NEW DELHI, May 11: Expressing unhappiness over the contraction in industrial output numbers, Finance Minister Pranab Mukherjee today said slowdown in global demand and investment activity has impacted IIP.
“The IIP figures are disappointing… Continued weak global business sentiments are also adversely impacting recovery in domestic private investment,” Mukherjee told reporters here.
Factory output, as measured by the Index of Industrial Production (IIP), contracted in March to a five-year low of 3.5 per cent. The IIP growth was higher at 9.4 per cent in March last year.
“Domestic investment recovery remains frail… Though RBI’s monetary stance has been reversed in last policy announcement, it will take some more time for interest costs to come down,” Mukherjee said.
On an annual basis, the IIP grew by a meagre 2.8 per cent, as against 8.2 per cent in the 2010-11 fiscal.
Saying that the revival of manufacturing output in the January-March quarter was not on expected lines, Mukherjee said part of the dip in March IIP numbers is due to base factor.
Expressing “deep concern” over the IIP numbers, Commerce and Industry Minister Anand Sharma said that he would be meeting the exporters this month to analyse the impact of slowdown in global demand.
As per the official data, output of the manufacturing sector, which constitutes over 75 per cent of the index, contracted by 4.4 per cent in March, compared to growth of 11 per cent in March 2011.
Output in the capital goods sector contracted by 21.3 per cent as against a growth of 14.5 per cent in the same month last year. Mining output too fell by 1.3 per cent in March, from a growth of 0.4 per cent in the same month a year ago.
The dismal IIP numbers will put pressure on the Reserve Bank to further ease its monetary policy measures to pep up demand and investment activity, experts said.
The RBI had last month cut the benchmark interest rate for first time in three years by 0.5 per cent to provide relief to borrowers and revive sagging economic growth.
Sharma also urged RBI to ensure “credit at affordable rates for domestic industry and dollar credit for exporters”.
He said after discussion with the exporters, “the government would intervene in the sectors which require support”.
A weak global economy, especially US and UK, is dampening export demand. Besides, a tight money policy by RBI to control inflation is hindering fresh investments.
In terms of industries, 10 out of 22 industry groups in the manufacturing sector have shown positive growth during March as compared to the same month a year-ago. (PTI)

GHAZIABAD, May 11: A special CBI court today reserved for May 14 its order on the plea of dentist couple Nupur and Rajesh Talwar, facing prosecution in the twin murder case of their daughter Aarushi and domestic help Hemraj, for all the CBI documents pertaining to the case.
The court of Additional District and Session Judge Shayam Lal, also designated as CBI special court, fixed May 14 for a formal order on Talwars’ plea as their counsel, on the first day after the case was committed for the sessions trial, complained that they have not been given all CBI documents.
Responding to the Talwars’ plea, CBI counsel R K Saini told the court that the agency has provided all the relevant documents to them and has withheld only those on which it is not relying for their prosecution.
The judge first orally asked the CBI to give all documents to Talwars “for the sake of justice.” He, however, fixed May 14, the next date of hearing of the case, for a formal order on Talwars’ plea as the couple gave a formal application to the court for the documents.
In their plea, the Talwars said the CBI has not provided them with all the documents related to the case including the report prepared by the first investigation officer—Dataram Nauneria of Uttar Pradesh police and their telephone call records.
The CBI, however, fiercely opposed it, necessitating the judge to take a formal call on Talwars’ plea.
Special Judicial Magistrate Preeti Singh had earlier on May 9 sent the case for sessions trial, rejecting a plea by the dentist couple that the case cannot be put to trial as yet as they have not been supplied all the prosecution documents.
Aarushi was murdered on the intervening night of May 16-17, 2008 at her Noida residence and the body of Hemraj was found on the terrace of the house the next day.
The CBI counsel had on last hearing said that statements of 90 witnesses out of a total of 153 have already been given to Talwars, besides the 23 photographs on which the agency is relying for their prosecution.
The court had also given Talwars the liberty to inspect all the documents.
Nupur, who was brought in heavy security cover from Dasna Jail, was accompanied by her husband Rajesh during the court proceedings.
She appeared to be calm throughout the hearing as both the CBI and defence counsels put forth their arguments before the judge.
Soon after the court announced May 14 as the next day of hearing, Nupur was sympathised by her husband sitting next to her.
The Judge had on May 2 denied bail to Nupur in the twin murder case. Denying her the bail, the judge had said “there is a prima facie evidence to suggest the involvement of the accused.” (PTI)

