Prime Minister Narendra Modi Moves to Form BJP Rule in Delhi

New Delhi: BJP top brass including Prime Minister Narendra Modi are in favour of seeking fresh mandate in Delhi, but not in immediate future.

With Aam Aadmi Party demanding that Lieutenant Governor Najeeb Jung dissolve the Assembly, a section within BJP’s Delhi unit wants to go for fresh polls soon, but Mr Modi and some senior leaders including Union ministers Arun Jaitley and Sushma Swaraj, it was learnt, are not in favour of going for fresh elections in the next couple of months.

The issue was apparently discussed by the party top brass including Mr Modi.

The PM, sources said, however, has indicated that he was against seeking support of any other party and suggested that the party should not be seen indulging in horse-trading to form government in Delhi.

Sources disclosed that a section of central leadership is of the view that the party should wait till conditions are “more favourable”.

Source: DeccanChronicle.com

PM Narendra Modi's Flight was on Shot Down MH17's Route

New Delhi: Even as the world struggles to come to terms with the shooting down of a Malaysia Airlines plane over Ukraine, it has come to light that Indian Prime Minister Narendra Modi was on the same flight path as the MH17 Boeing 777.

A report in a leading Indian English daily claimed that Prime Minister Modi’s flight back to India was rerouted after the incident, in which 298 people died.

The flight had taken off from Frankfurt, Germany, about two hours before the Malaysian airliner was hit was a surface-to-air missile.

According to the report, while the Indian PM faced no danger his plane would have flown over the same area had the crash not taken place.

The Malaysian airliner crashed at Torez, near Shakhtersk, some 40 kilometres from the Russian border in Ukraine after being hit by a missile, as concluded by the US. The incident happened at 13:20 hrs GMT.

The Air India plane carrying PM Modi would have flown over the same area about an hour later had it continued on the same flight path, as the flight had taken off from Frankfurt at 11:22 GMT.

It takes about three hours to fly from Frankfurt to Donetsk.

Ukraine has, meanwhile, declared the skies over eastern part of the country as a no-fly zone. The area has been a battleground for state forces and pro-Russia rebels for the past few months.

Source: ZeeNews.India.com

Just a Month of Narendra Modi Government Growth Accelerates, Inflation Lowers

NEW DELHI: The first full month under the Narendra Modi government's watch turned out to be a good one for the economy with macro indicators looking up and inflation lower despite lingering monsoon doubts, suggesting that growth could have finally bottomed out.

Exports rose 10.2% in June from a year ago, the government said on Wednesday, marking yet another positive development following a series of good numbers in recent days that suggest the economy is picking up from decade-low growth rates in the past two years.

Industrial production rose to a 19-month high of 4.7% in May while car sales rose at their fastest pace in 10 months in June, clearly indicating that the consumer was more confident of the new government shaping recovery.

Services activity rose to a 17-month high in June on the strength of robust order flow, according to the HSBC Purchasing Managers' Index, indicating rising optimism in the sector that has a share of more than 60% in the economy.

Imports rose for the first time in a year, at around 8.3%, confirming some sort of recovery in the domestic economy even after discounting for higher gold imports, which rose nearly 65% in June after the Reserve Bank of India eased rules by allowing more entities to import gold.

India's other big concern, retail inflation, dropped to 7.31% in June, the lowest since the government started reporting consumer price index inflation in January 2012, although the monsoon fears loom large.

And to top it all, the trade deficit was $11.78 billion in June, the highest in a year, but only marginally more than $11.28 billion in May, according to data released on Wednesday by the commerce department.

Markets cheered the development, with the Sensex rising 1.27% to 25,549.72 points. "The export data is very encouraging, especially the fact that it is led by robust performance of engineering goods, indicating a productivity revival. Given that non-oil, non-gold imports have shown an uptick, industrial production for June will also be quite strong," said Soumya Kanti Ghosh, chief economic advisor, State Bank of India.

"One can say looking at car sales, manufacturing and exports data that the economy may well have finally bottomed out." That will bode well for the Modi government, which has pledged to turn the economy around while bringing prices under control. The economy could begin the first quarter of the current year at near-5% growth, up from 4.6% in the January-March quarter.

The decline in global commodity prices will also act as a booster although Iraq and Ukraine are geopolitical sore spots with the potential to reverse the trend. Meanwhile, the June-September monsoon has been patchy although rains have picked up in the past two days.

A poor monsoon could wreak havoc on prices, something that will force the Reserve Bank of India to keep up the pressure on interest rates at its August 5 policy announcement, although both wholesale and retail inflation slowed sharply in June.

Higher exports will provide further support to industrial production that was up 4.7% in May, a 19-month high, which will be welcomed by the government for its positive effect on jobs.

Engineering exports grew 21.5% to $54 billion while those of readymade garments expanded 14.3% and leather 38.37%. "We are getting higher orders from the US — so much so that our domestic manufacturing infrastructure is not able to support the same," said Engineering Export Promotion Council Chairman Anupam Shah.

This suggests growth may remain strong in the coming months, but some analysts struck a cautious note. "Export growth is expected to be moderate in the coming months, reflecting external demand conditions, a waning of the favourable base effect and relative stability in the nominal exchange rate," said Aditi Nayar, senior economist, ICRA.

"The unfavourable monsoon conditions suggest agricultural exports would be muted in 2014-15." Services showed a trade surplus of $5.8 billion in May.

Rohini Malkani, economist at Citigroup, said her view on the current account deficit was unchanged. "With the 1QFY15 trade deficit at $33.2 billion vs $28.2 billion last quarter, we maintain our view of FY15 CAD remaining at sub-2% of GDP, leading to a BoP (balance of payments) surplus of $33 billion and consequently INR in a 59-62 range," against the dollar, she said in an emailed release.

Source: EconomicTimes

Whistleblower Ashok Khemka Headed for PMO Job

Haryana cadre IAS officer Ashok Khemka, who had alleged that Congress president Sonia Gandhi's son-in-law Robert Vadra was involved in shady land deals, has been given a central government posting. Sources even said that Khemka may join the Prime Minister's Office (PMO), although no official confirmation was forthcoming.

Sources in the department of personnel and training (DoPT) said 20 posts of joint secretaries, including three vacancies in the PMO (department of atomic energy, personnel and training and in general branch), are currently vacant. Further, a post of joint secretary also lies vacant in the NATGRID, under ministry of home affairs.

Khemka has been transferred over 40 times in his 22-year-old career as a bureaucrat, mostly for taking on his political bosses.

Speculation over his return to the PMO follows the Cabinet Secretary's decision to clear the 49-year-old of allegations of misuse of official powers. His argument that a Haryana government charge-sheet against him was "political" has been accepted by the new government under Prime Minister Narendra Modi.

Earlier this year, Khemka had earlier a letter seeking central deputation in April. The DoPT rejected his request, informing him that he could not be empaneled because of the Haryana government's charge-sheet against him.

The charge-sheet by the Congress-led Haryana government in December accused him of "causing damage to Robert Vadra's reputation" by cancelling his land deal in 2012. Khemka had alleged that the Rs 57-crore deal between Vadra and real estate giant DLF in 2012 violated rules to facilitate windfall gains for the businessman.

The Haryana government had also alleged that Khemka's decision to cancel the deal was an administratively improper step since he stood transferred as Managing Director of Haryana Seed Development Corporation (HSDC) on October 11, 2012 from his earlier post of Director General Consolidation of Land Holdings and Land Records-cum-Inspector General of Registration. Just a few months before the general elections, the Haryana government had even recommended a CBI probe into a contract awarded by Khemka to a Gujarat firm in 2009. Khemka was subsequently made the Director General, Archive.

A Congress spokesman said Khemka's possible appointment was the administration's prerogative, and wished the government and the officer well.

Source: DNAIndia.com

Negotiations to Launch New BRICS Bank Hit Snag

(Reuters) - On the eve of the signing of a deal to launch a joint development bank, the BRICS nations have still not agreed on where the lender will be headquartered, a senior official involved in the talks told Reuters late on Monday.

The leaders of the five emerging market economies are expected to sign a deal on Tuesday that creates the $100 billion bank and a reserves fund of the same size to challenge Western dominance over global finance.

The five nations are Brazil, China, India, Russia and South Africa.

Negotiations have stalled for now on a dispute between China, India and South Africa over who will host the bank. The disagreement has also delayed a decision on which of the countries will hold the first 5-year presidency of the bank.

"This should be easy to resolve but we have this dispute. If it doesn't move forward, we may have to leave the decision for another meeting," said the official, who declined to be named.

Another negotiator confirmed that no decision has been reached.

A delay could be an embarrassment for the BRICS, which see the creation of the bank as a major step to gain more influence in the shaping of the world's financial architecture.

The official said that if no deal was reached on Tuesday, the leaders could still sign off on creation of the bank and decide on the headquarters and its president at a later date.

Negotiations to create the bank dragged on for more than two years as Brazil and India fought China's attempts to get a bigger share in the lender than the others.

The stark economic and political differences between the BRICS countries has made it difficult for the group to turn rhetoric to concrete action in coordinating policies.

Russian and Indian officials have signaled that China's business hub, Shanghai, was the front-runner in the race to land the headquarters.

Source: In.reuters.com

PM Modi Leaves for Brazil, Hopes to Seal BRICS Bank Deal

Prime Minister Narendra Modi left for Brazil Sunday to attend the sixth Brics summit that starts on July 15. This will be his first multi-lateral engagement with world leaders.

