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PTs PrepTalk February 2010 03

Dear Readers,

2011 has showed signs of being an eventful year, with turmoils and upheavals atoneend andspectacularcarnival at theother. The oldorder changed, givingplacetonew and god fulfilled himself in many ways. He knew lest one good custom shouldcorrupt the whole world. These immortal lines of an English poet have proved to beprophetic!

Monarchyin Egypt is toppled; people's rule hascome to be established.Dictatorsare on the run, 'Vox populi' if unheeded, would prove to be catastrophic for theincumbent.This is the cover story of the current edition of PrepTalk.

At the brighter side is the World Cup, the cricket carnival, participated by 14countriesacross theglobe. In a country where cricket is a 'religion' this 'Mahakumbh'is indeed a momentous occasion. The issue devotes some pages for entertainingreaders with goings-onin cricket.Withthe passing away of Pandit Bhimsen Joshi,thecountry has lost a titan of classical Music, who was a non-conformist and loved toexperiment in therealmof ClassicalMusic.

It is important to know certain things about cement industries, their economicsand operations, their contribution towards the national economy. Some pages areearmarkedtowardsthis. The saga of Wal-Mart, a major brand, whose presence is feltin emergingIndia, wouldinspireeach oneof you.

Since many among you would be gearing up to encounter the GD/PI phase ofselection to theIIMs and the B-schools, being equipped with theright arsenal wouldmatter. Ideas on Budget, its features, factors behind its formulations, itspresentation, repercussions, fall out in the context of the economy, the finer andsubtler aspects, et, al, need to be gathered. The issue comes out with interestinginformation regardingthe budget.

As always, PrepTalk aims to enrich, enlighten and elucidate on matters, issues

and concerns of contemporary interest. Many among you would have experiencedtheGD/PI phase of selection. Many among youmightbe waiting foryour turn. Life isdynamic. Move on, with full zeal and awareness, ready to take on the next challenge,unaffected by theoutcome of theprevious one.

The full-throated cries of should fill the air.

COO, PT education

K A R K E D I K H A Y E N G E

Manish Saraf

Champions aren't made in gyms.C h am p io n s a r e m a de f r omsomething they have deep insidethem: a desire, a dream, a vision.They have to have the skill and the

will. But the will must be strongerthantheskill.

Muhammad Ali

You can never cross the oceanunless you have the courage to losesight of theshore.

Christopher Columbus

You can avoid reality, but youcannot avoid the consequences ofavoiding reality.

- Ayn Rand

When you do the common thingsin life in an uncommon way, you

will command the attention of theworld.

- George Washington Carver

A friendship founded on businessis better than a business foundedon friendship.

- John D. Rockefeller

Research is what I'm doing whenIdon'tknowwhatI'mdoing.

- Wernher Von Braun

Democracy does not guaranteeequality of conditions it only

Irving Kristol

A pessimist sees the difficulty inevery opportunity; an optimist seesthe opportunity in every difficulty.

Sir Winston Churchill

guarantees equality of opportunity.

T a k e Q u o t e


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04 PTs PrepTalk February 2011

Letters to the editor

FEEDBACK !Your comments and

views on PrepTalk

are needed to help

Us make it better.

Which articles did you like?Which columns do you

like to read regularly?

Which are the best parts of

the magazine?

Which are not?

How to improve?

Send feedback to:

[email protected]

India Goes Green

Exploitinghumanresources

Green Technology is needed forsustainable development. This ideahas impressed me. Likewise, IndianIT industry should aim to becomeGreen IT. This is far-reaching innature (PrepTalk, Facets). Thehandling of the subject was mature.Facets contained many articles that

were readable. The reality behindReality shows was eye-opening.Health Awareness in India came out

with harsh facts, which cannot beignored. The article on PDS, themechanism and the objectives wouldcertainly make many Indians sit upanddosomethinginthisfield.

There is so much happeningaro und us w hich cal ls for t heintervention of each one of us, in ourown capacity. Only that we should

wake upfrom slumber and strive todosomethingfor India.