NEW DELHI, May 11: The CBI today opposed in a Delhi court the bail plea of former Telecom Minister A Raja, arrested for his alleged role in the 2G spectrum allocation case on February 2 last year, saying there is a new allegation that he got Rs 200 crores as bribe and it is being probed.
CBI prosecutor A K Singh opposed Raja’s bail plea saying there is a new allegation that he has received Rs 200 crores as bribe and this is being investigated.
“I am strongly opposing the bail plea. This accused (Raja) and other public servants are also involved in other tranche of Rs 200 crore which they have received as bribe and this was not known earlier and has come up during the investigation,” Singh told Special CBI Judge O P Saini.
The court reserved its order on Raja’s bail plea for May 15 after hearing the arguments from Raja’s counsel and that of the CBI.
“Arguments on the bail plea heard. Put up for orders on May 15,” the judge said.
Senior advocate Ramesh Gupta, who appeared for Raja, told the court that the former telecom minister should be granted bail as all the other co-accused in the case have been granted it, either by the Supreme Court or the Delhi High Court or the trial court.
Referring to the Supreme Court’s order granting bail to co-accused and former telecom secretary Siddharth Behura, Gupta said the apex court has not distinguished the case of a public servant from others.
“The Supreme Court (in the order granting bail to Behura) had declined to distinguish the case of the public servant from others. Raja is no longer a minister or near the department (DoT). He is in custody for the longest period and record indicates that he was the most co-operative among the accused during the course of trial,” Gupta said while pressing for Raja’s bail.
Raja’s counsel Gupta said his client would be available for trial and there is no possibility that he would interfere with the recording of the statement of the witnesses in the case.
He said if granted bail, he is ready to abide by all the conditions imposed by the court.
The CBI opposed the bail plea saying there was no parity in Raja’s case with those of other co-accused and even with that of Behura as there was no charge of accepting bribe against him.
Besides Raja, the other accused in the 2G scam are, Raja’s former private secretary R K Chandolia, former Telecom Secretary Siddharth Behura, Unitech Ltd MD Sanjay Chandra, Swan Telecom promoters Vinod Goenka and Shahid Usman Balwa and Reliance Anil Dhirubhai Ambani group executives Gautam Doshi, Surendra Pipara and Hari Nair.
Apart from the above, DMK MP Kanimozhi, Kalaignar TV MD Sharad Kumar, filmmaker Karim Morani, Kusegaon Fruits and Vegetables Pvt Ltd directors Rajiv Aggarwal and Asif Balwa.
Besides these, three telecom firms Swan Telecom Pvt Ltd, Reliance Telecom Ltd and Unitech Wireless (Tamil Nadu) Ltd are also accused in the 2G scam.
The CBI, in its third chargesheet arising out of the probe into the 2G scam had named Essar Group promoters Anshuman and Ravi Ruia, Essar Group Director Vikas Saraf and Loop Telecom promoters Kiran Khaitan and I P Khaitan, besides three telecom companies Loop Telecom Pvt Ltd, Loop Mobile India Ltd and Essar Tele Holding as accused in the case.
Charges have yet not been framed against the Ruias, Khaitans and Saraf. (PTI)

NEW DELHI, May 11: Taking serious note of a Parliamentary Standing Committee report on functioning of Central Drugs Standard Control Organisation (CDSCO), Health and Family Welfare Minister Ghulam Nabi Azad today constituted a panel of experts to look into irregularities in passing new drugs.
The three-member Committee of experts comprising Director General ICMR V M Katoch, President of National Brain Research Centre, Department of Biotechnology, Manesar P N Tandon and former Director of Sanjay Gandhi Postgraduate Institute of Medical Sciences, Lucknow, S S Aggarwal, has been asked to submit its report within two months.
The Committee has been asked to examine the validity of the scientific and statutory basis adopted for approval of new drugs without conducting clinical trials, outline appropriate measures to bring about systemic improvements in processing and grant of statutory approvals and suggest steps to institutionalise improvements in other procedural aspects of functioning of the CDSCO.
The report has pointed out serious irregularities and serious lapses in clearing new drugs in the grant of approval to new drugs without conducting clinical trials in India.
It also pointed out to a collusive nexus between drug manufacturers, officials of Drugs Control Organisation and medical experts in granting approvals to new drugs and said drugs banned, discarded or withdrawn in developed countries are in circulation in India.
The Parliamentary Standing Committee Report has made recommendations and observations on various aspects such as organisational structure and strength of CDSCO, approval of new drugs, banning of drugs, approval of fixed dose combinations, pharmacovigilance and spurious/sub-standard drugs. (PTI)

NEW DELHI, May 11: The Department of Post plans to set up 1000 ATMs at post offices and convert them into banks for taking core banking to unbanked population using the vast postal network.
Replying to supplementaries during Question Hour in Rajya Sabha, Telecom Minister Kapil Sibal said there are 154,688 post offices in the country, the largest postal network in the world.
Of these 25,154 are departmental post offices and the rest Gramin Dak Sewak (GDS) managed post offices which are predominantly in the rural areas.
These post offices, he said, can double up as banks once they are computerised.
24,969 departmental post offices have been computerised as on March 31, out of which 19,890 have been provided with network connectivity. The GDS managed post offices will be computerised under a comprehensive IT project for which an outlay of Rs 1,877.2 crore has been made, he said.
“Introduction of core banking in networked post offices and setting up of 1,000 ATMs is also part of this project,” he said.
An application for converting post offices into banks has been made to the Reserve Bank of India (RBI). Once implemented, coverage of the banking network in the country will increase three-fold in one go, he said.
Sibal said financial services at post office will cost a fraction of the cost of setting up a bank branch.
Besides, post offices could also double up as retail intermediaries, buying rural products, besides being delivery vehicle for schemes like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
“This is what we need to be doing. I hope we have resources,” he said. (PTI)

