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Business and
Economy
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Iran’s
National Iranian Gas Export
Corporation (NIGEC) has said it
will reserve the right to withdraw
supply of 2.5 million tons of
Liquefied Natural Gas (LNG) if the
crude oil prices crosses USD $80 a
barrel. Indian Oil and Gas majors
say that Iran wants more
open-ended contracts with
uncertain clauses. Indian Oil
Corporation (IOC), Gas Authority
of India (GAIL), and Bharat
Petroleum Corporation Limited (BPCL)
negotiators returned disappointed
from Iran as supply from Iran for
northern states looked bleak. Iran
has not ratified its aggressively
negotiated deal to supply 5
million metric tons per annum (mmtpa)
thereby blocking a USD 20 billion
India-Iran LNG deal signed with a
previous Iranian regime. IOC,
GAIL, and BPCL have legally
questioned NIGEC claim that they
cannot go forward on the deal
without political ratification
saying that a deal signed by one
regime need not be ratified by
another. India-Iranian relations
have become strained because of
India’s vote in September 2005
at the International Atomic Energy
Agency (IAEA) asking Iran to
refrain from nuclear enrichment.
Lack of Indian support to a US and
European Union plan at the IAEA
will essentially scuttle an
Indo-US nuclear deal that proposes
to supply nuclear fuel to India.
India has publicly stated that it
does not want to see another
nuclear power emerge. The
communists who support the Indian
federal Government have been
insisting that India rebuild its
relationship with Iran and not
vote against Iran. The Government
is at a quandary because Iran is
also becoming an increasingly
unreliable supplier of LNG and oil
for India.
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A
Forrester Research study predicted
that Indian and Information
Technology (IT) and Business
Process Outsourcing (BPO) would
fetch the country USD 130 billion
this year. It predicted that BPO
alone would fetch USD $50 billion.
They said that increased
aggressive attitude of major
Indian IT companies will result in
overseas acquisitions to enable
expansion such as the Tata
Consultancy Services acquisition
in Britain and Chile. The paper
says the widening of the market is
expected because more mid-sized
companies will seek economies of
scale from outsourcing. They also
expect contracts to get shorter
and more flexible. An increased
growth in this sector will also
benefit other sectors such as
hospitality and aviation. Already,
hospitality is seeing as much as
65% growths in room occupancy.
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Democracy,
Politics and Judiciary
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The
Supreme Court (SC) indicted Bihar
Governor Buta Singh resigned after
taking the traditional Republic
Day salute but refused to accept
any blame. He said he respected
the court but he also accused the
court of doing him "great
injustice." The SC had
indicted Singh on two counts of
“subversion of the
Constitution.” A 3-2 verdict
said that he had doctored
documents and evidence to lead the
Federal Government to believe that
there was political impropriety
leading to “buying” elected
members to support another party.
The court said this was a
“fanciful assumption” because
there was no evidence to support
this position. The second count
was that Singh did not allow the
party with the largest number
elected members to form the
Government. Although the SC did
not say this but the implication
is that because Lalu Prasad
Yadav’s Rashtriya Janata Party
was an important poll bearer of
the minority Federal Government,
Singh was acting in the interest
of his party and not the
Constitution. Singh contests both
indictments and said the will
appeal the judgment. The minority
view of SC said that although they
found Constitutional impropriety,
they did not see willful mal
intent. The communists who also
support the Federal Government
wanted Singh to resign but the
opposition National Democratic
Alliance wanted both the Singh and
Prime Minister to resign.
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India celebrated its 57th Republic Day demonstrating
its socio-cultural diversity, its
architectural heritage, scientific
and technological achievements,
and its strong defense. Army and
paramilitary troops dressed in
regimental uniforms, 24 tableaus
from different states and
prominent public sector companies,
and folk and cultural dances on
national television riveted
enthralled viewers. 500 artisans
built the tableaus that rolled
under tight security assisted by
over 24 high-resolution closed
circuit televisions, 20,000
security commandos, and
helicopters. Historically,
terrorists set off bombs or create
panic; fortunately, there were no
such incidents this year. The
Saudi Arabian King Abdullah bin
Abdul-Aziz al Saud was the chief
guest. This move opened up
criticism from human rights
activists, which say that Saudi
Arabia has a medieval regime that
tramples on women, Shias, and
India expatriates. Many also point
out that Saudi press, highly
regulated by the monarchy that
often interfered in the internal
affairs of India. Jammu &
Kashmir (J&K) saw the highest
turnout of civilians in a decade.
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Terrorism,
Defense and Security
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On the request of Interpol, Pakistan froze 15
bank accounts of Afghan trading
houses that are suspected to have
links with the Taliban.
Pakistan’s Federal Investigation
Agency raided offices of this
group that ostensibly trades in
oil, sugar, and foodstuff and
seized incriminating documents
that linked this company to the
Taliban. The trading company has
offices with different names in
Dubai, Malaysia, and Indonesia had
substantial amounts in these bank
accounts and is suspected to be
owned by Taliban leader Mullah
Omar.
