Finance Minister Pranab Mukherjee To Take A Final Call On PF Rate Hike

Even as it remains unconvinced by the labour

ministry’s calculations for an additional 1 per cent interest on PF deposits in 2010-11, the finance ministry has now referred the matter to finance minister Pranab Mukherjee to take a final call.

“It is up to the minister to decide whether the 9.5 per cent interest rate should be notified. Our only concern is that the additional interest should not be paid from government coffers, especially as the CAG report has called the EPFO’s so called surplus unverifiable,” a senior finance ministry told The Indian Express.

The ministry must take a decision on the issue by March 31, as the Employees’ Provident Fund Organisation has to start crediting interest and hand out account slips to its 4.7 crore subscribers from April. Without a formal notification by the finance ministry, subscribers will not be given the higher interest rate. The labour ministry has been lobbying with the finance ministry to ratify the decision by Central Board of Trustees of the EPFO to provide a 9.5 per cent return on retirement savings in 2010-11 after it discovered a surplus of Rs. 1,371 crore. But the finance ministry has repeatedly questioned the basis of arriving at the surplus.

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Finance Minister Promises To Respond On Healthcare Service Tax

Amid concerns by medical community on the proposed service tax on healthcare, Finance Minister Pranab Mukherjee today said in the Rajya Sabha that he would respond to the representations on tax issues next week.

Following the reply of Mukherjee on general discussion on the Budget, the Rajya Sabha returned the Appropriations Bills, completing the first phase of the three-stage exercise for passage of the budget.

The Lok Sabha had earlier approved the Supplementary demands for grants for 2010-11 and relevant Appropriation Bills.

"That can be announced or decided only at the time of Finance Bill. Therefore I will request those who are agitating to wait till the Finance Bill is being approved by Parliament", he said while referring to his proposal to impose 5% service tax on high-end health care.

The Finance Bill is likely to be considered by Parliament next week. The budget session of Parliament would conclude on March 25.

Mukherjee in the budget for 2011-12 proposed to impose a service tax of 5% on all services, including diagnostic services provided by a centrally air-conditioned clinical establishments having more than 25 beds for in-patient treatment.

The proposal evoked sharp reaction from the medical community which described the service tax on healthcare as "misery tax". They have also submitted representation against the proposal to the Finance Minister.

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Japan Nuke Reactor Spews Harmful Radiation

Harmful radiation is spewing from Japan's quake-hit Fukushima No.1 atomic power plant after a fire broke out at its number-four reactor, authorities say.

Japan Prime Minister Naoto Kan told a news conference that radiation levels had "risen considerably" in the area around the plant.

He told people living up to 30km beyond a 20km exclusion zone around the troubled nuclear power plant to stay indoors or risk radiation sickness. An exclusion zone of 20km has already been put in place.

Top government spokesman Yukio Edano said the radiation level is high enough to endanger human health.

Small amounts of radioactive substances have been detected in Tokyo, Kyodo news agency reports.

A low level radioactive wind could reach Tokyo in 10 hours, Reuters is quoting the French embassy in the Japanese capital as saying.

Nine News considered the danger serious enough to pull back staff reporters and camera crews to well outside the immediate area of threat.

The fire was burning in the plant's number-four reactor but plant operator Tokyo Electric Power Co has since said the fire has been put out.

The latest development means that four out of six reactors at the site, 250km northeast of Tokyo, are now in trouble.

There was an explosion at the plant's number-one reactor on Saturday followed by a blast at its number-three reactor on Monday and a third explosion at its number-two reactor today.

Kyodo News reports that radiation near the number-three reactor is 400 times the annual legal limit.

Winds over the stricken nuclear plant are blowing slowly towards the Kanto region, which includes Tokyo, Reuters reports.

As well as the atomic emergency, Japan is struggling to cope with the enormity of the damage from Friday's record-breaking quake and the tsunami which raced across vast tracts of its northeast, destroying all before it.

The official death toll has risen to 2414 but officials say at least 10,000 are likely to have perished.

Japan's nuclear safety agency said the operator of the stricken Fukushima facility believed the seal around the number-two reactor, which is critical for preventing a major radiation leak, had not been holed during this morning's blast and was doing further checks.

But Edano said there appeared to be damage to the structure around the number-two reactor, the third to be hit by an explosion since Friday's disaster which knocked out cooling systems.

Edano, who is the chief cabinet secretary, told reporters there could be damage to the suppression pool of the reactor, which forms the base of the container vessel that seals the fuel rods.

