Prime Minister's address to the Korean CEOs

Seoul:  It is a great pleasure for me to meet with you this morning. I would like to thank the leading Korean chambers of commerce and industry for organizing this interaction during my official visit to this beautiful country.

We in India admire the Korean people for the great economic and social progress they have registered. Despite the downturn in the global economy, Korea has sustained one of the highest growth rates among the OECD countries. These achievements are due to the determination, solid hard work and spirit of enterprise of the Korean people.

India too is one of the fastest growing major economies of the world. Despite the adverse international environment, we have managed to maintain a growth rate of 7% per annum in the last few years. I am confident that the strong fundamentals of our economy will help us return to a sustained growth path of about 8-10% per annum in the coming years.

Firstly, our domestic savings rate is about 33 - 35% of our GDP and growing.

Secondly, India has a very young population and over half of the working population is in its twenties.

Thirdly, over the past few years we have invested heavily in education, health and agriculture to give a new deal to rural India. Our rural markets are now booming and the middle class is growing rapidly.

Fourthly, we have been undertaking a huge expansion in our higher education and skill development infrastructure of ports, airports, railways, energy and roads. India is poised to continue to be a frontline player in the global knowledge economy.

Fifthly, we have very ambitious plans for the development of our physical infrastructure. We are planning to secure investment of almost US Dollar one trillion in the next 5 years in new projects in highways, power plants, mass transport systems, ports and airports. This will be achieved through both public and private investment and Public-Private Partnerships.

Sixthly, we are determined to pursue a strategy of green growth. We are committed to increasing energy efficiency and the share of renewables, including solar and nuclear power, in our energy mix. There will be large business opportunities and I am aware of Korean capabilities in environmentally friendly technologies.

Korean companies have always recognized these strengths and competitive advantages of the Indian economy. They were among the early investors to look at India as a strategic investment destination. Korean giants like LG and Samsung are household names in India. Hyundai has a 25% market share in India's domestic passenger car industry.

I recognize that sometimes our processes can be slow but there are effective mechanisms for resolution of problems and differences and a strong rule of law. The government is keen to move forward with the POSCO project and there is some progress in this regard. I believe that India is a stable and profitable long term investment opportunity.

Investment from Korea is a priority for India. We will take pro-active steps to address investor grievances and improve the business climate in the country. Many States of our Union have been actively encouraging foreign investment and we will support these efforts. I urge Korean industry to have faith in India.
After the implementation of our bilateral Comprehensive Economic Partnership Agreement (CEPA) on 1 January 2010, our bilateral trade has surged by roughly 65% in two years and reached a turnover of 20.6 billion US Dollars in 2011. However, it is still below its huge untapped potential. Therefore, President Lee and I decided yesterday to revise the bilateral trade target to 40 billion US Dollars by 2015. This is a challenge as well as an opportunity that we must both seize together. I look forward to hearing your views.

Thank you

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Prime Minister fails to break Lokpal logjam in all-party meet

New Delhi:  There were no surprises as Prime Minister Manmohan Singh's all-party meet failed to evolve a consensus on the Lokpal Bill on Friday. BJP leader Arun Jaitley, after the meeting, aptly put it as "the only consensus was on the lack of consensus."

Along with Mr Jaitley, BSP's S C Mishra, RJD's Ram Kripal Yadav, SP's Ram Gopal Yadav, NCP'S Tariq Anwar and CPI's A B Bardhan met at the Prime Minister's residence to discuss the controversial bill, to which 97 amendments have been moved by Opposition members in the Upper House. Union Ministers Pranab Mukherjee, P Chidambaram, A K Antony and Salman Khurshid were among those present at the meeting.

But after two hours of brainstorming, a consensus eluded the political spectrum and the Congress found itself standing among friends and foes on the issue of Lokayuktas.

After the meeting, the BJP slammed the government for not being sincere on the Lokpal Bill.

"The UPA partners were not in favour of the government draft. I think they should present an amended bill in Parliament; they have got the message loud and clear," BJP leader Arun Jaitley told NDTV.

"On certain issues, there was consensus but the consensus was completely against the government draft (of the Lokpal Bill)," Mr Jaitley added.

