FY12 growth estimated at 6.9 pct, slowest in 3 years

NEW DEHLI; India’s economic growth may dip below 7 percent in the current fiscal year, the slowest pace since the 2008 financial crisis, restrained by the Reserve Bank’s inflation-fighting campaign and government gridlock.

The government forecast 6.9 percent annual growth for the fiscal year that ends in March, a tad below the 7 percent to 7.5 percent growth predicted by several government officials.

It would mark a sharp decline from the prior year’s 8.4 percent growth rate, and a reversal of fortune for a country that until recently aspired to double-digit growth like China.

The Indian economy has slowed as the euro zone crisis combined with tight monetary policy and political paralysis at home have discouraged investment.

There is little hope for a quick turnaround. Although the Reserve Bank of India is widely expected to begin cutting interest rates after an aggressive 18-month tightening campaign came to an end in October, domestic growth still looks shaky and the global outlook uncertain.

Inflation also remains elevated, making it tougher for the central bank to prop up growth.

“We are not expecting any sudden reversal in economic growth. Global growth remains weak. Things on the domestic front have not improved either,” said Indranil Pan, chief economist at Kotak Mahindra Bank, who expects the economy to grow 6.7 percent this fiscal year and 6.6 percent in the following year.

Unlike most of its Asian peers, India runs fiscal and current account deficits, leaving it reliant on notoriously fickle foreign investors for financing. Investment has been flowing back into India so far in 2012, after outflows in 2011, but that could change if the euro zone crisis deteriorates.

The government’s advance estimate for the fiscal year 2011/12 shows that farm output is expected to grow 2.5 percent, while the manufacturing sector is likely to grow 3.9 percent.

Indian shares and bonds remained unchanged following the release of the growth estimate.

The RBI last month cut the current fiscal year growth forecast to 7 percent from 7.6 percent and warned of rising risks to economic growth.

“From the monetary policy point of view, signals are very clear that policy will remain accommodative,” said Sujan Hajra, chief economist at Anand Rathi Securities

He predicted the central bank would cut both interest rates and banks’ reserve requirements by as much as one full percentage point by October.

With inflation showing signs of finally easing and risks to growth on the rise the RBI is widely expected to cut interest rates by the end of June, if not sooner. It has already signalled it is finished raising rates after 13 increases between March 2010 and October 2011.

Headline inflation slowed down to a two-year low of 7.47 percent in December, but that was due almost entirely to a drop in food inflation that is widely seen as unsustainable.

Also, non-food manufactured inflation at 7.7 percent in December remained way above the central bank’s comfort zone. The next monetary policy review is due on March 15.

“We don’t think the RBI will cut rates in March. They will wait for the federal budget that is scheduled in mid-March,” said Pan, who expects a 25 basis point rate cut in April.

In his January policy review, the RBI governor flagged the inflationary risks stemming from the government’s failure to contain its fiscal deficit and had said a lack of credible fiscal consolidation would constrain him from lowering rates.

He had urged the government to use the March budget to signal fiscal consolidation. AGENCIES

Iran bans nationals from road travel to Syria

TEHRAN: Iran banned its citizens on Friday from travelling to Syria by road following the abduction of nearly 30 Iranians in the escalating uprising in its key Middle East ally, state media reported.

“Due to the terrorist acts against Iranian pilgrims who are taking road trips to the holy sites in Syria, from Friday and until further notice road trips to this destination are forbidden,” the head of Iran’s passport and immigration police, Mahmoud Sadeqi, told the official IRNA news agency.

Sadeqi appealed to nationals to travel to Syria, a major pilgrimage destination for Iran’s Shiite majority, only by plane.

Eleven Iranian pilgrims were kidnapped last Wednesday in the central Syrian city of Hama, IRNA reported. Another 11 were reported abducted on January 26.

A group of seven Iranian engineers were kidnapped near the central city of Homs in late December, bringing the total to 29, according to IRNA.

