Global trade bodies warn PM Manmohan Singh of tax plan impact

International trade associations representing more than 250,000 companies have written to Prime Minister Manmohan Singh criticising new taxation proposals and warning that investment plans by overseas companies could be reconsidered.

India's budget last month outlined proposals that would allow authorities to make retroactive tax claims on overseas deals and bring in new anti-tax-avoidance measures, moves that have been criticised for further denting investor sentiment towards India.

"The sudden and unprecedented move in the Bill has undermined confidence in the policies of the Government of India toward foreign investment and taxation and has called into question the very rule of law, due process, and fair treatment in India," seven global trade bodies said in a letter to Singh.

"This is now prompting a widespread reconsideration of the costs and benefits of investing in India," continued the letter, signed by bodies including the U.S.-based Business Roundtable, the Confederation of British Industry and the Japan Foreign Trade Council.

A long-running tax struggle between London-listed Vodafone Group Plc , India's largest overseas investor, and the government, has come to symbolize the perils to foreign investors in the country.

Vodafone won a five-year legal battle in January when the Supreme Court dismissed a $2.2 billion tax demand from authorities over the British company's acquisition of Hutchison Whampoa Ltd's <0013.HK> Indian mobile assets in 2007.

That ruling was hailed by business groups as victory for clarity in India's investment climate, which has suffered due to policy paralysis, regulatory uncertainty and widespread corruption allegations against the government.

But a proposal in the recent budget to retroactively impose tax on deals conducted overseas where the underlying asset is located in India would amend 50-year-old-tax laws and allow New Delhi to pursue tax on long-concluded transactions.

"Some of our member companies had already begun reevaluating their investments in India due to increasing levels of controversy and uncertainty regarding taxation in recent years," the letter said.

Vodafone said last week it was considering a number of actions after the proposal, which it said was "grossly unjust".

The tax proposal, if written into law, could also affect Kraft Foods Inc's 2010 acquisition of Cadbury's Indian business and deals involving Indian assets sold by AT&T Inc and SABMiller Plc's purchase of Fosters.

In the letter, also sent to Finance Minister Pranab Mukherjee, the trade bodies said a plan to expand the definition of "royalty" retrospectively to 1976 would affect companies such as Ericsson.

"There appears to be an assumption, often expressed by Indian tax authorities, that India's ability to attract foreign investment is not affected by its taxation policies and practices. This simply is not the case," the letter continued.

"India will lose significant ground as a destination for international investment if it fails to align itself with policy and practice around the world," it said.

Sluggish investment is partly to blame for slowing growth in Asia's third-largest economy, which grew at just 6.1 percent in the December quarter, the weakest in nearly three years.

Govt, Oppn fast track Lokpal, decision next month

The government on Friday stepped up efforts to iron out differences on contentious aspects of the Lokpal Bill, with Prime Minister Manmohan Singh meeting leaders of various parties during which it was decided that the legislation could be taken up during the second half of the Budget Session.

At the all-party meet of Rajya Sabha members convened by the Prime Minister at his residence here, it was agreed that the government will work for a consensus on the wording of contentious aspects of the Lokpal and Lokayuktas Bill during the intervening period of the Budget Session.

"The government along with major political parties will come out with a consensus. The government is committed to bring the Bill in this session. The actual wording of the Lokpal Bill will be worked out during the intervening period the Budget Session," CPI(M)'s Sitaram Yechury told reporters.

He said the Bill cannot come up during the first half of the current session ending March 30, as the budget has to be passed before the end of the current financial year.

"The Bill will be taken up in the second half... This week it cannot come up in this session as the budget has to be passed," said Yechury.

There was consensus in the meeting on having Lokayuktas in states, but the prerogative for their appointment will be that of the state, he said.

UPA's allies Trinamool Congress and DMK also raised the issue that the Centre should not interfere with the powers of the states for having Lokayuktas.

Trinamool leader Sukhendu Roy said, "We opposed the inclusion of Lokayukta appointment in the Lokpal Bill in its present form as it will harm the federal structure."

Samajwadi Party general secretary Mohan Singh told reporters that the government will refer the opposition's three main demands on Lokpal issue to the Select Committee of the Rajya Sabha.

These demands were delinking of Lokayuktas from Lokpal Bill, making appointment process of the Lokpal more democratic and inclusive and creation of an independent probe agency under Lokpal and bringing superintendence of corruption cases probed by the CBI under the Lokpal.

However, Ram Kripal Yadav (RJD) and Ramvilas Paswan (LJP) opposed the creation of a Lokpal.

On the issue of bringing the CBI under the Lokpal's ambit, Yechury said, all issues related with corruption should be under the Lokpal.

"If the CBI does such investigations, then the CBI's anti-corruption wing will be under the control and superintendence of the Lokpal," he said.

Yechury also called for inclusion of corporates and NGOs which derive contracts from the government under the purview of Lokpal.

