INDIA COUNTRY BRIEF 111129

Basic Political Developments

Virtually rejecting demands from within UPA and outside for rollback of FDI in retail, Prime Minister Manmohan Singh on Tuesday justified the decision as a well considered move and attacked Opposition for not allowing Parliament to function. He said there was no compulsion on states to implement the decision of the Union Cabinet with regard to allowing 51 per cent FDI in retail and there were options available to them for not implementing.

Expressing unhappiness over the draft Lokpal bill prepared by the parliamentary panel, Team Anna members said on Tuesday it was useless if the Central Bureau of Investigation (CBI) and the lower bureaucracy was kept out of its ambit. "The draft, as I am being told, provides for the CBI to be kept under government control. If the CBI is under government control, then the Lokpal will remain an empty tin box," Team Anna member Arvind Kejriwal told reporters here.

Stepping up their campaign on the Mullaperiyar issue, Union Ministers from Kerala [ Images ] on Monday met Prime Minister Manmohan Singh, seeking his intervention in ensuring the saftey of the 116-year-old dam. Union Ministers Vayalar Ravi, K V Thomas , K C Venugopal,Mullapally Ramachandran and E Ahamed met Dr Singh with a demand to rein in Tamil Nadu's insistence on increasing the water level in the reservoir for enhancing water supply to the state.

National Economic Trends

The government on Tuesday said that there is no direct "correspondence" between the quantum of increase in interest rates and fall in inflation. In a written reply to the Rajya Sabha, finance minister Pranab Mukherjee said that monetary policy measures are not aimed at merely controlling pressure from inflation.

Productivity of foodgrains in India has increased by about 10 per cent to 1,921 kg per hectare in the last four years, but the yield of most of these crops are still lower than the world average, Parliament was informed today.

Business, Energy or Environmental regulations or discussions

Warning that delayed forest clearances for captive mines could adversely impact development and financing of a large number of power projects, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said India risks missing the 1,00,000-MW capacity addition target for the 12th Plan.

India's aviation ministry said on Tuesday it supports allowing foreign airlines to invest in the country's cash-hungry carriers, but added that a final decision must be made by the cabinet.

In view of the forthcoming UP elections, industry body ASSOCHAM has prepared a 15 point economic agenda for political parties to include in their poll manifesto. "Food processing, automobiles, textiles, leather, cement, healthcare, pharmaceuticals, information technology, real estate and tourism are significant areas which can transform the state economy" said DS Rawat while releasing the report titled 'ASSOCHAM suggestions for election manifesto of political parties in UP.'

Vehemently opposing the proposed Posco steel plant in Odisha’s Jagatsinghpur district, CPI demanded immediate shifting of the project elsewhere asking the state government to refrain from repressive moves.

Activity in the Oil and Gas sector (including regulatory) The stage is set for another cut in retail prices of petrol by about Re 1 a litre. But, whether

this happens will depend on the oil retailers.If the prices are reduced on Wednesday (night/Thursday), this would be the second cut in a month. Politically, this will work out in favour of the UPA Government, which has been drawing flak for rising costs. Though, last June, the oil retailers where given freedom to revise petrol retail prices, an informal Government control remains.

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)

The National Investigating Agency which is investigating the Mecca Masjid blasts of Hyderabad is currently looking at the money trail that led to the execution of these attacks. Although the NIA has found that it was right-wing Hindu group Abhinav Bharat member Swami Aseemanand who handed over the money to execute the blasts, it is clear that he was not the man who was primarily responsible for raising the funds.

A total of 5000 detonators were seized and four persons were arrested in this connection from Giridih district in Jharkhand, the police said today.

Ulfa 'commander-in-chief' Paresh Baruah and newly-appointed 'chairman' Abhijit Bormon on Tuesday condoled the death of Jnanpith Award winning Assamese litterateur Indira Raisom Goswami. "Goswami would be remembered in history for "correctly presenting Ulfa's goal, purpose and philosophy to government of India," Baruah and Bormon said in a statement.

Labor/Social Unrest

A tribal group Tuesday lifted a four-month highway blockade that caused a serious shortage of essential supplies in parts of the northeastern India state of Manipur.Vashum

Shangreingam, a member of the United Naga Council, said the group decided late Monday to lift the blockade because it was causing suffering among residents. Police confirmed the closure ended early Tuesday morning.