TEPCO said "said it believes the container vessel has not sustained damage such as a hole, judging from the fact that the radiation level has not jumped", a safety agency spokesman told AFP.

TEPCO said some workers had been evacuated from the number-two reactor at the plant, but those pumping water to cool the reactor were still at work.

Late yesterday TEPCO said fuel rods at the number-two reactor were almost fully exposed after a cooling pump there temporarily failed.

The UN's nuclear watchdog, the International Atomic Energy Agency, said Tokyo had asked for expert assistance in the aftermath of the quake which US seismologists are now measuring at 9.0-magnitude, revised up from 8.9.

But the IAEA's Japanese chief Yukiya Amano moved to calm global fears that the situation could escalate to rival the world's worst nuclear crisis at Chernobyl in the Ukraine in 1986.

"Let me say that the possibility that the development of this accident into one like Chernobyl is very unlikely," he said.

Officials had already declared the exclusion zone within a 20km radius of the plant and evacuated 210,000 people.

At one shelter, a young woman holding her baby told public broadcaster NHK: "I didn't want this baby to be exposed to radiation. I wanted to avoid that, no matter what."

Further north in the region of Miyagi, which took the full brunt of Friday's terrifying wall of water, rescue teams searching through the shattered debris of towns and villages have found 2000 bodies.

And the Miyagi police chief has said he is certain more than 10,000 people perished in his prefecture.

Millions have been left without water, electricity, fuel or enough food and hundreds of thousands more are homeless and facing harsh conditions with sub-zero temperatures overnight, and snow and rain forecast

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Nippon Life To Buy 26% In Reliance Life

Reliance Capital Ltd. said Monday it has agreed to sell a 26% stake in its life insurance unit to Japan's Nippon Life Insurance Co. for 30.62 billion rupees ($680 million).

The news sent the shares of Reliance Capital sharply higher as analysts say a stake sale will give wholly owned unit Reliance Life Insurance Co. the funds it needs to spur growth in a capital-intensive business. In afternoon trade, Reliance Capital shares were up 7.1% at 548.5 rupees in a Mumbai market that was trading 1.2% higher.

The deal, which is subject to regulatory approvals, pegs the total valuation of Reliance Life at 115 billion rupees ($2.6 billion), Sam Ghosh, chief executive officer of Reliance Capital, told reporters.

"We will prepare the final application for approval [from the insurance regulator] today," Mr. Ghosh said.

India has 23 life insurance companies including state-run Life Insurance Corp., the largest in terms of number of policies sold. But most private insurers have been unable to turn profitable due to the high cost of acquiring new customers. The companies are also choked for funds as foreign investment into local insurers is capped at 26%.

India's parliament is yet to approve the government's proposal to raise the foreign investment limit to 49% because of stiff opposition from other political parties.

But Nippon Life hopes that entering emerging markets such as India would help boost profitability at a time when Japan's population is shrinking and its life insurance industry is seen as saturated.

Insurance companies face restrictions also on raising funds through initial public offerings. The Insurance Regulatory and Development Authority and capital markets regulator Securities and Exchange Board of India have been working on IPO guidelines for life insurers.

Reliance Life started operations in 2005 and has sold more than 7 million policies. It manages assets worth over 170 billion rupees ($3.7 billion) as of Dec. 31, 2010, according to a company statement.

Nippon Life is Japan's largest life insurer with revenue of $72 billion and a profit of $2.6 billion for the fiscal year ended March 31, 2010, it said.

Rival Dai-ichi Life Insurance Co., which listed on the Tokyo Stock Exchange in April and is actively seeking out overseas acquisitions, in December agreed to buy Tower Australia Group Ltd. Dai-ichi is present in India through a joint venture, Star Union Dai-ichi Life Insurance Co., with state-run lenders Bank of India and Union Bank of India.

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Home And Auto Loans Are Set To Get Pricier

Floating rate home and auto loan borrowers may have to brace for higher interest rates on their loans , with many economists expecting a 0.25 per cent policy interest rate hike by the Reserve Bank of India (RBI) in its midquarter credit policy review on Thursday. However, some of them hope that the apex bank may pause the rate hikes this time, citing uncertainties on the growth front.

"RBI is likely to hike both the policy rates (repo and reverse repo rates) by 0.25 per cent in the forthcoming review. Inflation still remains a problem with oil prices coming under upward pressure, despite some moderation in food prices," said D.K. Joshi, chief economist of rating agency Crisil.

