Photo source: Thinkstock
New Delhi, March 18
In a move that will hit the common man, the government on Friday slashed interest rates payable on small savings, including PPF and Kisan Vikas Patra (KVP), in a bid to align them closer to market rates.
As a part of its February 16 decision to revise interest rates on small savings every quarter, the interest rate on Public Provident Fund (PPF) scheme will be cut to 8.1 per cent for the period April 1 to June 30, from 8.7 per cent, at present.
Similarly, the interest rate on KVP will be cut to 7.8 per cent from 8.7 per cent, according to a Finance Ministry order.
While the interest rate on post office savings has been retained at 4 per cent, the same for term deposits of one to five years has been cut.
The popular five-year National Savings Certificates will earn an interest rate of 8.1 per cent from April 1 as against 8.5 per cent, at present.
A five-year Monthly Income Account will fetch 7.8 per cent as opposed to 8.4 per cent now. Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6 per cent as against 9.2 per cent.
Senior citizen savings scheme of five-year would earn 8.6 per cent interest compared with 9.3 per cent.
“On the basis of the decisions of the government, interest rates for small savings schemes are to be notified on quarterly basis,” the order said announcing the rates for the first quarter of fiscal 2016-17.
Post Office term deposits of one, two and three years command an interest rate of 8.4 per cent but from April 1, a 1-year Time Deposit will get 7.1 per cent, 2-year Time Deposit will earn 7.2 per cent and 3-Year Time Deposit will attract interest of 7.4 per cent.
Five-year Time Deposit will fetch 7.9 per cent interest in the first quarter as against 8.5 per cent, while the same on five-year recurring deposit has been slashed to 7.4 per cent from 8.4 per cent.
The government had on February 16 announced moving small saving interest rates closer to market rates. On that day, rates on short-term post office deposits was cut by 0.25 per cent but long-term instruments such as MIS, PPF, senior citizen and girl child schemes were left untouched. – PTI
Paris is beginning to acknowledge the possibility that India might not buy the Rafale fighter because of sharp differences over the price, and New Delhi’s insistence on enforceable guarantees regarding the fighter’s delivery, performance and availability.
A senior French official with a close view of the on-going negotiations between New Delhi and Paris for 36 Rafale fighters told Business Standard on condition of anonymity: “If some people in the MoD do not want to allow the Rafale deal to go through, so be it. We are currently building it for Egypt and Qatar, and we could have another customer in Malaysia.”
Underlining the irritation at repeated US offers to set up an assembly line in India to build the American F-16 Super Viper, the French official taunted: “If you don’t want the Rafale, go ahead and build the F-16 here. You can build it in India and supply it to Pakistan also.”
He was referring to Washington’s announcement last month of the sale to Pakistan of eight advanced Block 50/52 F-16 fighters for $699 million. Simultaneously, a senior Lockheed Martin official had publicly offered to “move our [F-16] production line from the US to India.”
Reminded that France too was supplying submarines to both India and Pakistan (DCNS is building six Scorpenes submarines with Mazagon Dock, after earlier selling Pakistan three advanced Agosta-90B submarines with air independent propulsion), he retorted, “That is different. Pakistan is getting a different submarine from what we are providing to India.”
The official dismissed the notion that an Indian order was critical for Dassault to break even in the Rafale project, in which tens of billion Euros have been spent on developing the fighter and establishing a production line. The official claimed, “The Rafale project is commercially viable based on the numbers that the French military requires, even if there is not a single export order.”
In fact, defence budget cuts have forced the French military to slash Rafale orders from over 300 originally planned to just 180 ordered so far. That is a small order, given that the Eurofighter Typhoon has over 700 aircraft on order; while more than 4,500 F-16s have been built over the years.
On New Delhi’s demands for sovereign guarantees from the French government, or a bank guarantee from Dassault, to cover the possibility of delivery or performance shortfalls in the Rafale, the official declared that the two countries would soon sign an inter-governmental agreement (IGA), which would function as a sovereign guarantee.
“The government of France is standing behind the sale. Surely India is not asking for a bank guarantee when it has the word of the French government?” asked the official.
When it was pointed out that the IGA would only outline a supply agreement in broad terms, without detailed binding clauses and penalties, the official responded that the IGA was a strategic agreement between Paris and New Delhi, and that “a phrase here or a sentence there would make no difference.”
“In 1917, when the United States abandoned its isolationism and sent a division of troops to France to fight in World War I, it was not because there was some document with a clause that required them to fight. It was because of a common strategic aim. New Delhi and Paris must have a common strategic aim on the Rafale.”
French officials argue that, if Dassault is required to provide a bank guarantee against possible shortfalls in delivery and performance, India should cover that cost, which is normally 3-4 per cent of the guarantee amount.