It wasn't just the Opposition, but the UPA's key allies like the Trinamool Congress and the DMK also called the government's draft of the Lokpal Bill a 'flawed bill'. The Opposition and the key allies were unified on the issue of Lokayuktas in states. All of them want states should be free to decide on the Lokayukta's constitution and if the Centre wants to talk about the issue, it should largely be an enabling legislation.

"It (the govt draft) will affect the federal character of the constitution and the autonomy of the state," said Trinamool's Sukhendu Sekhar Roy. DMK leader Tiruchi Siva, said, "the states' rights should be taken care of."

The biggest stumbling block for the government is the division over the powers of the Lokayukta in states and the role of the CBI. This means the bill is likely to be further stalled. (Read 10 big facts on the Lokpal Bill)

The Left and some other parties want the CBI to be monitored by the Lokpal, especially in corruption investigations. There have also been demands for an independent investigation agency under the Lokpal to look at corruption cases.

"Whether it's CBI or any other investigation agency, the power to investigate and supervise the whole process should be granted to the Lokpal. If the CBI is investigating a corruption case, then that investigation should come under the Lokpal. There was no consensus on this issue but this is what our stand is," CPM leader Sitaram Yechury told reporters after the meeting.

"The bill cannot come up in the Rajya Sabha this week as we have to pass the Budget," he added.

The Samajwadi Party, which has been supporting the UPA in Parliament, is also not interested in Lokpal in its present form. The SP said it is a "flawed bill" and that it should be sent to a select committee of Parliament for review.

Social activist Anna Hazare and his team, meanwhile, have renewed their pressure on the government.

Mr Hazare told reporters in Delhi today," We've learnt that the PM's meeting has failed to evolve consensus. On March 25, we'll protest at Jantar Mantar. We will tell the people that the government is not serious about the Lokpal Bill, about fighting corruption. The bill in its present form will not be an effective tool against corruption." (Team India gears up for protest at Jantar Mantar)

The Congress faces a major dilemma; it can't have allies moving amendments which the opposition wants as its numbers in Rajya Sabha are poor. Congress needs to win back disagreeing UPA allies. If not, then go with what the friends and foes want.

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Lokpal Bill: Prime Minister's all-party meet fails to evolve consensus

New Delhi:  Prime Minister Manmohan Singh's all-party meet has failed to evolve a consensus on the Lokpal Bill.

Leaders of parties in Rajya Sabha including BJP's Arun Jaitley, BSP's S C Mishra, RJD's Ram Kripal Yadav, SP's Ram Gopal Yadav, NCP'S Tariq Anwar and CPI's A B Bardhan met at the Prime Minister's residence to discuss the controversial bill, to which 97 amendments have been moved by Opposition members in the Upper House. Union Ministers Pranab Mukherjee, P Chidambaram, A K Antony and Salman Khurshid were among those present at the meeting.

In his opening remarks at the meeting, the Prime Minister said that he wants to build a consensus on the Bill. The remarks come against the backdrop of the Winter Session washout over the Lokpal Bill. So, the all-party meeting was an attempt by the government for image correction.

During the meeting, a large number of Opposition and key allies like the Trinamool Congress and the DMK were unified on the issue of Lokayuktas in states. But all of them want states should be free to decide on the Lokayukta's constitution and if the Centre wants to talk about the issue, it should largely be an enabling legislation. Ramvilas Paswan-led Lok Janshakti Party rejected the Lokpal Bill in its entirety.

After the meeting today, the BJP slammed the government for not being sincere on the Lokpal Bill.

"The UPA partners were not in favour of the government draft. I think they should present an amended bill in Parliament; they have got the message loud and clear," BJP leader Arun Jaitley told NDTV.

The Left and some other parties want the CBI to be monitored by the Lokpal, especially in corruption investigations. There have also been demands for an independent investigation agency under the Lokpal to look at corruption cases.

"We suggested that foreign funded NGOs and corporates which have dealing with the government, and any such allegations of corruption in the access of these contracts should also come under the purview of the Lokpal. Many of us have given our suggestions in this regard but the general consensus that is appearing in the intervening period of three weeks, use this time to arrive at an understanding over these issues," CPM leader Sitaram Yechury told reporters after the meeting.

