India Country Brief s2

India Country Brief 080605

Basic Political Developments

 Pranab Mukherjee's scheduled meeting with Chinese Premier Wen Jiabao on Friday has been called off after Jiabao had to rush to the earthquake-shattered southwest China.He will instead meet Chinese Vice-President Xi Jinping on Friday.

 On the eve of Foreign Ministerial talks, India virtually rejected China's claim over a small part of Sikkim, saying the state's boundary issue has been settled.Foreign Secretary Shivshankar Menon said the recent Chinese claim over 'finger area' in Sikkim border will be discussed at the talks between External Affairs Minister Pranab Mukherjee and his Chinese counterpart Yang Jiechi in Beijing tomorrow.

 Senior BJP leader and party's Prime Ministerial candidate L K Advani today said he would have no objection to the signing of the much debated nuclear deal with the US if it was renegotiated to allow the option of further nuclear testing. "We have no problem with supply of nuclear fuel from America for our reactors and for generation of atomic energy. But we have to ponder over at what cost we are going to get it," Advani, Leader of the Opposition in the Lok Sabha remarked at a book release function.

 Already running 10 years behind schedule, the country's prestigious Light Combat Aircraft Tejas would be carrying only "limited weaponry" when they get ready by 2012.

 The government Thursday approved a bilateral investment agreement with Myanmar to protect the interests of investors of one country in the other.

 Prakash Karat, the General Secretary of the Communist Party of India (Marxist) has ruled out the possibility of withdrawing outside support to the United Progressive Alliance (UPA) Government over the rise in prices, including the fuel price hike.

National Economic Trends

 West Bengal, ruled by the central government’s communist allies, has cut sales tax on auto fuels by about 5 percent, in an effort to reduce the impact of Wednesday's fuel price increase.  Prime Minister Manmohan Singh on June 04 sought to justify the steep fuel price hike effected by his governmment by harping on its inevitability to ensure uninterrupted fuel supply and sustain overall growth of the country.While giving the larger picture, the Prime Minister also used the occasion to make another pitch for the nuclear deal that is in limbo. "We cannot remain captive to uncertain markets and unsure sources of supply. We have to develop renewable sources of energy, including nuclear energy," he said. The Prime Minister pointed out that the country would have to devise long term strategies to deal with the oil problem.

 Prime Minister Manmohan Singh on Thursday recommended major cuts in expenses, especially on foreign travel of Ministers, urging Union Ministers to take austerity measures in view of rising oil prices.

 Planning Commission Deputy Chairman Montek Singh Ahluwalia defended the fuel price hike, saying it would not push up inflation as is being widely feared.

Business, Energy or Environmental regulations or discussions  Government today decided to act tough on the casinos, credit cards and money changers by bringing them under the ambit of money laundering law.

 India is keen to learn from China's "remarkable success" in developing special economic zones and expects the trade target between the two countries to rise to $60 billion before 2010, External Affairs Minister Pranab Mukherjee said on Thursday.

Activity in the Oil and Gas sector (including regulatory)

 Seeking to provide some healing touch to "aam admi" (common people) a day after the Government hiked oil prices, Congress President Sonia Gandhi on Thursday asked party chief ministers to effect a cut in sales tax on petroleum products.

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)

 The SIMI link into the serial blasts at Jaipur got deeper with the arrest of a Bangalore-based software engineer. Based on the information by the Bangalore police, the Rajasthan police picked up Rasheed, a 30-year-old software engineer, two days ago.

 Intelligence agencies indicated that terror modules were being set up in Belgaum, Karantaka. According to them Belgaum was chosen as the next hub by SIMI, but over a period of time, they realized that the youths in this place were not thinking in the manner they would have wanted them to.

 Three arrested pro-Khalistan militants were allegedly planning to kill Dera Sacha Sauda chief Gurmeet Ram Rahim Singh and Ropar-based religious leader Baba Bhaniarewala, police said today. The three militants of newly formed outfit of Panj Pardhani Group (PPG) of Khalistan Zindabad Force (KZF) were arrested by police during an ambush on Jammu-Akhnoor-Poonch Highway in the outskirts of the Jammu city June 04.

Labor/Social Unrest  Normal life came to a grinding halt in Left-ruled states of West Bengal, Kerala and Tripura on Thursday as the ruling fronts in these states enforced a dawn-to- dusk bandh in protest against the steep hike in petroleum products.Major roads in Kolkata and Agartala wore a deserted look as vehicles, both private and public, went off the roads in response to the bandh called by the Left parties in power.