I was thrilled to learn that Indiaspopulous state need not be a cause toring alarmbells. Indias DemographicDividend threw sufficient light on thefeat ure o f majo rit y o f Indiaspopulation being active, unlike thoseof China, Europe and America. Onlythere should be literacy among them.,They should be proficient and skillful.Shakti has been the main feature ofthe Indian way of living. It is no

wonder thatwomen areempowered as

Bimal Gadhwala, Surat

much as they are worshipped andrespected. Articles likethe Ogreof PriceRise, Skeletons in Indias cupboard andthe Growth story of China wereenriching. I enjoyed reading the pieceon Entrepreneurship. Facets edition ofPrepTalk was truly engrossing. There

were variety of subjects on which well-written pieces weremade.

How nice it would be if Indias claimfor a permanent seat in theUN is takennote of. Many leaders have supportedthis idea. PrepTalk, Facets, gave vividdetails of this development. At the otherend, the saga of Aung San Suu Kyi wastruly inspiring. The edition containeduseful section on GK. Improving

CharanjitGhooi, Chandigarh

India Going toUN

English and Trivia connected withbusiness. The profiles of Tulsi Tanti,

Nitish Kumar, Mark Zukerberg andGopalkakrishnan were touching. Thecompendium of happenings in Indiaand the world is indeed a good recipefor strengthening ones General

Awareness. Snippets and other tit-bits of information caught myattention.

Theissuewas complete in comingout with information. Tips on doing

w e l l i n f o r t hc o m i n g e x a m ssupplemented the rest. Kudos to the

team for coming out with such richstuff. Gargi Ekbote, Pune


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A

What'sinaname!

Apicturespeaksathousandwords

ll of us have been hitin the face by the newl o go a n d b r a n d

identity assumed by Airtel

recently. There is no street,no traffic junction, no majorh o a r d i n g t h a t ' s l e f tuntouched by the strikingredand white combination ofits unique new design.

Why is Airtel doing whatit is doing? And how is itdoingit?Whatdoesithopetogain from this? Here isa detailed analysis.

Well, nothing really, but surely a lot! The name carries theentire persona of the brand with it. The words used, the colourschosen, and the way the whole thing blends together is a directrepresentation of the class of the brand itself. Just like situationsand circumstances in the real world change, so does a brand'sneed to stay relevant and contemporary. The latest majorupgrade by Airtel to its visual brand representation is preciselythis - a desire to stay relevant (in the consumers' minds) in achanged world.

Assaid,the logo becomes the visual depiction of the entire

company. The striking visualbecomes the live embodiementof everything that the companystands for. People may not knowthe company well, or may not beits customers, but the logo strikes a certain chord in their heads

when they seeit, andthe company ensures that it (it's brand,thatis) has ensured a position in the mindspace. At least for now.The large clutter in the brand street also explains why the "red"

was chosen - the human mind is hit hard by red. That's whytraffic lightsare red too(of course, there's thePhysicsbehind it -minimum scattering due to maximum wavelength etc.).

Whathaschanged,really?

Whysmallcaps+swoosh+red?

Well, Airtel has evolved with changing times quite rapidly.From a very small and loss making telecom company in the late'90s to a mammoth multinational (almost), it has traversed a

long distance. The significant challenges it faced on the way were strategic - Mukesh Ambani's entry into Telecom,introduction of CDMA as a rival platform, emergence of newerplayers, and the need to spread its footprint around the world(not restricting to India alone). To the credit of the company'sfounders, so far, the challenges have been met with ampleconfidence and style. Reliance could not trample Airtel nomatter how hard it tried to, and the myriad and byzantinelegal/regulatory apparatus of Indian Telecom sector did notdecelerate itsgrowth.It hasalso entered into allthe new-fangledareas of telecom - broadband, 3G, VAS and all such terms whichmost of us fail to fathom! Finally, Airtel rose to the occasion andspread to Africa, thereby becoming the firsttrue Indian Telecom

multinational. So now the Airtel head honchos feel that the newlook of their company must be very modern, smart, youthful andbright. Remember that India and Africa are both young regions.So,smallcaps+ swoosh + red is thecombination chosen.