Before his departure, Modi said he was looking forward to holding discussions to deepen intra-Brics economic cooperation and advance global economic stability and prosperity — with greater Indian engagement.

The summit is widely expected to announce the creation of a new development bank and a reserve fund to fend off currency crisis.

“I look forward to the successful conclusion of major Brics initiatives like the new development bank and the contingent reserve fund, which have seen significant progress since their launch in New Delhi in 2012,” the PM said.

The two initiatives are seen as a counterweight to Western-dominated financial organisations such as the World Bank. The group — Brazil, Russia, India, China and South America -- makes up nearly one-fifth of global GDP and 40% of the world’s population but feels marginalised by the global banks.

On the sidelines of the summit, Modi will also hold one-on-one meetings with the leaders of the emerging nations. With Chinese President Xi Jinping, Modi is expected to discuss border issues and increased access to Indian products to bridge the trade deficit that has already touched US $13 billion this year.

“I look forward to meaningful meetings with them to intensify bilateral relations and exchange views on global and regional developments,” Modi said.

At the summit, the PM will also meet leaders of South American countries invited by host president Dilma Rousseff.

En route to Brazil, Modi landed in Berlin where he will stay the night. A meeting between him and Chancellor Angela Merkel was scrapped after Germany made it to the World Cup finals. On arrival he tweeted: “Best wishes to Argentina & Germany for the FIFA World Cup Final. It is amazing how the tournament brought fans across the world together”.

Source: HindustanTimes

First Budget Test of PM Modi's Reform Mettle

New Delhi: Prime Minister Narendra Modi faces the first major test of his reform credentials on Thursday, when his fresh-faced government presents its maiden budget amid early doubts about his willingness to make unpopular decisions.

Prime Minister Modi, 63, won a landslide general election victory in May with a pledge to boost growth and create jobs for the 1 million people who enter India's workforce every month.

He has since warned of the "bitter medicine" needed to nurse the economy back to health from high inflation and the worst slowdown since free-market reforms in the early 1990s unleashed an era of rapid growth.

Finance Minister Arun Jaitley's promises of bold budget decisions and broadsides against the "mindless populism" of his left-of-centre predecessors have proved a hit with investors, helping the benchmark BSE stock index to a record high last week.

Mr Jaitley is due to address parliament at 11 a.m. (0530 GMT).

But, with an eye on state elections later this year, PM Modi has faltered in administering the medicine he has spoken of, delaying a decision to raise the price of natural gas and partially reversing a train fare hike after protests in Mumbai.

The government has tried to keep rural voters sweet by extending a temporary subsidy for sugar mills, benefiting farmers in Maharashtra, where Mr Modi's BJP hopes to consolidate its strength in elections later this year.

"The budget is a key test of their credibility, and this evidence that they are moving back and dithering on their decisions, and in a sense playing politics, is a sign of more to come," said Nida Ali, India economist at Oxford Economics.

To be sure, the government has started a shake-up of politically sensitive labour laws, and is expected to roll out plans for a new services tax that would unify the states into a common market for the first time.

Even the partial train fare hike was bolder than any measures by the last government to fix the tattered finances of the world's fourth largest rail network.

But some investors were disappointed by a railway budget delivered on Tuesday that was long on promises of opportunities for private investors but short on details of how to make the sector attractive for such capital.

The mood was reflected in losses on the stock market after the railway minister's speech to parliament.

Managing Expectations

Foreign banks watching India have played up expectations of strong action on tax reform, privatisation and subsidy cuts after the young government's drum beats in recent weeks.

"We want Mr. Modi and his team to make a structural change by presenting a budget crowned with quality actions," Spain's BBVA Research said in a research note.

Tushar Poddar, chief India economist at Goldman Sachs, wrote this week that he expected a roadmap for a Goods and Services Tax, greater access for foreign investors to the insurance and defence industries and incentives for manufacturing.

A finance ministry report on Wednesday laid out the government's vision for a sustainable reduction in the fiscal deficit through a lower food and fertilizer subsidies and broadening India's tiny tax base.

The report's tone increased speculation that Mr Jaitley will give a higher, more realistic fiscal deficit target for this fiscal year than the 4.1 per cent of gross domestic product set by the previous government.

But political realities such as the looming elections could make the government reluctant to act too quickly despite commanding the first outright parliamentary majority for any Indian political party in 30 years.

"It is but natural for the new government to move ahead gradually so as to avoid policy-induced distortions," said Rupa Rege Nitsure, chief economist at Bank of Baroda in Mumbai.

Many of India's economic ills are structural and will take time to fix regardless of the government's appetite or strength. Food inflation, energy shortages and weak institutions will slow the pace of reform.

"At the end of the day they are not a silver bullet, they are not going to turn the economy around in a month's time," Oxford Economics' Ali said.

Source: NDTV.com

Importance of Goods and Services Tax: All You Need to Know about the Tax Reform

Union Budget 2014 Tax Reform: Goods and Services Tax (GST)

In the run up to Budget 2014, there is hardly a write up or conversation that does not make a reference to the GST introduction. GST or Goods and Services Tax, in its purest form, is a harmonized tax on both goods and services, which permits set off of tax paid on purchase of inputs and input services seamlessly. Most countries have some form of GST or VAT, with USA being the notable exception.

In the Indian context, the clamour for GST stems from the inability of all constituents of the supply chain to set off input taxes paid on purchase of goods and services, thereby resulting in cascading of taxes. Since manufacturers pay both Central and State level taxes (excise duty and VAT/CST), their ability to utilize input taxes is the highest.

However, in the case of traders and services, who have only State and Central level taxes respectively, their ability to claim set off of input taxes is limited, since there is no inter-sectoral set off of these taxes.

Ideally, indirect taxes ought to be a pass-through cost for any participant in the supply chain. Since the current system does not permit seamless set off of input taxes, these costs are finding their way to the consumers' pocket as part of 'price' and not as 'tax'. This is the reform that industry seeks, which will bring with it simplicity in compliance, against the present system, which is mired in complexity.

Given the federal polity, the most palatable form of GST is the concurrent dual GST for both goods and services, one levied by the Central government (called Central GST/CGST) and the other by the State Governments (called the State GST/SGST). CGST will replace excise duty and service tax whereas SGST will replace VAT/CST, entry tax, luxury tax and entertainment tax.

All products with the exception of a few (alcohol, petroleum) will be covered under the GST. Input CGST and SGST will be permitted for set off against respective output taxes. The manner of taxing inter-state sales is yet to be finalized, but perhaps it is easiest to tax B2B transactions at destination and B2C transactions at origin, provided there is a strong IT infrastructure to track movement of goods across States.

The GST is a destination-based regime, against the current regime which is origin-based and therefore, the concern of the producing states is that they will lose revenue; more so when they will have limited ability to unilaterally increase tax rates for meeting their revenue needs.

Unkept promises of the Central Government on payment of compensation for reducing CST rates have hindered progress in GST talks with states. While the Union Government cannot on its own make any announcement on the GST introduction, it can set the tone to overcome the trust deficit of the states, by addressing the CST compensation issue and setting aside adequate funds for the same, in the Budget.

It is estimated that the GST would add about 1.5 percent to the GDP, and cumulatively, we have already lost one whole years' growth, if we count the delay from 2010 alone. A much smaller economy like Malaysia is jumping onto the GST bandwagon in 2015. Even if we are able to achieve Phase I of GST in the next couple of years, it will mean a lot to the industry.

GST introduction will support the Government's effort to make India a business-friendly destination, since it affords simplicity, ease of transaction and transparency.

Source: FirstPost

Union Budget 2014: Plan Outlay could be Hiked by 2 Per Cent

Union finance minister Arun Jaitley is likely to hike the Plan expenditure on rural employment and health schemes in the Budget for 2014- 15 over what his predecessor P. Chidmabaram had allocated in the Interim Budget for the year.

According to sources, while Jaitley will be doing a tight rope-walk due to the poor state of finances inherited from the United Progressive Alliance (UPA) government, he is likely to allocate and additional Rs 11,000 crore for Plan expenditure. This would be about two per cent higher than the Rs 5,55, 322 crore provided by Chidambaram in the Interim Budget.

However, this would make the proposed plan spending for the fiscal year higher by about Rs 90,790 crore, or 19 per cent over the revised estimates for 2013- 14.

The plan expenditure, or GBS (gross budgetary support), is the government spending on social sector schemes such as Bharat Nirman, Rural Employment Guarantee and National Rural Health Mission.

Senior officials said that there is little scope to increase the Plan spending over the last Budget as the government is required to keep the fiscal deficit in check.

According to the latest government data, the fiscal deficit in 2013- 14 stood at 4.5 per cent of gross domestic product (GDP), lower than 4.6 per cent projected in the revised estimate mainly on account of curbs on government expenditure.

The fiscal deficit, the gap between government's expenditure and revenue, in actual terms was at Rs 5.08 lakh crore as against Rs 5.24 lakh crore projected in the revised estimates. The UPA government had cut the total Plan expenditure to Rs 4,75,532 crore for 2013- 14 compared to the Budget estimates of Rs 5,55,322 crore in what was seen as a sleigh of hand to show a lower a fiscal deficit purely for accounting purposes.

It was for second year in a row that the previous government cut Plan spending substantially to keep fiscal deficit under control.

After assuming office in 2004, the UPA government in its regular Budget had pegged the total Plan expenditure at Rs 1,45,590 crore as compared to Rs 1,35,071 crore provided in the Interim Budget for 2004-05.