All-party meeting on Lokpal Bill ended on today

An all-party meeting chaired by Prime Minister Manmohan Singh, which aimed at bringing an end to the deadlock over Lokpal Bill, ended on today.

The meeting was held to discuss the proposed legislation which could not be passed on the last day of the Winter Session in Rajya Sabha amid pandemonium.

While attending the meet the prime minister said that United Progressive Alliance (UPA) government is committed to an effective Lokpal to check corruption.

"Our government stands committed to an effective Lokpal legislation," Manmohan Singh said at the all-party meet.

"We look forward to benefitting from the wisdom and guidance of all leaders present here in the task that we have set for ourselves," he said.

Leaders of parties in Rajya Sabha including BJP's Arun Jaitley, BSP's SC Mishra, RJD's Ram Kripal Yadav, SP's Ram Gopal Yadav, NCP'S Tariq Anwar and CPI's AB 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, AK Antony and Salman Khurshid were among those present at the meeting.

Opposition parties have moved 97 amendments to the Bill in Rajya Sabha some of which were contentious and the meeting would discuss ways to evolve consensus on them, sources said.

Some of the amendments, the sources said, are for bringing the Prime Minister's Office under the Lokpal, seek exclusion of Lokayukta from the Bill, abolition of minority quota and inclusion of Leader of the Opposition in Rajya Sabha as one of the members of the selection committee.

Government is keen on passing the Lokpal Bill in the Rajya Sabha even as the opposition and social activist Anna Hazare have renewed pressure on the issue.

Hazare has said he will go on a fast from March 25 if the Bill is not passed while BJP has said in the Upper House that the debate and amendments to the Bill should be taken up from where they were left on the night of December 29 when the House was adjourned amid a din.

Lok Sabha has already passed the Bill.

Under the renewed effort, the government is planning to drop the clauses in the Lokpal Bill pertaining to setting up of Lokayuktas in states, a provision that faced stiff opposition from friends and foes alike.

The fresh consultation is aimed at ensuring that the anti-graft Bill is passed in the first part of the Budget Session which ends on March 30.

PM Manmohan Singh has called an all-party meeting on today

 In a fresh bid to end the deadlock over Lokpal Bill, Prime Minister Manmohan Singh has called an all-party meeting on today to discuss the proposed legislation which could not be passed on the last day of the Winter Session in Rajya Sabha amid pandemonium.

The meeting will be held at Singh's residence at noon on today. The Parliament will not meet on that day due to festivals like Gudi Padwa and Ugadi.

Government is keen on passing the Lokpal Bill in the Rajya Sabha even as the opposition and social activist Anna Hazare have renewed pressure on the issue.

Hazare has said he will go on a fast from March 25 if the Bill is not passed while BJP has said in the Upper House that the debate and amendments to the Bill should be taken up from where they were left on the night of December 29 when the House was adjourned amid a din.

Lok Sabha has already passed the Bill.

Under the renewed effort, the government is planning to drop the clauses in the Lokpal Bill pertaining to setting up of Lokayuktas in states, a provision that faced stiff opposition from friends and foes alike.

A senior minister had said recently that the government was contemplating the move that would help clear the obstacles in the way of its easy passage in Parliament as also dismiss the opposition campaign that Congress was against the measure.

The fresh consultation is aimed at ensuring that the anti-graft Bill is passed in the first part of the Budget Session which ends on March 30.

The status of the Bill in Rajya Sabha is still unclear. Congress has maintained that amendments moved in the Winter Session have lapsed and members will have to give fresh notices on the Bill.

However, the opposition insists that government had sought adjournment of the House on December 29 on the grounds that there were as many as 187 amendments and it needed time to go through it. Now that the government has had sufficient time, the proceedings should begin from where they were left.

Parliamentary Affairs Minister Pawan Kumar Bansal said the government has studied the amendments moved by opposition and UPA allies.

"We want to bring the Bill within this part of the session itself," he said in Rajya Sabha last week.

His statement marked a change of stand by the government as the minister had at a session-eve press conference said it would be difficult to take up the Bill in the first part due to financial business.

PM's reply may address TMC concerns on NCTC today

Prime Minister Manmohan Singh is expected to reply to the debate on the Motion of Thanks to the President’s address at 12 noon on today.

Government sources said the PM’s reply will address concerns of the Trinamool Congress (TMC) on the formation of National Counter Terrorism Centre (NCTC).

Though a TMC amendment to President Pratibha Patil's address to the joint session of Parliament seeking deletion of the reference to the controversial matter was rejected in the Lok Sabha, the concerns expressed by party chief Mamata Banerjee would be suitably reflected in the PM’s reply to the three-day debate, sources said.

The same has already been conveyed to Trinamool leader Sudip Bandopadhyay, sources stated, adding the party will not embarrass the government in Parliament on the issue.

The West Bengal Chief Minister had opposed the proposal for setting up of the NCTC, an issue over which the Trinamool Congress has made common cause with the Opposition and some non-Congress chief ministers, saying the states' rights were being encroached upon.