Last week, the rebel Free Syrian Army claimed to have captured five Iranian military officers in Homs, and urged Tehran to withdraw any other troops it may have in Syria. It was not clear whether the five referred to were among the seven abducted engineers or were a separate group.

Tehran has called on Damascus “to use all means… to release” the captive Iranians.

Hundreds of thousands of Iranian pilgrims travel to Syria each year to visit Sayyeda Zeinab, a revered Shiite shrine just south of Damascus.

Syria is also Iran’s principal ally in the Middle East. The United States and France accuse Iran of supplying Syria with arms to put down a rebellion that has seen more than 6,000 people killed since last March, according to human rights groups. AGENCIES

Hacker group declares cyber war on US police

LAS VEGAS: A hacker group on Saturday claimed it has “defaced and destroyed” websites at scores of US police agencies in retaliation for the arrest of suspected peers accused of hacking into the CIA, British crime agency SOCA, and Sony.

The group called AntiSec — in reference to “anti-security” — said in an online post that it is backing its claim by releasing information it looted more than 70 local police agencies during cyber attacks.

“We are releasing a massive amount of confidential information that is sure to embarrass, discredit and incriminate police officers across the US,” the group said in a message.

“We are doing this in solidarity with Topiary and the Anonymous PayPal LOIC defendants as well as all other political prisoners who are facing the gun of the crooked court system.”

Early this week, 18-year-old British man Jack Davis, believed to be a hacker who went by the online name “Topiary” was granted bail in a London court.

Davis is suspected of being a spokesman for hacking groups Lulz Security (LulzSec) and Anonymous.

He was charged with hacking into websites, including that of Britain’s SOCA, which was out of service for several hours on June 20 after apparently being targeted.

LulzSec has claimed responsibility for a 50-day rampage earlier this year against international businesses and government agencies, including the Central Intelligence Agency, the US Senate, and electronics giant Sony.

Anonymous and LulzSec have denounced the arrests in the United States last month of 14 people suspected of taking part in an online attack on the PayPal website organized by Anonymous.

PayPal, Visa and MasterCard stopped accepting donations for WikiLeaks in December after the website began releasing thousands of sensitive State Department cables.

AntiSec said that it was leaking 10 gigabytes of data including private email exchanges, passwords, credit card numbers, addresses of officers and information about informants.

“You may bust a few of us, but we greatly outnumber you and you can never stop us from continuing to destroy your systems and leak your data,” the hacker group’s message said.

“We have no sympathy for any of the officers or informants who may be endangered by the release of their personal information,” it continued.

An AFP sampling of police department websites puportedly hacked by AntiSec revealed they were not accessible online. Information posted by AntiSec appeared to include names, addresses, and credit card numbers.

AntiSec said it had used some swiped credit card information to make donations to groups defending civil liberties, Internet rights, and the US soldier accused of giving sensitive military data to WikiLeaks.

Cyberattacks on police departments in an array of US states began about a week ago, according to the group. Local news reports surfaced regarding hacks of police websites, but agencies downplayed damage.

AntiSec expressed offense at being referred to in a recent US Department of Homeland Security bulletin as “script kiddies” incapable of inflicting damage to critical national infrastructure.

Script kiddies is a term used when referring to young hackers that wield software skills mischievously for status or attention.

“You are losing the cyberwar, and the attacks against the governments, militaries, and corporations of the world will continue to escalate,” AntiSec said.AGENCIES

Rental Power Plant a white elephant

According to the Central Power Purchase Agency, we have to pay Rs 41 per unit.

It has capacity to generate 231 MW while only 10 MW are generated at present. According to the CPPA, no bank is ready to assist open LC the aforesaid power plant.

Its monthly rent is $ 9 million and in case of non-operation, the government still has to pay Rs 26 per unit.

Philippines floods toll rises to 51; fishermen missing

MANILA: The death toll from more than two weeks of heavy rains in the central and southern Philippines has risen to 51, disaster officials said on Sunday, as authorities stepped up their search for another 16 people missing at sea.