 A Congress party office was set on fire by unidentified persons at Kakkatt near Kozhikode, Kerala early on Thursday.

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Full Text Articles

Basic Political Developments Paranab Mukherjee's meet with Chinese premier cancelled 5 Jun 2008, 1146 hrs IST,PTI http://timesofindia.indiatimes.com/Pranab_Mukherjees_meet_with_Chinese_premier_can celled/articleshow/3101989.cms BEIJING: External Affairs Minister Pranab Mukherjee's scheduled meeting with Chinese Premier Wen Jiabao on Friday has been called off after he had to rush to the earthquake- shattered southwest China, official sources said on Thursday.

Mukherjee, who arrived on Tuesday on a four-day visit to China, will instead meet Chinese Vice-President Xi Jinping on Friday.

Since the deadliest quake in three decades struck on May 12 killing over 70,000 people, Wen has personally overseen rescue and relief operations in the disaster zone along with Chinese President Hu Jintao.

Xi, who was appointed the Vice-President in March, is tipped to be the successor of Hu when he completes his second term in 2012. Considering Xi's importance in China's political hierarchy and the future role that he is expected to play in the political set up, Mukherjee's meeting with the vice-president is considered "good" by the India.

Xi, a former Shanghai boss of the Communist Party of China and son of a former vice- premier, was chosen by China's parliament in March as the vice-president, a position Hu held before his ascent to the presidency. India rejects China's claim over small part of Sikkim http://www.ptinews.com/pti/ptisite.nsf/$All/F99E89670EB8727F6525745E005CABE9? OpenDocument

New Delhi, Jun 4 (PTI) On the eve of Foreign Ministerial talks, India today virtually rejected China's claim over a small part of Sikkim, saying the state's boundary issue has been settled. Foreign Secretary Shivshankar Menon said the recent Chinese claim over 'finger area' in Sikkim border will be discussed at the talks between External Affairs Minister Pranab Mukherjee and his Chinese counterpart Yang Jiechi in Beijing tomorrow.

"I think, we will discuss peace and tranquility along the entire line, including where the boundary is settled. In the Sikkim sector, the boundary is actually settled between the two of us (India and China)," Menon told TimesNow channel when asked whether the 'finger area' issue will figure in talks.

China recently laid claim over the 'finger area', asking India to dismantle a pile of stones there.

The two sides will discuss ways to "manage" the border together, Menon said.

"The border is basically peaceful. Peace and tranquility has been maintained along the boundary, along the border and along the LAC for several years now," he said.

He said the Chinese side is expected to raise the Tibet matter during the bilateral talks as it has been a "sensitive issue in the last few months." "We will discuss Tibet as well, but there is no change in our position. Our position remains the same," the foreign secretary said.

India has been maintaining that the Tibetan Autonomous Region is a part of the Peoples' Republic of China.

India, which is home to the Tibetan government-in-exile, saw widespread protests against the Chinese "occupation" of Tibet during the Olympic Torch run in Delhi. PTI

Advani: No objection to N-deal if option of testing retained Thu, Jun 5 05:58 PM http://in.news.yahoo.com/pti/20080605/r_t_pti_nl_politics/tnl-advani-no-objection-to-n- deal-if-opt-6adc8fa.html Pune, Jun 5 (PTI) Senior BJP leader and party's Prime Ministerial candidate L K Advani today said he would have no objection to the signing of the much debated nuclear deal with the US if it was renegotiated to allow the option of further nuclear testing. "We have no problem with supply of nuclear fuel from America for our reactors and for generation of atomic energy.

But we have to ponder over at what cost we are going to get it," Advani, Leader of the Opposition in the Lok Sabha remarked at a book release function here. Criticising Prime Minister Manmohan Singh for rejecting the BJP demand to celebrate the 10th anniversary of Pokhran II, the 1998 atomic explosions by India conducted by the NDA government that made the country a nuclear power, Advani said his party attached similar importance to Pokhran I, that happened in 1974 under the rule of Indira Gandhi.

Advani said the BJP would not accept a ban on "Pokhran III" as it would compromise India's position as a nuclear power nation. "Remove this ban in the agreement by renegotiating the deal and we will not have objection," he added.