Meanwhile, the Cost Negotiation Committee on the Rafale has made little headway in bridging the gap between the French demand and Indian counter-offer, which are believed to be around Euro 12 billion and Euro 9 billion respectively. Issues of liability are further complicating the likelihood of a deal soon.
Prime Minister Narendra Modi, while visiting Paris last April, had requested for 36 Rafales, after a breakdown in negotiations for a much larger order for 126 Rafales. The Indian Air Force had chosen the Rafale on January 31, 2012, after an exhaustive evaluation of six fighter aircraft.
To commemorate the contributions of Indian soldiers in 1971 liberation war, the Bangladesh government will organise programmes in eight different places in India to honour them.
“We are grateful to the Indian soldiers who fought for liberation of our country and sacrificed their lives. Our government has decided to organise functions in eight places in India to honour them,” Bangladesh Minister for ‘Liberation war’ AKM Mozammel Haque told reporters here today.
“We have intimated our decision to the Indian government and finalise the programmes in consultation with the appropriate authority,” he said.
An eight-member delegation from Bangladesh, led by Haque, today visited a park here constructed by Tripura government to mark the liberation war.
Chottakhola is a village near the Indo-Bangla border in South Tripura district, about 130 km from Agartala. The guerrillas of the liberation war established a camp in 1971 to launch a bush war against the Pakistan army.
“We are also grateful to the government of Tripura for constructing a park and museum in memory of the war,” he said.
Tripura was the war headquarters of the Bangladesh liberation war. The state had accommodated 14 lakh refugees from the war, which was more than its own population at that time
“China is a strong supporter of the right to self-determination. The assertions of Omar Abdullah on the presence of the Chinese army in Azad Kashmir are half-truths, immature and meaningless.” Hurriyat Conference (Geelani faction)
Samaan Lateef
Tribune News Service
Srinagar, March 14
Hardline separatist faction Hurriyat Conference, led by Syed Ali Geelani, today confirmed the presence of Chinese troops in Pakistan-occupied Kashmir (PoK) saying that troops were there as part of the Sino-Pak trade agreement.“Unlike India, China has not attacked and forcibly occupied the Pakistan-administered Kashmir but the presence of the Chinese army in Pakistan-administered Kashmir is under a mutual agreement between Pakistan and China,” said Hurriyat spokesperson Ayaz Akbar.Maintaining a pro-Pakistan line, the Hurriyat spokesperson said the presence of Chinese troops in PoK was part of the China-Pakistan Economic Corridor (CPEC) process and “pro-freedom people have no reason to oppose this move”.Castigating former Chief Minister Omar Abdullah for questioning the presence of Chinese troops in PoK, the Hurriyat said, “China is a strong supporter of the right to self-determination. The assertions of Omar Abdullah on the presence of the Chinese army in Azad Kashmir are half-truths, immature and meaningless.”After media reported that Chinese troops were spotted at forward posts along the Line of Control on the Pakistani side of Kashmir, Omar on Sunday hit out at separatist groups for maintaining silence.“How is it that Kashmiri leaders who have so much to say about Indian troops in J&K have nothing to say about Chinese troops across the LoC?” Omar had tweeted.
Indian Army has deployed various modern technological equipments for surveillance in strategically very significant Siachen Glacier, located at a height of 18,875 feet from sea level in Ladakh.
Officials told the media in Jammu that Indian Army had been using various modern technological equipments for surveillance in Siachen Glacier including Unmanned Aerial Vehicles, different types of radars, etc.
Pointing out that these modern and latest technological equipments were well sophisticated and capable of keeping a strict surveillance on the neighbour, the officials said some more latest designed weaponry and equipments, which are specially meant for use in the Icy Heights, were also in the pipeline for the troops, which have been manning the Glacier in extreme adverse weather conditions.
Ajay Banerjee
Tribune News Service
New Delhi, March 14European aerospace and military consortium, Airbus, on Monday said the cap on foreign direct investment (FDI) in defence manufacturing in India should be higher.The Ministry of Defence and the Ministry of Finance have imposed a cap of 49 per cent holding for foreign companies involved in defence equipment manufacturing. This mean 51 per cent stake has to be held by an Indian company.Pierrre De Bausset, President and MD of Airbus Group in India, said: “At 49 per cent you cannot get quality OEM’s (original equipment manufacturer) to come with technology to India”.If foreign companies are to come with high-end technology then the control has to be with the companies, Bausset said at a press conference here to announce Airbus participation in the ‘Defexpo-2016’ scheduled for later this month. He did not specify what kind of FDI cap was suitable but added: “When we bring in technologies we have to have control… if the FDI cap is 10 per cent the risk is lower”. The FDI cap was raised from 26 per cent to 49 per cent in August 2014, months after the BJP-led NDA coalition was voted to power in May 2014.The Airbus had promised an investment of Rs 5,000 crore in India. This includes the shift of the assembly line to produce the AS3665 ‘panther’ helicopter in India subject to Indian Navy selecting the copter for its requirements. “The investment is dependent on contracts,” Bausset said.In a way, he pointed at the fault-line in the ‘Make in India’ initiative. In the past, officials of a US company have expressed the need to have greater FDI limits.The FDI in India’s defence sector has been very low since the policy was amended in Aug 2014. Between October 2014 and November 2015 there were only Rs 56 lakh worth of FDI proposal in defence sector.