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Basic Political DevelopmentsFDI decision taken after lot of consideration: Manmohan PTI

http://www.thehindu.com/news/national/article2671352.ece?homepage=trueVirtually rejecting demands from within UPA and outside for rollback of FDI in retail, Prime Minister Manmohan Singh on Tuesday justified the decision as a well considered move and attacked Opposition for not allowing Parliament to function.

He said there was no compulsion on states to implement the decision of the Union Cabinet with regard to allowing 51 per cent FDI in retail and there were options available to them for not implementing.

Dr. Singh insisted that the decision to allow FDI in retail was aimed at creating jobs, improving rumeneration of farmers and enabling import of technology besides benefitting consumers.

“I would .. like to a mention today of the decision of the government permitting Foreign Direct Investment in Retail. We have not taken this decision in any haste but after a lot of consideration. It is our firm convinction that the decision will benefit our country,” the Prime Minister said while addressing Youth Congress convention here.

He defended the decision taken last week even as Parliament was paralysed for the third day on the issue with Opposition, joined by UPA constituents Trinamool Congress and DMK, being unrelenting on the demand for its reversal. Voices of opposition have emerged from within Congress also.

“We believe that it will bring modern technology to the country, improve rural infrastructure, reduce wastage of agricultural produce and enable our farmers to get better prices for their crops,” Dr. Singh said, virtually ruling out any reversal of the decision.

Justifying the decision, Singh said the differential that exists between wholesale and retail prices will reduce and consumers will get commodities of daily use at reduced prices. “As far as small retailers are concerned, the experience in some other countries suggests that both big and small retailers can easily co-exist in a big country like ours,” he said. On the fears that the small businesses in the country would be hurt by the FDI decision, the Prime Minister said, “we have put some conditions so that FDI in retail promotes our small industry.”

Most importantly, he said, “we are not forcing anyone to follow this policy. State governments that are not convinced of its usefulness have the means to prevent foreign participation in retail businesses in their states.”

He said FDI in retail will result in creation of many new employment opportunities in a range of sectors like food processing, transportation, and storage. “I would urge all of you to inform the people correctly on the issue,” held told the Youth Congress workers. Talking about the logjam in Parliament, Dr. Singh attacked the Opposition, saying disruption of proceedings amounted to doing “injustice” with those who have elected MPs and lowered the image of the country. He said all differences can be discussed in Parliament and was “still hopeful of finding a way out of the current impasse” for which the government will continue its efforts. While talking about the government’s endeavours to push reforms, Dr. Singh said, “the work we have to do requires the enactment of many new legislations and amendments in many existing ones.”

Dr. Singh said the government wants to take the legislative matters speedily before Parliament. “It is necessary that Parliament functions smoothly if we are to move ahead. But the Opposition parties are not allowing this to happen in the current session,” he said. The Prime Minister said government has always believed that “whatever differences of opinion the opposition parties have with us should be discussed and debated in Parliament. “If we don’t do this and create obstructions in the work of Parliament, we do injustice to the faith reposed in us by the people who have elected us as their representatives.”

Bringing the work of Parliament to a halt, he said, “also reduces the country’s prestige“. Referring to the issue of price rise, he attributed it to a variety of factors, including domestic and international, and said the government was determined to deal with it. Listing the factors, Dr. Singh said due to rise in global prices of commodities, government has to raise Minimum Support Price of farm produce which causes inflationary pressure. Similarly, when international fuel prices go up, it has an impact on costs of other commodities, he said. “We have taken so many initiatives, including fiscal initiatives... We hope by these measures, inflation will come down,” Dr. Singh said.

“In the coming months we will redouble our efforts for ensuring that the fruits of development reach all citizens of our country, and especially those who have been left behind,” he said. Observing that “we have still a long way to go”, he said, “It is no easy task to meet the challenges that face us.”

Team Anna unhappy over final Lokpal bill draftIANS | Nov 29, 2011, 01.41PM ISThttp://timesofindia.indiatimes.com/india/Team-Anna-unhappy-over-final-Lokpal-bill-draft/articleshow/10916738.cms

NEW DELHI: Expressing unhappiness over the draft Lokpal bill prepared by the parliamentary panel, Team Anna members said on Tuesday it was useless if the Central Bureau of Investigation (CBI) and the lower bureaucracy was kept out of its ambit.

