Industrial output growth slows to 2.1% in June

New Delhi, Aug 12 (PTI) Industrial output grew by 2.1 per cent in June, although down from 4.2 per cent a year ago, on account of poor show by manufacturing and heavy contraction in capital goods production.

On cumulative basis, the factory output in the April-June quarter grew by 0.6 per cent compared to 3.3 per cent growth in the year-ago period.

The June growth was however higher than 1.1 per cent (revised from 1.2 per cent provisionally) in May.

Factory output, measured in terms of the Index of Industrial Production (IIP), showed that the manufacturing sector that constitutes over 75 per cent of the index saw a meager growth of 0.9 per cent in June compared to 5.2 per cent a year ago.

For the April-June quarter, this sector's output showed contraction by 0.7 per cent, as against a growth of 3.7 per cent a year ago.

The capital goods output registered a steep decline of 16.5 per cent in June over a contraction of 2 per cent in last year. In April-June, the production of these goods, which are considered as barometer for investment, declined by 18 per cent compared to a growth of 2 per cent in year ago period.

Growth in output of consumer durables decelerated to 5.6 per cent in June compared to 16.1 per cent a year ago. The consumer non-durable goods also recorded low growth of 1 per cent in June compared to 2.3 per cent a year ago.

Overall, consumer goods production recorded a growth 2.8 per cent in June compared to 7.2 per cent a year ago.

However, the power generation recorded an impressive growth of 8.3 per cent in June compared to 1.2 per cent in the same month a year ago.

The mining sector recorded a growth of 4.7 per cent in June year as against a contraction of 0.4 per cent a year ago.

In terms of industries, 18 out of 22 industry groups in the manufacturing sector have shown positive growth during the month of June.

As per Use-based classification, the growth rates in June 2016 over June 2015 are 5.9 per cent in Basic goods, (-)16.5 per cent in Capital goods and 6.1 per cent in Intermediate goods.

India's top court gives diesel vehicles reprieve in Delhi

A vehicle waits to be filled up with diesel at a petrol station in New Delhi, India, January 5, 2016. 

India's Supreme Court handed a reprieve to the auto industry on Friday, ruling that new diesel vehicles can be allowed on the streets of the national capital as long as a 1 percent "green" tax is paid.

The news was welcomed by the auto industry after a series of lower court rulings banned diesel vehicles, both new and old, on concerns that their exhaust fumes were contributing to Delhi's deepening air pollution crisis.

The Supreme Court allowed the registration of large diesel vehicles with an engine capacity of 2 litres or more in Delhi and the surrounding National Capital Region (NCR), according to Harish Salve, a lawyer connected to the case.

The green levy will be imposed on the retail price of each vehicle, excluding tax and other costs.

India's highest court will decide later on whether to impose the tax, called a green cess, on diesel vehicles with smaller engines, Salve added.

The court imposed a temporary ban last year on the sale of large diesel cars in Delhi and said it was considering an additional tax, threatening sales of car makers such as Toyota Motor Corp and Tata Motors.

"We are happy that the ban has been lifted," an official from Society of Indian Automobile Manufacturers told Reuters.

"There are certain companies which were very badly impacted and they will now be able to sell their vehicles and equip their market in the NCR region, and it's good for the industry."

Mercedes-Benz India also welcomed the Supreme Court decision.

Shares of Tata Motors ended up 2.7 percent, while Mahindra & Mahindra advanced 2.1 percent. Maruti Suzuki rose 0.4 percent.

ALSO IN ENVIRONMENT

Previous court-ordered restrictions on diesel vehicles, which experts say cause worse air pollution than other engine types, are often contradictory and poorly enforced in India.

In a recent ruling, India's top environmental court ordered the authorities to remove all diesel vehicles over 10 years old from the capital's streets.

Delhi is among the world's most polluted cities and environmentalists have urged the government to tackle the problem.

"It is a regressive step and unfortunate that the central government could not defend the public cause," Vivek Chattopadhyaya, programme manager, Air Pollution Control, Centre for Science and Environment told Reuters after Friday's the court ruling.

Doors of govt open to address grievances of all sections in Kashmir: PM

 New Delhi, Aug 12 (PTI) Prime Minister Narendra Modi today said the doors of the government were open for addressing "grievances" of all sections in Jammu and Kashmir under the Constitution but made it clear there cannot be any compromise with the nation's integrity.

An All Party Meeting convened by the Centre to discuss the current unrest in Kashmir was told by Modi that the Centre was committed to finding a permanent and peaceful solution as per the basic tenets of the Constitution.

"We all are committed to the national sentiment that there cannot be any compromise with the country's integrity.

