Kudankulam plant safe: Kalam

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The Hindu I AM NOT AN EMISSARY: Former President A.P.J. Abdul Kalam, who visited the Kudankulam nuclear project on Sunday, said he would not be a mediator between the nuclear establishment and those opposing the plant. Here, he addresses journalists at Kudankulam in Tirunelveli district of Tamil Nadu. Photo: A. Shaikmohideen 

The former President, A.P.J. Abdul Kalam, on Sunday visited the Kudankulam Nuclear Power Project (KKNPP) and asserted that there was no need for any panic as it had state-of-the-art safety features.

At the same time, Mr. Kalam made it clear that he had not come as an emissary of the Union government and would not be a mediator between the nuclear establishment and protesters opposing the plant.

“I am completely satisfied and happy with the sophisticated safety features of the reactors and hence there is no need for panic since it's only a boon to the future generation,” he told journalists here after inspecting the reactors for over an hour.

Mr. Kalam said the visit was out of his own interest. He sought to dispel the impression that the Centre had sent him to neutralise the ongoing protest. He met a group of KKNPP supporters in the afternoon, and said he was prepared to meet the protesters' representatives also.

 

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“However, I won't be a mediator since I am not the Centre's emissary. I'm a scientist, I'm a technologist. I support nuclear energy along with solar and wind power as it is a clean and green energy which is very much required for the country's rapid growth now… ” The two 1,000-MWe VVER reactors are being constructed at Kudankulam with Russian assistance at an outlay of Rs. 13,171 crore.

The former President said structural and the mechanical safety systems made the reactors the safest in the nuclear industry across the globe.

The reactors, placed at a secure height of over 13.50 metres, would not be affected even by a tsunami. Nor would an earthquake threaten them, as Kudankulam was not within any seismic zone. “The scientists have taken into account all these natural calamities before designing and fabricating it,” he noted.

While 99 per cent of the spent fuel would be processed for reuse in the reactors, the remaining one per cent would be converted and protected within a thickly walled underground concrete containment. “No waste from the reactor will be dumped in the sea,” Mr. Kalam said.

Nuclear Power Corporation Chairman and Managing Director S.K. Jain and KKNPP Site Director M. Kasinath Balaji were present during Mr. Kalam's press conference.

Protesters disappointed

However, those opposing the project expressed disappointment and anguish over his unequivocal support for the nuclear plant. The post-Fukushima scenario had opened up a global debate on the credibility of reactors. Even as many countries were taking steps to scrap their nuclear programmes, it was sad that a renowned scientist like Mr. Kalam was backing the project, they said.

“We expected that Mr. Kalam will visit those protesting against the plant and those on fast. However, after interacting with a team of KKNPP supporters, he left Kudankulam without coming to our place [the protest venue at Idinthakarai],” said S.P. Udhayakumar, coordinator of the struggle committee.

On Mr. Kalam's assertion that the safety features incorporated in the reactors were satisfactory, Dr. Udhayakumar said Belgium had decided to close down seven reactors after realising the risks involved in nuclear programmes.

The KKNPP “will certainly wipe out several southern districts of Tamil Nadu and neighbouring Kerala in case of any mishap,” he claimed.

Six Ministers replaced

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The Hindu New faces in the Tamil Nadu Cabinet: (clockwise from top left) S. Damodaran, R. Kamaraj, S. Sundararaj, Rajenthra Bhalaji, V. Moorthy and M. Paranjothi. File photos

The first major shuffle of the All India Anna Dravida Munnetra Kazhagam (AIADMK) Ministry was announced on Friday with the change in the portfolios of a couple of senior Ministers, removal of six Ministers and the induction of six fresh faces.

Agriculture Minister K.A. Sengottaiyan, ranked third in the order of Ministers, no longer holds the portfolio. Instead, he has been given Information Technology.

The other senior Minister M.C. Sampath, who was in charge of Special Programme Implementation, will now look after Rural Industries and Nutritious Noon Meal, the last of which was till now with Social Welfare Minister Selvi Ramajayam. The subjects of two other Ministers, T.K. Chinnayya and B.V. Ramanaa, have been changed. Mr Chinnayya, who was holding the portfolio of Environment, will take care of Animal Husbandry, while Mr Ramanaa has been re-designated as Environment Minister.

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The axed Ministers were Rural Industries Minister C. Shanmugavelu, IT Minister R.B.Udhayakumar, Hindu Religious and Charitable Endowments (HR & CE) Minister S.P. Shanmuganathan, Animal Husbandry N.R.Sivapathi, Information and Law Minister G. Senthamizhan and Food Minister Budhichandhiran. A press release issued by the Raj Bhavan stated that Governor K. Rosaiah approved the dropping of the Ministers on the advice of Chief Minister Jayalalithaa. Those who will be inducted are S. Damodaran, three-time Member of Legislative Assembly from Kinathukadavu (Coimbatore District); R. Kamaraj, the ruling party's Tiruvarur district secretary and MLA from Nannilam; S. Sundararaj, two-time MLA from Paramakudi (Ramanathapuram); M. Paranjothi, two-time MLA and who has recently won from the Tiruchi (West) constituency; V. Moorthy, Madhavaram MLA and K.T. Rajenthra Bhalaji, Sivakasi MLA of the Virudhunagar District.