"The draft, as I am being told, provides for the CBI to be kept under government control. If the CBI is under government control, then the Lokpal will remain an empty tin box," Team Anna member Arvind Kejriwal told reporters here.

Kejriwal was also upset over the Parliamentary Standing Committee's draft not including the lower bureaucracy in the ambit of the Lokpal. "The sense of the house adopted by Parliament clearly said that lower bureaucracy and the citizens' charter will be included. We request that the sense of the house be respected," he said.

He insisted that all government funded NGOs should be brought under the Lokpal as massive corruption was prevalent in NGOs.

The Parliamentary Standing Committee on law and justice examining the Lokpal bill is expected to finalise its report Nov 30-Dec 1 and submit its recommendations to parliament in the first week of December.

Another Team Anna member Kiran Bedi warned of a mass movement if the government went back on the commitment given to Anna Hazare.

Ministers from Kerala meet PM over Mullaperiyar dam rowNovember 29, 2011 16:46 ISThttp://www.rediff.com/news/report/ministers-from-kerala-meet-pm-over-mullaperiyar-dam-row/20111129.htm

Stepping up their campaign on the Mullaperiyar issue, Union Ministers from Kerala [ Images ] on Monday met Prime Minister Manmohan Singh [ Images ], seeking his intervention in ensuring the saftey of the 116-year-old dam.

Union Ministers Vayalar Ravi, K V Thomas [ Images ], K C Venugopal,Mullapally Ramachandran and E Ahamed [ Images ] met Dr Singh with a demand to rein in Tamil Nadu's insistence on increasing the water level in the reservoir for enhancing water supply to the state.

"The prime minister heard us out and assured us that he would look into the issue," Ravi told reporters.

MPs from Kerala, cutting across party lines, continued their protest in Parliament premises to press for their demand for building a new dam to replace the existing structure.

Alongside the representatives from Kerala, four MPs from Tamil Nadu staged a sit-in protest demanding implementation of the Supreme Court directive on the matter by raising the storage level to 142 feet.

The Mullaperiyar Dam in Kerala's Idukki district has been a sparring point for the state with Tamil Nadu for quite some time now. While Tamil Nadu wants to increase the water-level in the reservoir, Kerala has been insisting that it be reduced from the current 136 feet to 120 feet.

Kerala is willing to construct a new dam for supplying water to Tamil Nadu, which is opposing the move concerned over losing control over the functionality of the dam.

Various groups in Kerala had been arguing that the dam cannot withstand higher magnitude earthquakes and posed a threat to lives and properties of over three million people in Idukki, Kottayam, Ernakulam, Alappuzha and Pathanamthitta districts.

National Economic TrendsNo direct correspondence between rate hike, inflation: PranabPress Trust Of Indiahttp://www.hindustantimes.com/business-news/WorldEconomy/No-direct-correspondence-between-rate-hike-inflation-Pranab/Article1-775531.aspx

The government on Tuesday said that there is no direct "correspondence" between the quantum of increase in interest rates and fall in inflation. In a written reply to the Rajya Sabha, finance minister Pranab Mukherjee said that monetary policy measures are not aimed at merely controlling pressure from inflation.

"Monetary policy rate hikes seek to affect the macro economy through a compression in aggregate demand and are aimed at not only controlling inflationary pressure but also inflation expectations.

"There is, as such, no direct one-to-one correspondence between the quantum of increase in interest rates and reduction in the levels of inflation," he said.

Mukherjee said that as interest rate hikes push up costs of borrowing and, thereby, cost of products and services in general, a part of the costs in likely to be passed on to the consumers.

"Higher end-product prices or end-service prices would help lower aggregate demand and arrest inflationary pressures emanating therefrom," he said.

Inflation has been above the 9% mark since December last year and stood at 9.73% in October this year. The Reserve Bank has hiked lending rates 13 times by a total of 350 basis points since March, 2010, to tame inflation.

Mukherjee said that to lessen the burden of rising interest rates on the vulnerable sections, the government has been giving selective interest subvention in some areas.

"Besides, the government is also addressing supply side constraints through a slew of measures," he said.

Foodgrain productivity has risen by 10%: Government

http://economictimes.indiatimes.com/news/economy/agriculture/foodgrain-productivity-has-risen-by-10-government/articleshow/10918870.cms

NEW DELHI: Productivity of foodgrains in India has increased by about 10 per cent to 1,921 kg per hectare in the last four years, but the yield of most of these crops are still lower than the world average, Parliament was informed today.

