General Affairs
Was major driver behind separate G20 statement on terror, India says
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India played a major role in getting the Group of Twenty (G20) to release a separate, standalone statement on terrorism, Indian Sherpa Arvind Panagariya said today.
Panagariya, who in his capacity as Sherpa is responsible for negotiating the agenda for G20 with representatives of other countries, also said discussions during the two-day summit were "cordial".
"There was no flying of objects in the room," Panagariya quipped, before saying, "We had cordial but tough discussions. It is a closed group and we all are friends here. But, that doesn't mean that being friends you will sacrifice national interest."
On the subject of the statement on counter terrorism, which was issued on Friday, Panagariya said that it was India who strongly pitched for a separate, standalone statement on terrorism.
Originally, there was a plan to put an annexure on counter terrorism to final G20 joint statement but India made a strong pitch for it being a standalone document and being named as a Leaders' Statement, Panagariya said.
According to Panagariya, also the vice chairman of government think tank Niti Aayog, India also had a major influence on discussions about trade and investment, migration and among other key issues at the G20 Summit.
US ISOLATED
Panagariya brushed away questions about how the United States seemed to have been left isolated on climate change but said that India had reiterated its position that it will need time to eventually shift to fully clean fuel.
On US, German Chancellor Angela Merkel was more blunt, saying, "In the end, the negotiations on climate reflect dissent - all against the United States of America."
Under President Donald Trump, the US recently withdrew from the historic Paris Climate Accord, a move sharply criticised by the rest of the world.
Other countries, including those at G20 Summit, have said the Paris agreement is irreversible.
BROAD CONSENSUS, OTHERWISE
Except for the climate change issue where the US had a different position than others, Indian Sherpa Arvind Panagariya said there was a broad consensus on all other key issues among the G20 leaders, including on ways to revive global growth in an inclusive manner.
On international financial architecture also, the leaders resolved to make necessary quota reforms and to ensure proper representation, Department of Economic Affairs Secretary Tapan Ray said.
The issue of international cooperation on financial matters also got strong support and India contributed in a strong way on this agenda, said Ray, who led the Indian side on finance track of the G20 proceedings.
Panagariya said the negotiations on final communique took almost four times longer this time around, which may also be attributed to the change in governments in the US and some other member countries.
Besides, there were differences on some issues that took time to be ironed out, he added.
Panagariya said negotiations took a lot of time on issues like climate change, trade and investment and migration.
The communique this time also talks about reciprocity and non-discrimination when it comes to trade liberalisation, he noted.
Ray said there was a broad consensus among the G20 members on revival of global growth and the communique emphasises on structural reforms, inclusive growth and job creation.
Further, he said the G20 leaders agreed on implementation of the IMF quota reforms and of bringing a new quota formula by 2019 besides, stressing upon the international cooperation on tax matters and financial information.
India played a major role in getting the Group of Twenty (G20) to release a separate, standalone statement on terrorism, Indian Sherpa Arvind Panagariya said today.
Panagariya, who in his capacity as Sherpa is responsible for negotiating the agenda for G20 with representatives of other countries, also said discussions during the two-day summit were "cordial".
"There was no flying of objects in the room," Panagariya quipped, before saying, "We had cordial but tough discussions. It is a closed group and we all are friends here. But, that doesn't mean that being friends you will sacrifice national interest."
On the subject of the statement on counter terrorism, which was issued on Friday, Panagariya said that it was India who strongly pitched for a separate, standalone statement on terrorism.
Originally, there was a plan to put an annexure on counter terrorism to final G20 joint statement but India made a strong pitch for it being a standalone document and being named as a Leaders' Statement, Panagariya said.
According to Panagariya, also the vice chairman of government think tank Niti Aayog, India also had a major influence on discussions about trade and investment, migration and among other key issues at the G20 Summit.
US ISOLATED
Panagariya brushed away questions about how the United States seemed to have been left isolated on climate change but said that India had reiterated its position that it will need time to eventually shift to fully clean fuel.
On US, German Chancellor Angela Merkel was more blunt, saying, "In the end, the negotiations on climate reflect dissent - all against the United States of America."
Under President Donald Trump, the US recently withdrew from the historic Paris Climate Accord, a move sharply criticised by the rest of the world.
Other countries, including those at G20 Summit, have said the Paris agreement is irreversible.
BROAD CONSENSUS, OTHERWISE
Except for the climate change issue where the US had a different position than others, Indian Sherpa Arvind Panagariya said there was a broad consensus on all other key issues among the G20 leaders, including on ways to revive global growth in an inclusive manner.
On international financial architecture also, the leaders resolved to make necessary quota reforms and to ensure proper representation, Department of Economic Affairs Secretary Tapan Ray said.
The issue of international cooperation on financial matters also got strong support and India contributed in a strong way on this agenda, said Ray, who led the Indian side on finance track of the G20 proceedings.
Panagariya said the negotiations on final communique took almost four times longer this time around, which may also be attributed to the change in governments in the US and some other member countries.
Besides, there were differences on some issues that took time to be ironed out, he added.
Panagariya said negotiations took a lot of time on issues like climate change, trade and investment and migration.
The communique this time also talks about reciprocity and non-discrimination when it comes to trade liberalisation, he noted.
Ray said there was a broad consensus among the G20 members on revival of global growth and the communique emphasises on structural reforms, inclusive growth and job creation.
Further, he said the G20 leaders agreed on implementation of the IMF quota reforms and of bringing a new quota formula by 2019 besides, stressing upon the international cooperation on tax matters and financial information.
Restrictions, sporadic protests mark Burhan Wani death anniversary in Kashmir
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Jammu and Kashmir marked a year since Burhan Wani, the militant commander of Hizbul Mujahideen, was gunned down by security forces in an encounter. Strict curfew was imposed in his hometown Tral, including heightened police deployment.
Not taking any chances with law and order, security agencies and district administration imposed heavy restrictions through the day. Internet services were snapped across the valley through the day, as a precautionary measure against large scale planned protests.
Desolate streets, diverted routes, closed shops were a common sight across Srinagar city through Saturday. Downtown, which witnesses regular widespread protests, remained particularly under lockdown. India Today proceeded into the interiors of downtown, where areas under five police stations faced curfew-like-situation with absolutely negligible traffic movement. The Jamia mosque, specifically, was barricaded from all quarters and residents living in proximity were denied moving out.