Mr. Damodaran has been given the portfolio of Agriculture; Mr. Kamaraj, the subject of Food, Civil Supplies, Consumer Protection and Price Control. Dr. Sundararaj will handle Handlooms and Textiles; Mr. Paranjothi – HR & CE, Law, Personnel and Administrative Reforms and Prevention of Corruption; Mr. Moorthy – Milk and Dairy Development and Mr. Bhalaji – Information and Special Programme Implementation.

KNPP designed to withstand natural & man made disasters

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Vouching for the safety of power units in the Kudankulam Nuclear Power Project, its top officials on Thursday said they were designed to withstand any natural disaster, including earthquakes and Tsunamis.

“The power units in Kudankulam are designed to withstand an earthquake measuring 6 on the Richter scale… In case of a Tsunami threat, we have designed the plant after analysing data for over 100 years,” Kudankulam site Director M. Kasinath Balaji told reporters here.

The plant can withstand even ‘man-made disasters’, he said pointing out that even before 9/11 (terror attack) in the U.S., such a possibility was envisaged for the Kudankulam project in 1997 and necessary steps were incorporated.

Station Manager R.S. Sundar said that there was “nothing abnormal” going on in the Indo-Russian venture and there was “no question of danger to the public.”

Acknowledging the initial communication gap between the scientists and locals there, Mr. Balaji said, “We learnt a lesson in a bitter way” and hoped the “impasse” will be cleared soon.

Mr. Balaji said ongoing protests by locals demanding scrapping of the project was “badly affecting” work at Unit 1, which was earlier scheduled to commence operation by December.

A seven-member committee under the chairmanship of R.S. Sundar will make short films on safety measures taken in the plant and carry the message to public in that area, he said.

Asked why countries like Germany have now taken an anti-nuclear stand, Mr. Sundar said that country plans to stop its nuclear plants only by 2022, while there are 433 reactors in operation in the world.

He also said 65 reactors were being constructed across the world, with 27 of them being constructed in China.

“If we take an anti-nuclear stand, it will adversely affect the country’s development,” Mr. Sundar said.

The Indo-Russian joint venture in Thirunelveli district has run into rough weather following protests from locals demanding scrapping of the project, citing safety concerns.

The assurances by scientists, State government and Prime Minister Manmohan Singh regarding safety aspects have not succeeded in mollifying the protesters to call off their stir, which has caused a stand off, upsetting the scheduled commissioning of the first unit.

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Expert Committee

Meanwhile, the People’s Movement Against Nuclear Energy, which is spearheading the anti—nuclear stir at Koodankulam, on Thursday announced formation of a 21—member expert committee to advice them on the future course of action, educate the public and “interact with state and central government officials as also the Centre’s expert group“.

PMANE convenor S.P. Udayakumar said the panel will comprise noted scientists, engineers, doctors, advocates, environmentalists and specialists and would probe different aspects of the KKNPP project like land acquisition, location of Reactors 1 and 2, environmental impact, coastal regulation zone violations, etc.

“PMANE requests KKNPP authorities to share the EIA, site evaluation study, safety analysis report and other relevant documents to help us initiate dialogue with the Centre’s 15— member expert group and to prepare our responses,” he said.

Committee members include senior journalist Praful Bidwai, former chairman of Haryana State Electricity Board M G Devasahayam, former head of Indira Gandhi Environment Centre Soumya Dutta, nuclear expert Surendra Gadekar and former Principal Scientist in Indira Gandhi Centre for Atomic Research R S Lal Mohan.

Anna Centenary Library to become super speciality paediatric hospital

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The building housing the Anna Centenary Library (ACL) in Kotturpuram will be converted to accommodate a super speciality paediatric hospital, Chief Minister Jayalalithaa announced on Wednesday.

A decision in this regard was taken by the Cabinet on Tuesday, the Chief Minister said in a statement.

The library would be shifted to the proposed Integrated Knowledge Park on the DPI (Directorate of Public Instruction) campus in Nungambakkam.

The park would also house all directorates working under the control of School Education Department, a training centre, seminal halls, a sports facility, a studio for school education and Incubation Centre. In view of the proximity of the DPI campus to Connemara Public Library and National Depository Library, the Cabinet felt that it would be ideal and appropriate to locate the library within the proposed Integrated Park.

“So far, such a hospital has not been set up in India. By establishing a super speciality hospital dedicated to interests of children, it is certain that Tamil Nadu would emerge as the top ranking State in protecting the interests of children,” the Chief Minister added.

