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The rupee hits a one-week high of 61.94 in opening deals, its highest since 2 January. Currently, the pair trading at 61.98/99 versus its close of 62.07/08 on 9 January, tracking broad losses in the dollar versus other majors.USD/INR seen moving in a range of 61.80 to 62.20 in the first half of the session and then monitor shares for direction. The Sensex is down 0.2 per cent.Asian currencies trading mostly stronger compared with the dollar. The index of the dollar against six major currencies down 0.11 per cent.(Reuters)
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A $50 billion swap line between Indian and Japan is effective from 10 January, the Reserve Bank of India said.The agreement, which will be valid till 3 December, 2015, aims at addressing any short-term liquidity difficulties.The swap line was initially at $15 billion and following the exchange rate crisis in the summer both the countries entered into a pact to expand the line.(Reuters)
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Senior Indian diplomat Devyani Khobragade was on Thursday (9 January) indicted for visa fraud and making false statements by a grand jury which held that the charges against her will remain even as she headed back to India after being accorded full diplomatic immunity.The charges against 39-year-old Khobragade will remain and she will have to face trial, if she returns to the US without diplomatic immunity, US Attorney Preet Bharara said in a letter to District Judge Shira Scheindlin.Bharara said the grand jury has indicted the diplomat on two counts of visa fraud and making false statements in connection with the visa application of her domestic help Sangeeta Richard."There will not need to be an arraignment on the Indictment scheduled at this time. We understand that the defendant was very recently accorded diplomatic immunity status," Bharara said in his letter."Therefore, the charges will remain pending until such time as she can be brought to Court to face the charges, either through a waiver of immunity or the defendant's return to the United States in a non-immune status. The time between now and the time that she is able to be brought before the Court is excluded automatically under the Speedy Trial Act, pursuant to Title 18, United States Code, Section 3161(h)(3) (A), which provides for the exclusion of any period of delay resulting from the unavailability of the defendant," he said."The charges against me are false and baseless. I look forward to proving them wrong," Khobragade told PTI as she boarded the plane back to India.She also affirmed her determination to ensure that this episode does not leave a lasting imprint on her family, in particular her children who are still in the US.Khobragade was granted full diplomatic immunity on January 8 under the India-US Headquarters agreement.On January 9, the US request for waiver of diplomatic immunity to Khobragade was refused by India.A 1999-batch IFS officer, Khobragade, was arrested on December 12 on charges of making false declarations in a visa application for her maid. She was released on a $250,000 bond.The diplomat was strip searched and held with criminals, triggering a row between the two sides with India retaliating by downgrading privileges of certain category of US diplomats.Khobragade's lawyer Daniel Arshack said since she has been accorded diplomatic immunity, she can travel outside the country and was returning to India."As a result of her diplomatic status having been recognised, the Federal court today recognised Khobragade?s right to travel and she is pleased to be returning to her country. Her head is held high. She knows she has done no wrong and she looks forward to assuring that the truth is known," Arshack told PTI.He said Khobragade denies the "baseless" charges brought by the federal prosecutor Bharara's office and "looks forward to providing the proof that over and over the investigators and prosecutors in this case have been sloppy and wrong."He said Khobragade did not make any false statements and she paid her domestic worker what she was entitled to be paid."Although the domestic (worker) came to work here on a short term contract which required her to return to India at the end of her employment as a result of the false claims and shoddy investigation, she and her family now enjoy permanent residency in the United States," he said."The investigators in this case made serious errors as result of not fully investigating the facts. We look forward to providing the evidence of their blunders," Arshack added.The 21-page indictment said that Khobragade did not want to pay the "victim", her domestic worker Richard, the required wages under US law or provide her with other protections against exploitative work conditions mandated by US law, which are "widely publicised to foreign diplomats and government officials.The indictment said Khobragade filed a $4500 amount as monthly income in the visa application of Richard. It said the $4500 figure did not match "any actual income figure"."It was neither the agreed-upon monthly wages that Khobragade had agreed to pay the victim (about $573 per month) nor the victim's monthly wage that Khobragade falsely represented to the US embassy through the fraudulent employment contract... Nor did the $4500 figure reflect Khobragade's monthly income, which was considerably higher given her salary, cost of living stipend, and income from her real estate holdings in India."It said Khobragade entered into a "fake employment contract" with Richard and told her that it was a "mere formality" in order to get the visa and she "coached" Richard to lie to the US official in her visa interview at the US Embassy in New Delhi. ."These steps included taking legal action and causing the victim's family to be contacted by law enforcement relative 1 and others in India," the