The TMC move to amend the President's address, which was rejected on technical grounds, could have embarrassed the government in Parliament.

Around 2,700 amendments to the President's Address have been submitted in both Houses in a bid to corner the government on issues like NCTC, federalism and corruption.

Meanwhile, another key UPA ally, the DMK too has given hints that it will not put the government on backfoot in Parliament on the issue of Sri Lankan war crimes.

The DMK has been pressing the government to make its stand clear on the resolution to be adopted on Sri Lankan war crimes issue at the United Nations Human Rights Council (UNHRC).

PM says: UPA govt. has the ‘numbers’

Amid speculation that the country is heading to mid-term polls, Prime Minister Manmohan Singh asserted on today that the UPA has the numbers required to maintain its majority in the Parliament.

Speaking to reporters before walking into the Parliament – the Budget Session begins today – the Prime Minister said that the government is willing to discuss and debate all issues.

“I am confident that this Budget Session will run smoothly,” he said.

Requesting all parties to cooperate on major challenges faced by the country, the PM added, “We are willing to discuss all issues on the floor of the Parliament.”

However, despite PM’s assurance, heated debates over what some opposition-ruled states see as Centre's efforts to usurp their powers through the National Counter-Terrorism Centre (NCTC) is expected during the Session.

On the issue of the possibility of a mid-term poll, he said, “I am confident that we have all the numbers that are needed.”

The Congress has seemed to be vulnerable following humiliating defeats in key states such as Uttar Pradesh and Punjab, apart from Goa, the opposition parties are likely to go in for the kill - by attempting to forge floor coordination with some recalcitrant constituents of the UPA to embarrass the government on critical issues.

West Bengal Chisef Minister Mamata to meet PM, NCTC on agenda

Amid growing chorus against the National Counter Terrorism Center (NCTC), West Bengal Chief Minister Mamata Banerjee is expected to take up the issue with Prime Minister Manmohan Singh on Tuesday.

Mamata and other CMs - Naveen Patnaik, Rama Singh, Nitish Kumar and J Jayalalithaa – are opposed to the anti-terror body; being set up under the Intelligent Bureau (IB), on the grounds that the powers imparted to NCTC would undermine the federal structure.

Last week, the TMC chief had skipped the inauguration programme of the NSG hub in Kolkata by Union Home Minister P Chidambaram, apparently to register her opposition to the NCTC.

The NCTC is scheduled to be fully operational by March 1.

The West Bengal CM may also raise the demand for a financial package for the state during her interaction with PM.

PM Manmohan Singh seeks AG's advice on 2G case

Prime Minister Manmohan Singh on Wednesday asked the Attorney General for his advice on 2G order.

The PM has also asked whether a review petition in this regard is required or not.

The Supreme Court on Thursday cancelled award of 122 licences to telecom companies in the 2G spectrum allocation scam.

Foreign telecom players like Telenor of Norway, Sistema of Russia, Etilasat and S-Tel of UAE had been affected owing to cancellation of licenses.

A bench of justices G S Singhvi and A K Ganguly said the government must follow the process of auction for allocation of any natural resource to avoid any arbitrariness and illegality.

Earlier in a historic verdict, the Supreme Court on 02 February had cancelled all 122 2G telecom licences issued during the tenure of former telecom minister A Raja in 2008.

An apex court bench comprising of Justices G S Singhvi and A K Ganguly held that 122 licences for 2G spectrum were granted in an “arbitrary and unconstitutional manner”.

Imposing a fine of Rs five crore each on three telecom companies, which offloaded their shares after getting the licenses, the court directed regulator Telecom Regulatory Authority of India (TRAI) to make fresh recommendations on allocation of 2G licences.

Asking the government to take steps on the recommendations of TRAI within a month, a bench comprising justices Singhvi and Ganguly said the allocation of spectrum would be done through the policy of auction within four months.

The order came on three separate petitions which alleged scam in the allocation of spectrum licences by Raja in January 2008 during the tenure of UPA-I government, on which the CAG had assumed a presumptive loss of upto Rs 1.76 lakh crores.

The 122 licences were given by Raja for over Rs 9,000 crores, while 3G auctions for a smaller number of licences had fetched the government a sum of Rs 69,000 crores.

Companies which stand to lose their licences include Uninor (joint venture between Unitech and Telenor of Norway), Sistema Shyam Teleservices (joint venture between Shyam and Sistema of Russia), Loop Telecom, DB (joint venture between Swan and Etisalat of UAE), S Tel, Videocon and Idea Cellular.

CWG scam: Sheila Dikshit blaming Chidambaram in letter to Manmohan Singh?

Delhi Chief Minister Sheila Dikshit had shot off an angry letter to Prime Minister Dr Manmohan Singh last year over the Commonwealth Games scam.The dated March 28, 2011, in which Ms Dikshit makes an angry defence in the case, slamming the report of the Shunglu Committee which probed alleged irregularities in organising the event.