Source: BusinessToday

Workshop for BJP MPs: Modi, Rajnath to Impart Training

NEW DELHI: A two-day orientation programme starting on Saturday has been organized to impart training to the newly-elected BJP MPs on enhancing their parliamentary and public conduct.

The workshop, which will be inaugurated by Prime Minister Narendra Modi, will take place at Surjakund.

Modi will deliver the inaugural address on Saturday morning, and along with home minister Rajnath Singh will also try and inspire the new legislators to emulate best practices, party sources said.

Around 180 newly-elected BJP MPs, including 162 from the Lok Sabha and 18 from Rajya Sabha will attend the training workshop which will give them tips on improving their performance as an MP as well as on their conduct.

There are around 40 MPs from among the SCs/STs while another 30 are women first-time members.

Top BJP leaders and old-time parliamentarians will impart training to the first-time MPs on how to utilize their services best in the interest of public good.

They will also be told on how to spend their MPLAD fund in the best public interest.

Party leaders say the workshop will impart training to them on how to put good questions in Parliament and what kind of urgent public matters to raise during Zero Hour debates in both the Houses.

The workshop will also stress upon them to improve their attendance in Parliament and strengthen their skills by reflecting on problems of their constituencies and mitigate public suffering by helping to find solutions for them.

The MPs will also be given some lessons on their public conduct.

The workshop comes ahead of the Budget session of Parliament starting July 7.

The new MPs will also be asked to remain in touch with public through social media.

Party patriarch L K Advani is likely to deliver the valedictory address on Sunday while other senior leaders including former BJP presidents and Union minister Venkaiah Naidu besides finance minister Arun Jaitley and external affairs minister Sushma Swaraj will also share their Parliamentary experience with them.

Source: TOI

Union Budget 2014-15 likely to be Presented on 10-July

New Delhi: Finance Minister Arun Jaitley is likely to present the Union Budget for 2014-2015 in Parliament on July 10 as per sources.

The budget session of Parliament is likely to be convened from July 07 while the Rail Budget will be presented on July 08, sources told Zee Media.

Both the budgets have to be cleared before July-end as the Votes-on Account taken before Lok Sabha elections will expire by July-end.

It will be the maiden Budget of Arun Jaitley. It will also be the first major policy document of the Narendra Modi government and will spell out the direction for the economy.

Jaitley has already started pre-budget consultations with different interest groups. He faces several challenges on the economic front, like rising prices, subdued growth and the need to move ahead on the path of fiscal consolidation.

Among other things, he will also have to focus on streamlining subsidies which consume a major potion of government expenditure.

Source: ZEENews

Source: NitiCentral.com

Rise of Hindi in the Reign of Narendra Modi

Rise of Hindi in the Reign of Modi

The Narendra Modi-led government is slowly bringing Hindi into vogue in power centres. The prime minister himself has taken strident steps in this regard: Whether it is a courtesy call or Cabinet meeting, an interaction with a chief minister or even a bilateral discussion, he prefers Hindi.

It is not that Modi is incapable of conversing in English but he prefers Hindi or Gujarati for the “free flow” of ideas and thoughts, said his aides.

They argue that Modi is comfortable with English by citing that he does not need interpreters for translating English to Hindi. He chooses interpreters when he wants a foreign dignitary to understand his expression better, they said.

Modi also manages a mix of Hindi and English to talk with those leaders coming from beyond the Hindi belt. So far, his visitors have not complained of a language barrier.

English, however, has its moments. Delegations led by chief ministers (especially southern and eastern states) prefer English to communicate their cases to the prime minister. Similar is the case when a non-Hindi speaking chief minister or political leader meets Modi. On such occasions, Modi does not mind switching to English, his aides say.

However, bureaucrats who are not so fluent in Hindi find the task daunting. If the prime minister writes in Hindi to a secretary, the secretary has no other option but to reply in Hindi.

More importantly, under the Official Languages Act, 1963, it is mandatory for central government ministries/departments to use Hindi along with English in files, documents and all official correspondences. Modi’s love for Hindi could see the rule being enforced, much to the inconvenience of those who are not proficient in Hindi.

In a circular dated June 10, the department of official languages has reminded ministries to ensure that responses to letters sent in Hindi should be in that language only. It also wants officials to use Hindi in the social media. Modi supporters insist that the prime minister does not wear his Hindi on his sleeves.

BJP leaders see former prime minister A B Vajpayee’s zeal in Modi and are happy that Hindi has been accorded its pride of place.

As foreign minister, Vajpayee became the first person to deliver a speech to the United Nations General Assembly in Hindi in 1977. During his tenure as prime minister between 1998 and 2004, he addressed several international gatherings in Hindi.

Source: DeccanHerald

PMO Mulls Creation of a Real-Time System to Keep Track of Prices

PMO Mulls Real-Time System for Prices Tracking

NEW DELHI: With inflation resurging as a headache after the Wholesale Price Index (WPI) spiked to 6% in May, its highest level in five months, the Narendra Modi government is considering a proposal to create a real-time data monitoring system to keep track of food production, stocks and prices across the country.

The Prime Minister's Office ( PMO) is mulling such a system as it could help coordinate more effectively with official agencies and state governments to try and balance supplies and moderate prices on a proactive basis.

Finance minister Arun Jaitley on Monday blamed hoarders and the poor monsoon for the spike in wholesale price inflation to over 6% in May, inviting criticism from the Congress which said the same arguments were made by UPA ministers to explain why inflation was difficult to tame. Inflation, along with corruption, was one of the biggest planks of the recent Lok Sabha campaign, with the BJP flagging the UPA government's inability to curb price rise over the past decade.

The Modi government has said "containing food inflation will be its top-most priority."

The prime minister has said it is time for tough decisions to revive the economy, but high inflation could limit the space for some of the difficult policy choices to be made such as rationalising subsidies. With wholesale prices touching a five-month high in May and a below-normal monsoon on the cards - a 'business-as-usual' approach may not be enough to tackle the price rise monster.

"Good timely data is critical for the government to mitigate food inflation and for that, a better price monitoring system is imperative. Though some agencies like the price monitoring unit in the consumer affairs ministry monitor prices on a daily basis, it only involves 22 commodities and the data is not robust," said a senior official aware of the development.

Under the present system, nine different official agencies, including the Intelligence Bureau (IB), track price data with each using a different methodology and reporting format.

The IB tracks retail prices, as does the price monitoring cell in the consumer affairs ministry and the directorate of economics and statistics (DES) in the department of agriculture and cooperation. The consumer affairs ministry cell tracks wholesale and retail prices of 22 essential food items, spot and future prices of eight commodities traded on the exchanges, and weekly mandi prices of 20 items.

The DES in the agriculture ministry collects wholesale and retail prices along with production, area coverage and weather forecast on a weekly basis. It collects prices from state marketing boards with an intent to provide advance assessments regarding demand-supply gaps to the Centre. Besides, the DES also tracks farm gate prices, which do not include transport and storage costs and publishes them at an interval of three to four years.

"Almost all the price data received by government suffers from a huge time lag. Though the price monitoring cell gets retail and wholesale prices on the same day, the data is often not accurate as states don't update their inputs in earnestness," the official said. Separately, the directorate of marketing and inspection under the same ministry collects wholesale prices of farm products on a daily basis, with prices uploaded online by APMCs.

Capturing price trends into a headline measure of inflation is done by three other departments. For instance, the WPI is generated by the economic adviser in the department of industrial policy and promotion. The index is used for macroeconomic policies and monetary policies.

To capture price movements at the ground level, which citizens are concerned about, the Labour Bureau under the labour and employment ministry, generates consumer price indices for industrial workers, farm and rural labourers, separately. The Central Statistical Organisation also compiles consumer price indices for urban and rural areas with the purpose of providing a general measure of inflation encompassing all sections of the population.

Source: EconomicTimes

Modi Government Holds Appointment of UPA-era Staff for Rajnath, Others

New Delhi: Prime Minister Narendra Modi's office has put on hold the appointments of private secretaries to ministers including Home Minister Rajnath Singh and Human Resource Development Minister Smriti Irani.

Sources say the PM's Office is debating whether to retain staff that have worked for ministers in the previous Congress-led regime, and will clear these appointments only after scrutiny.

The decision is likely to impact at least eight appointments. Rajnath Singh reportedly wanted Alok Singh, an IPS officer from Uttar Pradesh, as his personal secretary. Mr Singh had previously worked for former External Affairs Minister Salman Khurshid.

Smriti Irani, Venkaiah Naidu, Ravi Shankar Prasad, Kiran Rijiju and Najma Heptulla may also have to let go of their personal secretaries, if the government decides against retaining officials who worked for the previous regime.

A minister's personal staff has direct access to important files and policy decisions of the government.

Sources said all such appointments were on hold; if some officials were asked to go, "it won't be a reflection on their competence." Government sources also cite a rule passed by the earlier UPA government that said a minister's personal staff should not be on deputation for over five years.

The move raised speculation about the Modi government's reluctance to trust officials who worked for UPA ministers.

Source: NDTV.com

PM Narendra Modi slams Manmohan Singh govt, says Nothing 'Left-Behind' by UPA

Prime Minister Narendra Modi today warned of "tough decisions" over the next couple of years to improve the country's financial health, which he said may not go down well with some sections, and attacked the way the previous Manmohan Singh-led UPA government had handled the Indian economy.

"Taking tough decisions and strong measures in the coming one or two years are needed to bring financial discipline which will restore and boost the country's self-confidence", he said addressing BJP workers here.