indictment said."The Government respectfully writes to advise the Court that earlier today, the grand jury voted on and returned the enclosed indictment charging Devyani Khobragade, the defendant, in two counts with visa fraud and making false statements in violation of Title 18, United States Code, Sections 1546, 1001, and 2," Bharara said."In this case, the defendant is unavailable because her 'whereabouts are known but (her) presence for trial cannot be obtained by due diligence or (she) resists appearing at or being returned for trial'," he said.Bharara made it clear that Khobragade will be prosecuted if she returns to the US without diplomatic immunity."We will alert the Court promptly if we learn that the defendant returns to the US in a non-immune capacity, at which time the Government will proceed to prosecute this case and prove the charges in the Indictment," he added.After the row broke out, Khobragade was transferred to India's Permanent Mission to the UN. Following her arrest, her passport was kept in court's custody.Once the UN accreditation was granted that gave her the full diplomatic immunity, the US immediately requested India to waive this immunity so that she can be tried in a US court."The US requested waiver of immunity (of Khobragade).India denied that request," a US government official told PTI."We then requested her departure, as per the standard procedure and the charges remain in place," the official added.(Agencies)
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Reliance Industries, which operates the Krishna-Godavari basin's D6 block off the east coast, has started producing gas from the MA-8 well on 1 January, its spokesman said on 9 January.The well has potential to produce 1 million to 2 million standard cubic metres per day (mscmd) of gas from the well and the output is expected to stabilise by the middle of the month, the Reliance official said.Reliance is currently producing about 10 mscmd gas from the KG D6 block, sharply lower from the 60 mscmd production at the end of 2010. Reliance and partner BP have cited geological complexities for the fall in output but the oil regulator believes they have failed to drill enough wells.Falling output had already prompted the government to disallow proportionate cost recovery to Reliance, leading to arbitration proceedings over the issue.Last month, India allowed Reliance to charge higher prices for gas from April only after the company offered financial guarantees to the government to settle any claims against it over a shortfall in its gas output.(Reuters)
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Inflation will moderate in the coming months but the country would need to bridge the demand-supply gap of essential food items to keep prices under check in the long run, said Economic Affairs Secretary Arvind Mayaram."Inflation will be a problem. We believe inflation in immediate future will come down marginally, but in the long run if we need to go down to the low single digit inflation numbers, we will have to continue to work towards increasing production and improving the logistics for movement of vegetables," he told PTI.WPI inflation rose to a 14-month high of 7.52 per cent, while the retail inflation was in double digits at 11.24 per cent in November. The rise in inflation can be attributed mainly to price rise in vegetables and protein-rich items."There is in-elasticity of demand in terms of price as far as food is concerned," he said adding there was an urgent need to amend the Agricultural Produce Market Committee (APMC) Act.He said the APMC Act is "now beginning to hurt" by restricting movement and dissemination of food and cereals.The food distribution needs to be more open and market oriented, he said.Citing statistics, Mayaram said spurt in demand for food products, driven by improvement in living standards, is also adding to inflationary pressure.Giving example of egg consumption, he said it has increased from 18 per person per annum in 1993-94 to 33 eggs per person in 20 years time."It also indicates that there is now a supply demand gap which needs to be met and therefore a large number of steps have been taken by the government."Of course there is a lag, we will see its reflection in next 2-4 years but we will have to continue to work towards increasing the production and creating the right kind of agri infrastructure for the movement of fruits, vegetables and eggs," Mayaram said.(PTI)
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A federal judge has denied a request by a lawyer for Indian diplomat Devyani Khobragade to delay proceedings in a visa fraud case that has strained relations between the United States and India.In an order issued on Wednesday, US Magistrate Judge Sarah Netburn in Manhattan refused to extend the 13 January deadline by which a preliminary hearing must be held or an indictment filed in the case.In asking Netburn on 6 January to extend the deadline, Khobragade's lawyer, Daniel Arshack, said it was negatively interfering with plea negotiations with the government.But Netburn ruled that Arshack had only sought a delay of the preliminary hearing and that such an extension would not alter the deadline for filing an indictment.Arshack said he and his client are considering their options.Preet Bharara, the US Attorney in Manhattan, whose office is handling the case, opposed the delay, arguing that plea discussions can continue following indictment in the case.A spokeswoman for Bharara's office did not immediately return a message seeking comment.Khobragade, who was deputy consul-general in New York, was arrested on Dec. 12 and charged with one count of visa fraud and one count of making false statements about how much she paid her housekeeper.Her arrest enraged India, which is demanding that all charges be dropped against her. On the day of her arrest, she was strip searched. The arresting authority, the US Marshals Service, said the strip search was a routine procedure imposed on any new arrestee at the federal courthouse.Khobragade was released on $250,000 bail.Since Khobragade's arrest, India asked to transfer her to the United Nations, a move that would give her diplomatic status. (Reuters)
