1400 HRS
17th January, 2013

THE HEADLINES

• Union Cabinet raises cap on number of subsidised LPG cylinders from 6 to 9 per year; Election Commission grants no objection to the proposal.
• Govt authorises oil companies to make minor hikes in diesel prices periodically.
• Government approves a 50 per cent reduction in reserve price of CDMA spectrum to be put for auction in March this year.
• Pakistan's Chief of Anti- Corruption Bureau refuses to arrest Prime Minister Ashraf as ordered by the Supreme Court in a graft case.
• US regulator, Federal Aviation Administration stops operations of all Boeing 787 Dreamliner planes; Air India grounds all six Dreamliner planes.
• MTNL launches video telephony service in Delhi and Mumbai.
• Sensex gains over 110 points in afternoon trade.

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The government today raised the cap on supply of subsidised LPG cylinders to nine from six per year and allowed oil companies to hike diesel prices by a small quantum periodically.Talking to media persons after the meeting on Cabinet Committee on Political Affairs Petroleum Minister Veerappa Moily said that there is no increase in the prices of Diesel and Kerosene.

"Diesel is concerned the OMCs that the marketing companies have been authorise to make price corrections from time to time."

Consumers will get a quota of five subsidised cylinders between September 2012 and March 2013 and from April 1, 2013,they will be entitled to nine cylinders per annum. Moily said that the oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs 9.60 per litre loss that they incur on the fuel. Meanwhile, the Election Commission of India has granted no objection to the government's proposal for raising cap on subsidises LPG gas quota.

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The Union Cabinet has approved a 50 per cent reduction in the reserve price of CDMA spectrum to be put for auction in March this year. According to highly placed official sources the Cabinet gave its seal of approval to the recommendation of the Empowered Group of Ministers on spectrum, which had recommended a 30 to 50 per cent reduction on the base price.

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Government Telecom Service Provider MTNL today launched its video telephony service in Delhi and Mumbai, the first by any service provider in these two cities. Inaugurating the service in New Delhi, Communications Minister Kapil Sibal said that this service will change the way people communicate with each other without travelling and will improve their quality of life in many ways.

"I think it will change the course of history in India. In the way we interact with each other, in the way we do business, in the way we connect each other. Indiamust think ahead. We cannot continue to live in the mind set of the 19th century and try and grapple with the problems of the 21st century. We have to think into the future, for the future and for our children."

The Minister said that the service is ideal for communication and applications like tele-medicine, tele-education and e-governance adding that the service would save time, and cost and improve productivity. Our correspondent reports that using this service, calls can be made within India on MTNL/BSNL HD-Voice and video telephony network and the video call charges would be Rs. 2.50 per minute

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Pakistan's Anti-Corruption Chief refused an order by the country's top court to arrest the Prime Minister Raja Pervaiz Ashraf in a graft case on Thursday, saying he did not have sufficient evidence. Fasih Bokhari, chief of the National Accountability Bureau, told the Supreme Court that he needed more time to determine whether the prime minister should be arrested. The case involves kickbacks that Ashraf allegedly took during his time as minister of water and power that were related to private power stations built to provide electricity to energy-starved Pakistan. The Prime Minister has denied the allegations.

Chief Justice Iftikhar Chaudhry questioned why the anti-corruption chief needed more time since the case against the Prime Minister has been pending for about a year. He ordered Bokhari to bring the case files back to the judges later in the day so they can determine whether there is incriminating evidence.

The Chief Justice said, there may be some who consider themselves above the law, but let me make it clear there is no one above the law.

Bokhari said, the investigating officers were not able to bring incriminating evidence but relied on oral statements which are not warranted in the court of law.

The government and the Supreme Court have repeatedly clashed over the last year, and the Chief Justice's demand on Tuesday that Prime Minister Raja Pervaiz Ashraf be arrested set the stage for a new round of political crisis in Pakistan, a key US ally in the fight against Islamic militants and efforts to stabilize neighboring Afghanistan.

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India has asked Pakistan to respond constructively to its concerns on the killing of two jawans along the Line of Control in Jammu and Kashmir. Information and Broadcasting Minister Manish Tewari today said in New Delhi that it would be in the interest of Islamabad to take action against those responsible for the brutal killings.

"The only problem which needs to be resolved is the inhuman behaviour of the Pakistani armed Forces personnel rather than giving sanctimonious homily. It could be worth Pakistan's while to really respond positively and constructively to India's concern and hold those people who were responsible for their barbaric treatment, to account. "

In an interview to a news agency, Mr Tewari said Pakistan should realise and understand the seriousness of the issue, and the intent of the Indian establishment and respond to it appropriately. The Minister was responding to Pakistan Foreign Minister Hina Rabbani Khar's offer to hold discussion and dialogue with her Indian counterpart Salman Khurshid to resolve the crisis at the LoC. Mr Tewari said the top leadership in the country has already made it clear in wake of the brutal attack on the Indian soldiers that there cannot be business as usual with Pakistan.

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Air India today grounded all its six Dreamliner planes after a global directive by US regulator, Federal Aviation Administration,FAA ,to stop operations of all the 50 such planes delivered so far to various airlines. The US today also grounded its entire fleet of Dreamliners. Yesterday, Japan had grounded 24 Dreamliner owned by two of its airlines. This follows the FAA drawing concern on the safety standards of the batteries used in the aircraft.

Air India officials said they have grounded all the six planes with immediate effect following the FAA directive and the Director General of Civil Aviation, DGCA advisory.They said the FAA has directed the grounding of the entire Dreamliner fleet till such time as the aircraft manufacturer Boeing demonstrate compliance with various measures that American regulator has asked it to carry out.