Productivity of foodgrains in the country rose from 1,756 kg a hectare in 2006-07 to 1,921 kg/hectare in 2010-11, an increase by 165 kg per hectare, Minister of State for Agriculture Harish Rawat said in a written reply in Lok Sabha.

The increased productivity has led to record level of production of 241.56 million of foodgrains during 2010-11, which is significantly higher than the projected demand of 229.12 million tonnes for the period, he said.

But the yield of major crops in India is still lower than the world average, as per reports of UN body Food & Agriculture Organisation (FAO) for 2009 (latest available), Rawat added.

While rice productivity in India is 2,178 kg per hectare the world's average is 4,320 kg/hectare, he said.

Similarly, for wheat it stood at 2,907 kg a hectare as against the world average of 3,039 kg/hectare, for pulses it is 659 kg per hectare for India and 930 kg/hectare for world and in sugarcane for India it is 64,553 kg/hectare vis-a-vis world's 69,866 kg/hectare, the minister added.

Rawat said the Centre is running various schemes to increase productivity and production of agricultural crops in the country.

This includes the National Food Security Mission (NFSM) and Integrated schemes of oilseeds, pulses, oil palm and maize (ISOPOM), he said.

Further, the country's apex agri research body ICAR is conducting research on crops like wheat, rice, maize, sorghum, minor millets, oilseeds, pulses, cotton, sugarcane and jute, the minister added.

Business, Energy or Environmental regulations or discussions'India could miss the power target due to delayed forest clearance'http://www.thehindu.com/news/national/article2671785.ece

Warning that delayed forest clearances for captive mines could adversely impact development and financing of a large number of power projects, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said India risks missing the 1,00,000-MW capacity addition target for the 12th Plan.

In his assessment submitted to Prime Minister Manmohan Singh, he said many thermal plants currently under implementation, including the ambitious ultra mega power projects, were dependent on allotted coal mines which have yet to get forest clearance. “This does not affect power production immediately but it will do so a few years down the line.” It would also have an immediate effect on investor sentiment in the power generation sector and on financing for power generation. “Unless the problem is resolved quickly, the 12th Plan target of 1,00,00 MW will not be attainable.” The assessment, a copy of which is with The Hindu, has been done by Mr. Ahluwalia on being asked by the Prime Minister to identify issues in the power sector which need immediate action. Dr. Ahluwalia has listed eight issues which require action by different Ministries.

Transition problem

He said the matter was currently under the consideration of the Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee, and decisions needed to be expedited. “The Ministry of Environment and Forests needs to be persuaded to take a more reasonable position to avoid disruption in power supply from plants that are in process. Even if we want to be tough in future — and we should be — we should recognise that we face a transition problem. There is a good case for clearing a number of coal mines now with suitable compensatory steps for enhanced afforestation to offset the damage done. This will ensure that power plants currently being constructed are not obstructed while better provision can be made for plants in future,” says the assessment note.

Interestingly, in a related report to the Prime Minister, Planning Commission member (Energy) B.K. Chaturvedi has recommended doing away with the contentious “Go-No-Go” concept. This has been the bone of contention between the MoEF and the Ministries of Coal and Power, the latter two seeking removal of this definition. The report has also called for simultaneous processing for environment and forest clearance, doing proper scrutiny of applications to ensure that all papers have been submitted and setting up a nodal agency at the State level with adequate staff to ensure forest clearance.

The Chaturvedi Committee has stated captive plants could approach the MoEF for consideration of cases on this approach.

India proposes foreign investment in airlines: ReportAgence France-PresseNew Delhi, November 29, 2011First Published: 19:48 IST(29/11/2011)http://www.hindustantimes.com/News-Feed/SectorsAviation/India-proposes-foreign-investment-in-airlines-Report/Article1-775645.aspxIndia's aviation ministry said on Tuesday it supports allowing foreign airlines to invest in the country's cash-hungry carriers, but added that a final decision must be made by the cabinet.

Permitting foreign investment could bring much-needed capital for India's cash-strapped Kingfisher, Jet and other airlines which have been battling to keep in business in the fiercely competitive aviation market.Foreign investment "is acceptable till a limited point," civil aviation minister Vayalar Ravi told CNBC news channel. But he said the level to which foreign investment should be allowed was still under discussion.