Advani's comments came in response to a statement made earlier during the function by noted computer scientist Vijay Bhatkar who said it was important that India sign the nuclear deal with the US to facilitate greater production of atomic energy. A biography of late BJP leader from Maharashtra Arvind Lele was released by Advani on the occasion. PTI.

Initially, Tejas fighters will carry limited weapons only Thu, Jun 5 05:58 PM http://in.news.yahoo.com/pti/20080605/r_t_pti_nl_general/tnl-initially-tejas-fighters-will- carry-114a2da.html A K Dhar New Delhi, June 5 (PTI) Already running 10 years behind schedule, the country's prestigious Light Combat Aircraft Tejas would be carrying only "limited weaponry" when they get ready by 2012. As the first of these indigenous fighters strive for initial operational clearance in 2010, experts have come up with sudden complications that Tejas' US aeroengine GE404 does not have requisite thrust to give it power to carry its full load of weaponry, highly-placed sources said.

Tejas, on induction, were slated to be armed with air-to-air beyond visual range missiles, air-to-ground missiles and full complement of heavy and medium precision and cluster bombs. But during the recent weaponisation of the fighters, experts have found out that Tejas, with the present engines, cannot carry its full load of armaments including crucial missiles.

"LCA's present GE404 engines give a thrust of only 80-85 kilo newtons, while the weapon payload of the fighter needs a thrust of 95-100 kilo newtons," a source said, indicating the initial 40 Tejas fighters of the IAF, when inducted, would only be "weaponised to a limited role". India's defence planners have already started negotiations with US company General Electric, Snecma of France, Rolls Royce of UK, European defence consortium EADS and Russian NPS-Saturn on "co-development" or "technology transfer" of a more powerful aeroengine for Tejas. PTI.

India approves bilateral investment pact with Myanmar http://www.newkerala.com/one.php?action=fullnews&id=69232 New Delhi, June 5 : The government Thursday approved a bilateral investment agreement with Myanmar to protect the interests of investors of one country in the other.

"The agreement will increase investment flow between India and Myanmar," Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters here after a meeting of the cabinet of central ministers. Prime Minister Manmohan Singh presided over the meeting. --- IANS

Left will not withdraw support from UPA despite fuel price hike: Karat http://www.newkerala.com/one.php?action=fullnews&id=69225 New Delhi, June 5 : Prakash Karat, the General Secretary of the Communist Party of India (Marxist) has ruled out the possibility of withdrawing outside support to the United Progressive Alliance (UPA) Government over the rise in prices, including the fuel price hike.

Speaking in an interview to rediff, Karat said there was no discussion on withdrawal of support to the Government at the party's Central Committee Meeting.

The Left support is conditional on its functioning within the broad parameters of the Common Minimum Programme he added.

"Our support to the UPA Government is mainly to keep the Bharatiya Janata Party (BJP) out," he said, adding that on all other issues, "we judge if they are in the interest of the people of our country or not."

However, he said, the Left parties have demanded a review of the fuel prices as it hurts the common man on the street.

They have also threatened a week-long nationwide agitation over the fuel price rise.

The Central Government has raised the price of petrol by Rs 5 a litre and that of diesel by Rs 3 a litre. The price of a Liquefied Petroleum Gas (LPG) also has been increased by Rs 50 a cylinder. Kerosene price has been left untouched.

Meanwhile, to mark their protest a 12-hour shutdown has been called today by the Left parties in West Bengal, Kerala and Tripura. --- ANI National Economic Trends States pitch in tax cuts after fuel price hike in India Thu Jun 5, 2008 1:08pm IST http://in.reuters.com/article/topNews/idINIndia-33919020080605?sp=true (Reuters) - West Bengal, ruled by the central government’s communist allies, has cut sales tax on auto fuels by about 5 percent, in an effort to reduce the impact of Wednesday's fuel price increase.

West Bengal said it will incur a 5-billion-rupee loss by cutting sales tax on petrol to 20 percent from 25 percent earlier, and sales tax on diesel to 12.5 percent from 17 percent.

The benefit to consumers will range between 1.4 rupees to 2.1 rupees a litre, the government said in a statement.

Opposition-ruled Bihar has also cut sales tax on diesel by 1.64 percentage points to 18.36 percent and on petrol by 2.5 percentage points to 24.5 percent, nearly negating the fuel price hike.

Another communist-ruled state, Kerala, has also agreed in-principle to cut sales tax, but is expected to announce the change next week, a government official said.