Small caps - because it represents theinternet and email generation, and looksinformalSwoosh - touch of class,speed, modernRed- aggressive, appealing, visible

Also, if youlook at the Zain logo carefully,

the element of swoosh (resembling the "a")is there already. Perhaps, Airtel had to borrow that (as part of thedeal) and fix it intothe new existence. Sothe new airtel is the old

AirtelplustheZainasashape,plusastrikingred.

A problem this creates for Airtelsurely is that it is strikingly similar to

Vodafone's visuals. But I guess Red wasi n d is p en s a bl e , a n d t h at ' s t h eexplanation. There are 3 major brandsnow that come to mind that play on this

Red factor - The Economist magazine,Vodafoneand Airtel.

The repositioning of Airtel

We have arrived, world!

Time for goodbye

Swoosh?

Curry for the brain

by Sandeep Manudhane


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Whatdoesthisdotoaconsumer'smind?

Well, Red being the colour it is,the logos' appeal tend to overlap.

When we see "The Economist"logo, we may recall instinctively theother two as well. And if this trendaccelerates , and s o me moremainstream companies decide togored, it'll be trouble.

Red,redeverywhereandnotaplacetohide..

I would rate the company 9/10 on this. It was amazing to see

that the logo was changed almost "everywhere" simultaneously, agargantuan task, given that there must have been be thousandoutlets and locations where the old logo was prominentlydisplayedand thenew one had to "suddenly" appear. We all knowthat telecom companies specialise in such outdoor acrobaticsquite skillfully, but this was a very refined game that Airtelplayed. I carefully saw that even on the smallest of shops(sponsored glowsigns), the new design was up and running!Now that's a fairly complex operation. My guess is that work onthis changemust have begun at least 90-120 days in advance, anda dedicated team of at least 20 to 30 at the Airtel HQ would havedirected the pan-India transformation. Maybe even more. Butthe commitment shown towards this change was intense, and

appreciable. Notmany companies will do it with such speed andaggression. Now, if only Airtel can transfer the same spirit to theother parts of its operations (customer service, delivery, newproducts) it wouldbe good.

A fewpictures will prove this point!

Operationalexcellenceinexecutingthechange

WhyAfrica?

Money,honey?

That's the last frontier for capitalism. It's untapped,unexplored and hugely nascent. Any company that has the 21stcenturyleadership dream on itsradarcan'tafford to miss on thatcontinent. Also, telecom has proven to be the biggest socialtransforming agent in developing nations. Studies have shownan almost direct correlation between the growth of telecomdensity and the growth of that country's GDP. Many Africannations understand this and are encouraging the telecomsector's spread. Airtel (like many others) sensed this and wastrying to enter Africa for a long time. It finally succeeded withtheZaindeal.

How much would this have cost the company? A betterquestion would be - how much would it have cost if the change

were notmade by thecompany? Many companies delay a change- it's taxing on top management's bandwidth, after all - and pay abig price. In the world of branding, remember the golden rule -

Having read all this, it's worth reading the company's officialline on thechange! Taken from their website, wequote

Crosses the 200 million customers landmark, reinforcesleadershippositionin global telecom

A R Rahman composes a refreshed airtel signature tune, inline with thenew identityand globaloutlook

Bharti airtel, a leading global telecommunications company,unveiled a new identity a shared worldwide vision across itsoperations in 19 countries in Asia and Africa. airtel alsoannounced that it has crossed the significant milestone of 200million customers, reinforcing its leadership position in globaltelecom. Announcing this, Mr. Sunil Bharti Mittal, Chairmanand Managing Director, Bharti airtel said, Fifteen years ago

Bharti airtel started its journey in India with a promise ofdelivering world class and affordable services. Today, as weexpand on the global stage, this new brand identity gives us theopportunity to present a single, powerful and unified face to ourcustomers, stakeholders and partners around the world. Itreinforces our promise to deliver innovative services and asuperior brand experience to our 200 million customers across

Asia and Africa. From the birth of the brand as a single cityoperation in India, airtel has truly gone global with the creationof a singleand unified identity acrossthe world.

Timelychangeis priceless,Delayedchangeis worthless.

airtel unveils new youthful and dynamic global

identity

Gamut of services Big time!

Bach ke jayega kahan! Every single point of sales

The original?