"Committee report has caused damage to the government and my image," said Ms Dikshit. She also wrote that the "Committee failed to appreciate the need for consultations", and that
"Direct insinuations were deliberate, mischievous and defamatory."

The committee's observations had indicted the Dikshit Government for cost and time overruns in projects related to the Games. It had said that Ms Dikshit had failed in her supervisory role and that she had centralised the procedures which led to delays.

In her letter to Dr Singh, the Delhi chief minister also seems to be blaming the then Finance Minister P Chidambaram for lack of coordination that led to delays in completing the projects and hence, inflating costs.

"Project implementing ministries complained of delays in getting financial clearances," states the letter, written soon after the Shunglu Committee report was made public.

Prime Minister Manmohan Singh had appointed a committee headed by former Comptroller and Auditor General (CAG) VK Shunglu on October 25, 2010, soon after the completion of the mega sports event, to probe allegations of corruption, misappropriation of funds, irregularities and weaknesses in management of the Games.

The Commonwealth Games scam has also put Sheila Dikshit's government in the dock with a court in Delhi asking the police earlier this month why it had not filed a First Information Report (FIR) against the chief minister. The court was hearing a complaint filed by RTI activist Vivek Garg, which blames the chief minister for inflating costs and cites several letters written by her to the Prime Minister as evidence. 

Delhi Police informed the court on Monday that the complaint had been forwarded to the Central Bureau of Investigation (CBI) since it was investigating cases related to the event. The next hearing is on February 23.

The Commonwealth Games were seeped in controversy and the event made international headlines for poor organisation and project delays. Charges of corruption in the award of contracts and purchase of equipment led to the arrest of CWG Organising Committee head Suresh Kalmadi and his top aides.

BJP leader dares Rahul to become PM

With just over a week before polls begin in Uttar Pradesh, the Bharatiya Janata Party (BJP) today took on Congress General Secretary Rahul Gandhi. Throwing down the gauntlet at the young Gandhi scion, senior BJP leader Ravi Shankar Prasad dared him to become the Prime Minister.

"Let Rahul Gandhi become the Prime Minister for once. Two years are left. Let the country also realise the capability he has to run this country and the understanding he possesses of the country's problems," Mr Prasad said.

Taking a dig at the young Congress leader, Mr Prasad further said that in order to become the PM, all that Rahul Gandhi needed to do was to ask Prime Minister Manmohan Singh to step aside.

Mr Prasad's comments come in the wake of a tough four-cornered contest in UP where the Congress led by Rahul Gandhi has emerged as a serious contender to stake claim to power in the state. The 40-year-old leader has aggressively campaigned in the state, often targeting the Mayawati-led Bahujan Samaj Party government over issues of corruption and land acquisition. More recently, the Congress' controversial move to carve out a sub-quota for backward Muslims from the existing 27% reservation for Other Backward Classes (OBCs) is being viewed as a political masterstroke given the electoral significance of the community in the state. Muslims constitute a sizeable section of UP's electorate - 18% to be precise. The minority quota move has been vehemently opposed by the BJP which has dubbed it as divisive and has promised to scrap it if voted to power.

Meanwhile, the Congress, scoffing at the BJP's remarks on Rahul Gandhi, said that it was a sign of surrender by the saffron party which had resigned to the reality of the Congress coming back to power.

"They have admitted the reality. After all, they understand that the Congress will come back to power at the Centre in 2014 and in Uttar Pradesh in 2012. They cannot stop or change it, no matter what they say to the nation," Congress spokesperson Abhishek Manu Singhvi said.

As both parties engage in a verbal duel over Rahul-as-PM, the man himself has consciously shied away from taking up any position in the government. He, instead, has focussed on strengthening the party at the grassroots level as also re-energising the youth wing. More significantly, he has been assiduously working to revive the Congress' fortunes in Uttar Pradesh - a state which, with its 80 MPs in Lok Sabha, clearly holds the key to power at the Centre. Congress leaders though have, on several occasions, voiced their support for Mr Gandhi to assume a larger role in the working of the government and have openly backed him as the party's choice for the prime minister's post.

Cabinet to decide on future of UID project today

The Cabinet Committee led by Prime Minister Manmohan Singh will meet on today to take a decision on the continuation of the Unique Identification Authority of India (UIDAI) project led by Nandan Nilekani.

Today’s meeting comes a day after Prime Minister Manmohan Singh held discussions with senior Cabinet colleagues to resolve the issue amid reports of difference between Home Ministry and Planning Commission over continuation of UIDAI project.

Reports claim that a compromise formula has been reached according to which Nilekani-led Unique ID Authority of India and the Registrar General of India will be carrying out parallel exercises to collect biometric data.

While the UIDAI will do it in 13 states, the Registrar General of India will collect data in coastal areas and areas where UIDAI has no presence. The two bodies will reportedly share some data. The Cabinet Committee will today take a decision on what data the Registrar General must share with the UIDAI.

