2100 HRS
29th January, 2013

THE HEADLINES:

• RBI slashes its key interest rates by 0.25 per cent to 7.75 per cent ; Government says cut will stimulate investment and help in taming inflation.

• Supreme Court asks Karnataka and Tamilnadu to approach Cauvery Monitoring Committee to resolve the water dispute.

• India pledge Syria financial assistance as its commitment to extend humanitarian support.

• 20 people die in a flight crash in Kazakhstan.

• Sensex declines 112 points to close at 19,991.

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The Reserve Bank today slashed its key interest rates by 0.25 per cent to 7.75 per cent . The Chairman of the Prime Minister's Economic Advisory Council, Dr. C. Rangarajan said that cut in interest rate will stimulate investment and help in anchoring inflationary expectations.

The current account deficit is a serious problem. Therefore, the continue of the current account deficit will also warrant policy actions. That is why, we need to keep all of these things in balance. The need to stimulate growth, the need to contain inflation and the need to contain current account deficit, all of these are important factors which will go into policy making.

The RBI Governor, D.Subbarao hailed government's recent reform measures including liberalisation of FDI in retail, deferment of GAAR and progressive deregulation of fuel prices. He said these steps will help engender stable macro-economic conditions and return the economy to its high growth trajectory.

We expect that today's policy actions and the guidance that we have given will result in the following three outcomes. First, investment will be encouraged, thereby supporting growth, second, medium term inflation expectations will remain anchored on the basis of credible commitment to low and stable inflation and finally there will be an improvement in the liquidity conditions to support credit flow.

The Deputy Chairman of Planning Commission Montek Singh Ahluwalia said that CRR cut provides more resources with the banks and enable the banks to do more lending.

We hope that many of the steps that the government has taken will lead to a revival of interest in investment and faster movement of some of the big infrastructure projects. The decline in the repo rate is alos welcomed as a signal. Ofcourse, the really important things is what happen to the long term interest and i beleive that the CRR cut will have a significant effect on that because it will release resources. So on the whole, I am positive.

Mr. Ahluwalia however said that the monetary policy is not only thing that will change the micro economic situation.

The apex bank today released the third quarter of monetary policy. It announced a cut in the cash reserve ratio by a margin of 4 percent. The RBI, however, has reduced the growth projections for the current financial year to 5.5 per cent from its earlier estimate of 5.8 per cent.

On inflation, it moderated the rate to 6.8 per cent for March-end from earlier projection of 7.5 per cent. The repo rate, which was cut last in April 2012, stands revised at 7.75 per cent with immediate effect, while the liquidity infusing CRR stands at 4 per cent effective February 9th.

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The Supreme Court today refrained from passing any order for directing Karnataka to release Cauvery water to Tamil Nadu after the two states failed to sort out differences to reach a consensus on sharing water. A bench of justices R M Lodha and J Chelameswar posted the case for hearing on February 4 after the two states gave contradictory views on the issue.

Karnataka submitted that the apex court should not intervene at this stage on the findings of the Cauvery Monitoring Committee, CMC as it should be first challenged before Cauvery River Authority, CRA chaired by the Prime Minister.

But Tamil Nadu submitted that the apex court should pass an interim order directing Karnataka to release water during pendency of its plea before CRA.

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In Karnataka 13 pro Yeddiyurappa BJP MLAs, who resigned from assembly today are sitting on a Dharna in front of Speaker's office, demanding immediate acceptance of their resignations. The Speaker has so far accepted the resignation of Challakere MLA, Mr.Thippeswamy. In the case of other MLAs, the Speaker has sought some clarifications from the Secretary General of the Lok Sabha.

Two BJP MLAs had petitioned the Speaker yesterday to disqualify 12 of the rebel MLAs for anti-party activities. In another development , the Karnataka Janata Party General Secretary Rajendra Gokhale has clarified that the news of expelling former Chief Minister B.S.Yeddyurappa from the party is false.

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In Andhra Pradesh, Congress MPs from Telangana region are leaving for Delhitomorrow to hand over their resignations to the party President Sonia Gandhi. Talking to reporters, Congress MP's convenor Ponnam Prabhakar said that they are resigning to press for statehood of Telangana. Stating that party leadership had called them to Delhi, the MPs said they will discuss the issue with the high command and explain the situation in the region.

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Information and Broadcasting Minster Manish Tewari today said all stake holders in the broadcasting sector should introspect on Television Rating Points (TRP) and its relationship to sensationalism of broadcast content. Inaugurating the three day BES Expo 2013 in New Delhi, Mr. Tewari said, the recent exponential growth of the media, especially the social media has also to be viewed in the backdrop of the Right to privacy and the Right to annonimity.

Speaking on the occasion, Advisor to Prime Minister Sam Pitroda said, in the advent of new technologies the lines between broadcast, communication media has become blurred.

Information and Broadcasting Secretary Uday Kumar Verma, said, the 1st phase of Cable TV digitisation has been completed and 16 million homes would be covered in the second phase.