He said the aviation ministry had proposed allowing "less than 26%" investment by international airlines in domestic carriers.

The industry ministry earlier this month suggested permitting 26% foreign investment, saying the domestic airlines were "in dire need of funds" to compete with global carriers.

Ravi said the cabinet would have the final word but did not say when.

A decision by the Congress party-led government last week to allow foreign retailers to own 51% of multi-brand supermarkets has raised expectations it may also allow foreign carriers to buy stakes in domestic airlines as it pursues its economic reform agenda.

The television report came after executives of some of India's largest airlines met Prime Minister Manmohan Singh last week to seek government assistance for the beleaguered industry.

India's airlines may lose a total of $2.5 billion in the year ending in March 2012, according to the Centre for Asia Pacific Aviation, an industry body.

The airlines have been demanding change in the aviation policy to allow foreign airlines to pick up stakes in Indian carriers and provide cash infusions.

Earlier this month, Singh said airlines should be managed efficiently, "but if they do get into difficulties, we have to find ways in supporting the development of the country".

On the surface, demographics make India, a country of 1.2 billion, an attractive story. India's passenger aviation sector is estimated to be growing at between 15 and 20% each year.

But all of India's six main airlines -- barring budget carrier IndiGo -- announced steep losses in the financial quarter to September.

Ravi said the aviation ministry was also urging state governments to reduce steep taxes on sales of jet fuel.

ASSOCHAM prepares 15 point economic agenda for political partieshttp://economictimes.indiatimes.com/markets/regulation/assocham-prepares-15-point-economic-agenda-for-political-parties/articleshow/10919957.cmsLUCKNOW: In view of the forthcoming UP elections, industry body ASSOCHAM has prepared a 15 point economic agenda for political parties to include in their poll manifesto.

National Secretary General, ASSOCHAM, DS Rawat said that the inclusion of these points in the parties manifesto would help generate public opinion and achieve double digit growth for UP.

"Food processing, automobiles, textiles, leather, cement, healthcare, pharmaceuticals, information technology, real estate and tourism are significant areas which can transform the state economy" said DS Rawat while releasing the report titled 'ASSOCHAM suggestions for election manifesto of political parties in UP.'

He said that ASSOCHAM representatives would be meeting the top leaders of all political parties in UP to press them to include economic issues in their manifesto. This is the first time an industry body is pushing for inclusion of key economic issues in poll manifesto during a state election, said DS Rawat.

Promotion of public-private partnership in agriculture, industry and services sectors is of prime importance to create new jobs and promote economic activity in the state. Besides, cluster development approach can help spur employment in micro, small and medium enterprises, says the report.

Embroidery, rice mills, powerloom, leather, glass, carpet, banarsi saree, screen printing, food processing, readymade garments, jute, yarn/rope and zari are certain key areas identified by ASSOCHAM to be developed on the cluster development model.

"Considering that nearly 80 per cent of the state's population is engaged in agricultural activities, the state government must facilitate contract farming by attracting investments from the private sector" said Rawat. "Besides, the heavy dependence on monsoon rains may be curbed by employing modern irrigational technology to boost the productivity".

ASSOCHAM also proposed setting up of an International Finance Technology city (NIFT) in Noida to sit alongside global commercial hubs of Manhattan in New York, Ginza in Tokyo and the Square Mile in London.

CPI demands shifting of POSCO plant PTI

http://www.thehindu.com/news/states/other-states/article2671237.ece

Vehemently opposing the proposed Posco steel plant in Odisha’s Jagatsinghpur district, CPI demanded immediate shifting of the project elsewhere asking the state government to refrain from repressive moves. “There is an attempt to set up Posco plant in the area forcibly. We demand its immediate shifting”, CPI general secretary A B Bardhan and party leaders D Raja told a meeting at Patana under Dhinkia panchyat near here last evening. Demanding immediate release of arrested anti-Posco movement leader Abhaya Sahu from jail, Mr. Bardhan alleged he was implicated in false charges. Asking Odisha government to refrain from repressive measures against anti-Posco movement leaders, the CPI leaders said the issue would be raised by their party in Parliament. Because of people’s resistance, Odisha government had not been able to enter the Posco site for last six years. Now, in view of the coming panchayat elections, the government had arrested Mr. Sahu, they claimed. In its three-day ongoing state executive meeting at Paradip, CPI adopted a political resolution condemning the Centre’s decision to allow FDI in retail sector. Over 1.6 crore retail shops in the country providing direct or indirect employment to over four crore people and over 16 crore people depending on it would suffer. The party also supported the Bharat Bandh call given by retailers against FDI on December 1.