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Hot Topics |
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Clemenceau
and the environment |
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India-Iranian
relationship |
 |
Buta
Singh & the Supreme Court
Judgment |
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Indo-US
nuclear deal |
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Naxal
attack in Jharkhand |
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Iran
nuclear issue |
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Peace
process in Sri Lanka |
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Hamas
& the Palestinian elections
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Featured
Analyses |
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The Saga of the Jemaah Islamiah |
Indonesia has continuously been
embarrassed by the terror acts of a
handful of terrorists from the
Jemaah Islamiah (JI), a group with
definite Indonesian origins and made
up mostly by members of Indonesian
nationality. |
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Will Kashmir go the way of Aceh? |
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A
Cry for Help |
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Watch
the Dragon |
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Cage
This "Tiger" |
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Dalits
in India |
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Was
Jinnah a Secularist? |
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Burying
the Howitzer? |
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Smoking
Out Smoking |
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The
French Non |
Featured Edits |
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Beware,
there’s no morality in midnight
haste |
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Who
is afraid of Hamas? |
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Whose
policy is it anyway? |
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Congress:
between hope and despair |
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Uncalled
for
|
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Crisis
continues |
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Review
the role of Governor |
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We must prefer Bush, Warts and
all
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Inscription |
South Indian Inscriptions
|
Ancient Indian
dynasties documented their
administration, significant
developments, grants, and milestones
as inscriptions in temples. The
Archaeological Survey of India (ASI)
has documented these inscriptions
from 1886.
These pages
contain inscriptions from Pallava,
Chola, Pandya, Western Chalukya,
Eastern Chalukya, Rashtrakuta,
Hoyasala, Vijayanagara, Vishnukundin,
Kakatiya, Reddi, Vaidumba, Chinda,
Eastern Ganga, Gajapathi, Kalchurya,
Qutb-Shahi of Golkonda, and Moghul,
dynasties. |
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Indian
Maoist Naxal terrorists killed a
Railway Protection Force employee
and derailed a goods train and
blasted a small bridge disrupting
traffic on a national highway near
Ranchi, Jharkhand. They also burnt
furniture in a Public Works
Department office. Terrorists from
the same movement burnt an
iron-ore laden truck and blocked
roads in Orissa. The terrorists
were trying to enforce a national
bundh (closeout strike) called on
Republic Day. Almost no one
responded to this call and the
naxals were trying to enforce the
bundh.
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Indian Chief of Air Staff S.P. Tyagi said that the
Indian Air Force is in the process
of forging partnerships with other
countries using similar equipment
so they can improve the safety
record. Last year, the number of
aircraft crashes went down to 8
against 20 a couple of years ago.
A situation of low-serviceability
has been created due to a shortage
of spares. India is simplifying
its financial processes and
getting into agreements with
Russia for the availability and
procurement of spares. It is
planning to retire older aircraft
whose capability has been replaced
with newer ones and technology is
outdated. They wanted greater
interaction with parts suppliers
and a quality control protocol
within the country and between
nations.
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Environment,
Health and Education
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The owner of the condemned French aircraft
carrier Clemenceau has challenged
the environmental group Green
peace to prove its claims of level
of asbestos in that ship. The ship
is on its way to the Alang
ship-breaking yard in Gujarat and
is expected to fetch more than
27000 tons of steel. He said that
no laborer has displayed symptoms
from asbestos in Gujarat and the
safety of employees is given due
importance. Asbestos is a
carcinogenic substance banned in
most of the developed world but
used extensively in the developing
world, including India. The
effects of exposure to asbestos
are seen only after 15 years and
its carcinogenic effects are well
documented. The Supreme Court has
required Clemenceau to stay out
its exclusive economic zone till
it produces a verdict on February
12.
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Neighbors
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Pakistan
President Pervez Musharraf urged
the Indian Government to respond
positively to his plan of
demilitarization and
“self-governance” in Jammu
& Kashmir (J&K). Musharraf
has been coming out with numerous
imaginative ideas of how to solve
the J&K but have been
dismissed by India as impractical
with the absence of confidence and
trust between the two nations.
Musharraf has been criticized
internationally for not doing
enough on terrorism but claiming a
lot of success. Rebels in the
South Western province of
Baloachistan call him a liar for
trying to blame the war in that
area on Indian-instigation.
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China
propelled past Britain and France
to become the fourth largest bank
in the world with a 9.9% growth
and still far behind the United
States and Germany. Government
efforts to slow down the economy
and pace of investment figures
showed that the economic expansion
slowed only marginally from 10.1%.
Analysts warned that unreliable
statistical reporting often
under-reports figures and the
productivity might be higher than
what is being reported. Last
month, officials said that the
economic growth was 16.1% higher
than previously though as they
discovered higher consumption and
unreported income. Exports jumped
30% and trade frictions with the
US and Europe. Increasing concerns
of economic overheating,
investment in construction and new
factories rose by 25%.