Congress party president Sonia Gandhi has asked chief ministers in party-ruled states to also cut sales tax on petroleum products, The Economic Times newspaper reported.

The Maharashtra government, led by the Congress party, has already indicated a likely cut, papers said.

India raised petrol and diesel prices by about 10 percent on Wednesday, its biggest increase in 12 years, as pressure of near-record high crude prices forced the government to cut back the mounting subsidy bill.

The move, which has already stirred political protests, is expected to drive inflation to a 13-year high of over 9 percent, analysts said.

Nearly half of retail auto fuel prices in India comprise of duties and taxes, with sales tax, which varies in different states, ranging from 10 percent to 30 percent.

A moderate revision: PM justifies fuel price hike Thu, Jun 5 02:31 AM http://in.news.yahoo.com/financialexpress/20080605/r_t_fe_nl_general/tnl-a-moderate- revision-pm-justifies-fue-e651110.html Prime Minister Manmohan Singh on Wednesday sought to justify the steep fuel price hike effected by his governmment by harping on its inevitability to ensure uninterrupted fuel supply and sustain overall growth of the country. While conceding that the step was unpopular, Singh said in a rare address to the nation this evening that his government had no option but to go for the "modest" price revision. "There are limits to which we can keep consumer prices unaffected by rising import costs. Our oil companies cannot go on incurring losses. This way they will have no money to import crude oil from abroad," the Prime Minister said, pointing out that India was dependent on oil imports and was therefore vulnerable to global oil prices." When our government came to power in May 2004, we faced a price of US$ 39 per barrel for crude oil. Today, that price has gone up to over US$ 130 per barrelÂ—an increase of over three times."

Singh asked state government to chip in by reducing taxes and levies on petrol, diesel and other related products. "The Central government, oil companies and consumers are bearing a part of this immense burden. It is, therefore, incumbent on state governments, many of whom tax petroleum products substantially, to also contribute to this national effort by suitably reducing state taxes and levies," he said.

While giving the larger picture, the Prime Minister also used the occasion to make another pitch for the nuclear deal that is in limbo. "We cannot remain captive to uncertain markets and unsure sources of supply. We have to develop renewable sources of energy, including nuclear energy," he said. The Prime Minister pointed out that the country would have to devise long term strategies to deal with the oil problem.

"Business cannot go on like this for ever. We need to learn to adjust to this new international scenario. We need to be efficient and economical in our use of energy. And we need to pay the economic cost of petroleum products. There are limits to which we can keep consumer prices unaffected by rising import costs. Our oil companies cannot go on incurring losses. This way, they will have no money to import crude oil from abroad, " he siad.

The Prime Minister said he shared concern over higher inflation in recent months as a result of rising food and commodity prices around the world, adding that his government was already taking several measures to insulate the less privileged from its impact.

"Our government has taken many steps to increase food production and procurement, limit food exports and strengthen the Public Distribution System. All these steps, along with positive expectations of a normal monsoon, have already had a positive impact on food price inflation.

I am confident that in months to come there will be further stabilisation in food prices." he said. Slash wasteful expenditure, PM tells ministers 5 Jun 2008, 1345 hrs IST,PTI http://timesofindia.indiatimes.com/India/Slash_wasteful_expenditure_PM_tells_ministers /articleshow/3102418.cms

NEW DELHI: Asking Union Ministers to take austerity measures in view of rising oil prices, Prime Minister Manmohan Singh on Thursday recommended major cuts in their expenses, especially on foreign travel.

Noting that the "huge burden is imposed on our financial resources due to the continuous rising trend in global oil prices and our dependence on import of crude", he said: "I am, therefore, writing to ask you to severely curtail expenditure on air travel, particularly foreign travel, except in cases where it is deemed to be absolutely necessary."

In a letter to his ministerial colleagues, Singh said while "we need to explain to the people the constraints and reasons that have compelled the government to introduce these measures" to hike petro product prices, it was simultaneously "equally necessary for us to introduce the utmost economy in our own administrations and establishments."

He said it could not be denied that there was "substantial scope" for reducing expenditure on travel and administration.

"As we ask the people to bear some of the financial burden of our oil imports, it is not only necessary from the resource conservation point of view but also as a moral duty to cut out all wasteful expenditure in our own establishments," Singh said.