This is the first occasion in less than three weeks since taking over reins of power that Narendra Modi has made sharply critical comments on the previous PM government's performance.

"I have taken over the reins of the country in circumstances when there is nothing left behind by the previous government. They left everything empty. The country's financial health has hit the bottom," Modi said.

However, in the short run, such measures may not go down well with everybody, he said.

"I am well aware that my steps may dent the immense love that the country has given to me. But when my countrymen would realise that these steps would result in getting the financial health back, then I will regain that love," said the Prime Minister.

On the other hand, if these tough measures were not taken, the financial situation would not improve, he said, adding "we need to take action wherever required".

"We won't be helping the country by praising Modi and praising BJP. There is no guarantee that just singing praise of Modi would improve the situation. We need to take harsh measures to improve the financial situation," he said.

Shortly later, Modi tweeted that "time has come to take tough decisions in the interest of the nation. Whatever decisions we take will be solely guided by national interest".

The Prime Minister said it was a misconception that people in government are not willing to work for the country.

"In a government set-up, most officials would like to do something for the country. They are ready to work. This is what I can say from my experience as the Prime Minister in the last fifteen days," Modi said.

Referring to this year's Lok Sabha elections,

Source: FinancialExpress

PM Narendra Modi’s Gift: No Income Tax likely up to Rs. 3 Lakh

India Budget 2014-2015 | No Income Tax likely up to Rs. 3 Lakh

Finance minister Arun Jaitley may have some good news for the salaried class in the budget for 2014-15.

The government is learnt to be gearing up for an overhaul of India’s tax regime by considering a restructuring of tax slabs and increasing the income tax exemption limit from the existing Rs. 200,000 to more than Rs. 300,000 — a move that would leave more money in the hands of people.

A rejig in income tax slabs is also on the cards, the details of which are being currently examined.

At present, there are three tax slabs. Those with an income of less than Rs. 2 lakh a year are exempt from paying taxes. Those earning between R2 lakh and R5 lakh annually are taxed at 10%, those between R5 lakh and R10 lakh at 20% while anybody earning more than R10 lakh pays a tax of 30%.

In addition, in last year’s budget ( 2013-14) the then finance minister P Chidambaram, for the first time, introduced an additional surcharge of 10% on “Relatively prosperous" persons with a taxable income of more than R1 crore — and there were supposedly only 42,800 of them in India

A rejig in tax slabs along with a hike in exemption limits will enhance people’s disposable income, which, in turn will boost consumption spending as well as savings.

The government is negotiating through a maze of thorny issues ahead of this year’s budget amid faltering demand and rising prices that have hit growth in the broader economy.

The government is examining whether some of the proposals of the draft Direct Taxes Code (DTC) Bill 2013 including a tax on “super-rich” can be introduced in this year’s budget, likely to presented in the second week of July, sources said.

The draft DTC Bill had proposed a higher 35% tax for the super-rich for those who earn more than Rs. 10 crore a year, and a wealth tax on host of assets such as expensive paintings.

The draft had also proposed to reduce the age for tax exemption for senior citizens to 60 years from 65 years.

The Parliamentary Standing Committee on Finance that had examined the DTC Bill of 2010 had recommended raising the income tax exemption limit to Rs. 3 lakh.

Source: HindustanTimes

Narendra Modi Cabinet Expansion likely by June-end; BJP to Get a New Party President

Modi-Govt. Cabinet Expansion likely by June-end

NEW DELHI: Prime Minister Narendra Modi may accommodate some more NDA allies in his Cabinet expansion — likely to take place in the last week of June — and give more representation to Maharashtra and Bihar where polls are due in a few months as well as states like Bengal where the party is trying to make further inroads.

BJP sources said the twin issues of choosing a new party president and Cabinet expansion may get Modi's undivided attention after his two-day visit to Bhutan from June 15.

However, both are likely to take place around June 25, the sources said. "The Cabinet expansion and election of new BJP president is likely to be completed before the budget session begins," a party leader said.

Among the allies, RPI leader Ramdas Athavale may get a portfolio in Modi sarkar. With polls in Maharashtra due in October, Athavale can play a crucial role in getting Dalit votes to the coalition. After Gopinath Munde's death, Modi is likely to induct another BJP leader to keep the region's quota intact.

The number of leaders likely to be inducted into the council of ministers is being pegged at 20. From Bihar, Rajiv Pratap Rudy may get a slot, sources said. In Bengal, Darjeeling MP SS Ahluwalia may be given a Cabinet berth. With Rajasthan having only one MoS, one more leader could be included in the council of ministers. Some minority leaders may also get a chance.

BJP is also set to get a new party chief with Rajnath Singh joining the government. Party General Secretary JP Nadda is still the frontrunner for the post. Though Amit Shah is also said to be in the reckoning for the post of BJP chief, there is a feeling in the Sangh and the party that having the PM and the president from Gujarat would not go down well among the cadre.

"Due to the good working relationship between Nadda and Shah, and with both being close confidants of Modi — the latter will continue to hold sway in decision-making even if Nadda becomes the chief," a party leader said.

Source: EconomicTimes

Economic Data likely to Offer New PM Modi Some Cheer

(Reuters) - Indian economic data on Thursday is likely to offer some cheer for new Prime Minister Narendra Modi by showing a pick-up in industrial activity and easing inflation.

Modi has listed fighting inflation, particularly food inflation, as his topmost priority. He aims to win the battle by improving supplies of food and clamping down on "hoarders".

Output from mines, utilities and factories is expected to have expanded 1.9 percent in April from a year earlier after falling 0.5 percent the previous month, according to a Reuters poll of economists, because of a recovery in the infrastructure sector Modi sees as key to a wider revival.

Cooler food prices probably helped ease consumer price inflation to 8.4 percent in May from a three-month high of 8.59 percent April, the poll showed.

The statistics ministry is due to release industrial production and consumer inflation data at 5:30 p.m.

Consumer inflation has been averaging nearly 10 percent for the past two years even though economic growth has been stuck below five percent, marking the longest slowdown in more than a quarter of a century.

Promises to break the spell of weak growth and high inflation helped Modi to a victory last month that gave his party the strongest parliamentary majority in 30 years.

A slumping industrial performance is at the heart of India's growth struggle. Output contracted 0.1 percent in the fiscal year that ended in March. It has eased in four of the past six months.

Radhika Rao, economist at DBS Bank, said a revival in manufacturing and investment would have broad multiplier effects across the economy, but cautioned that an expected shortfall in monsoon rains could impact both demand and inflation.

"In the short term, the likelihood of a weak southwest monsoon is an important risk for growth this year and likely an initial challenge for the new administration," Rao said.

INFRASTRUCTURE DRIVE

Modi's government is looking to revive the economy through higher investment in infrastructure, which it hopes will boost demand in sectors such as cement, steel and power.

He is also aiming to simplify approvals for projects to kick-start capital investments.

The economic slowdown is taking a toll on public finances. The federal tax-to-GDP ratio has slipped to 10.2 percent from a peak of 12.5 percent in 2007/08, leaving the government having to resort to more rupee bond sales to fund spending commitments.

Higher investment spending without adjustments in wasteful public expenditure would make it tougher to trim the fiscal deficit to a targeted 4.1 percent of GDP this fiscal year, resulting in a heavy bond supply and increased cost of credit for corporates.

This could worsen India's struggle with persistently high inflation - on top of the forecasts of below-average monsoon rains.

The poll showed wholesale price inflation rose to 5.4 percent last month, 0.2 percentage points higher than in April. The data is due on June 16 at 8:30 a.m.

The government has stockpiled staples such as rice, wheat and sugar from bumper harvests in the last few years but it has limited means to control jumps in the cost of fruits and vegetables that have the largest impact on food inflation.

Expectations of an economic turnaround after Modi's victory, however, have brought in copious capital inflows, sending the total value of the Indian stock market over $1.5 trillion for the first time.

Other recent data also gives some hope for a revival. Merchandise exports posted their fastest growth in six months in May. The services sector expanded for the first time in nearly a year last month.

Improving consumer sentiment helped car sales post their first annual growth in three months in May.

Source: In.reuters.com

PM Modi Scraps 4 Cabinet Panels including One on UIDAI

[Earlier, Modi had abolished all the 30 Groups of Ministers (GOMs) and Empowered Groups of Ministers (EGoMs) and told ministries and departments to take decisions on pending matters.]

Sending out yet another loud and clear signal of his intent for "more governance, less government", Prime Minister Narendra Modi on Tuesday scrapped four Standing Committees of Cabinet. The Committees were on Management of Natural Calamities, Prices, World Trade Organisation Matters and UIDAI Aadhaar.

Aadhaar was one of the pet projects of the Congress-led UPA government to check corruption and bring transparency in governance. Earlier, Modi had abolished all the 30 Groups of Ministers (GOMs) and Empowered Groups of Ministers (EGoMs) and told ministries and departments to take decisions on pending matters.

The Congress had attacked Modi over his decision saying it was "symptomatic of autocratic regime" and noted that "no single person can be repository of all wisdom".

Here is the full text of the release by Press Information Bureau, Government of India PM discontinues four Standing Committees of Cabinet The Prime Minister Shri Narendra Modi has decided to discontinue the following four Standing Committees of the Cabinet:

1. Cabinet Committee on Management of Natural Calamities: The functions of this Committee will be handled by the Committee under the Cabinet Secretary whenever natural calamities occur.