The Cabinet committee meeting led by PM Singh will take a final call on extension of the UIDAI project, under which national identity cards are issued to entire population.

"I think we have come to an agreement on how both the projects can proceed together without any difficulty... the Cabinet Committee (on UIDAI) was rescheduled and will happen on Friday. We are quite hopeful that we will have a resolution of these issues in that meeting," Planning Commission Deputy Chairman Montek Singh Ahluwalia said after the meeting.

Besides Ahluwalia, meeting was attended by Finance Minister Pranab Mukherjee, Home Minister P Chidambaram, UIDAI chairman Nandan Nilekani and National Security Advisor (NSA) Shivshankar Menon.

At the centre of the controversy is the collection of bio-metric data of all residents.

While the Home Ministry has maintained that the Registrar General of India (RGI) under it has been mandated to collect the data through the NPR, the Nandan Nilekani-led UIDAI has also been authorised to gather the information.

Home Minister P Chidambaram has sought clarity on the status on who will capture bio-metric data - Registrar General India or UIDAI. The Home Ministry feels that the data collected by UIDAI was not secure as it is not verified by a government servant.

The data collection by UIDAI has been done by hired organisations which is a cause of concern for the Home Minister.

Since the UIDAI has already enrolled 170 million residents, the government will have to take a decision on the future of the body.

UIDAI is likely to complete the mandate of enrolling 200 million residents even before the deadline of March 31 this year.

Ahluwalia has thrown his full weight behind the UIDAI saying the project should continue. On concerns over duplication of work and extra burden on exchequer, he had stated that the project is well worth it.

The Planning Commission wants more resources for the authority for continuation of its work.

According to the Home Ministry proposal, chip-based smart cards will be issued to all residents on the basis of the record maintained by the NPR - a digital database under construction.

PM Manmohan Singh to campaign in Punjab, Sonia in Uttarakhand

With the poll date approaching, the Congress is reaching out to the electorate in poll-bound states in a big way.

Prime Minister Manmohan Singh will address poll rallies in Amritsar and Ludhiana on today. Punjab goes to polls on January 30. The Congress under former chief minister Amridner Singh is looking to wrest power from the Parkash Singh Badal headed SAD-BJP combine.

Interestingly, the Prime Minister had begun his New Year from Amritsar, when he along with his wife Gursharan Kaur paid obeisance at the Golden Temple on January one.

Meanwhile, party president Sonia Gandhi is concentrating on Uttarakhand where the Congress hopes to unseat the BJP government led by BC Khanduri. She will address a rally in Almoda today; last week she had campaigned in Roorkee.

On the other hand, Rahul Gandhi is continuing with his ‘Mission UP’. He would be campaigning in the Bundelkhnad region today.

Power sector leaders including Mukesh Ambani to meet PM today

A delegation of 18 top executives, led by Tata group Chairman Ratan Tata, is likely to meet Prime Minister Manmohan Singh  on today to discuss various issues faced by the power sector.
    
Acute fuel shortages, pricing issues related to imported coal for power projects, delay in environment and forest clearances, funding problems and worsening health of power distribution companies (discoms) would be part of the agenda for the meeting with the Prime Minister, sources said.
    
The proposal to slap duty on imported power equipment would also figure in the discussions, they added.
     
Ahead of today's meeting, top honchos of private power companies, including Reliance Power Chairman Anil Ambani, Essar Group CEO Prashant Ruia, Hinduja Group Chairman Ashok Hinduja and Sterlite Energy Chairman Anil Agarwal, met here Tuesday to discuss the agenda, sources said.
    
Other likely members of the delegation include Tata Power Deputy Chairman Cyrus Mistry, Adani Power Chairman Gautum Adani, JSW Energy Chairman Sajjan Jindal, GMR Energy Chairman G M Rao, Lanco Infratech Chairman L Madhusudan Rao and CLP Power India CEO Andrew Brandler.
    
The delegation would also be meeting Finance Minister Pranab Mukherjee, Petroleum and Natural Gas Minister Jaipal Reddy, Coal Minister Sriprakash Jaiswal, Minister of State for Environment and Forests Jayanthi Natarajan, Power Minister Sushilkumar Shinde, Principal Secretary to the Prime Minister Pulok Chatterjee and Planning Commission Deputy Chairman Montek Singh Ahluwalia, sources said.
    
All the companies are part of the Association of Power Producers, whose 21 members account for over 95 percent of power capacity in the private sector.
    
"We are very positive (and hopeful) that satisfactory resolution would be found to all the issues facing the power sector," Association of Power Producers (APP) Director General Ashok Khurana said.
    
The proposed meetings of top executives with the Prime Minister and others come against the backdrop of fuel shortages and various other problems hurting the power sector. Further, many financial institutions are reported to be reluctant in lending to power projects.
    
Private power companies have a capacity of around 24,000 MW.