Senior police officers from the JKP and CRPF were seen patrolling respective jurisdictions through the afternoon.
DIG CRPF, Srinagar (North), Narinder Paul spoke exclusively to India Today outside the Jamia mosque, stating, "A shutdown has been called by militants and hence security forces have been deployed at all sensitive locations. No large gathering is to be permitted and instructions for same were already sent out. Objective is for the day to pass off peacefully and even peace-loving Kashmiri people want the same." Ahead of the visit of DIG CRPF, even Inspector General of Jammu Kashmir police Muneer Ahmed Khan patrolled the area, which remains most sensitive since a cop Mohd. Ayub Pandith was lynched by a crowd at its doorstep on June 23. The street where the policemen was killed, specifically saw heightened deployment of uniformed men.
Restrictions through the day also caused inconvenience to many local residents. Though medical facilities remained accessible in most areas as hospital and chemist shops operated around Rainawari, ambulances crossing Lal Chowk were permitted to drive through only diverted routes.
Responding to this specific concern, the DIG added, "The restrictions are not for a long period. This is keeping in mind security measures and we are allowing the sick and elderly to reach hospital. Restrictions are for miscreants and not against common residents."
Sources close to senior officials maintain if Saturday passes off smooth, services will be resumed the next day. Separatist leadership remained under preventive custody, for now.
While no violence was reported from Srinagar, an attack took place at the army patrol party in Bandipora district's Hajin, resulting in injuries to three army jawans. The forces carried out a search and cordon operation in the area. The early morning attack meant the forces could not let the guard down at any given point through the next few days.
After Wani was neutralised last year, unrest had followed for about five months in and around Kashmir valley. Several were killed and many teenagers received grievous pellet and bullet injuries sparking outrage. Police force also reported casualties and faced threats from terrorists. Chief Minister Mehbooba Mufti and the alliance of BJP-PDP had to face severe criticism. This weekend remains a test for the state government and a possibility to bring back normalcy, after a year of continued violence and bloodshed.
Not taking any chances with law and order, security agencies and district administration imposed heavy restrictions through the day. Internet services were snapped across the valley through the day, as a precautionary measure against large scale planned protests.
Desolate streets, diverted routes, closed shops were a common sight across Srinagar city through Saturday. Downtown, which witnesses regular widespread protests, remained particularly under lockdown. India Today proceeded into the interiors of downtown, where areas under five police stations faced curfew-like-situation with absolutely negligible traffic movement. The Jamia mosque, specifically, was barricaded from all quarters and residents living in proximity were denied moving out.
Senior police officers from the JKP and CRPF were seen patrolling respective jurisdictions through the afternoon.
DIG CRPF, Srinagar (North), Narinder Paul spoke exclusively to India Today outside the Jamia mosque, stating, "A shutdown has been called by militants and hence security forces have been deployed at all sensitive locations. No large gathering is to be permitted and instructions for same were already sent out. Objective is for the day to pass off peacefully and even peace-loving Kashmiri people want the same." Ahead of the visit of DIG CRPF, even Inspector General of Jammu Kashmir police Muneer Ahmed Khan patrolled the area, which remains most sensitive since a cop Mohd. Ayub Pandith was lynched by a crowd at its doorstep on June 23. The street where the policemen was killed, specifically saw heightened deployment of uniformed men.
Restrictions through the day also caused inconvenience to many local residents. Though medical facilities remained accessible in most areas as hospital and chemist shops operated around Rainawari, ambulances crossing Lal Chowk were permitted to drive through only diverted routes.
Restrictions through the day also caused inconvenience to many local residents. Though medical facilities remained accessible in most areas as hospital and chemist shops operated around Rainawari, ambulances crossing Lal Chowk were permitted to drive through only diverted routes.
Responding to this specific concern, the DIG added, "The restrictions are not for a long period. This is keeping in mind security measures and we are allowing the sick and elderly to reach hospital. Restrictions are for miscreants and not against common residents."
Sources close to senior officials maintain if Saturday passes off smooth, services will be resumed the next day. Separatist leadership remained under preventive custody, for now.
While no violence was reported from Srinagar, an attack took place at the army patrol party in Bandipora district's Hajin, resulting in injuries to three army jawans. The forces carried out a search and cordon operation in the area. The early morning attack meant the forces could not let the guard down at any given point through the next few days.
After Wani was neutralised last year, unrest had followed for about five months in and around Kashmir valley. Several were killed and many teenagers received grievous pellet and bullet injuries sparking outrage. Police force also reported casualties and faced threats from terrorists. Chief Minister Mehbooba Mufti and the alliance of BJP-PDP had to face severe criticism. This weekend remains a test for the state government and a possibility to bring back normalcy, after a year of continued violence and bloodshed.
US isolated as eighteen G20 members join India to back Paris climate deal
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Eighteen G20 members joined India to strongly support the fight against global warming. The members termed the Paris climate deal as "irreversible", leaving the United States, which walked out of the pact, isolated.
Unfortunately, the US stand remains against the Paris pact but all other members have shown strong support on climate change, Angela Merkel, the German Chancellor, said.
She said the communique clearly mentioned the US dissent and the position of all other members. "Obviously it could not be a fully common position," Merkel told reporters. "All G20 members except the US agree that the Paris agreement is irreversible," she said.
US President Donald Trump announced in June to pull out of the Paris Agreement saying that it imposed 'no meaningful obligations on the world's leading polluters' naming India and China. Trump singled out India in particular.
Trump said, "India will be allowed to double its coal production by 2020. Think of it: India can double their coal production. We are supposed to get rid of ours."
Trump's decision drew sharp criticism from international leaders, business groups and green activists.
WHAT IS THE PARIS AGREEMENT?
Scientific studies, carried out over decades, show that the earth's average temperature has been increasing consistently. Carbon emissions have been identified as the principal cause of temperature rise, which if goes unchecked will bring doom to the blue planet.
World leaders have been attempting to find a way to minimise the use of carbon fuels, which are essential for development, particularly of the middle and low income group countries, which have not reached the stage of technological advancement to use non-carbon fuels at large scale.