Over-capacity investments in steel
and automobile sectors saw their
prices fall sharply. The average
income is USD 1,700 making it
higher than those of Morocco but
far behind Japan, Europe, and the
US. As discussed at the World
Economic Forum meeting in Davos,
the biggest challenge for India
and China is equitable
distribution of wealth.
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In
response to a strike call by the
7-political-party alliance, Nepal
was virtually shut down forcing it
to defer its 57th Republic Day
celebrations to Saturday. Shops,
schools, colleges, offices, and
institutions remained closed and
streets deserted. The Royal Nepal
Army claimed to have killed 24
Maoist terrorists but was able to
recover one body. This sparked
speculation that the army is
doctoring data ahead of the Feb 8
polls for which only one
nomination has been submitted.
King Gnanendra insists on going
ahead with his poll plan despite a
boycott of major political parties
and continued violence by Maoist
terrorists.
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Sri Lanka seized an Indian fishing boat that contained
over 60,000 electrical detonators
and arrest 5 Indian nationals. The
Indian state of Tamil Nadu borders
Sri Lanka North and East where a
large Tamil population continues
to fight a Sinhalese majority.
Some groups in Tamil Nadu
sympathize with the Liberation
Tigers of Tamil Eelam (LTTE) and
often provide illegal assistance
to that group. The LTTE is a
banned group in India and its
leader Vellupillai Prabakaran is a
wanted man in the Rajiv Gandhi
assassination case. Despite severe
clampdowns on such support, naval
patrolling, and police
intelligence, some boats take
advantage of the short distance of
the Palk straits to smuggle
equipment, resources, and illicit
weapons to Sri Lanka.
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World
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The
Indian foreign office summoned the
United States Ambassador to tell
him that his comments on the
Indo-US nuclear deal and the Iran
vote were “inappropriate and not
conducive to building a strong
partnership between our two
independent democracies.” Former
Prime Minister Atal Bihari
Vajpayee issued a formal statement
saying that Ambassador David
Mulford’s “outrageous”
statements violated all diplomatic
norms. He criticized the foreign
office for issuing a “routine”
response saying that it “hardly
expresses the indignation of the
people of the sovereign and
independent Republic of India.”
India informed the US that India's
vote on any possible resolution on
the Iran nuclear issue at the
International Atomic Energy Agency
(IAEA) would be determined by New
Delhi's own judgment of the merits
of the case and in its national
interests. Mulford offered his
sincere regrets and stated that
his comments were taken out of
context. He said the US did not
want to “to question India's
right to take decisions on various
issues on the basis of its own
national interests.” In the US,
a State Department spokesman said
that Mulford expressed his
“personal opinion.” Vajpayee
said it was "worse" that
Mr. Mulford's remarks were
"personal" as
"Ambassadors are not required
to make personal remarks
denigrating their host
country." The State
Department also said that Mulford
was voicing comments already
issued by the US Congress.
Congressman Tom Lantos, an
anti-Indian political extremist
who used some uncharitable words
in Congressional hearings on India
and Indian Foreign Ministers,
voiced similar sentiments when he
visited India last fall.
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The terrorist group Hamas won 76 of the 132 members
Parliament making it eligible to
form the Government. The ruling
Fattah ended up with 43 seats and
conceded defeat. Hamas insists on
broad participating from Fattah to
form the Government which senior
Fattah leader Saeb Erekat was not
possible. Hamas leader in exile
Khaled Mashaal called Fattah
leader and former Prime Minister
Ahmed Qurei from Syria stressing
for a partnership of all
Palestinian parties and promised
equitable treatment of both
Muslims and Christians. As
expected, the Hamas did
particularly well in the Gaza
strip where it had the strongest
support and Fattah was weakened by
incessant in fighting. Supporters
poured out in the streets dancing
and chanting “Congratulations
and victory to Islam” and
demanded that Mohammad Deif, the
Hamas military leader on Israel
hit list, be made the Defense
Minister. Although Hamas had taken
out destruction of Israel from its
portfolio it has not taken it out
of its charter and spearheaded
suicide bombings often targeting
Israeli civilians as reprisals for
military killings. Hamas reached
out to Israel that it would honor
the truce hammered out with the
Fattah party provided Israel did
not assassinate Hamas leaders,
conduct raids into Palestinian
towns, and not use force. Israel
has not reacted to the Hamas
victory but said it will not
negotiate with terrorists and the
United States said that it will
not recognize a Government formed
by Hamas as long as long as they
continued with their call for the
destruction of Israel. The US had
initially wanted Hamas
participation in the polls saying
that keeping out a party that had
33% popular support is a bad idea
for peace. However, when opinion
polls predicted a Hamas victory,
the US and Israel started
panicking, unsure how to proceed.
United Nations Security General
Kofi Anan congratulated Hamas on
their victory said “any group
that wishes to participate in the
democratic process should
ultimately disarm."
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