Activity in the Oil and Gas sector (including regulatory)Petrol price may be reduced by Re 1 a litrehttp://www.thehindubusinessline.com/industry-and-economy/article2671635.ece

The stage is set for another cut in retail prices of petrol by about Re 1 a litre. But, whether this happens will depend on the oil retailers.

If the prices are reduced on Wednesday (night/Thursday), this would be the second cut in a month. Politically, this will work out in favour of the UPA Government, which has been drawing flak for rising costs. Though, last June, the oil retailers where given freedom to revise petrol retail prices, an informal Government control remains.

“In the current price situation, the base price of petrol could be reduced by Rs 0.85 a paise (excluding taxes and levies),” an oil industry official said.

The oil retailers revise the price on the basis of fortnightly average of international prices. The factors resulting in the revision are generally the international price (f.o.b) of product and currency fluctuation. Softening of Singapore spot petrol price will offset the impact of rupee depreciation, the official added.

Private oil retailers — Essar and Reliance — generally wait for the public sector retailers — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum — to effect any revision in auto fuel prices.

However, the auto industry has adopted a more cautious approach to changes in petrol prices as it feels that prices may go up again.

Says Mr Vishnu Mathur, Director-General, Society of Indian Automobile Manufacturers, “Although a rupee drop in petrol price is negligible, it is a step in the right director. In the long term, we can expect parity in the petrol-diesel prices, the differential of which stands at 1.6 times at present.”

Public sector retailers continue to sell diesel, kerosene sold under public distribution system, and domestic LPG at a Government controlled price. This, according to the Government, is done to insulate the consumers from the volatility in international crude oil and product prices.

The Petroleum Minister, Mr S. Jaipal Reddy, had recently informed the Lok Sabha, “The average price of Indian basket of crude oil which was $85.09 a barrel in 2010-11 has now increased by 30 per cent and the average price during the current financial year is at around $110 a barrel. Coupled with the upward price movements, the public sector oil retailers have also been hit by depreciation of rupee, which has fallen from an average Rs 45.58 versus dollar last year to over Rs 50 versus dollar in November 2011.”

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)NIA unable to crack money trail to Mecca Masjid blast caseNovember 29, 2011 16:23 IST

http://www.rediff.com/news/report/nia-unable-to-crack-money-trail-to-mecca-masjid-blast-case/20111129.htm

The National Investigating Agency which is investigating the Mecca Masjid blasts of Hyderabad is currently looking at the money trail that led to the execution of these attacks. Although the NIA has found that it was right-wing Hindu group Abhinav Bharat member Swami Aseemanand who handed over the money to execute the blasts, it is clear that he was not the man who was primarily responsible for raising the funds.

Although investigators have been looking into the flow of funds into the ashram that he ran, they say that Aseemanand was entrusted with the task of stocking the funds and not raising them. The conspirators felt that it was best to stock money in the ashram since they are exempted from any

normal inspection. Moreover, they thought that the money kept in the ashram could be passed off as donations and there would be no real suspicion.

Today the NIA claims that they have evidence to show that Aseemanand had handed over Rs 25,000 to Rashtriya Swayamsevak Sangh worker Sunil Joshi to carry out the Mecca Masjid blasts. Similar transactions had been made during the Malegaon and also the Samjhauta Express blasts, the investigators pointed out.

However, investigators have still not been able to unearth the money trails into these incidents. Probe agencies have been back and forth on several aspects but no real breakthrough has been possible.

It has been established that it was the ashram run at Dangs in Gujarat where all the money landed. There were several like-minded operatives who were part of this operation and each one had a small role to play in raising funds.

However, they all wanted Aseemanand to handle the money, as they felt that the trail would never lead up to him. There is a lot of money that has come into his ashram through donations as he was undertaking some work for the tribals. Moreover, these persons ran odd businesses through which they raised money. It is pretty hard to find out what money was finally used to execute these blasts.