In December, 2015 the world leaders gathered in Paris and after hectic parleys, an agreement was reached which set goals for each country to cut down on carbon emissions. The principle for fixing the targets was as such to fix accountability of the countries in order to their contribution to global warming leading to climate change.
More polluting countries were tasked to do more for reducing carbon emissions.
THE G-20 SUMMIT COMMINIQUE
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The leaders said they remained committed to fighting corruption, including through international cooperation and technical assistance.
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They also resolved to advance effective implementation of international standards on beneficial ownership in domestic and cross border context.
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The leaders also called for completion of the IMF quota reforms and a new quota formula by 2019.
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They acknowledged that the malicious use of information and communications technologies can endanger financial stability.
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The leaders said that digitalisation offered opportunity for creating new jobs but there was a need to impart necessary skills for the future of work.
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They also called for the removal of market distorting subsidies and sought global cooperation to tackle excess capacity in industrial sectors.
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The leaders recognised that legitimate trade defence instruments and will promote favourable environment for trade and investment.
-
They also committed to keep markets open and focus on reciprocity, non-discrimination, fight protectionism and unfair trade practices.
-
The grouping agreed to meet next in Argentina in 2018, followed by Japan in 2019 and in Saudi Arabia in 2020.
Eighteen G20 members joined India to strongly support the fight against global warming. The members termed the Paris climate deal as "irreversible", leaving the United States, which walked out of the pact, isolated.
Unfortunately, the US stand remains against the Paris pact but all other members have shown strong support on climate change, Angela Merkel, the German Chancellor, said.
She said the communique clearly mentioned the US dissent and the position of all other members. "Obviously it could not be a fully common position," Merkel told reporters. "All G20 members except the US agree that the Paris agreement is irreversible," she said.
US President Donald Trump announced in June to pull out of the Paris Agreement saying that it imposed 'no meaningful obligations on the world's leading polluters' naming India and China. Trump singled out India in particular.
Trump said, "India will be allowed to double its coal production by 2020. Think of it: India can double their coal production. We are supposed to get rid of ours."
Trump's decision drew sharp criticism from international leaders, business groups and green activists.
WHAT IS THE PARIS AGREEMENT?
Scientific studies, carried out over decades, show that the earth's average temperature has been increasing consistently. Carbon emissions have been identified as the principal cause of temperature rise, which if goes unchecked will bring doom to the blue planet.
World leaders have been attempting to find a way to minimise the use of carbon fuels, which are essential for development, particularly of the middle and low income group countries, which have not reached the stage of technological advancement to use non-carbon fuels at large scale.
In December, 2015 the world leaders gathered in Paris and after hectic parleys, an agreement was reached which set goals for each country to cut down on carbon emissions. The principle for fixing the targets was as such to fix accountability of the countries in order to their contribution to global warming leading to climate change.
More polluting countries were tasked to do more for reducing carbon emissions.
THE G-20 SUMMIT COMMINIQUE
- The leaders said they remained committed to fighting corruption, including through international cooperation and technical assistance.
- They also resolved to advance effective implementation of international standards on beneficial ownership in domestic and cross border context.
- The leaders also called for completion of the IMF quota reforms and a new quota formula by 2019.
- They acknowledged that the malicious use of information and communications technologies can endanger financial stability.
- The leaders said that digitalisation offered opportunity for creating new jobs but there was a need to impart necessary skills for the future of work.
- They also called for the removal of market distorting subsidies and sought global cooperation to tackle excess capacity in industrial sectors.
- The leaders recognised that legitimate trade defence instruments and will promote favourable environment for trade and investment.
- They also committed to keep markets open and focus on reciprocity, non-discrimination, fight protectionism and unfair trade practices.
- The grouping agreed to meet next in Argentina in 2018, followed by Japan in 2019 and in Saudi Arabia in 2020.
Nitish must break his silence on Tejaswi, its his agni-pariksha, says Sushil Modi
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BJP leader Sushil Modi has attacked Chief Minister Nitish Kumar for his studied silence over the CBI raids conducted at RJD boss Lalu Prasad's house on Saturday. The raids were a fallout of FIR registered by the Central Bureau of Investigations (CBI) against Lalu, wife Rabri Devi and son, deputy CM Tejaswi Yadav.
Modi questioned the chief minister's silence on Tejaswi Yadav's future after lodging of FIR.
"Nitish himself and his party spokespersons are all silent. He is in Rajgir at the moment and I am expecting that once he returns, he will sack Tejaswi from his cabinet," said Sushil Modi, senior BJP leader.
Citing the examples of how Nitish in the past has taken resignation of Jitan Ram Manjhi, Ram Nandan Singh, Awdhesh Kushwaha, Jamshed Ashraf and Ramadhar Singh -- all ministers in his cabinet in his first two tenure as CM, once corruption charges were leveled against them, Modi said it was the "agni pariksha" for the Bihar CM in the case of Tejaswi.
" After becoming Bihar CM, Nitish has sacked ministers on charges of corruption. He lost no time in doing so. When Nitish can take resignation from Ministers, what is holding him back from taking Tejaswi's resignation? Its agni-pariksha for the Chief Minister now," commented the former deputy CM.
Meanwhile, the security cover of Modi has been heightened after CBI raids took place at Lalu's residence. Though, he maintained that he did not require any extra security cover, he has been provided one after reviewing the threat perception on him.
"When I was not afraid of Lalu in 1996 when I exposed the fodder scam, times have changed now. Lalu is much weaker person now. I do not need security for myself," said Sushil Modi.
BJP leader Sushil Modi has attacked Chief Minister Nitish Kumar for his studied silence over the CBI raids conducted at RJD boss Lalu Prasad's house on Saturday. The raids were a fallout of FIR registered by the Central Bureau of Investigations (CBI) against Lalu, wife Rabri Devi and son, deputy CM Tejaswi Yadav.
Modi questioned the chief minister's silence on Tejaswi Yadav's future after lodging of FIR.
"Nitish himself and his party spokespersons are all silent. He is in Rajgir at the moment and I am expecting that once he returns, he will sack Tejaswi from his cabinet," said Sushil Modi, senior BJP leader.