The library will function from the present premises until the entire process of setting up of the Knowledge Park is complete.

Once the ACL is shifted to the new building on the DPI campus, the building that now housed the ACL would be used for the paediatric hospital.

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The nine-storeyed Anna Centenary Library (ACL) building, costing about Rs. 172 crore, was declared open on September 15, 2010 by the then Chief Minister M. Karunanidhi. It could accommodate 1,250 persons. Regarded as a large library in the country, the facility included a huge collection of books in different languages and journals besides an auditorium, a Braille section, an amphitheatre and a food court.

In July, U.S. Secretary of State Hillary Clinton, in her visit to the city, addressed a huge gathering at the ACL's auditorium.

Earlier, the AIADMK government, after shifting back the Secretariat to Fort St. George, decided to convert the new Assembly-Secretariat complex on the Omandurar Government Estate into a multi-super specialty hospital-cum-medical college.

Reacting to the government's decision, Dravida Munnetra Kazhagam president Mr Karunanidhi said, “I am leaving it to the judgment of self-respecting Tamils and Tamil scholars. I do not want to say anything else.”

Government urged to implement Forest Rights Act in State to help adivasis

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Member of the National Land Reforms Council P.V. Rajagopal has appealed to Tamil Nadu Government to implement the Forest Rights Act in a bid to help adivasis (tribals) who are totally dependent on forests for their livelihood.

Mr. Rajagopal, who is on a one-year Jansatyagraha yatra in a bid to mobilise Dalits, adivasis and landless people, has already covered Kerala and completed the Tamil Nadu leg of his tour on Tuesday.

Addressing a press conference here, he said that according to the Forest Rights Act, tribal families who have been living in forest areas before 2005 should be given five to 10 acres of land by the Government. While some of the States had implemented the Act, Tamil Nadu had failed to do so citing the stay obtained by a retired forest officer.

He lamented that the adivasis, who formed one per cent of the total population of Tamil Nadu, were in a “pathetic” state. While their lands had been occupied by plantations, Forest Department had also taken away substantial portion through its National Parks and Wildlife Sanctuaries. “Now these tribals live on just one or two cents of land.”

This “historic injustice” done to them had not been attended to at all. Though they were said to be living in forests, they had been forced to move out of forest area. “Thus they can't collect roots and fruits. They suffer from total unemployment resulting in abject poverty.”

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These adivasis “who are extremely dignified and highly cultured communities” had been living in highly “dehumanised conditions” due to the utter lack of sensitivity of the low level bureaucracy which kept on demanding money from them and which subjected them to untold torture.

Mr. Rajagopal alleged that even social workers were not permitted to enter the forest areas and help them by organising a movement or any such thing. “Anyone who enters the forests is looked upon with suspicion.” And tribals themselves had become informers.

For instance, 150 tribal villages in Tamil Nadu had been adopted by the Tamil Nadu police and Special Task Force were camping there. “The police should try to help these people by solving their land problems.”

Referring to the Panchami land, which was estimated to be about 12 lakh acres notified by the Britishers for the Dalits, he said 96 per cent of these lands were now with non-Dalits. “Return these lands to the Dalits by identifying such lands,” he demanded. He said he would submit his recommendations at the meeting of the National Land Reforms Council in Delhi.

Aadhaar card must for LPG refills

The Ministry of Petroleum and Natural Gas has brought in an amendment to its Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order 2000 making the Unique Identification Number (UID) under the Aadhaar project must for availing LPG refills.

The move is aimed at preventing multiple connections and availing cylinders in third party name and to clean up the LPG consumer base, as the government was spending heavily on subsidising the domestic LPG cylinders.

With people not showing keen interest in availing the UID or Aadhaar cards, the move of the Petroleum and Natural Gas Ministry is expected to increase the enrolment for Aadhaar.

The Ministry in its circular dated October 13, 2011 has announced the amendment to the LPG Regulation of Supply and Distribution order 2011. The Ministry's decision to make Petroleum Corporations sensitise distributors on Aadhaar card for availing refills has been published in the Gazette of India vide notification dated September 26.

The order has come into effect from the date of publication of the gazette notification.

The decision to make Aadhaar UID mandatory has been taken by exercising powers conferred under Section 3 of the Essential Commodities Act of 1955 (10 of 1955).

The amended order reads as follows: No distributor of a Government Oil Company shall supply LPG cylinder to any household unless the head of such a household furnishes Aadhaar number of each member of his or her household to the distributor within three months from the date of notification of such area.

Notification of such area means an area notified for enrolment for availing Aadhaar number. Many major towns in Western Tamil Nadu came under Aadhaar enrolment notification in June and July of 2011.

Officials of the Oil Corporations in Western Tamil Nadu when contacted said that distributors had been asked to sensitise consumers on the need for availing the Aadhar number at the earliest for availing uninterrupted supply of LPG refill.

