CHENNAI 17 JULY 2013 WEDNESDAY `3.00 PAGES 22 LATE CITY EDITION CHENNAI ■ MADURAI ■ VIJAYAWADA ■ BANGALORE ■ KOCHI ■ HYDERABAD ■ VISAKHAPATNAM ■ COIMBATORE ■ KOZHIKODE ■ THIRUVANANTHAPURAM ■ BELGAUM ■ BHUBANESWAR ■ SHIMOGA ■ TIRUCHY ■ www.newindianexpress.com Re Ends Slide, Stocks Skid; RBI Squeeze Temporary, Feels PC R A DA R Blasts Suspect Sketch Out New Delhi: The National Investigation Agency (NIA) has zeroed in on a suspect in the Bodh Gaya serial blasts that injured two people on July 7. The investigative agency on Tuesday released two sketches of the alleged bomber. P9 Posco Drops K’taka Project Bhubaneswar/New Delhi: Facing delays in land acquisition and local opposition, South Korean steel major Posco on Tuesday scrapped its proposed `30,000 crore project in Karnataka. P13 Rules on Acid Sale Framed New Delhi: The Centre on Tuesday told the Supreme Court that in view of the growing incidents of acid attacks, it has framed rules, under an existing law, to regulate retail sale of acid and other poisonous substances. Cracks in Kedar Shrine New Delhi: Huge cracks have developed in the Kedarnath shrine, which faced the fury of last month’s floods, although the sanctum sanctorum has escaped damage, according to the Archaeological Survey of India. P7 Finance Minister P Chidambaram allays fears on central bank’s intervention leading to tighter policy rates; claims more steps in the pipeline to check inﬂation, contain current account deﬁcit Jaipur/New Delhi: A day after the RBI announced several measures, including hiking the lending rates for banks and sucking up of `12,000 crore to make the currency dearer, Finance Minister P Chidambaram on Tuesday dismissed fears that the RBI’s decisions could lead to tightening of interest rates and said the government was targeting a “level” for the fluctuating rupee. Rattled by the RBI’s steps to tighten liquidity in a bid to curb the rupee’s volatility, the benchmark S&P BSE Sensex in Mumbai snapped a three-day winning spree and tumbled 183 points to finish at 19,851.23, dragged lower by financial sector stocks. Meanwhile, the rupee opened higher at 59.20 per dollar against the previous close of 59.89 at the Interbank Foreign Exchange Market and firmed up to a high of 59.14 before ending at 59.31 per dollar, a net gain of 58 paise, or 0.97 per cent. Chidambaram said he does not expect banks to increase BAND-AID IN CURRENCY A DAY AFTER THE RBI ANNOUNCED STEPS TO CHECK EXCHANGE RATE VOLATILITY, THE SINKING RUPEE STEADIED A BIT, BUT THE STOCK MARKET TANKED Rupee ends slide, now valued at 59.31 against the dollar, a gain of almost 1% But Sensex falls by 183.25 points. Financial and stocks hammered. `61,000 crore in investor wealth wiped out in a day RBI measures intended to quell excessive speculation in the forex market and stabilise the rupee, says Chidambaram FM doesn’t expect banks to increase lending rates after RBI squeeze on liquidity by raising banks’ cost of borrowing Says RBI measures are for the short term and certainly should not be interpreted as a prelude or precursor to some kind of tightening of policy rates [ I AM CONFIDENT THE RUPEE WILL STABILISE. WE ARE TARGETING A LEVEL FOR THE RUPEE — P CHIDAMBARAM, Finance Minister their lending rates in the aftermath of the RBI’s decisions, which he said were made to arrest excessive speculation and volatility in the forex market. He also said that steps taken and those to be taken will moderate inflation and contain high Current Account Deficit (CAD). “These measures (RBI decisions last night) are intended to quell excessive speculative activity in the foreign exchange market and to stabilise the rupee. I believe these measures are for short term and should not be interpreted as a prelude to some kind of tightening of policy rates. “I’m confident the rupee will stabilise. We are targeting a level for the rupee. But there are times when each one of us know intuitively that the rupee may have slid more than it should. Therefore, we want the rupee to stabilise. We want volatility to be contained,” Chidambaram said later while addressing venture capitalists and private equity funds in Delhi. Earlier, in Jaipur he said: “These measures should not be read as prelude to any policy rate changes. This has nothing to do with the upcoming policy review of RBI... I don’t expect banks to increase interest rates as a result of yesterday’s measures.” The government, which has been saying that the value of the rupee will be decided by the market, for the first time spoke of targeting a level for the currency. PTI MORE: P13 CBI Boss Wants 3-year Tenure, No Ombudsman HC Rejects Sajjan’s Plea New Delhi: The Delhi HC on Tuesday dismissed pleas of Congress leader Sajjan Kumar and two others challenging murder and rioting charges against them in a 1984 anti-Sikh riots case. Express News Service Ishrat: Pen Drive Proof Ahmedabad: In what could spell more trouble for BJP leader Amit Shah, the CBI has, along with the chargesheet in the Ishrat Jehan fake encounter case, submitted a pen drive having telephonic talk allegedly between Shah and an accused police officer. 