Agriculture and infrastructure damage now exceeds 1.6 billion pesos ($36 million) after floodwaters inundated rural communities in about a third of the country’s 80 provinces, said Benito Ramos, head of the government’s disaster agency.

Major rice and corn production areas in the north and western parts of the country have been spared from the damaging impact of the persistent rains that began in late December.

Most of the dead either drowned or were buried by mudslides, Ramos said. Nearly 20 people are still missing.

“We’re expecting the number of casualties to increase because more people have gone missing,”

Women Cricket Team to Get Central Contracts: PCB

Women Cricket Team to Get Central Contracts, PCB

Pakistan Cricket Board (PCB) on Thursday announced to give central contracts to women cricket team from January 2011.

PCB governing body meeting was held under the chairmanship of Ijaz Butt in which all members unanimously decided to give central contracts to women cricket team from January 2011.

The BOG gave post facto approval to the Terms of Reference for the Integrity Committee formed by PCB.As per Clause 35 of the PCB Constitution the BOG approved the names of Justice Muhammad Sayeed Akhtar and Justice Fazal-e-Miran Chohan to be added to the Panel of Independent Arbitrators,said the spokesman after the meeting. It may be noted that Justice Irfan Qadir, Justice Jamshed Ali Shah, and Justice Munir A. Sheikh are the three names already on the PCB panel of Arbitrators.

Dubai film festival kicks off

DUBAI: The seventh edition of the Dubai International Film Festival (DIFF) has started in the modern city of the gulf oil-rich United Arab Emirates, which will unveil 157 films from 57 nations, including a large portion for Chinese movies.

The event kicked off on Saturday and will run until Dec. 19.

International film stars like Sean Penn have announced their coming. Penn, usually known as an actor of thoughtful action movies such as “Colors” “The Translator” or “Mystic River” will be honored with an award for his life achievement, shows a new production of his own called “Into the wild.”

With its theme “Bridging Cultures, Meeting Minds,” however, the DIFF does not highlight the usual Hollywood-style glamour movies, but roles out the red carpet to mostly young directors, giving them a chance to leave an impression to a multinational audience and further develop their careers.

Among the gala screenings, the Chinese-Taiwanese martial-art movie “Reign of Assassins” will be shown, produced by Hong-Kong- based John Woo and Chao-Bin Su from Taipei.

In the Asia-Africa film block, another Chinese movie will bring the Far East closer to the Middle East: “The Piano in a Factory” was directed by Meng Zhang, who graduated at the Central Academy of Drama in Beijing. As a director of the Changchun Film Studio, he made his directorial debut with “Lucky Dog” in 2007.

Russia: Hundreds detained to prevent ethnic clashes

Russian police detained hundreds of people in Moscow and St.Petersburg on Wednesday, aiming to prevent new outbreaks of ethnic violence that erupted in the capital last weekend.

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Law enforcement authorities turned out in force near the central Kievsky railway station in Moscow, where nationalist ethnic Russian youths and migrants from the Caucasus and Central Asia had been gathering for a rumoured confrontation. About 800 people were detained during the day-long operation, many of whom were armed with knives, clubs or stun guns, Moscow police spokesman Viktor Biryukov said, according to Russian news agencies. In St.Petersburg Russian police detained more then eighty people near one of the central metro stations. The police said they had managed to take control of the situation and no violence or serious injuries were reported in the city. Simmering tension between ethnic-Russian nationalists and minorities from the largely Muslim Caucasus and Central Asia escalated after the fatal shooting of a soccer fan last week in a Moscow street fight between members of the two groups.

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US missile ‘kills up to seven in Pakistan’s Khyber’

PESHAWAR: A US missile strike killed seven militants in Pakistan’s tribal district of Khyber on Thursday, local security officials said, in an apparent expansion of America’s covert drone campaign.