Consumers will be given reasonable time to comply with the directive.

India's biggest asset is ‘soft power'

India should leverage its ‘soft power' to tackle its internal challenges like food security and poor infrastructure, former Union Minister of State for External Affairs Shashi Tharoor observed here on Sunday.

Speaking to the members of 15 Rotary Clubs of Rotary International District 3230 on “India: an e-Merging Superpower”, he said he was not a votary of the term ‘superpower'. “India can't be a superpower and super poor at the same time,” he quipped, lamenting over the country's deficiencies despite becoming economically very strong.

The Congress MP from Thiruvananthapuram was categorical that no foreign policy would be efficacious unless it attended to the internal challenges of the nation. And India's foreign policy could be justified only if its security, prosperity and the well-being of the people were taken care of. “Our current economic prosperity should be balanced against poverty, poor infrastructure and power shortages.” And there should be an earnest attempt to transform Indian villages.

Advocating a more pragmatic approach, he wanted India to maintain cordial relations with the countries that would invest in India and help the country meet challenges such as food security, which was assuming a very grave magnitude. “As food demands are exceeding our capacity, we may even have to acquire tracts of land in other countries to produce more,” he added. Mr. Tharoor asserted that India's “biggest asset” was its ‘soft power'. Elaborating, he said that despite having military might the US lost in Vietnam. Had it remained only with its military power, it would have just remained a bully. But it had leveraged its ‘soft power' of attracting the people of other nations through its products including Hollywood. There was even a “conscious governmental effort in America to attract people from everywhere”.

Mr. Tharoor cited Alliance Française of France, and Confucius Institutes and Beijing Olympics of China as excellent examples of a “conscious governmental effort” to attract foreigners.

At the same time, he admitted India did not have any meaningful government programme to attract people of other nations.

In spite of that, it was emerging on its own. For instance, Bollywood and Indian television had won acclaim and fans worldwide. Yoga clubs and Ayurveda units were proliferating abroad, and even Indian cuisine had become very popular in various parts of the world. He said culture could be very good instrument to improve national resources “but we don't leverage them enough”.

India should free itself “not only of terrorism but also of the daily terror of poverty” by leveraging its ‘soft power', he concluded.

Do not let stroke strike you down

On the eve of World Stroke Day on October 29, doctors caution the public on the factors that cause stroke and how to watch for the warning signs and prevent disaster.

Neurologist at K.G. Hospital T.C.R. Ramakrishnan explains that stroke or cerebrovascular accident or brain attack occurs when the vessels supplying blood to the brain are blocked, interrupting the blood flow.

This results in the death of the brain cells. And, functions such as speech, memory or movement may be affected depending on the area of the brain involved.

Stroke is the second leading cause of death after the age of 60. Studies across the world show that cases of stroke occur every six seconds. It is not that stroke affects only elders. Stroke is the fifth leading cause of death in people aged 15 to 59 years. Stroke is indiscriminate and does not respect age, sex, race or economic status.

Stroke afflicts 15 million people each year. Of them, almost six million die and a further five million are left permanently disabled.

In 2009, the World Stroke Organisation fixed October 29 for the start of a global campaign titled “Stroke, what can I do?” The following year, it launched the “1 in 6” campaign to emphasise that one in six people will have a stroke within their life time.

This year, the organisation is continuing with the theme of 2010 “One in six”, but has added “Act Now” and “How to Act Now” as additional themes. It has listed some tasks (see graphics) that are critical to avoiding strokes.

Diabetologist V. Rajendran of Dr. Rajendran's Diabetes Centre says diabetes mellitus by itself is one of the major and independent risk factors for stroke. Large population studies have shown stroke to be more frequent and have higher mortality in patients with diabetes, with women being more prone to it.

The other associated risk factors increase this risk manifold. High blood pressure and cholesterol and high-risk habits such as use of tobacco and family history of stroke add to the risk that diabetes already poses.

Diabetics should constantly monitor blood sugar level and also other metabolic parameters such as cholesterol. Lifestyle and dietary changes should be made if any of these are found to breach normal limits.

Hypertension

State president of Indian Medical Association L.P. Thangavel says people are increasingly aware of stroke. Educated people also know that uncontrolled hypertension and diabetes are major risk factors.

But, much needs to be done in the rural areas to increase awareness. Hypertension and diabetes screening should be stepped up in rural areas and those found with the symptoms should be educated on the risks from the disease and how to avoid these.

Dr. Thangavel says the symptoms of stroke are easily understandable and primary level physicians can identify these. With imaging systems such as computed tomography available, detection is not a problem. Yet, physicians must approach the patients showing the symptoms (see graphics) with a high degree of suspicion so that accurate diagnosis is not missed.

