condoning free flow of four-letter words in a 'gentlemen's game'. (Syndicate Features):





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