11 Die After Mid-day Meal Chapra (Bihar): As many as 11 students died and 48 others fell ill on Tuesday after consuming mid-day meal served to them at a government primary school in Bihar’s Saran district. P7 Dravid Prosecution Witness New Delhi: The Delhi Police have roped in Rajasthan Royals captain Rahul Dravid as a prosecution witness in the IPL spot-fixing case, in a bid to strengthen its case. P14 MARKETS 19,851,23 5,955.25 Sensex: Nifty: Gold 24 ct (1 gm): 22 ct (1 gm): 2,671 2,498 Silver Bar (1 kg): 40,855 Retail (1 gm): 43.70 Exchange 59.39 77.72 US$: Euro: SOURCE: BSE, NSE, RBI WEBSITES EXPRESS POLL OF THE DAY Do you agree with Yashwant Sinha that the BJP should focus on governance issues rather than on the secular-communal divide? YES 83% Kids play in rainwater near India Gate in New Delhi on Tuesday as Delhiites got a much needed respite from humid conditions after rains drenched many parts of the city | PTI In Hurry to Paint Rosy Picture, UPA Opens More Sectors to FDI by Santwana Bhattacharya 22 PAGES, INCLUDING 6 PAGES OF CITY EXPRESS Indices FUN ’N FROLIC NO 17% TODAY’S QUESTION: Do you think the BJP’s strategy to charge an entry fee for Modi’s rally will create the expected hype? SMS TO 54646 www.newindianexpress.com New Delhi: Not awaiting a Parliamentary nod, the UPA took the unprecedented measure of allowing Foreign Direct Investment (FDI) across 13 sectors, including telecom, defence, insurance, power and single brand retail; and in many of them through the automatic route instead of the Foreign Investment Promotion Board (FIPB) route. However, in certain sectors — like asset reconstruction companies and tea — an FDI cap up to 49 per cent will be under automatic route and beyond that it will be through the FIPB route, Commerce Minister Anand Sharma said, following a marathon meeting of 11 Cabinet ministers, called by Prime Minister Manmohan Singh. Though the move was antici- pated, it gave an impression that the government was in a hurry to push through a second-generation reform package to change the dismal economic outlook, for which it was constantly being targeted by the Opposition, especially the BJP. There was little doubt that Singh bought peace with his party, after bowing down to its agenda by bringing an ordinance on food security It appeared that Singh’s government was making quick moves with an eye on the next General Elections, which could very well be advanced by a few months from 2014 to the end of 2013. There was also little doubt that Singh bought peace with his party, after bowing down to its political agenda by bringing an ordinance on food security — again not awaiting the monsoon session of Parliament. The fact that the Singh government’s FDI move came right after he and his Food Minister K V Thomas sat through a Congress party meeting to help its chief ministers implement the food security ordinance in their states, can hardly be overlooked. Just as the Congress came out in Singh’s support on opening up the multi-brand retail sector to FDI despite opposition from UPA allies, the party is again expected to back his decision on opening up a dozen sectors to shore up FDI, including allowing 100 per cent in the telecom sector, through an executive order. MORE: P9 New Delhi: The CBI on Tuesday joined issue with the government on its proposal to set up a judicial ombudsman to oversee its functioning. In its 14-page affidavit in the Supreme Court, the agency said it has zero tolerance policy against misconduct by its personnel. Any change in the present model will undermine the position of the CBI director and that of other senior officers to maintain discipline, the affidavit said. The CBI also sought a minimum three-year tenure for its director, claiming the present two years was too short. It said its functional autonomy is largely based on the director’s administrative and financial powers. In the present arrangement, the administrative, disciplinary and financial powers of its director are limited and this impinges on his/her ability to ensure expeditious investigation and ethical standards among his/her subordinates. So, it is necessary that the CBI director be vested with ex-officio powers of Secretary of Government of India reporting directly to the Union Minister without having to go through the Department of Personnel and Training, the agency said. Financial and administrative powers are essential for the CBI’s efficient functioning. A director, dependent on the Ministry of Law and Justice for small administrative and financial approvals, is not best placed to take independent decisions in crunch situations, the affidavit said. MORE: P9 Scouts, Guides Told to Remove Stitch in Time or Face Penalty by Sruthisagar Yamunan Chennai: Acting on a letter from an ex-serviceman in Tamil Nadu, the Union Home Ministry has warned the Bharat Scouts and Guides (BSG) of penal action if it failed to “immediately” rectify its uniforms, which were found to be in violation of laws governing the National Flag’s use. Kannan Govindarajalu, an ex-serviceman from Kancheepuram district, wrote to the ministry in June pointing out that BSG uniforms had the national flag stitched to the shirt with the badge. The Prevention of Insults to National Honour Act (PINHA), which governs the use of national symbols, gives citizens the permission to wear the flag on any dress above the waist, Gov- indarajalu said in his letter. However, the flag should be detachable. “Embroidering or stitching the flag on the dress is an offence and an insult to the flag,” he said. Govindarajalu told Express that the flag is considered sacred and the rationale behind not allowing it to be stitched onto a dress is to ensure that it doesn’t get dirty. Following the correspondence, Under Secretary to Ministry of Home Affairs Pandey Pradeep Kumar wrote to the officiating director of the BSG on July 10, asking him to rectify the uniform to avoid penal action. This is not the first time that Govindarajulu has spotted instances of disrespect to national symbols. In March, an Express report revealed how another of the ex-serviceman’s let- ters had jolted the Army into issuing circulars against omitting Satyameva Jayate from the emblem used on its flag. The Army said it was grateful to Govindarajulu for bringing the omission to its notice. The ex-serviceman has also filed a PIL in the Madras High Court against distortion of the National Flag for commercial purposes. HELP FOR KEDARNATH HELP FOR KEDARNATH Contributions have been coming in from our esteemed readers for Contributions have been coming Relief Fund. The New Indian Express Kedarnath in from our esteemed readers for the New Indian Express Kedarnath The full extent of the catastrophe that hit this heritage town is Relief unravel.the we already knowthe catastrophethe great yet to Fund. But full extent of that it is one of that hit calamities of town is yet to unravel. but we already know this heritagemodern history. Knowing this, citizens are coming forward help. The great calamities passed the history. that it istoone of theFund collection has of modern 60-lakh mark. Updated citizens are coming forward to help. Knowing this, lists will be published in the days ahead. the Fund collection has passed the 60-lakh mark. Updated Massive funds will be needed to provide relief to the survivors and to rebuild the days landmarks. Please help lists will be published in the ruinedahead. generously in this hour of need. We have made it easy for you massive funds will be needed to provide relief to contribute your mite. to the survivors and to rebuild the ruined landmarks. *Cheques drawn in in name of need. we have please help generously the this our of The New Indian Express Kedarnath Relief Fund may be sent to any made itofeasy for youIndian Express Group and receipts office The New to contribute your mite. will be sent*Cheques drawn in the name of the New to you in due course. 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The details of the contributions contributions be sent to sent directly *Online made may can be kedarnath@ newindianexpress.com. to Indian bank Current Account No. 6139752927, in the name of the New details Express Kedarnath Relief Fund, For any further Indian you may contact: 044-23457518 SwIFt-Code:IDIbINbbpAD/IFSC Code:IDIb000p001.the or mail us at email@example.com. details of the contributions made dead,bewe need to help Even as we mourn the may sent to kedarnath@ newindianexpress.com. the survivors. For any further details you may contact : 04423457518 or mail us at firstname.lastname@example.org. Even as we mourn the dead, we need to help the survivors. 7 Years on, SC Lifts Bar on Maha’s Dance Bars Express News Service New Delhi: If dance bars were operated as fronts for prostitution, then closing them down hasn’t help check flesh trade as many unemployed bar dancers have now turned commercial sex workers to eke out a livelihood. This ‘cure is worse than disease’ rationale was behind Tuesday’s Supreme Court verdict, allowing dance bars to operate in Maharashtra. Seven years after they were banned in the State, dance bars can once again open doors to their patrons after a Bench comprising Chief Justice Altamas Kabir and Justice S S Nijjjaron on Tuesday upheld a Bombay High Court ju d g me nt , w hic h had quashed the State government’s order banning them. The Bombay High Court judgment dated April 12, 2006 had quashed an amendment to the Bombay Police Act, which made dance bars illegal. Justice Nijjar said, “...since 2005 most, if not all, dance bar establishments have closed down. This has led to the unemployment of over 75,000 women. It has been brought on the record that many have been compelled File photo of bar dancers performing in Mumbai to take up prostitution out of necessity for maintenance of their families.” The impugned legislation has proved to be counterproductive, Justice Nijjar said. “It would be better to treat the cause than to blame the effect and to completely discontinue the livelihood of a large section of women, eking out an existence by dancing in bars, who will be left to the mercy of other forms of exploitation. The compulsion of physical needs has to be taken care of, while making any law on the subject. Even a bar dancer has to satisfy her hunger, provide expenses for her family and meet day-to-day expenses,” Justice Kabir said. MORE: P2
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