IT is a truism that in any country including India, the coastal population inevitably focuses attention on maritime security, while those far from the sea remain fixated on land borders. India’s security challenges across its land borders with Pakistan and China have only accentuated this trend. Moreover, with its focus on import substitution, rather than export promotion, India’s share in world trade fell significantly in the first four decades after Independence. With its economy collapsing in 1990, India was forced to drastically change its outlook towards domestic, regional and global economic issues. What followed has been the growing integration of India with the global economy, and its emergence as a constructive and increasingly important partner, with a growing market for trade and investment. We have since moved from an economy afflicted by what was once pejoratively described as the “Hindu rate of growth” to becoming a vibrant, emerging economy. Foreign trade and investment have inevitably become focal points for accelerated economic growth in India. We have wisely embarked on increasingly integrating our economy, with the fastest growing economies of the world, in East and Southeast Asia. We now have Comprehensive Economic Partnerships with the 10 members of ASEAN, ranging from Myanmar to the Philippines, as also with Japan and South Korea. We are negotiating a free trade agreement with Australia and have endeavoured to undertake similar arrangements with our SAARC partners. Moreover, ASEAN-led forums like the East Asia Summit have led to an Indian strategic role across the Bay of Bengal, which traverses the Indian Ocean and western Pacific, crossing the disputed waters of the South China Sea. Progress on economic integration in South Asia has, however, been slow, primarily because of Pakistani recalcitrance. Significantly, tensions and disputes with China have not adversely affected a blossoming trade and investment relationship between India and China — the world’s two most populous countries. Despite these developments, India cannot ignore the fact that China has acted as a spoiler in every effort New Delhi has made to enhance its role in its eastern neighbourhood. Beijing vigorously opposed our participation in economic and security forums linked with ASEAN, including the ASEAN Regional Forum and the East Asia Summit. China continues to maintain links across its borders with Myanmar, with some of our northeastern separatist outfits. We are now steadily moving towards a more proactive response to counter these Chinese efforts. Our aim remains to develop viable security architecture across and beyond our eastern shores. Concerns about Chinese military bases and inroads across the Bay of Bengal will continue. But, concerted diplomatic efforts, with partners like the US and Japan have enabled us to strengthen the security of our eastern sea-lanes. China has not succeeded in its efforts to secure a predominant role in Myanmar, Bangladesh, Sri Lanka or the Maldives. This will, however, remain a continuing challenge for us.While India has fashioned policies to safeguard the security of its eastern shores, the same cannot be said for what is transpiring in our western neighbourhood, across the Arabia Sea. It is here that we cannot now overlook the implications of China’s new thrust, at not only establishing a virtually permanent presence in the Indian Ocean, but also by its doing so in collusion with Pakistan. New Delhi should carefully note Chinese moves to outflank us on our western shores, through a network of roads and ports. The Chinese strategic objectives are based on a Silk Road Economic Belt that links China with Central Asia, Pakistan Occupied Kashmir, the Persian Gulf States, Russia and the Baltic States. Beijing’s 21st century Maritime Silk Route, in turn, extends from China’s coast to Europe through the Indian Ocean. China is simultaneously building ports across the Indian Ocean, in Asia and Africa. What India cannot afford to ignore is that while the silk road envelops both its eastern and western neighbours, this road links up with the Maritime Silk Road and the Indian Ocean, in the Pakistani Port of Gwadar, located at the mouth of the Persian Gulf. Gwadar is perilously close to India’s sea-lanes, linking India to the oil-rich Persian Gulf, from where we get over 70 per cent of our oil supplies. China has now secured virtual control of the port facilities in Gwadar, after pledging $46 billion to Pakistan, to promote its ambitious silk route projects. Over a decade ago, then Pakistan President Musharraf told an audience in Islamabad, just after the visit of then Chinese Prime Minister Zhu Rongji, that in the event of a conflict with Pakistan, India would find the Chinese navy positioned in Gwadar. Given its difficulties in obtaining bases in countries like Myanmar, Sri Lanka and Bangladesh, China feels Pakistan is a crucial partner, in its quest to have base facilities, strategically positioned close to the Straits of Hormuz and astride India’s vital sea-lanes to the Persian Gulf, where around seven million Indians live. China has simultaneously commenced an effort to strengthen Pakistan’s navy, with the supply of