Centre strongly opposes commuting sentence of Rajiv assassins

Strongly opposing the petitions by three Rajiv Gandhi assassins challenging their death sentences, the Centre on Friday said the delay in the disposal of the clemency pleas was not a valid ground for commutation of capital punishment.

“However long it may be, is not a mitigating circumstance or can be construed as a valid ground for commutation of death sentence and in any event does not reduce the gravity of the crime,” the Centre said in its counter-affidavit in response to the petitions filed by Murugan, Santhan and Perarivalan.

On August 30, a division bench comprising Justices C. Nagappan and M. Satyanaryanan, had stayed for eight weeks the execution of the trio.

When the petitions came up on Friday, the Judges adjourned the hearing on the petitions to November 29 as the Supreme Court was hearing a petition for transferring the petitions to another High Court.

In the affidavit on behalf of the Centre, Joint Secretary (Judicial) in the Union Home Ministry, J.L. Chugh, pointed out that the power of the President under Article 72 of the Constitution “is a discretionary power which cannot be taken away by any statutory provision."

The power cannot be altered, modified or interfered with in any manner whatsoever by any statutory provision or authority, the affidavit said, adding that “exercise of power under Article 71 of the Constitution is not curtailed by any limitation as to the time frame within which such power conferred might be exercised."

Asserting that deterrent punishment alone could prevent other potential offenders from committing such crimes, the counter-affidavit said it was also likely to dissuade people from associating in future with any terrorist organisation in committing such diabolical and heinous crimes.

Besides, the death sentence awarded by the trial court had been confirmed by the Supreme Court, which had also dismissed review petitions filed by them, the Centre said.

The secretary said that since the petitioners had not challenged rejection of their mercy petitions but only the delay in rejecting them, they were liable to be dismissed on that ground alone.

Rejecting the allegation of “discrimination” in the rejection of the mercy petitions, the affidavit said that the President after due consideration had rejected all the three petitions.

The Centre said that “just because some eminent personalities, social organisations, political parties, MPs, MLAs, former judges and jurists have written to the government of Tamil Nadu or to the President of India it cannot be considered to be a valid ground to commute the death sentence awarded to the petitioners into life imprisonment."

If such views were to be considered as legally valid and sufficient to commute the death sentence awarded to the petitioners into life imprisonment, “that will constitute a bad precedent and in future is likely to create and be a cause for communal and religious protests and unrest.

It was pertinent to mention here that some leaders of political parties/social organisations “continue to support LTTE for their own vested interests,” the Centre said.

“They are now supporting the commutation of the petitioners’ death sentence into life imprisonment in order to seek political advantage from the issue. Some of these political parties while ruling the State or while being part of the government of India had recommended a ban on the LTTE and also recommended the rejection of the mercy petitions,” the affidavit said.

Pointing out that the main ground of challenge was “delay in considering and disposing of their mercy petitions and it had caused mental agony and hardship to them,” the affidavit quoted the petitioners as saying “the delay in disposal of our mercy petitions also gave the three of us a hope that we may be given an opportunity to live. We have, therefore, putting aside out agony and shadow of death, equipped ourselves educationally...”

Admitting that the petitioners were lodged in jail for the past several years, the affidavit said they lived normal lives in prison like other prisoners and given opportunities to pursue education of their choice.

The Centre said the allegation of violation of fundamental rights was “an afterthought” after rejection of their mercy petitions.

The Centre said Murugan and Santhan were Sri Lankan citizens and hardcore militants of LTTE, who infiltrated into India clandestinely with the sole intention of assassinating Rajiv Gandhi.

Tamil Nadu's affidavit

In a separate affidavit, the Tamil Nadu government said the State Governor had rejected the mercy petitions “as there are no extenuating circumstances warranting mercy."

The Principal Secretary to the State Home Department, Rameshram Mishra in the affidavit on behalf of the government declined to remark on the claim about public support for commuting the death sentence and called for dismissal of the mercy pleas.

Delhi planning model proposed for Tamilnadu

A large area around Chennai extending up to Chengalpattu and Kancheepuram is set to be designated as one single urban region for planning purposes. In the face of rapid increase in population in the districts surrounding Chennai and the expansion of the city, a new regional planning model on the lines of National Capital Region, Delhi, is being examined by the Chennai Metropolitan Development Authority (CMDA).

Government sources say three kinds of planning regions are under consideration. A smaller region with its southern boundaries reaching Mamallapuram and Tirukazhukunram is an option. The other alternative under review is the delineation of a large area which would include Gummidipoondi, and portions of Tiruvallur and Kancheepuram districts.

The third option is a midsized region. In terms of organisation, either a separate and independent regional authority under which other planning authorities such as the CMDA would function could be decided or, alternatively, the CMDA itself could be asked to perform the regional planning role, said the sources.

Since 1974, an area encompassing 1,189 sq. km around the city has been designated as the Chennai Metropolitan Area (CMA) and the CMDA has been designated as the authority to plan the growth of the city and the area around it.