Citing the examples of how Nitish in the past has taken resignation of Jitan Ram Manjhi, Ram Nandan Singh, Awdhesh Kushwaha, Jamshed Ashraf and Ramadhar Singh -- all ministers in his cabinet in his first two tenure as CM, once corruption charges were leveled against them, Modi said it was the "agni pariksha" for the Bihar CM in the case of Tejaswi.
" After becoming Bihar CM, Nitish has sacked ministers on charges of corruption. He lost no time in doing so. When Nitish can take resignation from Ministers, what is holding him back from taking Tejaswi's resignation? Its agni-pariksha for the Chief Minister now," commented the former deputy CM.
Meanwhile, the security cover of Modi has been heightened after CBI raids took place at Lalu's residence. Though, he maintained that he did not require any extra security cover, he has been provided one after reviewing the threat perception on him.
"When I was not afraid of Lalu in 1996 when I exposed the fodder scam, times have changed now. Lalu is much weaker person now. I do not need security for myself," said Sushil Modi.
After border standoff with China, India to invite all ASEAN heads to Republic Day parade next year
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While standoff between India and China over shared borders with Bhutan continues, reports suggest that Modi government is planning to host all Association of Southeast Asian Nations (ASEAN) on 69th Republic Day next year.
External Affairs Minister Sushma Swaraj, while speaking at the ninth edition of India-ASEAN Delhi Dialogue on Wednesday, had said that the efforts were being taken to strengthen the ties with ASEAN.
"We place ASEAN at the heart of our Act East Policy and centre of our dream of an Asian century. ASEAN and India are natural partners that share geographical, historical and civilisational ties," Sushma Swaraj had said.
"We have enhanced our engagement in South-East Asia. This was reflected in Prime Minister Narendra Modi's remarks in 2014 at the India-ASEAN Summit in Myanmar where he declared that India's 'Look East Policy' has become 'Act East Policy'," Swaraj added.
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam are the members of ASEAN.
Talking about the recently launched Goods and Services Tax, Swaraj lauded India's fast growing economy, and stressed on the areas that needs to be worked upon to build the relations between India and ASEAN.
This year marks 25 years of dialogue relationship, 15 years of summit level relations and five years of strategic partnership between India and ASEAN.
While standoff between India and China over shared borders with Bhutan continues, reports suggest that Modi government is planning to host all Association of Southeast Asian Nations (ASEAN) on 69th Republic Day next year.
External Affairs Minister Sushma Swaraj, while speaking at the ninth edition of India-ASEAN Delhi Dialogue on Wednesday, had said that the efforts were being taken to strengthen the ties with ASEAN.
"We place ASEAN at the heart of our Act East Policy and centre of our dream of an Asian century. ASEAN and India are natural partners that share geographical, historical and civilisational ties," Sushma Swaraj had said.
"We have enhanced our engagement in South-East Asia. This was reflected in Prime Minister Narendra Modi's remarks in 2014 at the India-ASEAN Summit in Myanmar where he declared that India's 'Look East Policy' has become 'Act East Policy'," Swaraj added.
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam are the members of ASEAN.
Talking about the recently launched Goods and Services Tax, Swaraj lauded India's fast growing economy, and stressed on the areas that needs to be worked upon to build the relations between India and ASEAN.
This year marks 25 years of dialogue relationship, 15 years of summit level relations and five years of strategic partnership between India and ASEAN.
Business Affairs
Cash-strapped Venezuela offers India's ONGC oil stake
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Cash-hungry Venezuela has offered Indian oil company ONGC Videsh, the overseas arm of state-owned explorer Oil and Natural Gas Corp (ONGC), an increased stake in an oil field, according to two sources close to the proposal, as the country seeks to shore up its bruised energy industry and strengthen ties with New Delhi.
State oil firm Petroleos de Venezuela SA has proposed selling a 9 percent stake in the San Cristobal field to ONGC Videsh, a subsidiary of India's state-owned top explorer Oil and Natural Gas Corp, the sources said this week.
ONGC Videsh already holds a 40 percent stake in the field, which produces around 22,000-23,000 barrels per day (bpd) of oil. While the amount of the sale would be relatively modest, according to analysts, any extra income would be welcome for PDVSA.
Venezuela, struggling under triple-digit inflation and Soviet-style product shortages as its socialist economy unravels, has been hit hard by the falling price of oil, its economic lifeline.
The OPEC nation's oil output has slipped and PDVSA is struggling to maintain investment in its oilfields, which hold the world's largest crude reserves.
The state company already offered Russian oil major Rosneft a stake in a joint venture in an extra-heavy crude project in the Orinoco Belt, sources told Reuters in March.
The sources, who asked to remain anonymous because they are not authorized to speak about the negotiations, said PDVSA was still negotiating with ONGC and no deal was certain.
Under Venezuela's hydrocarbon law, the state must maintain more than 50 percent of all oil ventures, hence PDVSA can only offer up to 9 percent to the Indian firm.
"ONGC is still evaluating the options," one of the sources said, adding the purchase could be challenging given the Indian company's revenues are suffering due to lower oil prices.
ONGC Videsh managing director N. K. Verma declined to comment. PDVSA did not immediately respond to a request for comment.
Legal Quandary
Another potential complication is Venezuela's murky legal framework during a power struggle between the opposition and the unpopular leftist government of President Nicolas Maduro.
A controversial decision by the Supreme Court in April gave the government the right to cut oil deals but the constitution mandates that the National Assembly, controlled by the opposition, must approve contracts of "national public interest."
Opposition lawmakers say oil deals which bypass the legislature are therefore null. They have been warning foreign companies away from what they say are firesale deals that throw a lifeline to Maduro's government.
"Any change to the shareholding structure of a joint venture should be approved by (congress)," wrote Jose Guerra, president of the congressional finance committee, in a message to Reuters.
Asked if such a change would be approved by the legislature, he responded "I don't think so. The government has refused to present those issues to (Congress)."
The business climate remains poor in the volatile and violent South American country, which is labouring under shortages of food and medicine. More than three months of protests have left at least 90 people dead.
Recent comments by a Socialist Party candidate about a new legislative superbody created by Maduro have also spooked some in the oil sector. Hermann Escarra, a constitutional lawyer, suggested during a speech at PDVSA that the future constituent assembly could rewrite parts of the constitution that allow joint ventures with foreign oil companies.