"We are ready to address the grievances of all sections under the Constitution," Modi told the marathon four-hour meeting, adding his "heart was pained" over the 35-day unrest that has claimed the lives of 55 people.

Modi, who chaired the meeting attended by its ruling ally PDP and opposition parties, also targeted Pakistan and said Pakistan-occupied Kashmir(PoK) is also part of Jammu and Kashmir.

Modi minced no words in terming cross-border terrorism supported by Pakistan as the root cause of turbulence in the Valley and said the time had come to expose the atrocities committed "by our neighbouring nation" in Balochistan and the areas of Jammu and Kashmir under its illegal occupation.

The meeting was convened on a day when the Lok Sabha unanimously passed a resolution, appealing for urgent steps to restore order and peace in the Valley while asserting that there can be no compromise with the country's integrity and security.

The PDP said the concern shown for Jammu and Kashmir at the meeting was "noteworthy" but it should be followed by confidence building measures to set off the democratic political process.

Some opposition parties demanded that an All Party delegation be sent to Kashmir.

But, Home Minister Rajnath Singh, who was flanked by Finance Minister Arun Jaitley at a news conference, said before sending such a team, the state government has to undertake some ground work.

"Once state Chief Minister Mehbooba Mufti informs me that the ground work has been done, we will consider sending it," Singh said.

Asked whether any decision had been taken on curbing the use of pellet guns which has triggered an outrage, both Singh and Jaitley said an expert committee has already been formed by the Home Ministry and once a report is filed, a decision will be taken.

"We have to see the security implication as well as an alternative option. The pellet guns have been used in 2010 also. It's getting highlighted this time only," Jaitley said.

Jaitley said all the political parties spoke in one voice and came out and put forth their views in right intent.

Russia announces war games after accusing Ukraine of terrorist plot

Russian President Vladimir Putin chairs a meeting with members of the Security Council to discuss additional security measures for Crimea after clashes on the contested peninsula, at the Kremlin in Moscow, Russia, August 11, 2016.

Vladimir Putin summoned his security council and the Russian Navy announced war games in the Black Sea, a day after the Russian president accused Ukraine of trying to provoke a conflict over Crimea, which Moscow seized and annexed in 2014.

The belligerent posture heightened worries in Ukraine that Russia may plan to ramp up fighting in a war between Kiev and pro-Russian eastern separatists that had been de-escalated by a shaky peace process.

Using some of his most aggressive rhetoric against Kiev since the height of the war two years ago, Putin has pledged to take counter-measures against Ukraine, which he accused of sending saboteurs into Crimea to carry out terrorist acts.

Ukraine has called the accusations false and says they look like a pretext for Russia to escalate hostilities. Such an escalation could be used by Putin to demand better terms in the Ukraine peace process, or to inflame nationalist passions at home ahead of Russian parliamentary elections next month.

The Russian leader met his top military and intelligence service brass on Thursday and reviewed "scenarios for counter-terrorism security measures along the land border, offshore and in Crimean air space," the Kremlin said.

Ukrainian President Petro Poroshenko said he had ordered all Ukrainian units near Crimea and in eastern Ukraine onto the highest state of combat readiness. He was seeking to urgently speak to Putin, the leaders of France and Germany, U.S. Vice President Joe Biden and European Council President Donald Tusk.

Oleh Slobodyan, a spokesman for the Ukrainian border guards, said Russia had massed troops on Ukraine's border with Crimea in recent days following an uptick in Russian military activity in northern Crimea and heavier fighting in eastern Ukraine.

"These troops are coming with more modern equipment and there are air assault units," he told a news briefing in Kiev.

The Russian Defence Ministry said its navy - whose Black Sea Fleet is based in Crimea - would start to hold exercises in the area to practice repelling underwater attacks by saboteurs.

Glorification of Terrorists is Unacceptable and Pakistan Must Immediately Stop Supporting Cross-Border Terrorism & Infiltration: Smt. Sushma Swaraj

Diplomatic Efforts on for Strengthening India’s Stand On Kashmir

The Minister for External Affairs Shrimati Sushma Swaraj in a written statement in reply to a starred question laid on the Table of the Rajya Sabha today said that in the wake of the death of Hizb ul Mujahideen Commander and terrorist Burhan Wani in an encounter on July 8, 2016, senior functionaries of Government of Pakistan briefed in Islamabad envoys of several prominent countries - including the five permanent members of the United Nations Security Council namely China, France, Russia, the United Kingdom and the United States of America - and international organizations such as European Union, Organization of Islamic Cooperation (OIC) and Association of South East Asian Countries (ASEAN). Senior Government of Pakistan officials also apparently addressed letters to the Secretary-General of the United Nations (UN), the President of the UN Security Council, the UN High Commissioner for Human Rights and the Secretary-General of the Organization of Islamic Cooperation (OIC), urging the international community to address the alleged human rights violations by Indian authorities during protests in Jammu and Kashmir since July 8.