2. Cabinet Committee on Prices: The functions of this Committee will be handled by the Cabinet Committee on Economic Affairs.

3. Cabinet Committee on World Trade Organisation Matters: The functions of this Committee will be handled by the Cabinet Committee on Economic Affairs and, whenever necessary, by the full Cabinet.

4. Cabinet Committee on Unique Identification Authority of India related issues: Major decisions in this area have already been taken and the remaining issues will be brought to the Cabinet Committee on Economic Affairs.

The Prime Minister will be re-constituting the Appointments Committee of the Cabinet, the Cabinet Committee on Economic Affairs, the Cabinet Committee on Parliamentary Affairs, the Cabinet Committee on Political Affairs and the Cabinet Committee on Security.

Source: MoneyControl.com

Narendra Modi Government's 5-year Plan: 2-years to Repair, 3 for Growth

NEW DELHI: The Narendra Modi government will take a series of steps to rebuild investor confidence while keeping fiscal consolidation firmly in sight as part of its plan to mend the economy in the next two years and then make an aggressive push for growth in the remaining three years of its term.

Insiders say the government will shun populism and quick fixes and instead focus on a concrete plan to fix the struggling economy it has inherited with two consecutive years of growth below 5% and no fiscal or monetary lever to stimulate economic expansion.

The broad programme will be outlined in the upcoming Presidential address to the joint session of Parliament and followed by detailed steps in the budget that's expected in the first week of July.

Modi-Govt. Prepared for Tough Grind

The finance ministry will work out the details of the budget under the overall direction of Prime Minister Narendra Modi and the government is prepared for a tough grind in the next two years to build a base for rapid expansion in the following three years.

"Fiscal deficit has to follow the downward trajectory... Addressing inflation is a priority, so growth has to be revived without compromising on the fisc," the person, privy to deliberations, told ET.

Quality fiscal consolidation will be the underlying theme and the target for next year's deficit will be narrower than the 4.5% of GDP achieved last year. However, the government does not want the burden of this to be excessive and is not likely to increase any taxes in the name of fiscal consolidation. On the other hand, there may be some small relief for taxpayers.

Additional spending will be met from the room created by the abolition of the diesel subsidy through monthly increases in the retail price and the restructuring of social sector schemes. A monthly price increase mechanism for cooking gas could also be introduced.

Detailed deliberations have begun in the government on how to deal with the schemes put in place by the Congress-led United Progressive Alliance government that did not focus on asset creation, including the Mahatma Gandhi National Rural Employment Guarantee Scheme.

"MGNREGS could be used to build toilets," the person said, offering an instance of merging two schemes to divert government spending to more productive use and creating utilities and public assets. "The mandate means that you can announce bold steps and also carry them out," the person said.

To ensure faster clearances and timely implementation, the Centre is likely to rope in state governments for large projects in the initial stages itself, since that's where the actual implementation takes place. The Project Management Group in the Cabinet secretariat could be reoriented toward this end.

Revival of manufacturing has been identified as a key priority area and the government could look at creating new dedicated hubs as the special economic zones tend to have turned more into tax shelters for IT. There is a feeling that UPA focused too much on the Delhi-Mumbai Industrial Corridor to revive manufacturing whereas a wider national outreach is needed and the reforms planned by the Modi government need to make factories cost competitive.

The first budget of the new government, which will be keenly watched by global analysts and investors, would also clearly spell an end to retrospective taxation that played a large role in undermining business sentiment.

Meanwhile, the induction of a number of new ministers in key economic ministries is expected to lead to the generation of new ideas and fresh thinking besides infusing the energy needed for implementation while reducing the turf battles that bedeviled the UPA government. "Economy is facing acute challenges of high inflation and poor government finances... Focus clearly needs to be on consolidation for the next two years and then take it forward... All efforts would be driven to turn the business sentiment with concrete measures," said a top government functionary.

Source: EconomicTimes

Gopinath Munde Dies in a Road Accident in Delhi

New Delhi: Union Minister Gopinath Munde died in a road accident in Delhi on Tuesday morning when he was on his way to the airport. He was rushed to the AIIMS trauma centre after the accident where he was declared dead. He will be cremated on Wednesday.

The accident took place when Munde was on his way to the Indira Gandhi International airport to fly to Mumbai. It took place when when Munde's car was moving from Lodhi Road towards the Aurobindo Chowk.

Munde had a victory rally scheduled in Beed and Parali. He had won the 2014 Lok Sabha elections from the Beed constituency. He was the Minister of Rural Development, Panchayati Raj and Drinking Water and Sanitation.

Transport Minister Nitin Gadkari said that the accident took place at 6.30 am on Tuesday morning and was declared dead at AIIMS. "There was no breathing, no pulse, no cardiac function when Mr Munde was brought to the hospital. Despite efforts, he could not be revived and was declared dead at 7.20 am," said AIIMS spokesperson Dr Amit Gupta.

Munde's Ambassador car was reportedly hit by an Indica. The driver of the Indica has been arrested.

A driver and Munde's security guard, who were with Munde in his car at the time of the accident, are reportedly safe.

Gadkari said that there are reports that Munde suffered a heart attack after the accident that lead to his death but the party is waiting for the post-mortem to know the exact cause of his death. Gadkari also said that Munde suffered several head injuries.

"Munde's body will be taken to the party headquarters at 12.30 pm on Tuesday. Prime Minister Narendra Modi has been informed about the accident," Gadkari added.

Expressing grief over Munde's tragic death, Prime Minister Narendra Modi tweeted. "Extremely saddened & shocked by the demise of my friend & colleague Gopinath Munde ji. His demise is a major loss for the Nation & the Govt. Gopinath Munde ji was a true mass leader. Hailing from backward sections of society, he rose to great heights & tirelessly served people. My tributes to a dynamic leader whose premature demise leaves a void hard to fill. Condolences to Munde ji's family. We stand by them in this hour of grief."

Gopinath Munde was the brother-in-law of the late BJP leader Pramod Mahajan. He had married Mahajan's younger sister. After Mahajan's death, Munde was the guardian of the Mahajan family. Munde was a very big OBC leader from Maharashtra. He was very accessible and had a huge following. He wanted to reform and modernize the Rural development ministry.

Source: IBNLive

No Remote Controls: Why RSS will Give Narendra Modi a Free Run

On the day Narendra Modi was being sworn in as the prime minister along with his council of ministers, RSS chief Mohan Bhagwat was conducting a two-day conference for junior volunteers in Bhopal. He was monitoring the preparations for a national brainstorming session for the Sangh pracharaks to be held in the town from 30 July to 2 August. The Sangh, sources say, is expected discuss strategies on the implementation of the Sangh agenda on Ram Temple, Uniform Civil Code and revocation of Article 370 in Jammu and Kashmir.

Bhagwat’s absence from Modi’s grand inauguration did not come as a surprise. The Sangh had given ample hints about this after the results were announced. Now that the elections are over the party, the government and the Sangh must go back to their respective jobs, said a functionary of the RSS. The message being sent out is that the government is not remote-controlled. Volunteers have been told not to expect personal benefits from the party they have just installed in power.

More importantly, Bhagwat has conveyed he would be the Sangh’s sole interlocutor with the prime minister on organisational issues. The carte blanche to Modi is apparently extended for a year.

The RSS and the BJP, through years in power at the Centre and in some states, have realised the need to draw some lines after the Sangh representatives into the party turned into power centres and developed vested interests. Suresh Soni, who was the RSS point person to deal with BJP-ruled governments, had to be removed after allegations of fuelling factionalism. Bhagwat’s deputy Bhaiyyaji Joshi was then assigned the job. Now with Modi as prime minister Bhagwat has decided to be the bridge between the prime minister and the Sangh.

The changing equations between the Sangh and its political arm make an interesting study.

In the 1920s two qualified doctors Narayan Subbarao Hardikar and Keshav Baliram Hedgewar -- both active and promising members of the Indian National Congress-- founded two parallel organisations-- the Sewa Dal and the Rashtriya Swayamsevak Sangh. The RSS went on to mother another national party— Bharatiya Jan Sangh in 1951 (now the BJP) while the Sewa Dal has for long remained a neglected offspring of the Congress.

Jan Sangh founder Dr Shyama Prasad Mukherjee, who was arrested in Kashmir in 1953 and subsequently died in jail, had partly visualised his party’s future when he found an able aide in Deendayal Upadhyay. As national general secretary Upadhyay impressed Dr Mukherjee. "If I had two Deendayals, I could transform the political face of India," Mukherjee once said. In 15 years, Upadhyay built the Jan Sangh by raising a band of dedicated workers drawn largely from the RSS.

Upadhyay believed an independent and historic nation like India can do without Western concepts of socialism, democracy, communism or capitalism. "We are pledged to the service not of any particular community or section but of the entire nation. Every countryman is blood of our blood and flesh of our flesh." he had said.

The Jan Sangh hardly ever challenged the Congress. But, it did groom leaders like, Atal Behari Vajpayee, Bhairon Singh Shekhawat, Sunder Singh Bhandari and LK Advani who convincingly represented it when it turned into a constituent of the Janata Party government in 1977. From just being a rallying point for the forces opposed to the Congress the BJP, founded in 1980 on its divorce from the Janata Party, has come a long way to displace the Congress. The Congress which represents a broader vision of the nation could boast of Indira Gandhi when it bounced back in 1980 a couple of years after being swept out of power. With little likelihood of a similar leadership emerging soon the Congress is in for a long haul.