In the Nanded blasts case it was found that the accused persons were running a gym and the money that was made through it was finally used for the unsuccessful Nanded operation. The police have, however, not found any similar modus operandi in the Mecca Masjid or Samjautha blasts case.

The police are also trying to find out if money that legitimately came into these places was diverted for terror operations. The NIA has said that it would be looking into that aspect as well. Probes into Aseemanand have revealed that he had paid Rs 25,000 to Sunil in the presence of a businessman Bharath Bai at Valsad in Gujarat.

The primary focus of the NIA at the moment is the Mecca Masjid blasts case. They are trying to find if there was any local help in arranging the money and in logistics. There have been allegations by Muslim organisations in Hyderabad that some Hindu groups have taken a violent turn and have helped in organising these attacks.

The police which has taken into account these allegations have however not found a dedicated module in Hyderabad that could have helped carry out this blast. There may be one or two persons who were in the know of this operation, but it was largely staged and planned by the Joshi gang, which operated mainly out of North India [ Images ], the police claim.

The NIA claims that the Ajmer, Malegaon, Samjhauta Express attacks were all part of the same module. "In the days to come a couple of more arrests could be expected and this we hope would lead us to the money trail," say investigators.

5000 detonators seized in GiridihThe author has posted comments on this articlePTI | Nov 29, 2011, 07.28PM ISThttp://timesofindia.indiatimes.com/india/5000-detonators-seized-in-Giridih/articleshow/10920036.cms

GIRIDIH: A total of 5000 detonators were seized and four persons were arrested in this connection from Giridih district in Jharkhand, the police said today.

Getting at tip-off that the four persons were allegedly transporting the explosives by a van, a police team intercepted the vehicle at Jogia Pahari and recovered them yesterday, Superintendent of Police A V Homker told reporters here.

The police suspected the four persons of allegedly supplying detonators to the Maoists, he said.

Ulfa condoles Indira Goswami's deathPTI | Nov 29, 2011, 11.28AM ISThttp://timesofindia.indiatimes.com/india/Ulfa-condoles-Indira-Goswamis-death/articleshow/10915484.cms

GUWAHATI: Ulfa 'commander-in-chief' Paresh Baruah and newly-appointed 'chairman' Abhijit Bormon on Tuesday condoled the death of Jnanpith Award winning Assamese litterateur Indira Raisom Goswami.

"Goswami would be remembered in history for "correctly presenting Ulfa's goal, purpose and philosophy to government of India," Baruah and Bormon said in a statement.

"Baideu (Elder sister) has a special place in the heart of every Ulfa member and we will remember her at every step of our movement," they said.

As a mark of respect, they said, a condolence meeting would be held in every Ulfa unit today and discussions on Goswami's life and contributions to literature tomorrow.

Goswami had taken the initiative to be the peace facilitator between Ulfa and government following which the banned insurgent outfit had constituted People's Consultative Committee (PCG).

The committee has held three rounds of talks with the Centre with one of them being with Prime Minister Manmohan Singh.

Labor/Social Unrest

4-month highway blockade in Indian state endsNEW DELHI (AP) — A tribal group Tuesday lifted a four-month highway blockade that caused a serious shortage of essential supplies in parts of the northeastern India state of Manipur.

Vashum Shangreingam, a member of the United Naga Council, said the group decided late Monday to lift the blockade because it was causing suffering among residents. Police confirmed the closure ended early Tuesday morning.

Hundreds of Naga tribespeople had been blocking two vital highways linking Manipur with the rest of India to protest the state government's decision to create a new district for a rival tribal group.

The blockade led to shortages of fuel, cooking gas, medicine and other items. It had even forced some schools and colleges to close.

The trouble began in early August when the Kuki tribal group began a blockade of two highways over their demand for a new district.

The Naga tribal group, which opposes the creation of the district, began its own blockade three weeks later, virtually stopping all road traffic into and out of Manipur.

In early November the government agreed to carve out the Sadar Hills district from the larger Senapati district, which is dominated by Nagas.

While the move ended the Kuki blockade, the Nagas stepped up their protests, leading to increased shortages of essential items.

Shangreingam said his group may resume its blockade if the government does not take the concerns of the Naga people into account.

Apart from tribal rivalries in the restive Manipur state, at least 17 different rebel groups are active there, and calls for strikes and protests routinely paralyze daily life.