The United States does not as a rule confirm drone attacks, but its military and the Central Intelligence Agency operating in Afghanistan are the only forces that deploy the aircraft in the region.

Washington considers Pakistan’s lawless tribal belt the global headquarters of Al-Qaeda and says eliminating the militant threat is vital to winning the nine-year war against the Taliban in neighbouring Afghanistan.

Pakistani officials said a US drone fired a missile that destroyed a vehicle carrying up to seven militants in the Spin Darang area of the Tirah valley in Khyber, which borders Afghanistan.

“It was a drone attack. Seven militants travelling in the vehicle were killed in the attack,” a security official in Peshawar told AFP.

Another security official said all the dead were local Taliban militants.

They were thought to be from Waziristan, Pakistan’s most notorious Al-Qaeda and Taliban hub on the Afghan border, and the northwestern district of Swat, where Pakistan launched a major operation last year to clear out the Taliban.

Pakistani security officials were divided over whether it was the first or second US drone strike in Khyber, close to the teeming northwestern city of Peshawar.

Local media reported a US drone strike in Khyber in May, although Pakistani officials at the time were reluctant to confirm the attack.

A new US policy review on Thursday concluded that President Barack Obama’s troop surge has made progress in curbing the Taliban in Afghanistan and severely weakening Al-Qaeda in Pakistan.

The report says that after a relentless US campaign, Al-Qaeda’s leadership in Pakistan is weaker than at any stage since the 2001 US-led invasion of Afghanistan after the September 11 attacks.

Progress will permit a “responsible reduction” of US forces in Afghanistan, currently nearly 100,000-strong, to begin next July, though a full handover to Afghan security is not envisaged until at least 2014, the review said.

The report also said that the US anti-terror alliance with Pakistan had been “substantial” but “uneven” in the last year, since Obama vowed to forge a new relationship of mutual trust and respect with Islamabad.

On Thursday, Britain said it was looking into media reports that two British men, possibly Muslim converts, were killed in a US drone strike in Pakistan’s North Waziristan region last week.

“Our High Commission in Pakistan is seeking further information on these reports,” a Foreign Office spokeswoman said.

Channel Four News and The Guardian newspaper claimed that the Britons died in a strike near the town of Datta Khel on December 10.

The men were aged 48 and 25 and reportedly had English names but used the pseudonyms Abu Bakr and Mansoor Ahmed.

If confirmed, the men would be the first white British converts to have been killed in the area, The Guardian said. AGENCIES

Russia ethnic violence: Hundreds rounded up, arms seized

Russian police detained hundreds of people in Moscow and St.Petersburg on Wednesday, aiming to prevent new outbreaks of ethnic violence that erupted in the capital last weekend.

Law enforcement authorities turned out in force near the central Kievsky railway station in Moscow, where nationalist ethnic Russian youths and migrants from the Caucasus and Central Asia had been gathering for a rumoured confrontation. About 800 people were detained during the day-long operation, many of whom were armed with knives, clubs or stun guns, Moscow police spokesman Viktor Biryukov said, according to Russian news agencies.

In St.Petersburg Russian police detained more then eighty people near one of the central metro stations. The police said they had managed to take control of the situation and no violence or serious injuries were reported in the city. Simmering tension between ethnic-Russian nationalists and minorities from the largely Muslim Caucasus and Central Asia escalated after the fatal shooting of a soccer fan last week in a Moscow street fight between members of the two groups.

Thousands of soccer fans and nationalists rioted in Moscow central square outside the Kremlin on Saturday (December 11) and attacked passersby who appeared not to be Slavs — violence President Dmitry Medvedev denounced as pogroms.Medvedev vowed on Monday to ensure those responsible for the violence were punished, in a warning that suggested the Kremlin is worried ethnic violence could intensify and spread.European Russia, and particularly Moscow, is home to a volatile mix of disenchanted ethnic-Russian youth and migrants from the Caucasus, part of which is in Russia, and impoverished ex-Soviet republics of Central Asia.

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