However, the Air India officials maintained that its services will not be affected in any major way as flights to Paris and Frankurt operated by the Dreamliner will now be serviced by Boeing 777. While one of the six planes is always on a standby, three are used on the domestic sector and two on international including Paris and Frankfurt. Domestic services would be absorbed by the existing fleet of aircraft.

Civil Aviation Minister Ajit Singh today said the grounded fleet of Boeing Dreamliner aircraft would be allowed to fly only after clearance by US regulator Federal Aviation Administration and the DGCA. Talking to reporters in New Delhi he expressed the hope that a solution will be found soon.

"I have directed the DGCA to ground all the Dreamliners. Now, how serious is the problem, how long it will take, will be known in couple of days. But there are about 50 Dreamliners in operation more than a year and they have flown more than 50 thousand miles. So let's hope they can find a solution soon."

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Cabinet recommends imposition of President's Rule in Jharkhand.

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Urban Development Minister Kamal Nath has called for technological upgradation and expansion of the Government of India Presses. Inaugurating a 2-day National Conference to mark the 150th year of the Government Presses in New Delhi today, Nath expressed happiness that there is not a single case of leakage in these presses. He said the government is working on a roadmap for the maximum utilization of the land resources in these presses in the country.

Minister of State for Urban Development Mrs Deepa Das Munshi said the government is planning to have a print media museum at Kolkata.

Earlier, both the Ministers released the logo of the 150th year anniversary of the Government of India Presses, Table Calendar, Telephone Directory of the Presses and Mudran Patrika.

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India is to sign a commercial pact with French power major Areva for building two nuclear power reactors at Jaitapur in Maharashtra during the visit of French President Francois Hollande to New Delhi next month. Talking to reporters in New Delhi Atomic Energy Commission Chairman Ratan Kumar Sinha today said the deal with Areva was one of the drivers for quick action in the relations with France. He said a lot of attempts have also been made by the French side and meetings have already taken place between top officials of the nuclear establishments of both the countries.

India's nuclear operator Nuclear Power Corporation of India Limited and Areva plan to build two European pressurised reactors, (EPR), of 1,650 MW each at Jaitapur in Maharashtra's Ratnagiri district.

In December 2010, Areva signed an agreement with India to build the country's first two reactors of the new-generation EPR type at Jaitapur with an option for four more reactors.

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In Tripura, with asembly elections on 14th of next month, political parties are in all out effort to woo the voters. Our correspondent reports that there are 5 constituencies in Tripura where the vote battle depends on women voters as they are in a majority.

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In Assam, the three day Jonbeel Mela begins today in Morigaon district with pomp and gaiety. The festival is organized every year to enable the plain and hill tribes of the region to exchange commodities. A report…

"Thousands of tribal people have gathered in the historical Jonbeel mela to exchange their commodities. Perhaps, this is the only fair in the country where barter system still exists. Karbi, Khasi, Tiwa and Jayantia tribes have arrived at Jonbeel and thus the Mela promote harmony and brotherhood among various tribes and communities of Northeast. The Gova King Deep Singh will take part today in community feast along with his courtiers. Various traditional cultural programme are also being organized during the mela. MANAS PRATIM SARMA/AIR NEWS/Guwahati."

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In Iraq, the death toll in series of attacks across the country has gone up to 42 while more than 250 persons have been injured. The deadliest attack was in the oil rich Kirkuk province where 26 people were killed and 190 others injured in two separate car bomb blasts by the suicide bombers. No group has claimed responsibility for the attacks but the security agencies have blamed the Al-Qaeda's front group in Iraq for these attacks. More from our West Asia Correspondent

"The Wednesday's violence in Iraq has been the worst since December 12 last year .The targets have either been the security personnel or the Shiite neighborhoods , Shiite pilgrims and now the Kurd leaders in a bid to undermine the authority of Prime Minister Maliki led Shiite Government. The ruling coalition comprising of majority Shiites and minority Sunnis and Kurds has been a divided house. The Sunni leaders have mounted protests demanding the ouster of Prime Minister Maliki for his high handedness and say that he is discriminating against them. Kurd leaders have said that the regime is blocking the export of oils fromKurdistan. Meanwhile the Iraqi Government has sought an end to protests for peace and stability in the country. ATUL K TIWARY, Air News."

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Egypt, 25 people were killed and several others injured when an eight-floor apartment building collapsed in the port city of Alexandria. Egyptian officials said that at least 12 people were injured and rescue teams were searching for survivors under the rubble. Military police from a nearby naval base cordoned off the area to help the rescue operation. The cause of the collapse of the building was not known but the Governor of Alexandria Mohammad Abbas Ata said that the building was constructed without a permit. Violation of building specifications have led to similar incidents in the past.

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Recovering from initial losses, the Sensex at the Bombay Stock Exchange stood 112 points, or 0.6 per cent in positive territory, at 19,930 in afternoon trade, a short while ago. Earlier in the morning, however, the Sensex had opened with a loss of 34 points, or 0.2 per cent, at 19,783, on profit-booking by investors, amid weak global markets. Stock markets in Japan, China, Hong Kong, Indonesia, Taiwan, Singapore and South Korea had lost between 0.4 percent and 1 percent, today. The US Dow Jones Industrial Average had ended 0.2 per cent lower in yesterday's trade.

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The Indian rupee recovered by three paise to quote at 54.66 rupees against the American currency in late morning trade today on renewed selling of dollars by banks and exporters.

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In the inaugural Hockey India League, Punjab Warriors will clash with Uttar Pradesh Wizards at Jalandhar today. The match is scheduled to begin at 8 PM