Still, as Maduro's government has no easy sources of financing beyond the oil sector, foreign oil companies stand to get a good price for assets on sale.
The second source said there was no clear figure for the potential deal, although a decision was expected this year.
Although it is tricky to estimate a price without full details, a 9 percent stake in San Cristobal could be worth $50 million to $100 million, estimated Luisa Palacios, senior managing director at Medley Global Advisors. She based her estimate on Rosneft paying $500 million to raise its stake in the Petromonagas joint venture last year.
The number is likely to be on the lower end of that range due to Venezuela's political turbulence and business climate, she added.
Boost to Bilateral Relations?
The potential deal could also help once closer relations between Caracas and New Delhi that have taken a hit as Venezuela's economy unravelled.
PDVSA spent at least a decade trying to build business ties and boost shipments to refineries in India.
But the Caracas-based company was forced to abandon the fight for coveted market share there because of its declining output and heavy obligations under oil-for-loan deals with China and Russia, a Reuters analysis showed in March.
Changing trade routes, triggered by rising shale oil production in the United States, turned New Delhi to cheaper oil from Africa and the Middle East.
Venezuela's downward spiral also hurt Indian oil companies, which are owed late dividends.
There are signs the situation may be improving, however.
After years of negotiations, PDVSA last year agreed to clear a pending dividend of $540 million on ONGC Videsh's investment in San Cristobal.
In return, the first source said, ONGC Videsh was now aiming to arrange a $325 million loan for development of the block this year.
Cash-hungry Venezuela has offered Indian oil company ONGC Videsh, the overseas arm of state-owned explorer Oil and Natural Gas Corp (ONGC), an increased stake in an oil field, according to two sources close to the proposal, as the country seeks to shore up its bruised energy industry and strengthen ties with New Delhi.
State oil firm Petroleos de Venezuela SA has proposed selling a 9 percent stake in the San Cristobal field to ONGC Videsh, a subsidiary of India's state-owned top explorer Oil and Natural Gas Corp, the sources said this week.
ONGC Videsh already holds a 40 percent stake in the field, which produces around 22,000-23,000 barrels per day (bpd) of oil. While the amount of the sale would be relatively modest, according to analysts, any extra income would be welcome for PDVSA.
Venezuela, struggling under triple-digit inflation and Soviet-style product shortages as its socialist economy unravels, has been hit hard by the falling price of oil, its economic lifeline.
The OPEC nation's oil output has slipped and PDVSA is struggling to maintain investment in its oilfields, which hold the world's largest crude reserves.
The state company already offered Russian oil major Rosneft a stake in a joint venture in an extra-heavy crude project in the Orinoco Belt, sources told Reuters in March.
The sources, who asked to remain anonymous because they are not authorized to speak about the negotiations, said PDVSA was still negotiating with ONGC and no deal was certain.
Under Venezuela's hydrocarbon law, the state must maintain more than 50 percent of all oil ventures, hence PDVSA can only offer up to 9 percent to the Indian firm.
"ONGC is still evaluating the options," one of the sources said, adding the purchase could be challenging given the Indian company's revenues are suffering due to lower oil prices.
ONGC Videsh managing director N. K. Verma declined to comment. PDVSA did not immediately respond to a request for comment.
Legal Quandary
Legal Quandary
Another potential complication is Venezuela's murky legal framework during a power struggle between the opposition and the unpopular leftist government of President Nicolas Maduro.
A controversial decision by the Supreme Court in April gave the government the right to cut oil deals but the constitution mandates that the National Assembly, controlled by the opposition, must approve contracts of "national public interest."
Opposition lawmakers say oil deals which bypass the legislature are therefore null. They have been warning foreign companies away from what they say are firesale deals that throw a lifeline to Maduro's government.
"Any change to the shareholding structure of a joint venture should be approved by (congress)," wrote Jose Guerra, president of the congressional finance committee, in a message to Reuters.
Asked if such a change would be approved by the legislature, he responded "I don't think so. The government has refused to present those issues to (Congress)."
The business climate remains poor in the volatile and violent South American country, which is labouring under shortages of food and medicine. More than three months of protests have left at least 90 people dead.
Recent comments by a Socialist Party candidate about a new legislative superbody created by Maduro have also spooked some in the oil sector. Hermann Escarra, a constitutional lawyer, suggested during a speech at PDVSA that the future constituent assembly could rewrite parts of the constitution that allow joint ventures with foreign oil companies.
Still, as Maduro's government has no easy sources of financing beyond the oil sector, foreign oil companies stand to get a good price for assets on sale.
The second source said there was no clear figure for the potential deal, although a decision was expected this year.
Although it is tricky to estimate a price without full details, a 9 percent stake in San Cristobal could be worth $50 million to $100 million, estimated Luisa Palacios, senior managing director at Medley Global Advisors. She based her estimate on Rosneft paying $500 million to raise its stake in the Petromonagas joint venture last year.
The number is likely to be on the lower end of that range due to Venezuela's political turbulence and business climate, she added.
Boost to Bilateral Relations?
Boost to Bilateral Relations?
The potential deal could also help once closer relations between Caracas and New Delhi that have taken a hit as Venezuela's economy unravelled.
PDVSA spent at least a decade trying to build business ties and boost shipments to refineries in India.
But the Caracas-based company was forced to abandon the fight for coveted market share there because of its declining output and heavy obligations under oil-for-loan deals with China and Russia, a Reuters analysis showed in March.
Changing trade routes, triggered by rising shale oil production in the United States, turned New Delhi to cheaper oil from Africa and the Middle East.
Venezuela's downward spiral also hurt Indian oil companies, which are owed late dividends.
There are signs the situation may be improving, however.
After years of negotiations, PDVSA last year agreed to clear a pending dividend of $540 million on ONGC Videsh's investment in San Cristobal.
In return, the first source said, ONGC Videsh was now aiming to arrange a $325 million loan for development of the block this year.
Taxmen can't visit shopkeeper's premises without authorisation
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No tax officer has been authorised to visit premises of traders and shopkeepers without prior permission and any deviation should be reported to a complaint helpline, the government said on Saturday.