'Fuel hike will not cause further inflation' http://www.newkerala.com/one.php?action=fullnews&id=69243 New Delhi, June 5 : Planning Commission Deputy Chairman Montek Singh Ahluwalia defended the fuel price hike, saying it would not push up inflation as is being widely feared.

“The government decision to hike fuel prices is correct. The 8 percent growth rate will remain intact,” Ahluwalia, a key figure in India's economic reforms since the early 1990s, said here Thursday.

“This fuel hike will not aggravate inflation. Inflation (currently 8.1 percent) will come down in four months,” he predicted in his address at the annual function of the National Academy of Agricultural Sciences.

Maintaining that India's growth rate would "remain on track", Ahluwalia said the situation would have been “worse” had the decision not been taken.

“It is irresponsible to say the measure is anti-people.”

--- IANS

Business, Energy or Environmental regulations or discussions Govt to bring casinos, credit cards under money laundering law http://www.ptinews.com/pti/ptisite.nsf/$all/35700402FDBB29456525745F00302124

New Delhi, June 5 (PTI) Government today decided to act tough on the casinos, credit cards and money changers by bringing them under the ambit of money laundering law. The Union Cabinet decided to bring a new bill in Parliament to amend the Prevention of Money Laundering Act enlarging its scope.

The new bill will provide for bringing money transfer service providers, international payment gateways such as Visa and Mastercard and casinos under the reporting regime.

"The Amendment Bill will enable the Government of India to meet certain domestic needs and international obligations," Information and Broadcasting Minister Priyaranjan Dasmunsi told reporters after the Cabinet meeting. PTI

Sino-India trade to rise to $60 billion

Raghavendra in Guangzhou (China) http://www.rediff.com/money/2008/jun/05trade1.htm June 05, 2008 15:32 IST India is keen to learn from China's "remarkable success" in developing special economic zones and expects the trade target between the two countries to rise to $60 billion before 2010, External Affairs Minister Pranab Mukherjee said on Thursday.

"The trade target of $60 billion by 2010 set by our two prime ministers is very likely to be surpassed before 2010," Mukherjee, who is on a four-day visit to China, said at the inauguration of the Consulate General of India in the booming Guangzhou city of Guangdong province. Mukherjee said Guangdong province, which accounts for one-third of China's total foreign trade, had always been at the forefront of the country's economic reforms.

"There is tremendous interest in India to learn from your experiences, including your remarkable success in developing special economic zones," he said.

He said Indian firms had invested in China, including in the Pearl River Delta, and "this trend is likely to escalate in the coming years".

Noting that China was India's largest trading partner, the minister said "if India and China are to grow together, as your President Hu Jintao said during his visit to India, our economic and commercial relationship must become the firm foundation for such growth."

Encouraged by the flourishing trade, during the visit of Prime Minister Manmohan Singh in January, the two countries had set the $60 billion target by 2010. The trade between the two Asian giants is now around $40 billion. Activity in the Oil and Gas sector (including regulatory) Sonia asks party CMs to cut sales tax on petro products 5 Jun 2008, 1348 hrs IST,PTI http://timesofindia.indiatimes.com/India/Sonia_asks_party_CMs_to_cut_sales_tax_on_pe tro_products/articleshow/3103317.cms

NEW DELHI: Seeking to provide some healing touch to "aam admi" a day after the Government hiked oil prices, Congress President Sonia Gandhi on Thursday asked party chief ministers to effect a cut in sales tax on petroleum products.

With the Congress-led coalition facing flak from both friends and foes of the UPA and supporting Left parties which have called bandhs in states ruled by them, Gandhi suggested to Congress chief ministers to lower sales tax on petroleum items.

Congress is in power in around half a dozen states, prominent among them being Maharashtra, Assam, Jammu and Kashmir, Andhra Pradesh and Haryana.

Gandhi's suggestion comes a day after Prime Minister Manmohan Singh asked state governments to reduce the taxes and levies on petrol, diesel and other petro products.

In his televised address to the nation, Singh had on Wednesday night said "the Central government, oil companies and consumers are bearing a part of this immense burden.

"It is, therefore, incumbent on state governments, many of whom tax petroleum products substantially, to also contribute to this national effort by suitably reducing state taxes and levies".

The Left-ruled West Bengal government has already slashed sales tax on petrol and diesel by up to five per cent giving a relief of Rs 2.12 and Rs 1.38 a litre on the two fuels respectively.