Government has completely and unequivocally rejected in entirety all such actions and statements by Pakistan regarding Jammu & Kashmir, which is an integral and inalienable part of India. It has stressed that glorification of terrorists is unacceptable and Pakistan must immediately stop supporting cross-border terrorism & infiltration and desist from making any further attempts to interfere in India’s internal affairs.

Government has reached out to other countries to counter the Pakistani propaganda by stressing the aforementioned aspects. It has also been emphasized to our international interlocutors that Indian security forces exercised extraordinary restraint, as evident in injury to over 3780 security personnel in mob attacks during violent protests in Jammu & Kashmir. Government has also put across forcefully that the people of Jammu & Kashmir are Indian citizens, and that Government is fully conscious of its responsibilities towards them. 

Amendments to the Maternity Benefit Act, 1961

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its ex-post facto approval for amendments to the Maternity Benefit Act, 1961 by introducing the Maternity Benefit (Amendment) Bill, 2016 in Parliament. 

The maternity benefit Act 1961 protects the employment of women during the time of her maternity and entitles her of a 'maternity benefit' - i.e. full paid absence from work - to take care for her child. The act is applicable to all establishments employing 10 or more persons. The amendments will help 1.8 million (approx.) women workforce in organised sector. 

The amendments to Maternity Benefit Act, 1961 are as follows:

• Increase Maternity Benefit from 12 weeks to 26 weeks for two surviving children and 12 weeks for more than two childern.

• 12 weeks Maternity Benefit to a 'Commissioning mother' and 'Adopting mother'. 

• Facilitate'Work from home'. • Mandatory provision of Creche in respect of establishment having 50 or more employees.

Justification:
• Maternal care to the Child during early childhood - crucial for growth and development of the child.

• The 44th, 45th and 46th Indian Labour Conference recommended enhancement of Maternity Benefits to 24 weeks. 

• Ministry of Women & Child Development proposed to enhance Maternity Benefit to 8 months.

• In Tripartite consultations, all stake holders, in general supported the amendment proposal.

US favours India's military support to Afghanistan: Nicholson

 New Delhi, Aug 10 (PTI) Afghanistan has sought more military supplies from India including attack helicopters as it steppped up its offensive last week against terror groups killing 300 Islamic State terrorists, the top US and NATO commander in the war-ravaged country said today.

General John Nicholson, here on his second visit, said India has been making "enoromously valuable" contribution in strengthening Afghan security forces and the US favours the military support.

India has already provided four Mi-25 helicopters to Afghanistan and US Commander said the country needs more military aircraft to deal with Taliban and various other terror outfits.

Welcoming India's contribution to restoring peace and stability in Afghanistan, Nicholson said terror outfits like the Haqqani network, Lashkar-e-Toiba and Jaish-e-Mohammad are not only a threat to Afghanistan but to the region, including India, and the US was putting pressure on Pakistan to contain these groups. He said the Taliban also "enjoys sanctuaries" in Pakistan.

"We consistently encourage Pakistan to take action against terrorist groups that operate from its territory and close down their safe havens," he told journalists.

Nicholson, who heads the US operations in Afghanistan, met National Security Adviser Ajit Doval, Foreign Secretary S Jaishankar and Defence Secretary G Mohan Kumar and discussed a range of issues including situation in Afghanistan and terror threat to the region.

The US commander said Afghan forces, supported by the US, had launched a major offensive against Islamic State terror outfit two weeks back in which around 300 IS fighters were killed.

"In the course of the operation they killed a number of top leaders of the organisation and upto 300 of their fighters. Obviously it's difficult to get an exact count, but what this amounts to is about 25 per cent of the organisation at least, and so this represents a severe setback for them. It reduced their territory," he said.

The US Commander said military training by India to thousands of Afghan security personnel has helped that country in significantly enhancing its military capability which is in tune with the objective of the NATO and the US.

Rajan exhorts banks to lower rates; allays outflow fears

 Mumbai, Aug 9 (PTI) In his swansong monetary policy, RBI Governor Raghuram Rajan today lambasted banks for passing on rate-cut benefits "only modestly" to borrowers on one pretext or other - the latest being dollar deposit outflows - even as he decided to stay put on inflation-control as priority.

The outgoing Governor also sought to make light of his critics, saying he also gets 'anonymous thank you notes' even while on plane and described his tenure at RBI as "fantastic".

Rajan, who has decided to return to academia after his three-year tenure ends on September 4, said today's policy review was likely to be the last one to be Governor-led, as a the exercise would be conducted by new six-member panel going forward.