The RSS has not been averse to the party importing a big chunk of candidates for the recent Lok Sabha elections from the Congress and other parties that it targeted for various reasons. When the Aam Aadmi Party awakened the voter against the conventional parties and politicians the Sangh had warned its volunteers and the BJP members against complacency. Even the members who have had no RSS background acknowledge the advantages of the party’s Sangh moorings.

The Sangh and BJP know that mandate for Modi government is for five years and not five months. The noises on issues like Article 370, or Uniform Civil Code or the Ram Temple are apparently to keep the cadre engaged and votes polarised for the forthcoming assembly elections in some states.

Source: FirstPost

Modi to Meet BJP General Secretaries on 31-May (Saturday)

Prime Minister Narendra Modi will meet BJP general secretaries on Saturday. This is the first meeting that Mr. Modi will have with his party colleagues after assuming office.

The meeting is expected to take place at the PM’s residence to discuss organisational affairs.

According to sources, Mr. Modi does not want the organisational strength to be weakened in the wake of the massive mandate in the general election.

The BJP will also see new faces in the party as it does not want to weaken the organisation ahead of the crucial Assembly polls in Maharashtra and Haryana later this year and in Jammu and Kashmir and Jharkhand early next year.

BJP general secretaries Ananth Kumar, Thawarchand Gehlot, Dharmendra Pradhan, Varun Gandhi and Rajiv Pratap Rudy have won the LoK Sabha polls and the party will have to replace them by a new set of office-bearers.

Of the other general secretaries, J.P. Nadda and Amit Shah are in race for the party president’s post.

Source: TheHindu

Narendra Modi Gives up Vadodara, Amit Shah may Contest Seat

NEW DELHI: Narendra Modi has decided to retain his Varanasi seat and give up the Vadodara seat. While the buzz on BJP's Vadodara candidate for the by-election centres around general secretary Amit Shah, his project of revival of BJP in Uttar Pradesh is of greater interest.

Former Prime Minister Manmohan Singh is said to have remarked to Andhra Pradesh chief minister YS Rajashekhar Reddy in 2009 that he was Prime Minister because Reddy was in CM in Andhra Pradesh. Andhra had elected more than 30 Congress MPs in 2004 and 2009, which helped UPA assume power.

While Andhra and Tamil Nadu had a disproportionate representation in the two previous governments, thanks to the numbers UPA had from these states, UP, despite a rich bank of 80 seats has been denied a seat at the high table for decades.

"In the past, seats in Uttar Pradesh have been divided between SP, BSP, then BJP and Congress. Only in 1998 did UP give 57 seats to the then NDA government and gain prominence at the Centre," said Dr Prashant Trivedi of the Giri Institute in Lucknow.

For BJP, Prime Minister Modi's retention of Varanasi serves a dual purpose. "Modiji, in his years as a pracharak spent many years in north India. By choosing Uttar Pradesh he proves that BJP is a national party, not given to parochialism," said a senior BJP leader.

That pan-India definition, leavened with heartland ethos and politics, had been the mainstay of Congress' single party rule in the past. BJP, which has found the key to forming a stable government at the Centre via UP, has unwittingly brought the Banarasi babus back in vogue in Delhi.

Source: EconomicTimes

Prime Minister Narendra Modi Asks Ministers to Fix 100-Day Agenda

New Delhi: Prime Minister Narendra Modi has asked his Cabinet colleagues to sit with the officials of their ministries and prepare a list of issues to be taken up in the first 100 days of the new government.

This was decided today in the second meeting of the new Cabinet, headed by Mr Modi.

The issues flagged by the ministers will be addressed during the budget session of Parliament, expected to begin in July.

In order to tone up governance, Mr Modi asked the members of his Cabinet to focus on three issues -efficiency, delivery system and implementation.

Source: NDTV

Modi Government to Discuss Article 370 ‘with All Stakeholders’

Minister of State in the PMO, Jitendra Singh, makes it clear that the BJP stands for abrogation of Article 370, but wants to have a democratic approach to find a lasting solution to the issue.

The Narendra Modi government is open to debate on merits and demerits of Article 370 for Jammu and Kashmir and would make efforts to “convince” the “unconvinced” by holding contact programmes with every section of society in the State, Minister of State in the Prime Minister’s Office Jitendra Singh said in New Delhi on Tuesday.

The 57-year-old first-time MP made it clear that the BJP stood for abrogation of Article 370 (which gives special status to Jammu and Kashmir) but at the same time it wanted to convince the people and have a democratic approach finding a lasting solution to the issue. Mr. Singh said that state BJP was speaking to various stake holders. “We have called meetings in the Kashmir Valley and we have succeeded in convincing some of them (on repealing Article 370),” he said.

Mr. Singh, a surprise choice as Minister of State in the PMO, said Prime Minister Narendra Modi, during his December 2013 rally, had suggested for discussion and seminars across the State to analyse merits and demerits of Article 370.

“His (Mr. Modi’s) intention and that of the government is that we have a debate so that we can convince the unconvinced about the disadvantages of Article 370.

“If we do not have debate and discussion how would you be able to tell those who have been unable to understand what they have been deprived of on account of Article 370,” he said after taking over as Minister of State in-charge of Department of Personnel and Training, which has administrative control over the CBI.

The Minister said, “We are working very professionally but at the same time, please keep in mind, that we are working very democratically. We do not want to impose ourselves on anyone and things will happen in natural course.”

Mr. Singh said Article 370 was more of a psychological barrier than a physical one.

He said Mr. Modi has supported debate on Article 370 keeping in mind democratic values. “The Prime Minister had said we want to have a debate. This does not mean that we want to have a debate because certain section of media interpreted that Prime Minister deviated from its stand. It’s not so.

“He said so with respect to the highest values of democratic system,” the Minister said referring to one of the elections rallies by Mr. Modi where he had sought discussion on the article.

Mr. Singh, a doctor by profession, suggested that people in the State were also in favour of repealing the article.

“If you take voter account, we have more that 50 per cent of vote share,” he said and asked “can the media interpret that 50 per cent of people in the State wanted abrogation of Article 370?”

BJP has won three out of six Lok Sabha seats from the State.

Mr. Singh said talks will be held with every stakeholder of the State as all are “equally important” and reminded that the founding fathers including the then Prime Minister Jawaharlal Nehru were of the view that it is going to be a “transient provision”.

Source: TheHindu

Narendra Modi-Team: List of Cabinet Ministers and Mnisters of State

Narendra Modi assumed office as India's 15th Prime Minister on Tuesday morning and announced the much speculated portfolios for the Cabinet and the Ministers of State (MoS) who took oath at a grand ceremony on Monday. Here is a list of who does what in the new council of ministers.

PM Narendra Modi: personnel, public grievances and pensions, Department of Atomic Energy, Department of Space, All important policy issues and all other portfolios not allocated to any Minister.

Here is what Team Modi looks like:

Cabinet Ministers:

1. Rajnath Singh: Home affairs

2. Sushma Swaraj: External affairs, overseas Indian affairs

3. Arun Jaitley: Finance, corporate affairs, defence

4. M Venkaiah Naidu: Urban development, housing and urban poverty alleviation, parliamentary affairs

5. Nitin Gadkari: Road transport and highways, shipping

6. D V Sadananda Gowda: Railways

7. Uma Bharati: Water resources, river development and Ganga rejuvenation

8. Najma A Heptulla: Minority affairs

9. Gopinathrao Munde: Rural development, panchayati raj, drinking water and sanitation

10. Ram Vilas Paswan: Consumer affairs, food and public distribution

11. Kalraj Mishra: Micro, small and medium enterprises

12. Maneka Gandhi: Women and child development

13. Ananth Kumar: Chemicals and fertilizers

14. Ravi Shankar Prasad: Communications and information technology, law and justice

15. Ashok Gajapathi Raju Pusapati: Civil aviation

16. Anant Geete: Heavy industries and public enterprises

17. Harsimrat Kaur Badal: Food processing industries

18. Jual Oram: Tribal affairs

19. Radha Mohan Singh: Agriculture

20. Thaawar Chand Gehlot: Social justice and empowerment

21. Smriti Irani: Human resource development

22. Harsh Vardhan: Health and family welfare

23. Narendra Singh Tomar: Mines, Steel, Labour & Employment

24. Harsimrat Kaur: Food Processing Industries

Ministers of State (Independent Charge):
  •  Gen VK Singh - Development of North Eastern Region (Independent Charge), External Affairs, Overseas Indian Affairs
  •  Inderjit Singh Rao - Planning (Independent Charge), Statistics and Programme Implementation (Independent Charge), Defence
  •  Santosh Kumar Gangwar - Textiles (Independent Charge), Parliamentary Affairs, Water Resources, River Development and Ganga Rejuvenation
  •  Shripad Yesso Naik - Culture (Independent Charge), Tourism (Independent Charge)
  •  Dharmendra Pradhan - Petroleum and Natural Gas (Independent Charge)
  •  Sarbananda Sonowal - Skill Development, Entrepreneurship, Youth Affairs and Sports (Independent Charge)
  •  Prakash Javadekar - Information and Broadcasting (Independent Charge), Environment, Forest and Climate Change (Independent Charge), Parliamentary Affairs
  •  Piyush Goyal - Power (Independent  Charge), Coal (Independent Charge), New and Renewable Energy (Independent Charge)
  •  Jitendra Singh - Science and Technology (Independent Charge), Earth Sciences (Independent Charge), Prime Minister Office, Personnel, Public Grievances & Pensions, Department of Atomic Energy, Department of Space
  •  Nirmala Sitharaman - Commerce and Industry (Independent Charge), Finance, Corporate Affairs

Ministers of State:
  •  GM Siddeshwara - Civil Aviation
  •  Manoj Sinha - Railways
  •  Nihal Chand - Chemicals and Fertilizers
  •  Upendra Kushwaha - Rural Development, Panchayati Raj, Drinking Water and Sanitation
  •  Radhakrishnan P - Heavy Industries and Public Enterprises
  •  Kiren Rijiju - Home Affairs
  •  Krishan Pal - Road Transport and Highways, Shipping
  •  Sanjeev Kumar Balyan - Agriculture, Food Processing Industries
  •  Mansukhbhai Dhanjibhai Vasava - Tribal Affairs
  •  Raosaheb Dadarao Danve - Consumer Affairs, Food and Public Distribution
  •  Vishnu Deo Sai - Mines, Steel, Labour and Employment
  •  Sudarshan Bhagat - Social Justice and Empowerment

Source: Hindustan Times

Watch Live: Narendra Modi Swearing-in Ceremony on 26th-May

Narendra Modi's Swearing-in Ceremony as Prime Minister of India has been scheduled on 26th-May (Monday) evening at 6:00 PM.