The Government had on Wednesday raised the prices of petrol by Rs five a litre, diesel by Rs three a litre and LPG cylinders by Rs 50 per cylinder, evoking strong protests from both the opposition and alliance parties.

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore) Jaipur blasts: Sofware engineer arrested

Vicky Nanjappa in Bangalore http://www.rediff.com/news/2008/jun/05simi.htm June 05, 2008 16:11 IST The SIMI link into the serial blasts at Jaipur got deeper with the arrest of a Bangalore- based software engineer. Based on the information by the Bangalore police, the Rajasthan police picked up Rasheed, a 30-year-old software engineer, two days ago.

Intelligence Bureau officials told rediff.com that though Rasheed was not directly involved in the blasts, but he was privy to the developments.

Sources said that they had certain leads and the interrogation of the suspects indicated that Rasheed was aware of the Jaipur blasts much before it happened.

Rasheed, who hails from Bihar, came to Bangalore in 1999 and was working with a software firm. The police said he gradually developed links with SIMI.

He also became close to Yahya Kamakutty and Shibly, both of whom were arrested recently in Bangalore and Indore respectively. Rasheed was living at Koramangala in Bangalore before he disappeared suddenly. He was never in contact with any of SIMI activists in Bangalore. There is also no record which shows that he took up another job after leaving Bangalore.

Sources said it was Kamakutty who revealed his name during the interrogation.

Terror modules were being set up in Belgaum: IB

Vicky Nanjappa in Bengaluru

http://www.rediff.com/news/2008/jun/05terror.htm

June 05, 2008 16:07 IST

The arrest of several Students Islamic Movement of India activists has proven that Karnataka was waiting to be attacked.

The police feel that with these arrests, they have waded away the threat of a terror attack to a large extent.

However, now Intelligence Bureau sources tell rediff.com that terror modules were being set up in Belgaum, which borders Maharashtra.

The arrest of Liyakat Ali Sayeed in Belgaum on May 14 has helped the police get a better picture of the terror operations, which were being planned in the border district of Karnataka.

According to the IB, Belgaum was a good spot for terror modules as it would have been easier for them to carry out inter-state operations. Interrogations conducted on Liyakat reveal that he was laying the ground to set up a group of youths in Belgaum to take up the terrorist-interpreted jihadi path.

Liyakat, who belongs to the banned SIMI outfit, was handed the task of coaxing youths into joining the outfit and later carry out anti-social activities in and around the state.

SIMI, which decided to rejuvenate itself, has been looking to set up a unit in Belgaum so that inter-state activities are easier to carry out.

They were facing logistic problems to transport arms as they did not have a strong unit in the bordering districts.

Belgaum was chosen as the next hub by SIMI, but over a period of time, they realised that the youths in this place were not thinking in the manner they would have wanted them to.

SIMI then identified a couple of people including Liyakat to spread the message of jihad so as to influence more and more youths into taking up this path.

The Belgaum police claim that with the arrest of Liyakat, a major headache has been averted. They say that he had managed to influence several youths through his preachings.

Liyakat, who came down to Belgaum from London [Images] eight months back according to the police, would first make friends with the youths.

He would then distribute CDs containing clips of atrocities being committed against Muslims across the world. He had convinced several youths that the only way to safeguard their community was through violence.

The police say that a video of an anti-Modi protest shows Liyakat shouting slogans. They say he had his face half covered in order to conceal his identity, but repeated viewing of the video clip confirms that it was Liyakat who had taken part in the rally.

Interrogations are still on and the police are now trying to get more information regarding the plans Liyakat had to set up a strong wing of the SIMI.

The police patrol on the borders of Maharashtra and Karnataka has been spruced up as they feel there could be more infiltration in the coming days.

KZF ultras were planning to kill Dera chief: J&K Police 5 Jun, 2008, 1304 hrs IST, PTI http://economictimes.indiatimes.com/PoliticsNation/KZF_ultras_planned_to_kill_Dera_c hief/articleshow/3102253.cms JAMMU: Three arrested pro-Khalistan militants were allegedly planning to kill Dera Sacha Sauda chief Gurmeet Ram Rahim Singh and Ropar-based religious leader Baba Bhaniarewala, police said today.

The three militants of newly formed outfit of Panj Pardhani Group (PPG) of Khalistan Zindabad Force (KZF) were arrested by police during an ambush on Jammu-Akhnoor- Poonch Highway in the outskirts of the city yesterday, Senior Superintendent of Police Alok Kumar said.