The finance ministry came out with a clarification after reports suggested that some unscrupulous elements posing as GST officers have tried to fleece shopkeepers and customers in the name of GST.
The chief commissioner of GST (Delhi zone) has clarified that the tax department only wants to facilitate the process for shopkeepers and traders during the transition to the Goods and Services Tax (GST) regime.
"No officer of the department is authorised to visit the premises of traders and shopkeepers without authorisation," the ministry made it clear in a statement.
It also asked anyone facing any such problem to lodge a complaint on tax department's phone line, 011-23370115.
Separately, Finance Minister Arun Jaitley launched a mobile app 'GST Rates Finder'.
The app, available on the Android platform, helps users find out rates of GST for various goods and services. It can be downloaded on any smartphone and can work in offline mode as well, once downloaded.
"The user can determine the GST rate for a goods or a service by entering the name or the chapter heading of the commodity or service. The search result will list all the goods and services containing the name which is typed in the search box," the ministry statement added.
The user can scroll down the list of description and when any specific item on the list is clicked, the display window pops up, containing details such as GST rate, description of goods or services and the chapter heading of the Harmonised System of Nomenclature (HSN).
For example, any person who has been billed by a hotel or a restaurant or for footwear purchase can cross-verify the correctness of the rate of GST charged.
Also, the GST rate finder has been provided on the portal of the Central Board of Excise and Customs (CBEC). At the portal, a taxpayer can search for applicable CGST, SGST, UTGST rate and the Compensation Cess on a particular supply.
The search can be made based on description of goods or services or HSN Code or heading number.
"These initiatives are aimed to serve as a ready reckoner on GST rates. This will empower not only taxpayers, but every citizen of the nation to ascertain the correct GST rate on goods and services," the statement read.
No tax officer has been authorised to visit premises of traders and shopkeepers without prior permission and any deviation should be reported to a complaint helpline, the government said on Saturday.
The finance ministry came out with a clarification after reports suggested that some unscrupulous elements posing as GST officers have tried to fleece shopkeepers and customers in the name of GST.
The chief commissioner of GST (Delhi zone) has clarified that the tax department only wants to facilitate the process for shopkeepers and traders during the transition to the Goods and Services Tax (GST) regime.
"No officer of the department is authorised to visit the premises of traders and shopkeepers without authorisation," the ministry made it clear in a statement.
It also asked anyone facing any such problem to lodge a complaint on tax department's phone line, 011-23370115.
Separately, Finance Minister Arun Jaitley launched a mobile app 'GST Rates Finder'.
The app, available on the Android platform, helps users find out rates of GST for various goods and services. It can be downloaded on any smartphone and can work in offline mode as well, once downloaded.
"The user can determine the GST rate for a goods or a service by entering the name or the chapter heading of the commodity or service. The search result will list all the goods and services containing the name which is typed in the search box," the ministry statement added.
The user can scroll down the list of description and when any specific item on the list is clicked, the display window pops up, containing details such as GST rate, description of goods or services and the chapter heading of the Harmonised System of Nomenclature (HSN).
For example, any person who has been billed by a hotel or a restaurant or for footwear purchase can cross-verify the correctness of the rate of GST charged.
Also, the GST rate finder has been provided on the portal of the Central Board of Excise and Customs (CBEC). At the portal, a taxpayer can search for applicable CGST, SGST, UTGST rate and the Compensation Cess on a particular supply.
The search can be made based on description of goods or services or HSN Code or heading number.
"These initiatives are aimed to serve as a ready reckoner on GST rates. This will empower not only taxpayers, but every citizen of the nation to ascertain the correct GST rate on goods and services," the statement read.
Markets cheer GST: Sensex, Nifty soar 439 points this week, FMCG stocks rally
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The benchmark indices saw biggest weekly gain since late May, soaring 439.02 points to finish at 31,360.63, while broader Nifty snapped its three-week losing streak, garnering 144.90 points to close 9,665.80.
The week saw investors giving green signal to the Nation's new apparatus of tax regime the historic goods and Service tax, a sweeping tax reform that would give substantial edge over economy, while drawing big investment into the country, the GST push saw a sharp rally in in key FMCG stocks.
The domestic market endured the stumbling block created due to global scenario with consolidative momentum.
Despite profit-booking in key sectors, the index marked new record closing peak 31,369.34 on Thursday, amid optimism over Q1 earnings due next week and ample progress in monsoons so far.
Global markets turned negative following spurt in tensions on the Korean peninsula after North Korea launched long-range ballistic missile, also nervous of monetary-tightening remarks from key central banks.
However, the week's US Federal Reserve June meeting minutes which fuelled uncertainty on the rate hike, as the minutes witnessed lack of consensus to deal with the balance sheet and inflation, it underscored the FII capital outflows from emerging markets, bolstering domestic investors sentiment.
After opening the week at 31,156.04, it marked a peak of 31,460.70 and a low of 31,017.11 before closing the week at 31,360.63, showing a gain 439.02 points and 1.42 per cent.
The Nifty started the week at 9,587.95 and traded in the range of 9,700.70 and 9,543.55. The Nifty index finally closed at 9,665.80, up 144.90 points or 1.52 pct.
Barring IT sectors which saw selling, Buying was led by Realty, Metal, IPOs, FMCG, Oil&Gas, Auto, PSUs, HealthCare, Capital Goods, Bankex, Power, Consumer Durables and Teck sectors.
The secondline shares of midcap and smallcap companies also witnessed substantial buying activity.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 1,845.62 crore during the week, as per Sebi's record including the provisional figure of Jul 07.
The broader market also depicted strength. The S&P BSE Mid-Cap index jumped by 297.29 points or 2.03 per cent to settle at 14,941.77 and the S&P BSE Small-Cap index surged by 420.24 points or 2.73 per cent to settle at 15,830.76. Both these indices outperformed the Sensex.
Among sectoral and industry indices, realty rose by 5.54 per cent followed by Metal 3.41 per cent, FMCG 2.48 per cent, oil&gas 2.23 per cent, auto 1.76 per cent, healthcare 1.36 per cent, capital goods 1.25 per cent, bankex 0.84 per cent, power 0.27 per cent, consumer durables 0.11 per cent and teck 0.08 per cent.
While, IT was the sole losser, losing 0.48 per cent.