"The government has to pass it on to the customers sooner or later," Joshi added. The Centre is already facing the prospect of rise in fiscal deficit in the coming fiscal. RBI had made it clear that it may not have to act if the global oil price rise is borne by the Centre. But if it is to be passed on to the customers, then it may have to hike rates to cap the inflationary expectations.

Spiralling credit growth is also adding to RBI's worries on the inflation front. It could push up demand and stoke further rise in prices. A rate hike would also address this concern as higher rates would distance a large number of prospective borrowers. Credit growth in the last 12 months has been above 24 per cent, against the projected 20 per cent growth for the fiscal.

If policy rates are hiked again, it will be the eighth time that the RBI would be doing so since March 2010 to tame inflation that has remained at elevated levels. It had raised the repo (rate at which RBI lends to banks) and the reverse repo (rate at which it accepts overnight deposits from banks) rate by 1.75 per cent and 2.25 per cent to 6.5 per cent and 5.5 per cent, respectively.

Food price inflation softened to a three-month low of 9.52 per cent in late February. The benchmark WPI inflation in January was at 8.23 per cent, well above the RBI's comfort zone of four to five per cent and its end-March 2011 target of seven per cent. WPI inflation for February is expected to moderate further.

However, Prof. N.R. Bhanumurthy of the National Institute of Public Finance and Policy (NIPFP), said, "It is a big dilemma on how to balance low inflation and high growth at this juncture. Corporate investments are not picking up, and that is also getting reflected in the IIP (index of industrial production) figures. As such, RBI might hold for this time and act in the quarterly review in May."

"Aggressive hike in rates are expected to stifle economic growth. So, movements of inflation would be watched carefully," Bhanumurthy added. IIP grew by only 3.7 per cent in January, compared to the same months in 2010. This is subdued, though higher than that in December. "The high base year effect has been a dampener on growth numbers this year and will continue to be so in February and March. Also, high interest rates have started impacting investment decisions," said Madan Sabnavis, chief economist of CARE Ratings.

"We believe that the RBI should maintain a neutral stance on March 17 as inflation is coming down and industrial growth is being affected by high interest rates, though the RBI might increase interest rates by another 25 bps (or 0.25 per cent)," Sabanavis added.

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AGC Networks Introduces Contact Center Solutions in Compliance with Global Information Security Standard PCI-DSS

AGC Networks, India’s leading enterprise communication solution integrator has taken a significant step forward in its Contact Center solutions business by becoming a recipient of the worldwide information security standard certification-PCI-DSS (Payment Card Industry Data Security Standard) for its IVR-Payment gateway integration. The certification comes at a time when online payment has led to a tremendous revolution in the Indian payment industry and security in online transactions is a key challenge for enterprises and communication solution providers

The PCI-DSS standard was created to help payment card industry organizations that process card payments prevent credit card fraud through increased controls around data and its exposure to compromise. The standard applies to all organizations that hold, process, or exchange cardholder information from any card branded with the logo of one of the card brand. All payments that occur on AGC Networks IVR system are now adjudged inherently resistant to various forms of cyber attacks.

According to Ritesh Jayswal, Vice President and Head (Solutions), AGC Networks, “We are extremely excited at being awarded the coveted PCI-DSS certification which will further propel our Contact Center Solutions business. Online payment offers certain advantages to customers, such as low cost, time saving and convenience of usage, as compared to traditional methods. Since the IVR – PG integration is now becoming one of the key revenue generation channels for business, it is very important for a company to have this application platform certified so that it offers cutting-edge processes, security and scalability. Through this solution, we aim to protect cardholder and sensitive authentication data for our customers.”

The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to optimize the security of credit, debit and cash card transactions and protect cardholders against misuse of their personal information. For example, post certification the merchant cannot store sensitive authentication data even after authorization. Certification also ensures that the merchant uses strong cryptography and additional layers of security while processing card holder’s data among others.

Thinking about customers has been a core philosophy of AGC Networks. AGC Networks compliant solution ensures that one of the most important nodes (i.e. customer’s phone & IVR) in sensitive data transmission is PCI-DSS complaint. Keeping its focus on the BFSI segment active in the coming year, AGC Networks aims to provide the latest technology solutions to ease the pain points of its customers.