They told police during interrogation that they were tasked by KZF chief Ranjeet Singh Neeta, who is based in Pakistan, to kill Baba Gurmeet Ram Rahim Singh and Baniyarawala in June, he said.

The arrested militants were identified as Malkeet Singh, Surjeet Singh and Harbans Singh.

An AK-56 rifle with two magazines and 150 rounds, five Chinese pistols with five magazines and 93 rounds, besides three mobiles and large quantity of propaganda material of PPG were recovered from their possession.

Diaries carrying telephone numbers of their contacts in different states and some other documents were recovered from the car in which the three militants were travelling.

All three militants had collected a consignment of arms and ammunition from an unidentified smuggler at Akhnoor border area, who had received them from across the border, sources said.

His mobile number was tracked by police and the consignment of arms was reported to have been sent from Pakistan by Neeta.

A ring leader of Panj Pardhani Group, based in Barnala, has been identified by police on the basis of preliminary questioning of the three militants.

Two Punjab Police teams from Ludhiana and Barnala will reach here this evening to interrogate the militants.

Labor/Social Unrest Bandh cripples life in Left-ruled states http://www.rediff.com/money/2008/jun/05infla5.htm June 05, 2008 13:31 IST Normal life came to a grinding halt in Left-ruled states of West Bengal, Kerala and Tripura on Thursday as the ruling fronts in these states enforced a dawn-to-dusk bandh in protest against the steep hike in petroleum products. Major roads in Kolkata and Agartala wore a deserted look as vehicles, both private and public, went off the roads in response to the bandh called by the Left parties in power. However, two-wheelers and private vehicles were seen plying in Thiruvanathapuram, where buses and autorickshaws went off the roads.

The Left Front in all the three states had on Wednesday given call for a 12-hour bandh to protest against the increase in prices of petrol by Rs 5 a litre, diesel by Rs 3 and LPG cylinders by Rs 50.

Bus, train and air services were affected in both West Bengal and Tripura with various airlines suspending their operations till 6 pm. Air and train services functioned as usual in Kerala.

Various airlines suspended flights from Kolkata for the bandh period. Ahead of the bandh coming into force, 23 flights belonging to various airlines took off in the wee hours, airport sources said.

No flights took off or landed at the Agartala airport since this morning, official sources said. Long distance and EMU trains services were also affected in Kolkata due to blockades at different stations in Howrah, Sealdah, Asansol and Malda divisions, while as many as

16 trains, including Howrah-New Delhi Poorva Express and Howrah-Ranchi Shatabdi Express were cancelled. Shops, markets and educational institutions remained closed in the eastern metropolis which also witnessed heavy rains early in the day.

West Bengal, Raj Kanojia said bandh supporters put up road and rail blockades at some places but no untoward incident was reported from anywhere in the state.

The bandh call by the ruling LDF in Kerala evoked no response from the IT sector and its impact on the industries was also minimal.

Except a minor scuffle between bandh supporters and police in Nilambur in Malappuram district, no violence was reported from anywhere.

Besides, the BJP had also called for a day-long bandh in the southern state. BJP workers took out marches separately in all major towns, demanding immediate roll back of the hike on petrol, diesel and cooking gas.

Schools and colleges remained closed in Tripura and the Tripura university cancelled the examinations scheduled for today.

Congress office set on fire in Kozhikode, Kerala 5 Jun 2008, 1430 hrs IST,PTI http://timesofindia.indiatimes.com/India/Congress_office_set_on_fire_in_Kozhikode_Ke rala/articleshow/3102590.cms

KOZHIKODE: A Congress party office was set on fire by unidentified persons at Kakkatt near Kozhikode, Kerala early on Thursday.

Office files and furniture were gutted in the fire, which was first noticed by some party volunteers, who reported the matter to the police, sources said.

Three petty shops located adjacent to the party office, falling under Kuttiadi police station limits, were also damaged in the blaze, they said.

Police suspect that the perpetrators might have taken advantage of the dawn-to-dusk shutdown called by the LDF as there was little activity in the area that used to witness frequent clashes between the Congress and CPM activists, the sources said.

Additional police force had been deployed in the area as a precautionary measure, they said.

Meanwhile, an all-party meeting has been convened in the area to maintain peace, police added.