NEW DELHI, May 11: Government today said it preferred a Presidential Reference over a review petition on the 2G issue in the Supreme Court after taking a “conscious and professional” decision to withdraw it to seek a Constitution Bench order on the matter.
“We took a conscious professional decision. We are pleased that the court has entertained the Presidential Reference and we hope that this will be an absolutely historic judgement.
“We need a Constitution Bench pronouncement on it. This is what we will now get. Beginning July 10, there will be hearings presumably on a day-to-day basis. And then a judgement pronounced,” Law Minister Salman Khurshid told reporters outside Parliament House.
Justifying the government action in withdrawing its review petition from the Supreme Court, Khurshid said, “We prefer the Presidential Reference. Obviously the Presidential Reference is something that gives far greater expanse to the Supreme Court to give its advice to the President and, therefore, the government.”
He said, “Any rational person would prefer a Presidential Reference… The review’s scope is extremely narrow and limited.
“It would have been unfair that we took it in bits and pieces in the review and not let the entire landscape be available to the Supreme Court. The best way forward in this regard is that of a Presidential Reference,” he said.
The minister refused to speak on the issue of cancellation of 2G licences, saying they already stand cancelled.
He said that the Reference had been sent from the President to the Supreme Court and “it has been decided that there will be hearing on that from July 10.” (PTI)

NEW DELHI, May 11: Holding that nobody should maintain a stubborn stand, Civil Aviation Minister Ajit Singh today said if the striking Air India pilots returned to work, the Government was willing to discuss all issues with them.
“It is not an issue of being stubborn…We are going to take a long-term view. If they want to talk, they should come to work, and all issues can be discussed…The High Court has declared their strike illegal,” he told reporters after meeting Prime Minister Manmohan Singh in his Parliament House office on Air India issue.
He was asked whether it was the stubborn stand adopted by pilots and the Government which was prolonging the stalemate.
On his meeting the Prime Minister, Singh said he shared information with him. “Whatever we are doing (to resolve the issue) is being done as per policies by talking to everyone involved,” he said.
He said as far as Boeing 787 Dreamliner aircraft is concerned, nothing can be done about it as the Supreme Court has said that all employees have a right to get trained on it.
“It (Dreamliner) was the original issue when they went on strike. As far as the issue of career progression is concerned, Dharmadhikari report deals with this and similar issues.
“A discussion is on in the ministry on how to implement it. We will talk to the affected people when we implement the report,” he said and questioned the need for Air India pilots to go for an “illegal strike.”
Singh also ruled out the possibility of imposing provisions of ESMA on striking pilots.
To a question that a sitting NCP MLA is president of Indian Pilot’s Guild, he said trade unions don’t go by political leadership.
Singh said aviation regulator DGCA has cautioned the airlines not to increase fares in view of the Air India strike. “They will check whether fares have been hiked due to the strike,” he said.
To a question on Kingfisher promoter Vijay Mallya writing a letter to employees threatening action and promising salaries at the same time, he said Kingfisher issue has been there for some time.
“We are involved with Air India because it is a Government company, and not Kingfisher,” he said.
Singh said the Government has approved a turnaround plan for the national carrier and the Cabinet has given a go ahead to infuse Rs 30,000 crore in the next nine years.
“To save Air India, we need cooperation of the employees as it is their company. If Air India won’t survive, then there is no meaning of the issues they are raising. Unions need to understand this,” he said.
He skirted a reply on whether those sacked could be taken back, saying reporters should ask this question to the Air India management. (PTI)

NEW DELHI, May 11: After being widely appreciated for his TV show ‘Satyamev Jayate’, actor Aamir Khan will now connect with millions of radio listeners in a programme called ‘Dil Pe Lagi Aur Baat Bani’.
From tomorrow, the show anchored by Aamir will be broadcast every Saturday at 11 am on primary channels of All India Radio covering Uttar Pradesh, Madhya Pradesh, Bihar, Jharkhand, Chhattisgarh, Maharashtra, Punjab, Rajasthan and West Bengal.
It will be also available on all Vividh Bharati stations of AIR on Saturdays at 3.30 pm, a statement by Prasar Bharati said.
‘Dil Pe Lagi Aur Baat Bani’ aims at stringing together real-life incidents touching a common chord across people of the country. (PTI)