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The rupee was trading lower at 62.23/24 compared to its close of 62.07/08 on 8 January tracking broad gains in the dollar versus major currencies.USD/INR seen moving in a range of 62.05 to 62.45 during the session. The Sensex was down 0.2 per cent in early trade and will be monitored for cues on foreign fund flows during the day.Asian currencies trading mixed compared to the dollar. (Reuters)
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The Supreme Court on Wednesday (8 January, 2014) said huge investment made by companies in coal blocks without getting clearance cannot be a ground for not cancelling licences and asked the Centre to respond whether it intends to de-allocate such allocations.A three-judge bench headed by Justice R L Lodha said that the companies which invested money on blocks without getting all clearances took the decision at their own risk."They (companies) must suffer consequences no matter how much investment has been made by them. The alleged illegality cannot be compounded," the bench said when the Attorney General contended that around Rs two lakh crore has been invested in such blocks and it will be difficult to cancel the licence for want of clearances."All such investments would go in drain and it cannot be a defence and no law would help them," the bench said.The apex court said any investment made in anticipation of clearances cannot be justified and such blocks cannot be protected if the companies fail to get clearances within a time frame fixed under the law."Such investments are made at their own risk if their rights have not matured. All such investments would be unauthorised," the bench said.The court asked the Centre to respond whether it intends to de-allocate such allocations.Meanwhile, in an embarrassment to the Centre, Maharashtra which is a Congress-ruled state also submitted before the apex court that coal blocks allocation is "entirely controlled and regulated" by the Union of India and the state government is just a subordinate party.The state government's stand assumes significance as it virtually puts the blame on the Centre for the alleged irregularities in the coal blocks allocation and contradicted the stand taken by Attorney General G E Vahanvati who had contended that Centre's role is confined just to identification of coal block.Andhra Pradesh Government also took a stand similar to Maharashtra. West Bengal, Madhya Pradesh, Jharkahand, Odisha and Chhatisgarh had earlier told the apex court that they played a minimal role in coal blocks allocation and had squarely blamed the Centre for alleged irregularities in coal blocks allocation.Odisha government had also submitted that the central government had exercised "pervasive control" in allocation of coal blocks and framed its own guidelines for it."The allocation of coal blocks was made by the central government from 1993 to 2012 by evolving its own mechanism by constituting a screening committee which framed its own guidelines and also followed the guidelines framed by the Ministry of Coal from time to time," the Odisha's counsel had said.West Bengal and Madhya Pradesh had also said they were merely following the Centre's directions.The apex court had sought responses from seven mining states-- Madhya Pradesh, Andhra Pradesh, Odisha, Jharkhand, Maharashtra, Chhattisgarh and West Bengal-- after it had observed that the Centre was giving "contradictory" stands on allocations.The Centre had earlier termed allocation by it as just an exercise of identification of blocks and at the most a letter of intent given to the companies by it.The Attorney General had in September 2013, submitted that coal blocks allocation was merely a letter of intent and does not confer any right to the companies over the natural resource which is decided by the state government.He had contended that decision of coal block allocation to companies is only the first stage and firms get rights over coal only when they start mining for which they have to take various clearances.The court is scrutinising coal block allocation since 1993 on three PILs seeking cancellation of blocks on the ground that rules were flouted in giving away the natural resources and that certain companies were favoured in this process.(PTI)
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On the outskirts of Dhaka, Babylon Garments has shortened work shifts to eight hours from the usual 10 and plans to shutter production lines as months of election-related violence disrupts transport and prompts global retailers to curb orders.The company, which supplies shirts, trousers and other apparel for global retailers including Wal-Mart Inc, is one of the biggest players in Bangladesh's $22 billion garment industry that has seen orders cut nearly in half in the last three months - the worst drop in two decades, according to the Bangladesh Garment Manufacturers & Exporters Association (BGMEA)."December is usually a season when we are packed with orders to a point where we can't take any more but look at this year - it's a completely different story," said Muhammad Saiful Hoque, assistant general manager of Babylon Garments, as workers sewed checked shirts for British-based Tesco Plc.Industry officials say the unrest in the run-up to Sunday's disputed election has been worse for business than the April collapse of Rana Plaza, an illegally built factory in which more than 1,100 workers were killed in a disaster that prompted calls for safer working conditions and more accountability on the part of the global retailers that buy Bangladesh's clothing