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September 18, 2012

Mamata withdraws from UPA, Manmohan govt in minority


New Delhi, September 18
The UPA government was reduced to a minority today after its key ally Trinamool Congress (TMC) pulled out of the ruling combine in protest against its refusal to concede its demand to roll back the fuel price hike, the cap on subsidised LPG and retail FDI. At the same time, the TMC left the door ajar for a possible patch-up, giving the UPA time till Friday to meet its conditions.

Announcing her decision in Kolkata, an angry TMC chief and West Bengal Chief Minister Mamata Banerjee declared her ministers would submit their resignation to Prime Minister Manmohan Singh on Friday. "We are withdrawing support... we will not be in UPA II," she said.
With the withdrawal of the 19-member TMC, the UPA's strength in the Lok Sabha will be reduced from the present 273 (just two more than the half-way mark) to 259 members. However, the UPA government is unlikely to collapse as it is banking on the support of the 22-member Samajwadi Party (SP) and 21 MPs of the Bahujan Samaj Party (BSP), which have been propping up the ruling combine from outside.
Nevertheless, the UPA government has been rendered vulnerable as it will now be more dependent on SP chief Mulayam Singh Yadav and BSP supremo Mayawati, who are bound to extract their pound of flesh for their support.
Confident that Mayawati will be firmly on its side, the UPA government cannot say the same about Mulayam Singh Yadav, who could be inspired by Mamata to ditch the ruling combine.
Although the Congress drew comfort from SP leader Ram Gopal Yadav's statement that his party will not be influenced by Mamata's decision, he also warned that his party's support could not be taken for granted.
The UPA's woes were further compounded with its dependable ally the DMK saying it would support the Opposition-led Bharat Bandh on September 20 to protest the government's recent decisions.
The Congress was clearly taken aback by Mamata's decision as it was convinced she would only withdraw her ministers from the government but not quit the UPA. Going into damage control mode, the Congress continued to describe as a valuable ally and said it is still willing to reach out to her.
Speaking to mediapersons after the TMC announcement, AICC general secretary Janardan Dwivedi struck a conciliatory note, saying the government was open to a discussion on the issues raised by Mamata Banerjee. “We regard her as an important partner,” he said.
The Congress is pinning its hopes on the window of opportunity provided by Mamata, who said she would re-think her decision if the UPA increased the cap on subsidised LPG cylinders from six to 12, rolled back the diesel price hike to Rs 3 or 4 and reversed its policy on FDI in multi-brand retail. The fact that the TMC ministers will resign on Friday gives the Congress leadership three days to persuade its mercurial ally to reverse her decision.
Even before Mamata announced her decision, Congress president Sonia Gandhi met the PM to discuss the roadmap ahead. However, it is not clear what kind of a face saver it will be willing to offer to the TMC chief.
So far, the PM and Finance Minister have ruled out any rollback on their reforms-related measures which, they believe, will help the ailing Indian economy. Chidambaram had declared yesterday that the government would stay the course and would be introducing a raft of further reforms to boost growth.
Accused of policy paralysis and weighed down by a series of corruption scandals, the PM decided to bite the bullet and go ahead with the stalled reforms agenda. Congress strategists had believed that Mamata’s opposition was due to her political competition with the Left in Bengal and that she wouldn’t walk out of UPA as she can neither go with the BJP because of her Muslim support base, nor join hands with the Third Front since the Left is part of it. But the Congress clearly misread the situation.

Bank guarantee of Jindal’s coal block to be encashed


New Delhi, September 18
The Inter-Ministerial Group (IMG) on coal today recommended deduction of bank guarantee of two blocks, including Jitpur, given to Jindal Steel & Power Ltd (JSPL) in which Congress MP Naveen Jindal is Chairman-cum-Managing Director (CMD).

The amount of the bank guarantee to be encashed was not immediately known.
Sources in the Coal Ministry said the IMG has also recommended de-allocation of Macherkunda block given to Bihar Sponge.
The recommendations from the IMG, which met here to review the presentations made by the private companies owning the coal blocks over the status of development at the mines, came even as the government issued an official statement that three more blocks, as reported earlier, were being de-allocated.
The statement said, “The Government has de-allocated three more coal blocks on the recommendations of Inter-Ministerial Group’s review held on September 14 and 15”.
These blocks include, Gourangdih ABC Coal Block allotted to M/s Himachal EMTA Power Ltd. and M/s JSW Steel Ltd, Rawanwara North Coal Block allotted to SKS Ispat and Power Ltd and New Patrapara Coal Block allotted to M/s Bhushan Steel Ltd. and others.
Sources in the ministry said the IMG had asked for deducting bank guarantee of two others -- Jitpur, given to Jindal Steel and Power Limited (JSPL) owned by Naveen Jindal, and Chitarpur, allotted to Corporate Ispat.
The panel has so far scrutinised 29 out of 58 cases to which show cause notices had been issued. It reviewed three cases today and will meet again tomorrow, sources said. The panel has so far scrutinised the replies furnished by 22 coal block allottees out of 29.
It earlier heard the coal block allottees, who were invited to make presentations from September 6-8, and also obtained updated status paper from Coal Controller/Ministry of Coal.
The notification for the de-allocation of the coal blocks issued today includes one associated with brother of Tourism Minister Subodh Kant Sahai.
Sahai, a senior Congress leader, had reportedly written to Prime Minister Manmohan Singh in 2007 recommending allocation of two coal blocks to SKS Ispat and Power in Chhattisgarh and Jharkhand. The Prime Minister was holding Coal portfolio at that time.
The IMG had on Saturday asked the government to de-allocate three coal blocks given to Coal blocks of SKS Ispat and Power Ltd (Rawanwara North) and Bhushan Steel Ltd (New Patrapara) and Gourangdih ABC block allocated to Sajjan Jindal-promoted JSW Steel Ltd and Himachal EMTA Power Ltd.
The IMG has so far recommended the de-allocation of seven blocks while recommending punitive action against 10 more.
Sahai’s role in allocation
* The de-allocation notification includes one associated with brother of Tourism Minister Subodh Kant Sahai.
* Sahai, a senior Congress leader, had reportedly written to the PM in 2007 recommending allocation of two coal blocks to SKS Ispat and Power in Chhattisgarh and Jharkhand.

Kasab moves mercy petition before President

Mumbai, September 18
Mohammad Ajmal Kasab, sentenced to death for his role in the terrorist attack in Mumbai on November 26, 2008, has sent a mercy petition seeking clemency to President Pranab Mukherjee, Maharashtra Home Department officials confirmed today.
The petition, sent through the jailor of the Arthur Road Jail, is with the state Home Department, sources said. The petition being sent "via proper channels" will reach the President's office in due course.
According to the procedure, Kasab was given a certified copy of the Supreme Court verdict confirming his death sentence last week. He signed the acknowledgement and the document was forwarded to the apex court by officials at the Arthur Road Jail. The Supreme Court had confirmed Kasab's death penalty on August 29.
Kasab, who has access to legal services in jail, was advised to file a mercy plea which he has done, according to officials.
Predictably as news of Kasab filing his mercy petition came in, calls for its rejection began to be made. BJP spokesman Mukhtar Abbas Naqvi called for his mercy petition to be rejected.
The Shiv Sena, which wants Kasab's execution to be speeded up, also called for the rejection of his mercy plea immediately.