Over 4,000 people expected to attend the grand celebrations at Rashtrapati Bhavan on Monday as Narendra Modi takes the oath of office as India's new Prime Minister.

The event, the biggest of its kind ever held at Rashtrapati Bhavan since the country gained independence, will see eight heads of government or their delegations in attendance as three bands provide the musical accompaniment.

Watch Live: Narendra Modi Swearing-in Ceremony of 26th-May

Modi in Town, Big-Talking BJP Leaders Prefer Ssound of Silence

The results of the Lok Sabha election have brought about a visible change in the demeanour of BJP leaders. Men and women well known for divulging details of deliberations and spilling the beans on changes in the offing, have gone almost entirely quiet.

To questions of who might find a place in the new central ministry, the standard refrain is: “No one knows the mind of Narendra Modi.” The Prime Minister-designate was reported to have taken a dig at media speculation over his likely cabinet in Gandhinagar earlier this week, saying “every channel has its own cabinet”.

Asked the names of leaders the BJP would like to see as ministers, a senior party leader said, “Sab bekhabar hain (no one knows).” Another leader quipped, “Get used to this.”

A third leader pointed out a key aspect of the meetings that Modi has been having with a range of people at Delhi’s Gujarat Bhavan: “Earlier, the media would get details of most secret meetings. Now have you seen details spilling out? To begin with, Modi will consult only a few people. And those people will not divulge anything.”

Party leaders who have got an opportunity to interact with senior colleagues who have interacted with Narendra Modi since the announcement of results say these senior leaders either have no clue about the mind of Modi regarding their roles, or are hesitant to reveal the details of their discussions with him.

Party leaders admit that everyone fears that anything they say beyond their limited brief would travel to Modi, and might create problems later.

Source: IndianExpress

@PMOIndia Twitter Account Reset Before Narendra Modi Takeover, BJP Protests

New Delhi: The transition from Manmohan Singh to Narendra Modi in India's top office has been marred by quibbling over Twitter.

The BJP lashed out at the outgoing Prime Minister's team for resetting Manmohan Singh's account @PMOIndia and renaming it as @PMOIndiaArchive just before Mr Modi, one of India's most twitter-savvy politicians, is to take over. This would mean that the older tweets would be archived.

"It is ungraceful, unethical and illegal in the way outgoing team in @PMOIndia has handled the transition of this National Digital asset. We hope better sense prevails, tweets of outgoing @PMOIndia are archived according to legal procedures and clean transition takes place," the BJP tweeted.

"Isn't @PMOIndia for communication from the Prime Minister's Office? An institutional handle which should continue seamlessly. Surprised!" tweeted BJP spokesperson Nirmala Sitharaman.

The party said the account had 1.4 million followers, but they would have to start from scratch because Dr Singh's account had been archived instead of being handed over.

The new @PMOIndia account has only about 3,000 followers at present.

The outgoing Congress' ally Omar Abdullah, a prominent twitter user, commented, "How churlish!!! Just hand over the twitter account. It's not like Dr Manmohan Singh was actually using it himself or will use it much now."

The Prime Minister's office first released a statement in its defence, saying "all our official communications are being archived according to the Right To Information Act."

Later, the PM's Communications Director, Pankaj Pachauri, clarified, "This is an office account and the office continues to manage it. The handover is being facilitated."

Mr Modi is a regular on social media and has not missed sharing a single milestone in his journey to the top office with his 4.2 million followers. He will be sworn in as India's 15th Prime Minister on Monday.

Social media users point out that if Mr Modi's image replaces Manmohan Singh's on the original account of the Prime Minister, then all previous tweets by Dr Singh will have the new PM's face - something both sides may want to avoid.

Source: NDTV.com

Modi Replaces Advani as BJP Head in Parliament (16th Lok Sabha)

NEW DELHI: The election of PM-designate Narendra Modi as leader of the BJP parliamentary party has rendered infructuous L K Advani's position as chairperson of BJP parliamentary party amid deepening doubts that he will continue as the chairperson of NDA.

BJP created the position of chairperson of parliamentary party specifically for Advani after Sushma Swaraj and Arun Jaitley were appointed as leaders of opposition in Lok Sabha and Rajya Sabha, respectively. It was inspired by the position that Congress crafted for Sonia Gandhi - UPA chairperson — after she declined to be PM in 2004.

The arrangement became irrelevant on Tuesday when Modi was elected leader of the parliamentary parties of BJP and NDA. Besides being the leader of Lok Sabha, Modi will also get to appoint the leader of the House in Rajya Sabha.

There are doubts about Advani continuing in his other role, as chairperson of NDA. BJP leadership is said to be of the view that, as was the case under the Vajpayee regime, the PM should also be the chairperson of the alliance to dodge the risk of the emergence of a rival power centre as well as the disarray that became the hallmark of UPA because of its dual power centres.

However, sources said the BJP leadership may not be in a hurry to take a call on the matter.

The BJP leadership has struggled to find a slot for Advani. Party sources said the veteran has conveyed his willingness to be Lok Sabha Speaker but the leadership remains undecided.

Government-formation deliberations, which had preoccupied the leadership since the result on Friday, will remain on hold until Modi's return from Ahmedabad on Friday. Modi took time off his election as the leader of NDA and BJP parliamentary parties and visit to Rashtrapati Bhavan to continue deliberations with leaders of BJP and allies. He met TDP boss N Chandrababu Naidu and Bihar BJP leader Sushil Modi among others.

Source: TOI

Prime Minister's Office Prepares 'Priority List' for Narendra Modi

New Delhi: When Narendra Modi holds his first meeting with officials in the Prime Minister's Office after being sworn in as the country's 15th Prime Minister, he will be handed a list marked 'Top Priority'.

Such a list, sources in the PMO said, is compiled every time there is a change of regime at the Centre. Here is what his new office is waiting to present to Mr Modi as issues to be addressed immediately.

Here is the List:

1. Need to tackle inflation: A spurt in price of essential commodities, including food items, is seen as one of the main factors behind the Congress' decimation in the Lok Sabha polls. Containing prices is part of the BJP's election manifesto. The party is expected to express its gratitude to the middle class, its core constituency, by taking steps to bring down inflation.

2. Inputs for budget preparation: The new government will have to present a full-fledged budget after taking over. The PMO has drafted its inputs for the exercise to make the new finance minister's job easier. The outgoing government had tabled a vote-on-account in February. (Also Read: Elections 2014, Complete Coverage)

3. Steps to contain terrorism and extremism, particularly left-wing extremism: Subjects which are said to be close to the new prime minister's heart. Experts expect the NDA government to adopt a 'muscular' approach to the twin issues. The Centre would be expected to provide more assistance to the states which are grappling with Naxalism.

4. Important appointments to be made at different levels in various ministries and departments: The outgoing government filled up important posts in its last few weeks, but there are still several vacancies to be filled. A top-level bureaucratic reshuffle may also be on the cards.

5. Priorities of each ministry: The PMO has asked each ministry to prepare a list of steps that need to be accorded top priority. They are being compiled for the Prime Minister's perusal.

6. Kickstarting disinvestment all over again: Disinvestment was one of the success stories of the Atal Bihari Vajpayee government, but had come to a halt under the Manmohan Singh government because of resistance from allies such as the Trinamool Congress and the DMK. A shortlist of public sector undertakings, or PSUs, that need to be disinvested, either partially or fully, is being readied.

7. List of pending legislation: Several crucial pieces of legislation, such as Lokpal, or anti-corruption Ombudsman, and women's reservation, could not be passed by the UPA government. They have either lapsed because of the term of the 15th Lok Sabha coming to an end, or are pending in the Rajya Sabha. The new government will have to take a fresh look at them.

8. List of Group of Ministers (GoMs) and EGoMs, and their members: The Manmohan Singh government had constituted 78 GoMs and 16 EGoMs after being sworn in for the second term in 2009. At the last count, there are 9 EGoMs which are yet to submit their reports. The number of GoMs is much higher.

9. List of Governors, and their terms: There are 28 states, and seven union territories. A 29th state will be created on June 2, when Telangana is formally declared as a separate state. Will Mr Modi prefer to replace the governors and Lieutenant-Governors appointed by the outgoing regime?