exports.The disruption to Bangladesh's garment industry, the world's second biggest after China, as well as a shutdown by striking garment workers in Cambodia, another big supplier, means global retailers face a supply squeeze.Garment orders are typically placed at least three months in advance."The impact won't be immediately felt but the delay in shipping finished orders will hurt the global retail market around June," said Shahidullah Azim, vice president of the BGMEA, which says up to $1 billion in orders are at risk in the coming weeks if the situation does not improve.A Wal-Mart spokesman said the country sources from more than 70 countries, which allows it to plan for any potential supply chain interruptions. He said he was not aware of any issues related to developments in Bangladesh and Cambodia.Michael J. Silverstein, a senior partner with the Boston Consulting Group based in Chicago, said Bangladesh is a critical supplier of clothing for world markets and too large to replace."The majority of the customers believe Bangladesh will not go dark, for example stop shipping," he said. "They do believe there will be delays and a need for alternative supplies."Crucial IndustryBangladesh's garment industry accounts for 80 per cent of the country's exports and is so important to the economy that it has typically been spared from the political unrest that periodically racks the South Asian nation, even though many textile tycoons are politically active.Several factory owners are members of parliament, representing either the ruling Awami League or the opposition Bangladesh Nationalist Party (BNP), which boycotted the poll in protest at Prime Minister Sheikh Hasina's refusal to hand power to a neutral caretaker government to oversee the vote.More than 100 people were killed in clashes ahead of the election, with the unrest accompanied by roadblocks that have pushed up transport costs by 10 to 20 per cent, according to the BGMEA - a worry for an industry that operates on wafer-thin margins and needs to keep costs low to be competititve.The unrest had shown no signs of abating since Sunday's poll, with seven people killed in further violence on Monday and one reported death on Tuesday, during a 48-hour strike called by the opposition after the poll.AKH Group, a large supplier that produces for H&M Hennes & Mauritz AB, Marks & Spencer Plc and Fast Retailing's Uniqlo, said it was becoming nearly impossible to meet delivery commitments."Trucks are stuck on the roads for days and there is very little you can do about it other than somehow pay through the roof to get them going," AKH Group's Deputy Managing Director Abul Kashem said.Some shipments are costing the company as much as 1 million taka ($13,000), compared with the 20,000-30,000 taka it usually takes to send the same truckloads, as transport costs have surged due to roadblocks across the country, Kashem said.Buyers have cut orders by 25 per cent on average and H&M, one of AKH's biggest clients, has cut its orders by 30 per cent, he said. H&M, however, said it had not cut orders with AKH by 30 per cent, and so far has not been affected by the unrest.The reason for the discrepancy was not immediately clear, although supply chains in Bangladesh are often complex, involving a series of buyers and middlemen.Analysts at Morningstar said in a note that H&M had protected itself well from potential disruptions by using a large number of manufacturers and ordering in small batches.A Marks & Spencer said the British high street stalwart was closely watching the situation in Bangladesh and Cambodia, but had not reduced orders and at this stage did not anticipate any effect on supplies. A Uniqlo spokesman said the company had not reduced production or orders from Bangladesh.Lost OrdersNeighbouring India has taken most of the orders that have been lost, while the rest have gone to Pakistan and China, according to data from the BGMEA."Rana Plaza dealt a heavy blow to the reputation of this country but that still didn't impact the confidence of buyers and inflow of orders the way the recent crisis has," said Babylon's Hoque.Babylon's production of shirts fell to 750,000 pieces in December from 850,000 in the same period last year, and was expected to fall below 700,000 by February due to the lack of demand, he said.Of the 12 large retailers Babylon supplies, seven or eight were placing orders in reduced quantities, while the rest have completely stopped, he said.If deliveries are late, the supplier must pay compensation, said Rubana Huq, managing director of Mohammadi Group, which supplies Wal-Mart, H&M, Inditex's Zara and others."I have just paid 12,000 euros to a client. Our goods were three weeks late. I couldn't afford not to," she said.Inditex declined comment on the situation in Bangladesh.With as much as half of capacity idle at big factories, small manufacturers who make up a third of the industry and largely rely on subcontracted orders from bigger suppliers are especially vulnerable.Turja Apparel, a small garment factory in Dhaka, has no orders after Jan. 20 and owner Kazi Babul was not hopeful he would get new ones until the political situation stabilises.He said he may shutter his factory for now."Small factory owners have suffered heavily after the Rana Plaza collapse as no one wants to give us orders, and now the political situation has taken away the little that we were getting." (Reuters)
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The rupee is trading at 62.20/21 versus its close of 62.30/31 on 7 January, tracking gains in Asian stocks and currencies.Asian markets got a hand up on 8 January after strong trade data boosted expectations for US growth while a lessening of sovereign strains in Europe lifted stocks there to the highest since 2008.Almost all Asian currencies trading stronger versus the dollar.(Reuters)
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