Among the 31-share Sensex pack, 23 stocks rose and remaining 8 stocks fell during the week.
Index heavyweight Reliance Industries jumped 8.01 per cent.
Lupin jumped 5.35 per cent at Rs 1,116.75. The company announced the launch of generic Vigamox Ophthalmic solution in the US. The company launched Moxifloxacin Hydrochloride Opthalmic Solution USP, 0.5 per cent (base) having received an approval from the United States Food & Drug Administration (USFDA).
It was followed by ITC 3.17 per cent, Maruti 2.93 per cent, Coal India 2.81 per cent, SBI 2.41 per cent, Adani Ports 2.32 per cent, M&M 2.04 per cent, Tata Steel 1.74 per cent and HUL 1.72 per cent.
While, Bajaj Auto fell by 2.96 per cent, Axis bank 2.48 per cent, Cipla 1.50 per cent, TCS 1.36 per cent and Sun Pharma 0.87 per cent.
The total turnover during the week on BSE and NSE rose to Rs 17,400.21 crore and Rs 1,14,537.79 crore, respectively, as against last weekend's level of Rs 14,555.61 crores and Rs 99,694.28 crores.
The benchmark indices saw biggest weekly gain since late May, soaring 439.02 points to finish at 31,360.63, while broader Nifty snapped its three-week losing streak, garnering 144.90 points to close 9,665.80.
The week saw investors giving green signal to the Nation's new apparatus of tax regime the historic goods and Service tax, a sweeping tax reform that would give substantial edge over economy, while drawing big investment into the country, the GST push saw a sharp rally in in key FMCG stocks.
The domestic market endured the stumbling block created due to global scenario with consolidative momentum.
Despite profit-booking in key sectors, the index marked new record closing peak 31,369.34 on Thursday, amid optimism over Q1 earnings due next week and ample progress in monsoons so far.
Global markets turned negative following spurt in tensions on the Korean peninsula after North Korea launched long-range ballistic missile, also nervous of monetary-tightening remarks from key central banks.
However, the week's US Federal Reserve June meeting minutes which fuelled uncertainty on the rate hike, as the minutes witnessed lack of consensus to deal with the balance sheet and inflation, it underscored the FII capital outflows from emerging markets, bolstering domestic investors sentiment.
After opening the week at 31,156.04, it marked a peak of 31,460.70 and a low of 31,017.11 before closing the week at 31,360.63, showing a gain 439.02 points and 1.42 per cent.
The Nifty started the week at 9,587.95 and traded in the range of 9,700.70 and 9,543.55. The Nifty index finally closed at 9,665.80, up 144.90 points or 1.52 pct.
Barring IT sectors which saw selling, Buying was led by Realty, Metal, IPOs, FMCG, Oil&Gas, Auto, PSUs, HealthCare, Capital Goods, Bankex, Power, Consumer Durables and Teck sectors.
The secondline shares of midcap and smallcap companies also witnessed substantial buying activity.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 1,845.62 crore during the week, as per Sebi's record including the provisional figure of Jul 07.
The broader market also depicted strength. The S&P BSE Mid-Cap index jumped by 297.29 points or 2.03 per cent to settle at 14,941.77 and the S&P BSE Small-Cap index surged by 420.24 points or 2.73 per cent to settle at 15,830.76. Both these indices outperformed the Sensex.
Among sectoral and industry indices, realty rose by 5.54 per cent followed by Metal 3.41 per cent, FMCG 2.48 per cent, oil&gas 2.23 per cent, auto 1.76 per cent, healthcare 1.36 per cent, capital goods 1.25 per cent, bankex 0.84 per cent, power 0.27 per cent, consumer durables 0.11 per cent and teck 0.08 per cent.
While, IT was the sole losser, losing 0.48 per cent.
Among the 31-share Sensex pack, 23 stocks rose and remaining 8 stocks fell during the week.
Index heavyweight Reliance Industries jumped 8.01 per cent.
Lupin jumped 5.35 per cent at Rs 1,116.75. The company announced the launch of generic Vigamox Ophthalmic solution in the US. The company launched Moxifloxacin Hydrochloride Opthalmic Solution USP, 0.5 per cent (base) having received an approval from the United States Food & Drug Administration (USFDA).
It was followed by ITC 3.17 per cent, Maruti 2.93 per cent, Coal India 2.81 per cent, SBI 2.41 per cent, Adani Ports 2.32 per cent, M&M 2.04 per cent, Tata Steel 1.74 per cent and HUL 1.72 per cent.
While, Bajaj Auto fell by 2.96 per cent, Axis bank 2.48 per cent, Cipla 1.50 per cent, TCS 1.36 per cent and Sun Pharma 0.87 per cent.
The total turnover during the week on BSE and NSE rose to Rs 17,400.21 crore and Rs 1,14,537.79 crore, respectively, as against last weekend's level of Rs 14,555.61 crores and Rs 99,694.28 crores.
Government launches GST Rate Finder app to end confusion about multiple tax slabs
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Finance Minister Arun Jaitley along with CBEC officials launched an app called the GST Rates Finder that will help traders and consumer find the GST rates for various commodities and services.
The app is available on the Google Play store and its description reads: 'A simple app to search through the various goods and services and their respective GST Rates and details. Search the entire list or respective categories of taxes for Goods and Services'.
The announcement was also tweeted by Law & Justice, Information Technology Minister of India, Ravi Shankar Prasad:
Multiple tax slabs for different goods and services have caused confusion among people. The aim of the app is to increase awareness of the GST rates. Over 55 per cent of the population of India is unaware about the GST, according to a survey by mobile news application Way2Online.
Meanwhile, today marks the third day of the GST Mater Class where Revenue Secretry Hasmukh Adhia along with other finance ministry experts address queries and provide knowledge of the GST to stakeholders, professionals and people at large. Further, over 500 FAQs related to GST are availble online at cbec.gov.in in Hindi, English and other 10 other regional languages.
Finance Minister Arun Jaitley along with CBEC officials launched an app called the GST Rates Finder that will help traders and consumer find the GST rates for various commodities and services.
The app is available on the Google Play store and its description reads: 'A simple app to search through the various goods and services and their respective GST Rates and details. Search the entire list or respective categories of taxes for Goods and Services'.