Indian professionals overseas job market, plans to ink pacts with EU

The government is negotiating human resource mobility partnership agreements with the Netherlands, France, Australia and the European Union in a move aimed at greater inroads for Indian professionals into such markets.

Speaking at the Pravasi Bharatiya Diwas here on Sunday, Prime Minister Manmohn Singh said the scope of the country's labour partnership agreement is also being expanded to cover not only skilled workers but academics and professionals.

The government has been trying to get greater access for Indian professionals and workers to several developed markets such as the US and EU. Last year, commerce and industry minister Anand Sharma had pressed for greater movement of Indian professionals to the US and had pointed to serious problems being faced by the Indian IT industry in obtaining H1B and L1 visas and had sought early redress.

India has also signed the Comprehensive Economic Partnership Agreement with Japan which is expected to give greater access for Indian accountants, research and development service providers, tourist guides, market researchers and management consulting firms to the Japanese market. Japan has also agreed to open up its market for Indian nurses and caregivers.

Singh cautioned that the global economic slowdown was giving rise to protectionism and vowed to ensure safety of Indians working overseas.

"The world is passing through a difficult phase. Many of you are experiencing first-hand the impact of the global economic slowdown. Employment opportunities have declined, there is greater protectionism and attitudes towards migration have also hardened. There is growing social intolerance even in more open societies," Singh said.

He said the government was acutely conscious of the safety and security of Indians living abroad, particularly in regions characterized by instability.

"There are over six million Indians living in the Gulf and West Asia. We need to be alert to the unfolding developments in this part of the world. We have conveyed to the countries of the region that we have a stake in the peace and stability of this region, and that we expect that they would appropriately look after the interests of Indian communities in their countries," Singh said.

He also detailed the steps being undertaken by the government to deepen the engagement with non-resident Indians and persons of Indian origin. He said the ministry of overseas Indian affairs was implementing the e-migrate project that will provide end-to-end computerized solutions for all processes in the emigration system. Singh said the system will link all key stakeholders on a common platform which will be used by workers, offices of the protector of emigrants, recruitment agencies, immigration officials, employers and the Indian missions abroad.

PM to visit Golden Temple today

With his government having faced a tough year, Prime Minister Manmohan Singh wants to usher in the new year with prayers at the Harmandar Sahib, the holiest of Sikh shrines, popularly known as the Golden Temple.

He is expected to arrive here today evening with his wife Gursharan Kaur and will go to the Harmandar Sahib very early Sunday morning to offer prayers on New Year Day, a police officer said here Saturday. The visit is being termed by officials as a "private one".

"He will stay at the Circuit House overnight. Additional security personnel have been requisitioned from neighbouring districts to have foolproof security in place. SPG (special protection group that protects the prime minister) officials are camping here already to ensure all security measures are in place," the officer said, speaking only on condition of anonymity.

Amritsar deputy commissioner Rajat Aggarwal confirmed that the prime minister would arrive here Saturday evening and visit the Golden Temple complex early Sunday. He will fly back to Delhi Sunday afternoon.

Amritsar city has been shivering a sub-zero temperatures in the last one week with the minimum temperature recorded Friday morning being at minus 2.1 degrees - the lowest temperature of the winter season.

The prime minister, who lived and studied in this city after his family migrated here from Rawalpindi after partition, also has some relatives who are settled here.

A devout Sikh, the prime minister had last visited the shrine in March 2009, just a few weeks after his coronary bypass surgery at the All India Institute of Medical Sciences in New Delhi.

PM Manmohan Singh declares 2012 as National Mathematical Year

Declaring 2012 as the 'National Mathematical year' as a tribute to maths wizard Srinivasa Ramanujan, Prime Minister Manmohan Singh on Monday voiced concern over the "badly inadequate" number of competent mathematicians in the country.

He also said that the perception that pursuit of mathematics does not lead to attractive career possibilities "must change".

"It is a matter of concern that for a country of our size, the number of competent mathematicians that we have is badly inadequate," he said at a function to here mark the 125th birth anniversary of Ramanujan.

Singh also declared December 22, the birthday of Ramanujan, as 'National Mathematics Day'.

Students have not pursued mathematics at advanced levels over more than three decades, which has resulted in a decline in quality of mathematics teachers at schools and colleges, Singh who is on a two-day visit to the state, told a galaxy of academics at Madras University.

"There is a general perception in our society that the pursuit of mathematics does not lead to attractive career possibilities. This perception must change. This perception may have been valid some years ago, but today there are many new career opportunities available to mathematics and the teaching perception itself has become much more attractive in recent years," Singh said.

The Prime Minister said the mathematical community has a duty to find out "ways and means" to address the shortage of top quality mathematicians and reach out to the public, especially in the modern context, where mathematics has tremendous influence on every kind of human endeavour.