About AGC Networks

AGC Networks Ltd. is India’s leading enterprise communication solution integrator delivering customized business solutions that help organizations accelerate revenue growth, increase market penetration, optimize operating costs and improve employee productivity, by embedding communication in their business processes. With a vision of being a world class solution integrator of choice, AGC Networks Ltd. has always remained committed to providing clients with the best returns on their technology investments. It partners with global leaders like Avaya, NICE Systems, NEC, Polycom, Plantronics, Jabra, Extreme Networks, HP and Sony. For more information visit the AGC Networks Ltd. web site: http://www.agcnetworks.com/

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Japan Earthquake 2010 Video

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Over 1,000 Feared Dead In Japan Quake

Tokyo, March 12 (DPA) More than 1,000 people were feared dead after Japan's strongest earthquake on record triggered a destructive tsunami, the government said Saturday as it expressed concerns over possible radiation leaks from damaged nuclear reactors.

Japan was assessing the damage from Friday's 8.9-magnitude quake and devastating tsunami that rocked the northeastern part of the country, even as aftershocks continued to hit.


The death toll would probably be well over 1,000, said Yukio Edano, chief cabinet secretary.


Authorities had recovered 420 bodies, with about 1,000 still missing and many injured, Kyodo News agency reported.


The government feared more large-scale aftershocks could add to the destruction, as the Meteorological Agency issued further tsunami warnings for many coastal regions in the country.


The agency said there were more aftershocks than usual, including several over seven in magnitude.


The Nikkei business daily said some 210,000 people had been evacuated in northeastern Japan, while thousands were stranded in Miyagi, waiting for assistance, public broadcaster NHK said.


Rescuers have been searching for survivors amid collapsed buildings in many flooded cities.


Japan's Self Defence Force (SDF) troops and other rescue teams were being rushed to northeastern parts of the country, officials said.


International assistance was on its way, as the US dispatched more than 140 personnel Friday, and New Zealand said Saturday it would send a 48-member search-and-rescue team.


The Japanese government has mobilised 50,000 search and rescue workers, and sent 190 aircraft and 25 vessels to areas affected by the quake and tsunami.


The SDF has been working with the US military stationed in Japan to transport about 900 Japanese troops and some 250 vehicles by US ships, Japanese government officials said.


Thousands of houses were devastated, several bridges collapsed, bus and train services were shut down and many roads were closed. Mobile phone networks and landline phone services were affected by the quake.


Television footage showed flattened fishing villages and shattered cities with piles of rubble on the streets as the tsunami surged five kilometres inland in some areas, forcing many to spend the night on the roofs of their houses as temperature dropped to freezing point.


In the city of Rikuzen Takata, one of the worst-hit areas, of the 8,000 houses, some 5,000 were destroyed, news reports said.


The devastating scenes in northeastern Japan were 'similar to what I saw off Sumatra', Minoru Watanabe, a Tokyo-based town planning expert told a TBS television programme, referring to a powerful earthquake that hit Indonesia in December 2004.


Around 1,800 houses in Minami Soma, Fukushima Prefecture were destroyed, with relief efforts limited to helicopters, as further tsunamis were feared.


More evacuations were ordered early Saturday after the cooling system at a second nuclear power plant broke down in the wake of the massive earthquake.


Residents within three kilometres of the Fukushima Daini power plant, also known as Fukushima II, were ordered to leave their homes.


Earlier in the day, authorities extended evacuations to residents living within 10 kilometres of another nearby nuclear plant, Fukushima Daiichi, also known as Fukushima I, where the cooling system experienced troubles Friday.


Radiation measurements inside the Fukushima Daiichi nuclear plant were 1,000 times higher than normal, the Kyodo news agency reported early Saturday, citing Japan's nuclear safety agency.


The government was holding an emergency meeting after the premier visited the area, but said no radiation leaks had been detected.

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Radhika Case: Main Suspect Held In Mumbai

The main suspect in the Radhika Tanwar murder, Vijay alias Ram Singh was arrested in Mumbai late on Friday night from Vikroli station. Police is now bringing him to Delhi on Saturday. Radhika, a Delhi University student, was shot dead on Tuesday in Dhaula Kuan. The 20-year-old student fell prey to the bullets of her alleged stalker Ram Singh alias Vijay on a foot-over-bridge outside Ramlal Anand College in south Delhi's Dhaula Kuan on Tuesday.

According to investigators, Vijay allegedly followed Radhika at least twice with an intention to kill her in the past one month, the last one being three days before her murder.