This model has been found inadequate since the areas outside the CMA are growing fast and they have not been sufficiently integrated with the metropolitan area. The recently released 2011 census data confirms that the population growth within the Chennai Corporation has slowed down while in the adjacent districts of Kancheepuram and Tiruvallur, it has substantially increased. Between 1991 and 2011, Chennai witnessed a decadal growth of 13 per cent, but between 2001 and 2011 it dropped to 6 per cent.

During the same period, population growth in Kancheepuram increased from 19 per cent to 39 per cent and Tiruvallur increased from 23 to 35 per cent.

In order to plan for balanced regional development, developing a larger road network, implementing an integrated transport plan and identifying a Chennai Mega Region have become necessary.

Some metropolitan cities which faced a similar situation have either expanded their planning areas or radically reconstituted their planning structure. Delhi was one of the earliest cities to implement the idea of a larger planning region.

A National Capital Region covering a total area of over 33,578 sq. km, and spread over three States and 15 districts was constituted in 1985. Hyderabad, which earlier had a metropolitan area of 1,860 sq.km for planning purposes, extended it to 7,100 sq.km in 2008.

Bangalore has delineated an area of 8,005 sq.km as its metropolitan region and has constituted a separate Bangalore Metropolitan Region Development Authority to oversee it.

Prepayment penalty on home loans to go: RBI

In a move to introduce more customer-friendly norms, the Reserve Bank India (RBI) on Tuesday proposed to notify banning prepayment penalty on floating rate home loans, as recommended by the Banking Ombudsman recently, while hiking the short-term indicative rate (repo rate) by 25 basis points to tame inflationary pressures.

However, the RBI is of the opinion that by December, 2011, the price rise is likely to come down and another hike may not be warranted.

The RBI is firmly of the view that controlling inflation is imperative for sustaining growth over the medium-term and for increasing the potential growth rate. “The potential growth rate is not a long-term constant; nor is it exogenously determined,” said RBI Governor D. Subbarao while announcing the half-year Monetary Policy Review of 2011-12. “It is critically dependent on policies that create a congenial investment climate and encourage investment activity,” he added.

The challenge for the government and the RBI is to ensure that demand is constrained in the short-term to bring inflation down, but at the same time to encourage supply response so as to improve productivity and expand the potential output of the economy in the medium-term.

While maintaining the inflation rate at 7 per cent for 2011-12, the RBI revised the growth rate projection from 8 to 7.6 per cent. “Elevated inflationary pressures are expected to ease from December, 2011, though uncertainties about sudden adverse developments remain.”

The policy document further said that the RBI will issue the final guidelines on credit default swaps by November-end.

As the banking system prepares to go on to the Basel-III framework requiring higher capital adequacy, the RBI said the draft guidelines for its implementation will be issued by December-end. As regards the micro finance sector, the RBI has given the go-ahead for creating a new category called NBFC-MFIs (NBFC-micro finance institutions). Further, a separate set of guidelines for overseas investment by core investment companies (CICs) in financial and non-financial sector companies will be issued.

The RBI said liberalisation had led to increased pace in the number of branches opened in Tier 3 to Tier 6 centres.

However, it is observed that branch expansion in Tier 2 centres has not taken place at the desired pace. To provide enhanced banking services in Tier 2 centres, it is now proposed to permit domestic scheduled commercial banks (other than RRBs) to open branches in Tier 2 centres (with population 50,000 to 99,999) without the need to take permission from the Reserve Bank in each case, subject to reporting.

In the area of financial markets, four important initiatives have been announced. First, the RBI will issue the final guidelines on the cash settled 5-year and 2-year interest rate futures (IRFs), including the final settlement price by end-December 2011. Second, guidelines on credit default swaps (CDS) will be made effective by end-November 2011. Third, guidelines on short-sale in government securities will be issued by end-December 2011.

Fourth, a Working Group will be constituted to examine and suggest ways for enhancing secondary market liquidity in the G-Sec and interest rate derivatives markets.

Further the RBI will issue the final guidelines on internal rating-based (IRB) approach for credit risk by end-December 2011. A discussion paper will be issued by end-March 2012 on the dynamic provisioning approach for comments.

The RBI said the customer service had always been on top of the central bank's policy agenda. 

Recognising the need for revisiting the issues of customer service in banks, the RBI constituted the Damodaran Committee to make recommendations for improving customer service. The committee has made several recommendations to improve the customer service.

ATM users asked to change PIN

Nine ATM (automated teller machine) kiosks of a nationalised bank across the city, which neither had CCTV cameras nor security guards, were used by the five-member gang arrested in connection with cloning bank cards.

This was revealed during investigations by Central Crime Branch into the case, in which five persons, including two Sri Lankan nationals, have been arrested.

Following this, Commissioner of Police J. K. Tripathy on Monday urged the public to change the personal identification number (PIN) of their bank cards.