The Chief Executive Officer of Prasar Bharti, Mr. Jawahar Sircar, asked the broadcast Engineers to explore economically viable solutions for extending connectivity of FM and Co-channeling options.

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India will pledge around 14 crores rupees to Syria as part of its commitment to extend humanitarian support. This assistance will be in the form of life saving drugs, food and other required essential items. The Minister of State for External Affairs, E. Ahamed will pledge the assistance while participating in the High-level International Humanitarian Pledging Conference in Kuwait tomorrow. The Conference is an important initiative of the United Nations Office for the Coordination of Humanitarian Affairs to express support to the humanitarian needs of the Syrian people.

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Information and Broadcasting Minister Manish Tewari today said, India treats and respects every citizen alike under established constitutional guarantees. Replying to media questions on Pakistan Interior Minister Rehman Malik's comments on providing security to Bollywood star Shahrukh Khan, Mr Tewari said it would be better for Mr. Malik to worry about and work towards improving the plight of minorities in his country.

"The UPA government under the Indian Constitution has endeavored to treat each citizen and each individual with the same respect, the same equanimity which the Constitution entitles him to. So far, as the Interior Minister of Pakistan is concerned, he would be better served by bothering about the internal situation in Pakistan and really introspect about the treatment of minorities in Pakistan."

Reacting to Malik’s statement, Home Secretary R K Singh asserted that India is quite capable of providing security to its citizens. Talking to reporters in New Delhi, Mr. Singh advised Mr Malik to look after the security of Pakistani citizens and not worry about the Bollywood star.

Congress spokesperson Rashid Alvi condemned Malik's statement and said he should not interfere in India's internal affairs. He said the country knows how to take care of its people.

Pakistan should look into its own records. Let alone security, Pakistan cannot even provide proper treatment to their own artists.

BJP Leader Shahnawaz Hussain said that Islamabad should be more concerned about the minorities living in that country.

Rehman Malik should be concerned about the condition of minorities insidePakistan. They should be provided security. There is no discrimination in the name of religion against the Muslims, living in India.

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India and Australia have agreed to have closer trade and investment relations.They described these relations as a critical component of strategic partnership. Addressing a press conference after India - Australia joint ministerial commission inNew Delhi today, the Commerce Minister Mr. Anand Sharma said that the two leaders recognised the critical role played by industry in driving trade and investment between the two countries. His Australian counter part Dr. Emerson hailed the launch of regional comprehensive economic partnership negotiations the two Ministers discussed their commitment to strengthen the East Asia summit as a forum that incorporated all major economies in the India - Pacific region.

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All 20 people on board a flight in Kazakhstan died today when a Bombardier jet crashed on approach to Almaty airport in thick fog. The airline said in a statement that among twenty people on board included 15 passengers and five crew members. The statement added, saying the aircraft was a CRJ-200 made by Canadian manufacturer Bombardier. SCAT said, the plane went down about five kilometres short of the financial centre's main airport on a flight from the northern steppe city of Kokshetau.

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Beating Retreat marked the culmination of Republic day celebrations at Vijay Chowk in New Delhi this evening. President Pranab Mukherjee, Vice President Mohammad Hamid Ansari, Prime Minister Dr Manmohan Singh, UPA chairperson Sonia Gandhi were among those who attended the spectacular ceremony where Army, Navy and Air Force bands and pipes enthralled audience. Three Services Chiefs also witnessed the ceremony which creates nostalgia for the times gone by. 35 bands from three armed forces in their colourful ensembles played patriotic tunes like Sare Jahan Se Acha and Kadam Kadam Badhaye Ja. A Report

Lilting martial tunes and massed pipes and drum bands reverberated the air while the majestic Raisina Hills was lit up. Military bands including pipes and drum bands from regimental centers and batallions, buglers and trumpeters from various Army regiments performed during the event. Two bands from the Navy and Air Force also mesmerized the audience by their performances. New compositions-Dhola Re Dhola and Jitesh were played apart from tunes including Incredible India, Independence March and Young India. With Shiela this is Zakir Mallik, AIR News, Delhi.

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BUSINESS SECTOR

The Sensex at the Bombay Stock Exchange declined 112 points, or 0.6 percent, to close below the 20,000 mark, at 19,991, today, on profit-booking by investors, after the Reserve Bank’s monetary policy review. The Nifty fell 25 points, or 0.4 percent, to 6,050. Stock markets in Japan, China, Hong Kong, South Korea and Singapore again ended mixed. The rupee appreciated 14 paise, to 53.77 against the dollar. Falling for the fourth straight day, gold lost 85 rupees, to 31,000 rupees per ten grams in Delhi. Silver declined 400 rupees, to 58,000 rupees per kilo. And Brent crude oil futures climbed toward 114 dollars a barrel, while US crude slipped 8 cents, to 96.36 dollars a barrel. Pradeep Kumar, AIR News