The bill cannot come up in the Rajya Sabha this week as we have to pass the Budget, he added.

"Whether it's CBI or any other investigation agency, the power to investigate and supervise the whole process should be granted to the Lokpal. If the CBI is investigating a corruption case, then that investigation should come under the Lokpal. There was no consensus on this issue but this is what our stand is," Mr Yechury said.

However, the Samajwadi Party, which has been supporting the UPA in Parliament, is not interested in Lokpal in its present form. The SP said it is a "flawed bill" and that it should be sent to a select committee of Parliament for review.

Social activist Anna Hazare and his team, meanwhile, have renewed their pressure on the government.

Mr Hazare told reporters in Delhi today," We've learnt that the PM's meeting has failed to evolve consensus. On March 25, we'll protest at Jantar Mantar. We will tell the people that the government is not serious about the Lokpal Bill, about fighting corruption. The bill in its present form will not be an effective tool against corruption."

The crisis is that in this meeting also, the government did not give any assurances. So, as of now, all the stated positions which were there in Parliament in the December Winter Session, have actually moved to the Budget Session. Now the government will come back again for discussion with what its views are.

The government's version of the Lokpal Bill has already seen over 90 amendments by different parties during the discussion in the Winter Session of Parliament. So, this time when the government comes on the floor of the House once again, it will be very difficult for the government to get it passed in the Rajya Sabha. Sources tell NDTV that the CBI issue - bringing the investigation agency under the purview of the Lokpal - is non-negotiable with the government. It is not in favour of any dilution of the CBI's powers or its supervision by any agency.

However, after demands by its key allies the DMK and the Trinamool on the Lokayukta issue, the government can  tweak the bill so that it creates an enabling model-law, allowing states to  decide on their own norms for the Lokayukta.

After today's  all-party meeting, it seems that the debate on Lokpal Bill might not resume in a hurry. And the bill's passage in the Rajya Sabha seems to be a very difficult, unless the Opposition and the government find a meeting ground.

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Coal report not final, leak causes us anguish: CAG writes to Prime Minister

New Delhi:  The government has been accused of a massive coal scam by the opposition - both Houses of Parliament were adjourned this morning.  The latest crisis for the government is based on a draft report on coal mining by the government's auditor, the Comptroller and Auditor General (CAG). The leaked draft finds fault with the allocation of 155 coalfields to about 100 private and some public sector units or state-run firms between 2004 and 2009 instead of auctioning them off to the highest bidder.  The losses, according to the draft report, add upto Rs 10.7 lakh crore. The auditor does not make accusations of corruption, but says the government had extended "undue benefits" to the companies, and that in the absence of an auction, the sale of the coalfields was "subjective" and allowed "windfall gains."  (Excerpts from coal scam report by Govt auditor (CAG)

The Prime Minister oversaw the coal ministry for some of the period in question in the draft report. The government says it has so far not received a copy of the report. The Prime Minister's Office says that it got a letter from the Comptroller and Auditor General of India this afternoon. The letter allegedly states that "In the extant case the details being brought out were observations which are under discussion at a very preliminary stage and do not even constitute our pre-final draft and hence are exceedingly misleading...Pursuant to clarification provided by the Ministry in exit conferences held on 9.02.2012 and 9.03.2012, we have changed our thinking  .... In fact it is not even our case that the unintended benefit to the allottee is an equivalent loss to the exchequer. The leak of the initial draft causes great embarrassment as the Audit Report is still under preparation." (Prime Minister's Office on CAG report on coal mining)

The emphasis by the CAG on an auction echoes the Supreme Court's recent order which said the government must use an auction to distribute all natural resources.  That order came as the Supreme Court cancelled 122 telecom licenses that were sold, not through a bidding process, but to companies that were allegedly favoured in a distorted first-come-first-served process. In its draft report, the auditor says that the coal offered to firms was severely under-valued by the government and an auction of the coal-blocks would have helped ensure that the benefit of the low costs of coal production is passed on to the public.
India is the world's third-largest coal producer in the world after China and the United States.  State-run power company NTPC told Reuters it had made no windfall profits from the allocations and that the lower costs meant cheaper electricity for consumers.
Coal Minister Sriprakash Jaiswal said that the government used advertisements in newspaper ads to invite offers for the coal fields in question.  He also said that all state governments were consulted before the allocations were completed, and that BJP or Left led governments in states like West Bengal and Rajasthan had expressed reservations about an auction. "The coal blocks are allocated through a screening committee which is chaired by Coal Secretary," he said.   Before that, he explained, "We gave advertisements for allocation of coal blocks and invited applications...after the applications were received by us (Coal Ministry), the state governments were consulted and thereafter the coal blocks were allocated."