According to CCB sources, the data pertaining to more than 780 credit/debit cards were illegally copied using slim skimmers at the nine ATMs. Some of the information was also sold overseas, police said.

The ATMs of the bank targeted are in Nagendra Nagar, Velachery; Royapettah High Road, Mylapore; R.K.Mutt Road, Mandaveli; Poonamallee High Road, Arumbakkam; Pulla Avenue, Shenoy Nagar; Postal Colony Main Road, West Mambalam; Balfour Road, Kilpauk; Gandhi Mandapam Main Road, Kotturpuram; and Anna Salai, Saidapet.

Venture Capital Fund to support young entrepreneurs in Tamil Nadu

As part if its commitment to encourage small entrepreneurs and entrepreneurship in Tamil Nadu, the State Government is creating a Venture Capital Fund to support innovative ideas of young entrepreneurs.

The Entrepreneurship Development Institute (EDI) of Government of Tamil Nadu is in the process of building a corpus for extending capital grant support to first generation entrepreneurs and a whole range of activities in this direction are on the anvil.

R. Balakrishnan, Additional Chief Secretary and EDI Special Officer, during an interface event organised here on October 20 by the ICT Academy of Tamil Nadu in association with NASSCOM on the topic “focus on employability skills.”

“The Government policy for Micro, Small and Medium Enterprises (MSMEs) is very encouraging. We propose to give a further push to this small scale sector through expanding the EDI activities. First generation entrepreneurs will be supported if they have good ideas,” he said.

In this regard, three key areas have been identified in the State in view of their potential for establishing clusters. The sectors are textiles, leather/garments and chemicals.

“Clusters are coming up in the next few months and also cluster development programmes will be conducted by the EDI.

For a proper thrust, we will have Technology Business Incubators and we shall work with people coming from science and technology background,” Mr. Balakrishnan said.

He had emphasised that entrepreneurship is not just about starting of new enterprise alone.

It is about independent thinking and the ability to think differently.

“We need to have an orientation programme for students. Catch them young should be our objective and youth camps with focus on nurturing entrepreneurial skills can be conducted. Tell the youngsters to think differently and come out with innovative ideas, the EDI Special Officer told the industry and college faculty.

According to him, small business establishments can survive only if they rethink their strategy and come out with new business models.

“The MSMEs have scope for improvements. Right now, they are weak in brand power and that has to be strengthened. So long as they are weak, they will be lacking in operational efficiency and economies of scale,” Mr. Balakrishnan said.

He commended the role played by ICTACT in ramping up the capacity of technical students and the EDI too is committed to skill development so as to upgrade the employability skills among students.

Communication skills, capacity to adapt, the ability to work in a group and social skills are among the crucial factors that are important for success.

Among those who participated in the ICTACT Bridge Madurai Edition here on October 20 include E. Balagurusamy, Member (Education), State Planning Commission, and Lakshmi Narayanan, Vice-Chairman, Cognizant Technology Solutions and Chairman of ICT Academy of Tamil Nadu.

It's not a revenge series: Dhoni

It's not a revenge series: Dhoni
Mohali, Oct 21: The ongoing ODI series against England might be billed as 'revenge series' for India after the drubbing they received this summer but captain Mahendra Singh Dhoni is no mood to term it that way, saying "revenge is a very strong word in sports".

Whitewashed in all three formats of the game in England, India took sweet revenge by taking an unassailable 3-0 lead in the ongoing rubber against the Englishmen with a series-clinching five-wicket victory in the third one-dayer here.

"Revenge is a very strong word when it comes to sport. I don't think it should be used in sport. On one side we are speaking about spirit of the game and on the other side we are talking about revenge," Dhoni said at the post-match press conference.

Dhoni also lauded his young team for putting up a terrific show against a strong England side in the three matches so far in the absence of a couple of senior players due to injuries.

"I am quite happy with the performance of the team when it comes to the ODI format. In England, we made lots of runs, it's just that we never won the toss and had to bowl last. On couple of occasions, rain and dew factor played spoilsport," he said.

"Here the conditions are in our favour. The bowlers are used to the conditions and bowling really well. So it's a positive sign."

The Indian skipper said he would keep on promoting young batsmen up the order until they get settled in the team.

"I always felt that it's important for the youngsters to bat up the order. What's important is to groom the youngsters.

They should be batting more than 20 overs. When they become regular part of the side, then we can experiment with them a bit.




When it comes to batting at No. 6 and 7, it's completely different task. Don't forget that the youngsters who were being promoted are scoring runs. We were missing couple of players because of injuries so no point in thinking about them. We tried to groom the youngsters," said Dhoni.

Asked about tight finish in Thursday's match, Dhoni said one more wicket could have changed the complexion of the game.

"It's not that I don't show expressions, I always show expressions. It was a close game we should have won easily but we lost wickets in the middle. All of a sudden there was pressure on us. If we would have lost one more wicket it could have been a little difficult to achieve the target," he said.