Complaining that banks have passed benefits only in a "modest" measure to borrowers, Rajan said a pick-up in credit demand, which would follow the economic recovery and competition for corporate loans after the ongoing balance sheet clean-up by the state-run lenders, will ensure softer lending rates.

Rajan charged bankers with inventing newer excuse for delaying the rate cuts and pointed out that concerns over the FCNR(B) redemptions, despite RBI's public assurance of making it non-disruptive, are the latest one in a series.

"Earlier, some bankers said it was lack of liquidity that was holding the rates high. Now, I hear from some that it is the fear of FCNR redemptions that is making them reluctant to cut rates. I have a suspicion that some new concern will crop up once FCNR redemptions are behind us," Rajan said.

"We would be happier if there was more transmission," he said, adding that the RBI is sensitive to "some of the difficulties" which banks have to face following the balance sheet clean-up.

With the system staring at an outflow of USD 26 billion in foreign currency deposits (FCNR-B), raised when the rupee was bleeding in September-November period of 2013 following the 'taper tantrums' in the summer of that year, Rajan sought to assuage concerns of the banking system saying RBI will ensure there is no market disruption because of it.

Rajan also exuded confidence that inflation target of 5 per cent for March 2017 will be met.

"We are within the inflation band given to us by the government and expect to be around 5 per cent CPI inflation target by March 2017, absent unforseen eventualities...

Broadly, we are comfortable that we should be reaching the 5 per cent target," Rajan told reporters after announcing the third bi-monthly review of the monetary policy, 2016-17.

India at RIO Olympics

Final Results Summary :August 8, 2016 *

Shooting:

ABHINAV BINDRA:  finished 4^TH in 10m Men’s Air Rifle.

In the final, he went as high as second at one point, but with four shooters left, he went into a shoot-off to stay in the final. He lost the shoot-off and ended fourth in is fifth Olympics. Bindra is the only Indian to have an individual gold medal at the Olympics.

Earlier Bindra had a great finish to finish seventh and reach the final.

Gagan Narang, bronze medallist in 2012, finished 23^rd and failed to reach the final.

GAGAN NARANG: 23^rd in 10m Men’s Air Rifle; failed to make final.

MANAVJIT SANDHU: Shot 23-23-22 on first day; He shot 25-22 on second day to finish 16^th and failed to reach the final.

KYNAN CHENAI: Shot 22-23-22 on first Day; Shot 24-23 on second Day to finish 19^th, and failed to reach the final.

ARCHERY:

LAXMI RANI MAJHI – Lost to Alexandra Longova (Slovakia) 1-7

HOCKEY – MEN:

Indian Team lost narrowly 1-2 to Germany in their second match in Pool B.

·         Niklas Wellen scored for Germany in 18^th minute;

·         Rupinder Pal Singh scored off a Penalty corner for India in the same quarter in 23^rdminute to make it 1-1.

·         Christopher Ruhr scored with three seconds left in the match in the 60^th minute to make it 2-1 for Germany.

This was India’s second match. They beat Ireland in the first match.

HOCKEY – WOMEN:

India lost to Great Britain 0-3 in their second pool match. This was their first loss after a 2-2 draw with Japan in the first pool match.

SWIMMING

SHIVANI KATARIYA – came second in her heats in 2:09.30s in the 200 women’s fresstyle but failed to make the semi-finals. The 16 best timings from six heats qualified for the semi-finals.

SAJAN PRAKASH – finished fourth in his Heat in 1:59.37 in 200m butterfly and failed to make the semi-finals.

GST will end tax terrorism, says PM

 New Delhi, Aug 8 (PTI) Expressing gratitude to all parties for support, Prime Minister Narendra Modi today described GST as a "crucial step" towards ending tax terrorism besides reducing corruption and black money and said the new regime of indirect taxation will make consumer the "king".

He emphasised in Lok Sabha that the passage of the GST Constitution Amendment Bill by Parliament was not a victory of any party or government but was everybody's victory as it highlighted the success of the democratic ethos of the country.

Intervening in a debate on Constitution (122nd Amendment) Bill, Modi asserted that the GST will benefit mainly those states which are considered backward and address the problem of imbalanced development.

He acknowledged that manufacturing states will suffer losses but said they will be compensated.

"August 8th marks a crucial step towards freedom from tax terrorism," the Prime Minister said, while recalling that this was the day in 1942 when Mahatma Gandhi had sounded the bugle of 'Quit India' which marked a major step towards the country's Independence.

"GST can't be seen as a victory of a party or government.

It is the victory for democratic ethos of India and a victory for everyone," he said, while noting that the measure was being supported by all parties, irrespective of different ideologies. .