Vijay allegedly nurtured "deep grudge" against Radhika after he was beaten up for harassing her three-and-half-years ago and used to tell his friends that whenever he would get an opportunity, he would take revenge. He felt insulted and left Delhi's Naraina for Mumbai.

"We have learnt that a month ago, he had boarded a bus in which the victim was travelling. However, he could not execute his plans. Last Saturday, he followed her on the foot-over-bridge," HGS Dhaliwal, Deputy Commissioner of Police (South), told reporters.

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India Gear Up For Tough South Africa Challenge

While cricket fans rejoice the arrival of the weekend and a prospect of a magnificent clash between India and South Africa at the on-going World Cup, it promises to be a gruelling day in office for the players. Stationed in Nagpur for the big Saturday game, South Africa present the biggest challenge to the Indians in the Group B league phase thus far.

What finally transpires at the VCA Stadium at Jamtha is anyone's guess; pre-game its evident the South Africans are a relaxed lot with a point to prove. The pressure of expectations is gnawing at the Indians for whom this contest is crucial to gain some psychological advantage.

It is essentially a battle between the India's batting prowess and the South Africans' bowling firepower. With the likes of Sachin Tendulkar, Virender Sehwag, Yuvraj Singh, Zaheer Khan and MS Dhoni from India pitted against prolific talents like Jacques Kallis, Graeme Smith, Hasim Amla and Dale Steyn - spectators are guaranteed a thrilling contest. Both teams come into the clash with reputations to defend, adding further weight to their high-profile arsenal.

Indian captain-cool MS Dhoni is currently under intense scrutiny for his constant support to under-forming leg-spinner Piyush Chawla. With sharp criticism on India's bowling doing the rounds, how he tweaks this department for the match will be the subject of many debates. The team's bowling strategy assumes special importance against a side like South Africa who has a tendency to disintegrate against slow bowlers.

Dhoni's usual preference is for two pacers and two spinners. However the pitch in Nagpur is different from the slow and low turf at the Kotla - here it's a flat pitch. Thus there's much speculation on what surprises Dhoni has up his sleeve. Fortunately Yuvraj Singh has made himself useful as the fifth bowler and an effective one too. That leaves Dhoni with the task of identifying two bowlers who will assist Zaheer Khan and Harbhajan Singh in their work against the opponent's batting order and get the combination right before the knock-out stages begin.

Despite being undone rather easily in their last match against England, the South Africans are projecting an easy confidence in their gait. Their take is they're past the stage of faltering at crucial times, no matter what the circumstances. But, as cricketing history has shown, such feats are easier said than achieved. Their dismal performance in the previous game has put a question mark on their claim. With pride at stake, the South Africans have ample reason to want this victory desperately – even though they're not showing it.

There is one little worry for Smith. Leg-spinner Imran Tahir, who fractured his left thumb during the England match, is yet to recover well. The South African skipper said decision on Tahir will be taken on Saturday morning.

Who should India guard against

Hashim Amla

You don't score 8 100s and 12 50s in 45 ODIs if you don't have exceptional talent. If there's one South African batsman who enjoys Indian bowling, then it is Amla. He averages 61.83 in seven ODIs against India and he also has great memories of Nagpur, having scored a double century last year in a Test match. India must get him back in the pavilion as early as possible if they have to restrict SA.

Dale Steyn

The one man who has stood out in every South African success against India. His pace and movement can make life very uncomfortable for the Indians. He will also enjoy the true surface at Jamtha because bowlers who bend their backs get a lot of help there. He also has a good record against Virender Sehwag, who might be key to India's victory chances.

Key clashes

M Morkel vs V Sehwag

One has the bounce, the other has the strokes to deflate any bowling attack. Morkel will try and aim at Sehwag's ribcage and cramp the Indian dasher. Sehwag, on the other hand, will try and latch on to anything that's pitched outside the off-stump. It will be an arresting contest and the winner will decide which team wins.

L Tsotsobe vs S Tendulkar

The battle of the two Ts in the Test series in South Africa captured everyone's imagination. Time for the Master to show why he is called exactly that when he comes up against Tsotsobe. Left-armers have historically troubled the Indian legend. On a flat pitch it is unlikely that Sachin will allow him to settle.

J Botha vs Y Pathan

The off-spinner and the vice-captain might not have got to play had Imran Tahir been fit. But with Tahir's fitness worries, Botha becomes an automatic choice. Pathan really took to Botha in the ODI series. But here Botha may get more help with the doosra and if Pathan gives him the charge early, it may trouble him.

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