"We knew that with me and Jadeja around we can achieve the target. And the dew factor also made it slightly difficult for the bowlers to reverse the ball and bowl yorkers."

He also had a word of advise for the visiting England side for the remaining two inconsequential matches.

"It's important to be nice to your opposition team. When you are under pressure you will definitely commit mistakes.

England have five specialist bowlers. As far as talent is concerned, they are a very good side but they need to stick together in the next two games," said the Indian skipper.

Dhoni also hinted that with the series already in pocket, India might test its bench strength in the next two matches.

"We will see exactly what to do. We are not sure as of now. The team management will sit and take a call. But Umesh (Yadav) got injured so he is out and one of the bowlers will get a chance. At the end of the day we have to field the best eleven," he said.

 

No stopping AIADMK, all set to sweep TN civic polls

No stopping AIADMK, all set to sweep TN civic polls
Chennai, Oct 21 : The ruling AIADMK in Tamil Nadu, which came to power after a landslide victory in the April 2011 Assembly elections, continued its sway in the Local Body Elections also as it was set to capture all the ten Corporations and a majority of Municipalities, Town Panchayats and Panchayat Unions.

When counting of votes polled in the two phase local body elections held on October 17 and 19 were taken up this morning, it became clear that the ruling AIADMK was emerging as a winner, pushing far behind the opposition DMK and other parties. The AIADMK re-established its strength and power in electoral politics, winning or establishing leads in all the Corporations and in a majority of Municipalities, Town Panchayats and Panchayat Unions and Wards without the support of the alliance parties.

For the first time, direct elections were held for the Mayoral Posts of Corporations and Chairmen posts of Municipalities and Town Panchayats and the AIADMK was all set to win a majority of these local bodies. The Party came out with flying colours as it was set to capture all the ten Corporations, including Chennai, Madurai, Coimbatore, Salem, Erode, Tiruppur, Tirunelveli, Tuticorin, Tiruchirapalli and Vellore. The AIADMK made impressive performance both in the urban and rural local bodies.

It won or established leads in about 100 of the 125 Municipalities and more than 200 of the 529 Town Panchayats and Panchayat Unions.





The Local body elections, which witnessed multi-cornered contests as all major political parties chose to fight it on their own, exposed the "strenghts" of National parties like, the Congress, BJP, CPI(M), CPI and regional parties, which had been fighting the elections in alliance with either one of the Dravidian Parties, the AIADMK or the DMK.

The DMDK, led by Actor Vijayakanth, which forged alliance with the AIADMK for the first time in the April Assembly polls and fought the local body polls on its own, was thoroughly exposed as it could win only the Cuddalore Municipality, while leading in one more. When the fledgling party secured the status of the Main Opposition party winning 29 seats in the Assembly elections, pushing the DMK to the third place, it was widely speculated that the DMDK contributed a lot to the victory of AIADMK in the Assembly polls, but the Local body results proved it as a myth.

The Pattali Makkal Katchi (PMK), which too fought the elections independently after declaring that it would never forge alliance with AIADMK and DMK in future, also came a cropper, leading in only one Town Panchayat. Surprisingly, the Congress, which had to severe ties with the DMK, managed to establish leads in seven Town Panchayats. The MDMK, which walked out of the AIADMK alliance and boycotted the Assembly elections, also made some impressive performance, leading in three Town Panchayats.

The Bharatiya Janta Party (BJP), which became an "untouchable" after the AIADMK severed ties with the party after the 2004 Lok Sabha elections, was also making its presence felt as it is set to win four Town Panchayats in the southern Kanniyakumari District. The CPI(M), which forged an alliance with the DMDK in the last minute, after being shown the door by the AIADMK, managed to establish leads in two Town Panchayats, while the CPI in one.

The AIADMK's victory comes a day after it retained the Tiruchirapalli (West) Assembly seat, trouncing DMK candidate and former Minister K N Nehru in the by-elections, but the celebrations were low key as party Supremo and Chief Minister J Jayalalithaa is appearing before the Bangalore Special Court for the second day today. A group of partymen celebrated the victory by bursting crackers and distributing sweets at the party headquarters, while Ms Jayalalithaa's Poes Garden Residence area wore a deserted look.

The DMK headquarters, Anna Arivalayam, also wore a deserted look. The results and trends of the Local body elections proved that the AIADMK held a sway over the people and it could have come to power, had it contested the Assembly elections even on its own. The erstwhile AIADMK allies, especially, Vijayakanth's DMDK, CPI(M) and CPI should owe their victories to the AIADMK, if the outcome of the local body elections was any indication. The results and trends of the Local body elections also served a severe blow to the opposition DMK as it failed to capture a single Corporation. The party was leading only in about 80 of the 529 Town Panchayats and 23 of the 125 Municipalities.