10. List of committees and government bodies which are headed by the Prime Minister: There are at least 21 committees and other bodies headed directly by the Prime Minister. They include such important ones as the Economic Advisory Council and the disaster management committee. They will have to be reconstituted.

Source: NDTV.com

A To-Do List for Narendra Modi's BJP Government

Following its staggering landslide victory, Narendra Modi's Bharatiya Janata Party (BJP) has a mandate for real reform. Still, quick successes are needed to sustain political and market momentum. The pro-business former chief minister of Gujarat state should start with infrastructure, tax, and banking.

The central challenge is growth. For the past two years, GDP has expanded by less than 5 percent annually, down from an average of almost 9 percent in the five years before 2008.

That means fewer jobs for the millions of young Indians joining the workforce each year. Employment increased by just 2 million each year between 2010 and 2012, down from 8 million annually in the first five years of the millennium.

Some of the blame lies with fiscal indiscipline, runaway inflation, a wobbly rupee, and cagey foreign investors. But a huge culprit is collapsing investment.

India has all but stopped building new factories and machinery. The problem, particularly acute in infrastructure and mining, stems from infighting between Delhi ministries and interminable local approvals.

An understandable backlash against corruption hasn't helped. The outgoing Congress Party's "cabinet committee" has helped dent the backlog. But a lot remains to be done. Modi needs to force through more approvals from central government, insist that departments work together, and browbeat local officials.

TAX BATTLES:

Tax is another target. India has taken a tough line with multinationals like Nokia, Shell and Vodafone. The UK mobile phone group won a $2 billion-plus tax case in India's top court, only for New Delhi to retrospectively change the law. The dispute is now headed for international arbitration.

Global companies are often aggressive with tax. But India's current stance deters foreign investment. The BJP calls this "tax terrorism", which implies it is planning to change tack. Modi's finance minister could use his first budget to send a powerful message to international business that India's tax policy is becoming more predictable.

For domestic companies, too, tax could change. For years, politicians have debated a so-called goods and services tax to replace some of India's many indirect charges. Business lobby groups reckon this could add 1.5 percentage points or more to GDP growth, while slowing inflation.

Pushing the levy through parliament, though, will be a challenge because Modi's party doesn't control the legislature's upper house.

BAD BANKS:

The financial system is also due an overhaul. Most lending is still done by badly run, overstaffed, and undercapitalised public-sector banks.

A recent timely report from the Reserve Bank of India lambasted the banks' governance and performance, said the government should give up its majority shareholding in state lenders, and warned the sector may need 2.1 to 5.9 trillion rupees ($36 to $100 billion) of fresh capital by 2018. The central bank's recommendations provide a helpful spur to government action.

Downsizing welfare programmes like India's rural job guarantee and using the savings to recapitalize banks would help to give lending a short-term boost without burdening an overstretched federal budget.

Even outside banking, there is ample scope for privatisation. The state has stakes in everything from miners and airlines to hotels and a major producer of newsprint. Drawing up a privatisation plan would be a bold statement of intent, though it will take at least a year to get the auction going.

The new government can also open the door to overseas investment. Though the BJP has pledged to keep out international supermarket chains, many of the existing limits on foreign direct investment can be eased without legal manoeuvring. Obvious candidates are railways and defence production.

Meanwhile, an immediate increase in government-controlled natural gas prices will boost domestic production and get some idle power plants humming again.

MODI RALLY:

This is just a first-year agenda. India sits a miserable 134th in the World Bank's "ease of doing business" rankings: it is an especially bad place to start a business, enforce contracts and obtain building permits. Addressing these gripes would help restore confidence.

Agriculture, too, deserves attention. Far too much food is wasted between farm and plate. For now, though, sustaining the "Modi rally" in the stock market is crucial, as it will give the most indebted Indian groups an opportunity to raise equity.

With the most decisive electoral mandate of any Indian government in three decades, Modi's government can start ticking things off its to-do list at once.

Source: Hindustan Times

Bihar Chief Minister Nitish Kumar Resigns a Day After Poll Defeat

Patna: Bihar Chief Minister Nitish Kumar has resigned a day after his party lost the national election.

Mr Kumar's Janata Dal United won just two of Bihar's 40 seats in the polls that saw his arch enemy Narendra Modi win a decisive mandate to be the next Prime Minister.

Mr Kumar is expected to address the media shortly. Reports suggest he has also recommended the dissolution of the state assembly.

His resignation may precipitate snap polls in the state that is due for assembly elections in November next year.

Mr Kumar's government was in a minority in the Bihar assembly and there was speculation the dissent within his party will grow, with support from the opposition.

On Friday, as the dismal results poured in, six of his ministers did not show up for a cabinet meeting.

Mr Kumar's defeat is seen by many as the fallout of his decision to snap ties with 17-year-old ally BJP last year over Mr Modi's elevation, a move that seems to have backfired spectacularly.

The BJP won a landslide victory with 282 seats in the 543 member Parliament; the party won over 333 seats with its allies.

Yesterday, he had said, "I respect the mandate of the people."

After his party's crushing defeat, BJP leader Sushil Kumar Modi, his former deputy, had said, "Nitish Kumar should take moral responsibility and resign. He has lost the confidence of the people."

On the back of a hugely popular BJP-JD(U) government that was in power in Bihar between 2004 and 2009, Nitish Kumar's party had won 20 of the state's 40 Lok Sabha seats. Alliance partners BJP won a further 12.

Source: NDTV.com

Lok Sabha Results 2014-Counting Trends & Seats Tally(State-wise)

2014 Lok Sabha Results - Counting Trends & Tally (543 Seats)
Top & Latest Trends: (16-May 2014 on and after 8:00 AM) Total Trends / Tally: 543/543 BJP-led NDA UPA (Congress+) AAP SP BSP AITC Others 335 60 4 5 0 34 106 * BJP-led NDA won over 335 Seats. * BJP is ahead on 282 seats alone. * Satyapal Singh won from Baghpat. Ajit Singh is lost the seat. * V K Singh won in Ghaziabad seat. APP is on 5th place. * L K Advani won in Gandhi Nagar seat over 2,50,000+ votes. * Narendra Modi won Vadodara seat by 5,80,432 votes. * Narendra Modi won Varanasi seat by 3,71,000. Kejriwal on 2nd place. * Smriti Irani lost Amethi seat. Kumar Vishwas on 4th place. * Harshvardhan won from Chandni Chowk. * Arun Jaytley lost Amritsar seat. * Yogendra Yadav lost Gurgaon seat and on 4th place. * Ajay Makan lost New Delhi seat. BJP (Minakshi Lekhi) won. * Kiran Kher won from Chandigarh seat. * Mulayam singh won from Azamgarh seat. * BJP won 2 seats of J&K. * BJP won both seats of Goa. * Nitin Gadkari won Nagpur seat. AAP is on 4th place. * AAP candidate Bhagwant Maan won from Sangrur seat of Punjab.
U.P. (80 Seats) Trends & Tally: * Narendra Modi won Varanasi seat. * Rahul won Amethi seat. * Hema Malini won Mathura seat. * Satyapal Singh is won from Baghpat. Ajit Singh is lost the seat. * BJP+ 73 seats in UP.	Gujarat (26 Seats) Trends / Tally: * BJP won all 26 Seats. * Clean Sweep by BJP. * Narendra Modi won Vadodara seat by 5,70,128 votes. Maharashtra (48 Seats) Trends/Tally: * BJP+ is ahead on 40 seats of this State.
Bihar (40 Seats) Trends & Tally: * BJP is ahead from 21+ seats. * LJP is ahead on 3 seats. * RJD is ahead on 5 seats. * JDU is ahead on 2 seat only.	Madhya Pradesh (29 Seats) Trends: * BJP is ahead over 26 seats in MP. Rajasthan (25 Seats) Trends & Tally: * BJP is ahead from 25 seats. * Clean Sweep by BJP.
West Bengal (42 Seats) Trends: * BJP is ahead on 4 seats in WB. * AITC is ahead on 33 seats.	Andhra+Telangana(42 Seats) Trends:
Tamil Nadu (39 Seats) Trends & Tally: * AIADMK is ahead on 34 seats. * BJP+ is ahead on 3 seats. * Congress is ahead on 1 seat only.	Karnataka (28 Seats) Trends & Tally:
Odisha (21 Seats) Trends & Tally: * BJP is ahead on 4 seats of Odisha. * BJD is ahead on 13 seats. * Congress is ahead on 4 seats.	Kerala (20 Seats) Trends & Tally: * BJP is ahead from 1 Seat in Kerala.
Assam (14 Seats) Trends & Tally: * BJP is ahead on 8 seats of Assam.	Jharkhand (14 Seats) Trends & Tally: * BJP is ahead from 10 seats from State.
Punjab (13 Seats) Trends / Tally: * Arun Jaytley is ahead from Amritsar. * AAP is ahead on 3 seats. * Bhagwant Maan won from Sangrur seat of Punjab.	Chhattisgarh (11 Seats) Trends/Tally: * BJP is ahead from 10 Seats of the State.
Haryana (10 Seats) Trends & Tally: * BJP is ahead on 7 seats of Haryana.	Delhi (7 Seats) Trends & Tally: * Harshvardhan is ahead from Chandni Chowk. * BJP is ahead from all 7 seats. * Clean Sweep by BJP.
Uttarakhand (5 Seats) Trends / Tally: * BJP is ahead from all 5 seats. * Clean sweep by BJP.	Himachal Pradesh (4 Seats) Trends: * Anurag Thakur is ahead from Hamirpur seat.