Mukesh Ambani provided support to Govt., invest Rs 70,000 crore in India

After a long spell of gripes over policy inaction, Reliance Industries chairman Mukesh Ambani has provided some much-needed support to the government, saying he did not share the gloom and pessimism that several industry leaders were talking about.

At the meeting of the Prime Minister's Council on Trade and Industry on Thursday, the country's richest man went on to talk about his group's mega investment plans. "Sir, I don't share the gloom and pessimism on India. I plan to invest Rs 70,000 crore in India over the next two years. To me, India remains the best investment destination," a senior government official present in the meeting quoted Ambani as saying.

Prime Minister Manmohan Singh is learnt to have responded by saying that he hoped that others shared Ambani's views. "Very good! I hope others also follow your example," the official quoted Singh as saying. Government representatives present in the meeting also emphasized that the mood was not as negative as it had appeared before the deliberations began.

Several industry leaders, such as Ratan Tata, N R Narayana Murthy, Sunil Bharti Mittal, Sunil Munjal and Vindi Banga endorsed Ambani's view and suggested that they were all betting big on India. Industry leaders said the perception that India was not a profitable place to do business was wrong, stressing that they were not planning to shift their business overseas.

They, however, urged the government to expedite infrastructure and other large projects. Industry leaders were assured that a mechanism would be put in place to sort out bottlenecks in implementing large projects.

There did seem to be a sense of exasperation with the Anna Hazare-led movement. Sunil Bharti Mittal is learnt to have said that there was no place for such a confrontation in a parliamentary democracy. Sources quoted him as saying that maintaining constitutional order was critical for a conducive business climate.

Ashok Ganguly, former HUL chief, also spoke in the same vein. Significantly, the RS member was part of the group of industrialists which went public with its lament over policy inaction, but pressed for backing the government on FDI in retail.

The statements from industry leaders came against the backdrop of some straight talking by the prime minister. "I must confess that it is a little disappointing to sometimes hear negative comments emanating from our business leadership or be told that government's policies are causing slowdown and pessimism in the industrial sector," Singh had said. "Such comments have added to uncertainty and have emboldened those who have no stake in our economic growth. It is true that our country faces a large number of issues which need urgent resolution. The energy sector, the port sector, the transport sector, the supply of gas and coal, all need greater attention. Corruption and better governance also require firm handling," the PM said.

He went on to talk about the possibility of reduction in interest rates if the easing trend on inflation was sustained. Besides, he agreed with concerns on the sharp depreciation of the rupee but urged exporters to take advantage of the situation.

The business leaders expressed confidence in the fundamental strength of the Indian economy. They were generally of the view that the economy was poised to return to a high rate of growth in the near future.

Union Cabinet to fine-tune Lokpal Bill today

The Union Cabinet is expected to consider Monday the much-awaited Lokpal Bill that is likely to bring Prime Minister under the proposed anti-graft ombudsman with certain conditions and provide for creation of an independent prosecution directorate.

The bill, which is expected to be tabled in Parliament before the end of the current session, is being fine-tuned by an informal group of ministers comprising Finance Minister Pranab Mukherjee, Home Minister P Chidambaram, Law Minister Salman Khurshid and MoS Personnel V Narayanasamy.

The Cabinet, which met last night, saw some deliberations on the legislation but the detailed note on the subject is expected to formally come up before Cabinet meeting today, possibly in the evening.

Prior to that, the ministers concerned are expected to brief Prime Minister Manmohan Singh on the changes being made in the Lokpal Bill, sources said.

While the bill will see incorporation of recommendations made by the Parliamentary Standing Committee which examined it, the government has made it clear that it was open to other ideas that emanated at the all-party meeting convened by the Prime Minister on Wednesday.

"You all know that how many days are left (for Parliament session). We have literally worked day and night to ensure that we meet the deadlines," Law Minister Salman Khurshid told reporters today.

"Let us just get the Bill done and bring it to the Cabinet so that it can be brought before Parliament as quickly as possible," he said amid the looming threat of Anna Hazare to go on hunger strike from December 27 if the legislation is not enacted by then.

Referring to the various proposals floating around, Khurshid said, "the Government is not taking up anything as outstanding view but fine-tuning keeping in mind the basic structure of the law... to ensure that we take public confidence with us because we are also determined and committed to a very powerful Lokpal Bill."

Notwithstanding the demands for bringing CBI under Lokpal, the government is averse to this and instead is contemplating a provision for creating an independent "Directorate of Prosecution", carving it out from CBI.

Accordingly, the Bill is likely to suggest that the Delhi Special Police Establishment Act be amended, sources said.

The bill is also expected to provide for removal of the Lokpal Chairman or member if a joint complaint is made by at least 100 MPs.

The legislation also is likely to provide for 50 per cent reservation to Scheduled Castes, Scheduled Tribes, OBCs, minorities and women in the Lokpal bench on the lines of demand raised by almost all the parties, except BJP, at Wednesday's meeting, the sources said.