The Indian subsidiary of ArcelorMittal and steel makers Tata and Jindal Steel and Power, are among the companies named in the report. Jindal's controlling shareholder, Naveen Jindal, who is also a member of parliament, defended the policy of direct allocations, saying it had allowed private companies to jump-start production at mines left idle by state-run Coal India Limited, the world's single largest producer

The UPA has spent the last year trying unsuccessfully to beat its image as a government operating in a continuum of corruption and crisis, unable to implement reform or introduce transparency. "The Congress-led UPA government is looting the country. We can't allow this to happen. We have given notices under various rules today and will discuss with the leaders today and decide our next course of action," said Prakash Javadekar, BJP spokesperson as the party demanded a CBI probe into the alleged scam. Gurudas Dasgupta of the Left said, "This is a government of scams. All CAG reports indicate about misuse of public money...ministers, politicians are involved." 

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Where are the numbers, Mr Prime Minister, asks Sushma after vote on anti-terror centre

New Delhi:  The government won a vote today on its proposed National Counter Terrorism Centre (NCTC), but that victory, according to the BJP, exposes that the government is in a minority. The opposition has also highlighted that ministers of the Trinamool Congress, headed by Mamata Banerjee, walked out of the House before the vote.  

After the vote, the BJP's Sushma Swaraj tweeted, "There were 227 votes in favour of the Government. It is 45 less than the majority. The Government's majority claim has been exposed." She added, "They have been saying - 'We have the number, we have the number'. Mr Prime Minister Where is the number?" Referring to the fact that the Trinamool did not vote in favour of the government, she said, "It is for the first time that even Ministers of alliance partner (TMC) walked out of the House. It is huge embarrassment for the Government."

The BJP and the Left had pushed for votes against the government for violating the federal structure of the country via the NCTC. A simple majority is 272 in the Lok Sabha which has 543 seats. The government came in under that mark, but members of the Trinamool Congress and Mayawati's Bahujan Samaj Party (BSP) walked out during the vote, reducing by 40 the number of MPs present and voting. Mulayam Singh Yadav, who today denied reports that he will formally join the ruling coalition, also lent assistance by voting along with the government. But 60 MPs from the UPA - including 12 from the Congress, which leads the ruling coalition - were absent during the vote. The Congress had issued a whip to its MPs, ordering them to be present. Those who were missing are likely to be served a showcause notice with the party demanding an explanation.

Ms Banerjee, who is both Trinamool chief and West Bengal chief minister, has led a contingent of 10 chief ministers who objected to the NCTC. By walking out during the vote, her MPs were not forced to vote against the government alongside the BJP and the Left. At the same time, they avoided voting in favour of a policy that they have criticised fiercely. Sources in the Trinamool Congress say that this was part of a strategy worked out with the Congress this morning. But the BJP was quick to point out that Trinamool ministers like Mukul Roy and Sudip Bandyopadhyay were among those who left the House.    

The vote on the contentious NCTC today was held in the form of amendments moved by the Left and the BJP to the Motion of Thanks given by the Prime Minister this morning for the President's address. Last week, President Pratibha Patil inaugurated the Budget session of Parliament with her speech in which she outlined the agenda of the government. The NCTC was mentioned. The opposition wanted that reference to be deleted. The Prime Minister in his Motion of Thanks said that consultations with state governments will continue about the plans and powers for the NCTC.

He also reiterated that the Home Minister will meet with all chief ministers on April 16 to discuss their concerns. The NCTC has the right to arrive in any state, conduct searches for suspects, and make arrests. State governments say this impedes upon their right to handle law and order, and that the state police force must play a larger role in the NCTC's operations.

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