four frigates and eight submarines, to reinforce these efforts.China’s interest in having a military presence astride the Straits of Hormuz arises from the fact that this narrow 2-mile-wide corridor is the route for the transportation of 17 million barrels of oil per day (mbpd), with 15.2 mbpd traversing thereafter through the Straits of Malacca, which includes 80 per cent of Japan’s oil supplies. The entire Indian Ocean Region, extending to the Gulf of Aden, accounts for 40 per cent of the world’s oil production and 57 per cent of the world’s oil trade. Not surprisingly, the US has positioned its powerful 5th Fleet in Bahrain to oversee the security of these vital sea-lanes. The nature and extent of US interest in this region could well change, as the US itself is becoming a net exporter of oil and gas. Moreover, apart from the rivalries of external powers, stability in this region is being adversely affected by Iranian-Saudi rivalries, which have a sectarian dimensions.Ideally, it would be useful if the major Asian oil importers — India, China, Japan and South Korea — cooperated on developments that threaten the security of vital sea-lanes and energy corridors. But, given existing tensions and suspicions, this may be too much to expect anytime soon.
Tribune News Service
Jammu, March 7
A medical and a veterinary camp was organised by the Nimu Battalion at village Likir of the Ladakh district. The camp was held under the aegis of the Army’s 14 Corps’ Parashu Brigade.Four doctors, five nursing assistants and a veterinarian extended their services for the goodwill project.The Op Sadbhavana camp saw large participation. A public announcement system that included two speakers, one amplifier, mikes and furniture were presented by the Army for the community hall of the village.
Washington, March 5
Amidst stiff opposition from India and top American lawmakers, the US government has formally published federal notification for the sale of eight F-16 fighter jets to Pakistan.“This proposed sale contributes to US foreign policy objectives and national security goals by helping to improve the security of a strategic partner in South Asia,” said the notification which was published by the federal register yesterday, along with a copy of the February 11 letter, which the Defense Security Cooperation Agency wrote to the House of Representatives Speaker Paul Ryan.The total cost of these F-16 is estimated to be nearly $700 million, said the federal notification. It added that the Government of Pakistan had requested for this sale.India has opposed the sale of F-16 to Pakistan, saying it disagree with Washington’s rationale that such arms transfers help to combat terrorism.Republican Senator Rand Paul has asked colleagues in the Senate to join him in opposing the sale of F-16s to Pakistan.Pakistan Prime Minister’s Adviser on Foreign Affairs Sartaj Aziz told Defence Writers Group this week that Pakistan had initially requested for 18 F-16s, but because of “financing problem” it is purchasing just eight.”In the last five years Pakistan air force has been saving US assistance to be able to finance these F-16. That is why, the administration has recommended that these should be sold because it is a very critical part of our counter terrorism operation,” Aziz said.These F-16, Aziz argued, are a critical tool in the war against terrorism.When asked if this is to be used only in the tribal region, he did not rule out otherwise.”This is part of our fleet. For the last two-three years they have extensively been used in tribal areas,” Aziz said. “Right now the specialised need is the counter-terrorism operation, for which we are heavily dependent of F-16.”According to notification published in the federal register, the proposed sale improves Pakistan’s capability to meet current and future security threats.“This sale will increase the number of aircraft available to the Pakistan Air Force to sustain operations, meet monthly training requirements, and support transition training for pilots new to the Block-52. Pakistan will have no difficulty absorbing these additional aircraft into its air force,” the federal register said.As per the notification, this sale involves the release of sensitive technology to Pakistan. The F-l 6C/D Block 50/52 weapon system uses the F-16 airframe and features advanced avionics and systems.It contains the Pratt and Whitney F-100-PW-229 engine, AN/APG-68V(9) radar, digital flight control system, external electronic warfare equipment, Advanced Identification Friend or Foe (AIFF), LINK-16 datalink, and software computer programs.As per federal notification, if a technologically advanced adversary were to obtain knowledge of the specific hardware or software source code in this proposed sale, the information could be used to develop countermeasures which might reduce weapon system effectiveness or be used in the development of systems with similar or advanced capabilities.The benefits to be derived from this sale in the furtherance of the US foreign policy and national security objectives outweigh the potential damage that could result if the sensitive technology were revealed to unauthorised persons, the federal notification said. — PTI