With regard to demand for inclusion of Group 'C' employees, the sources said discussions are underway to create an "appropriate mechanism" for this.

One of the suggestions in this regard is placing them under the purview of the CVC who would be asked to report the progress on anti-corruption cases to Lokpal. The Parliamentary Committee had recommended reservation for SCs, STs, OBCs, minorities and women in the Search Committee which will assist the Selection Committee to select Lokpal. However, it was silent on reservation in the Lokpal.

If reservation is provided in the Lokpal panel, it will become the first Constitutional body to have the provision.

On the issue of PM, the Standing Committee had refused to take a position but recommended three options – inclusion without exception and qualifications, inclusion with no exclusionary caveats but after demitting office and inclusion with exclusions on issues like national security and foreign affairs and some others.

Making CBI, or its anti-corruption wing, a part of Lokpal still remains a contentious issue.

The Lokpal Bill introduced in the Lok Sabha in August this year says that "Lokpal shall constitute an Investigation Wing for the purpose of conducting investigation of any offence alleged to have been committed by a public servant punishable under the Prevention of Corruption Act, 1988."

Several parties, however, are insisting that CBI's anti-corruption wing should be under Lokpal to give it teeth. On the inclusion of group C employees under the ambit of Lokpal, one of the options with the government is recommendation of the Parliamentary Standing Committee which had recommended a "broad supervisory fusion at the apex level" by some changes in the CVC Act.

"The CVC should be made to file periodical reports, say every three months, to the Lokpal in respect of action taken for these class C and D categories.

"On these reports, the Lokpal shall be entitled to make comments and suggestions for improvement and strengthening the functioning of CVC, which in turn, shall file, appropriate action taken reports with the Lokpal," it had recommended. It had also recommended "appropriate increase" in the strength of the CVC manpower.

PM to meet Russia's President Medvedev today

Prime Minister Manmohan Singh, who is on a three-day visit to the Russian capital, will on Friday hold bilateral summit with President Dmitry Medvedev, during which the two sides will discuss proposals to ramp up their strategic relations and also sign agreements in the fields of defence, health and science and technology.

Manmohan Singh is also slated to meet Prime Minister Vladimir Putin, who is at the centre of the political storm over the Russian parliamentary elections and allegations of rigging.

During the meetings, the two sides are likely to discuss their civil nuclear cooperation, in particular the setting up of units III and IV of the Kudankulam nuclear plant in Tamil Nadu with Russian reactors.

Earlier, Manmohan Singh said that India would seek to substantially expand bilateral trade with Russia from the current $8.5 billion, while enhancing ties in a host of areas such as defence, energy, space technology and health.

The Prime Minister said his talks with the Kremlin leadership will also cover multilateral issues, notably on ways out of the global economic slowdown.

He said India's bilateral relations with Russia were based on "mutual trust, friendship and shared interests" and encompass diverse sectors, including nuclear energy, defence, space, science and technology, hydrocarbons, trade and investment and people-to-people exchanges.

Bilateral trade amounted to $8.535 billion in 2010, witnessing a 15 percent growth from $7.46 billion in 2009.

The two countries in 2009 decided to target $20 billion worth of bilateral trade by 2015 with a focus on energy, pharmaceuticals, IT, steel, hydrocarbons, aerospace and agriculture.

Meanwhile, highly placed government sources in New Delhi said that India is likely to push for a comprehensive economic cooperation agreement with Russia and possibly an economic arrangement with a regional trade forum that Russia is planning with its neighbours like Belarus.

Govt likely to table Lokpal Bill on December 20

With Anna Hazare threatening to go on hunger strike from December 27 if the government fails to fulfill its word on a strict anti-graft bill, the Centre is likely to introduce the Lokpal Bill in Parliament on December 20 with possible amendments.

Anna’s threat has put the Congress-led UPA government at the backfoot and Prime Minister Manmohan Singh has convened a special meeting of the Union Cabinet on Sunday to discuss the format of the bill and various recommendations made by the civil society and the opposition parties.

The Lokpal bill will be discussed and approved during the cabinet meeting and would then be tables in Parliament on Tuesday for urgent consideration and passage.

The Centre has also formed a three-member team of the Cabinet - comprising Law Minister Salman Khurshid, Home Minister P Chidambaram and Minister of State in the Prime Minister's Office V Narayanasamy – which will hold internal consultations to finalise the bill.

The final draft of the Lokpal Bill will be overseen by Union Finance Minister Pranab Mukherjee, according to sources.

The consultations come in the wake of the meetings of the United Progressive Alliance (UPA) leaders this week and an all-party meeting on the contentious legislation, which ended inconclusively.

The fresh move by the government to introduce the Lokpal Bill comes a day after Anna Hazare threatened a fresh agitation from January 1 if a "strong Lokpal bill" is not passed by then.

Prime Minister Manmohan Singh, who is on a three-day visit to Russia, will be back in the capital Saturday evening, a day before the scheduled special meeting of the Cabinet.