The app is available on the Google Play store and its description reads: 'A simple app to search through the various goods and services and their respective GST Rates and details. Search the entire list or respective categories of taxes for Goods and Services'.
The announcement was also tweeted by Law & Justice, Information Technology Minister of India, Ravi Shankar Prasad:
Meanwhile, today marks the third day of the GST Mater Class where Revenue Secretry Hasmukh Adhia along with other finance ministry experts address queries and provide knowledge of the GST to stakeholders, professionals and people at large. Further, over 500 FAQs related to GST are availble online at cbec.gov.in in Hindi, English and other 10 other regional languages.
Gold on retreat, loses Rs 250 after dollar clout grows
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Gold prices today followed the global trend by sliding Rs 250 to Rs 28,900 per 10 grams as a strong dollar dented the precious metal's demand amid a dwindling interest from local jewellers.
Silver also slipped below the Rs 38,000-level by falling Rs 800 to Rs 37,400 per kg due to reduced offtake by industrial units and coin makers.
Gold as a safe haven instrument lost its appeal globally after investors and speculators switched positions in favour of the US currency.
Besides, a fall in demand from local jewellers pushed down the metal prices even more.
Globally, gold fell by 1.04 per cent to USD 1,212.20 an ounce and silver by 2.84 per cent to USD 15.57 in New York yesterday.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs 250 each to Rs 28,900 and Rs 28,750 per 10 grams, respectively. It had gained Rs 220 yesterday.
Sovereign, however, remained unchanged at Rs 24,400 per piece of eight grams.
Following gold, silver ready dropped by Rs 800 to Rs 37,400 per kg and weekly-based delivery by Rs 920 to Rs 36,230 per kg.
Silver coins too plunged by Rs 1,000 to Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.
Gold prices today followed the global trend by sliding Rs 250 to Rs 28,900 per 10 grams as a strong dollar dented the precious metal's demand amid a dwindling interest from local jewellers.
Silver also slipped below the Rs 38,000-level by falling Rs 800 to Rs 37,400 per kg due to reduced offtake by industrial units and coin makers.
Gold as a safe haven instrument lost its appeal globally after investors and speculators switched positions in favour of the US currency.
Besides, a fall in demand from local jewellers pushed down the metal prices even more.
Globally, gold fell by 1.04 per cent to USD 1,212.20 an ounce and silver by 2.84 per cent to USD 15.57 in New York yesterday.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs 250 each to Rs 28,900 and Rs 28,750 per 10 grams, respectively. It had gained Rs 220 yesterday.
Sovereign, however, remained unchanged at Rs 24,400 per piece of eight grams.
Following gold, silver ready dropped by Rs 800 to Rs 37,400 per kg and weekly-based delivery by Rs 920 to Rs 36,230 per kg.
Silver coins too plunged by Rs 1,000 to Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.
General Awareness
RBI considering setting up Public Credit Registry in India
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Reserve Bank of India (RBI) is considering setting up a public credit registry in India to address the twin balance sheet problem of the banking sector and the corporate sector. RBI Deputy Governor Viral Acharya highlighted the need to set up a public credit registry while delivering the theme talk at the 11th Statistics Day Conference. Reserve Bank celebrated its ‘11th Annual Statistics Day Conference’ on July 04, 2017 on the Theme ‘New Frontiers on Statistical Methods and Information Base for Central Banks’.
What is Public Credit Registry?
According to the World Bank Doing Business Project, “Public credit registry coverage reports the number of individuals and firms listed in a public credit registry with current information on repayment history, unpaid debts, or credit outstanding. The number is expressed as a percentage of the adult population.”
- Public Credit Registry is managed by a public authority like the central bank or the banking supervisor, and reporting of loan details to the registry by lenders and/or borrowers is mandated by law.
- It is different from Credit Information bureau which is privately owned and caters to the information requirements of commercial lenders. While a public credit registry data are geared towards use by policymakers, regulators, and other officials.
Expected Benefits from Public Credit Registry:
Acharya mentioned that public credit registry will help RBI in effectively monitoring delinquencies in credit market and intervene at an early phase.
- It will bring in efficiency in the credit market by helping the lenders in appraisals and monitoring of the loan portfolio.
- The registry will also help the cause of financial inclusion of the small businesses and individuals by allowing them to establish their reputation via the registry.
- Based on available details of collaterals, the registry can enable the writing of contracts that prevent over-pledging of collateral by a borrower.
Quick Facts – Reserve Bank of India (RBI):
- Established in: 1935
- Headquarters: Mumbai
- Current Governor: Urjit Patel
Reserve Bank of India (RBI) is considering setting up a public credit registry in India to address the twin balance sheet problem of the banking sector and the corporate sector. RBI Deputy Governor Viral Acharya highlighted the need to set up a public credit registry while delivering the theme talk at the 11th Statistics Day Conference. Reserve Bank celebrated its ‘11th Annual Statistics Day Conference’ on July 04, 2017 on the Theme ‘New Frontiers on Statistical Methods and Information Base for Central Banks’.
What is Public Credit Registry?
According to the World Bank Doing Business Project, “Public credit registry coverage reports the number of individuals and firms listed in a public credit registry with current information on repayment history, unpaid debts, or credit outstanding. The number is expressed as a percentage of the adult population.”
- Public Credit Registry is managed by a public authority like the central bank or the banking supervisor, and reporting of loan details to the registry by lenders and/or borrowers is mandated by law.
- It is different from Credit Information bureau which is privately owned and caters to the information requirements of commercial lenders. While a public credit registry data are geared towards use by policymakers, regulators, and other officials.
Expected Benefits from Public Credit Registry:
Acharya mentioned that public credit registry will help RBI in effectively monitoring delinquencies in credit market and intervene at an early phase.
- It will bring in efficiency in the credit market by helping the lenders in appraisals and monitoring of the loan portfolio.
- The registry will also help the cause of financial inclusion of the small businesses and individuals by allowing them to establish their reputation via the registry.
- Based on available details of collaterals, the registry can enable the writing of contracts that prevent over-pledging of collateral by a borrower.
Quick Facts – Reserve Bank of India (RBI):
- Established in: 1935
- Headquarters: Mumbai
- Current Governor: Urjit Patel
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