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The new face of airtel is youthful,international, inclusive and dynamic

representing the journey of the first Indianbrand to go truly global. The new identityunderlines airtel's willingness to embraceeverything that is new. The red colour, which isan integral part of the brand, continues torepresent the energy and dynamism that hasmade airtel the success which it is today. Thenew curved addition to the logo is a symbol

which will help ensure instant recognitionacross diverse international markets. The airtelsignature tune has also been refreshed by A RRahman, makingit youthful anddynamic in line

with the new visual identity. Like the earlier

tune, which has made history as world's mostdownloaded mobile musicwith over150 million

downloads, the maestro has once againdelivereda master piece.

The new tune retains the essence of theoriginal but uses an inspiring musical style,

with a universal appeal, that will be loved bylisteners the world over. The unveiling of thenew identity also marks the 200 millioncustomers milestone for airtel. airtel crossed 50million customers in October 2007 and 100million in May, 2009. The company added thenext 100 million customers in just 18 months.This further cements airtel's positions as oneof

world's leading telecom companies. For itscustomers in India,airtel also announcedthat it

was on course to launch its 3G services by theendoftheyear.

a

Not just Africa,Middle-east too

India affected a generational shift in its warship-buildingcapability by commissioning INS Shivalikthe first

indigenously built stealth frigate that is the biggest in itsclass in the world. The ship, which is 143 metres long, cantacticallyfire weapons evenbefore the enemydetectsit.

The hard-to-detect warship will form a crucial componentof the Indian Navy. It is equipped with a mix of Indian, Russian,Israeli and western weapons and sensors.

Two other such shipsINS Satpura and the INSSahayadariwould follow soon. Each ship would carry on boardlong-range surface-to-surface Klub missiles, area defencemissiles Shtil and Barak, anti-submarine torpedoes, 100 mmmounted gun and six-barrelled 30 mm gun. Ships like these

would form the core of the India's battle fleet in the first half ofthis century.

A 250-member crew, including 35 officers, will man INSShivalik. The new design features give the ship enhancedoperational capabilities in terms of survivability, stealth, seakeeping,ship handling and weapons.

The sea king Choppers on board will carry torpedoes totarget submarines which are out of the ship's ranges. It will havean array of sensors and an anti-missile defence for its ownprotection and alsocoordinate the firing of on-boardweapons.

In future, theNavyis lookingto have a data exchange system

w i th t h e I A F' s A i rb o rn e Warning and Control System(AWACS). A system is beingintegrated with the AWACS toprovide data that may be out ofthe range of the ship. This willprovide an edge in firing of

weapons.

The naval satellite to belaunched in the near future will also help this ship to coordinate

with other ships in the fleet for firing of weapons and will formthe network centric operations. The combat management

system developed by the Bharat Electronic Systems will give theship'scaptaina view of allweaponsand data in onescreen.

INS Shivalik can hoodwink enemy radars, sensors byconcealing its size. It has three-dimensional warfarecapabilitysurface, air, underwater. Its weapons suites haveanti-ship,anti-submarine and air defence missiles.

The ship is powered by a unique combination of gas, dieselengines and can stayin sea for morethan 3 weeks orcover10,800km without refuelling. Its filters can protect crew during anuclear,biological or chemical attack.

INS Shivalik:India's first indigenous stealthwarship

a



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Criesof"Egyptisfree"rangoutand fireworks lit upthe skyashundreds o f t hous ands

danced, wept and prayed in joyfulpandemonium after 18 days ofpeaceful pro-democracy protestsforced President Hosni Mubarak tosurrender power to the military,ending three decades of authoritarianrule.

Ecstatic protesters in Cairo'sTahrir, or Liberation, Square hoistedsoldiers onto their shoulders andfamilies posed for pictures in front oftanks in streets flooded with peoplestreaming out to celebrate. Strangershugged each other, some fell to kissthe ground, and others stood stunnedin disbelief.

Chants of "Hold your heads high, you're Egyptian" roaredwitheach burstof fireworks overhead.

"I'm21yearsoldandthisisthefirsttimeinmylifeIfeelfree,"an ebullient Abdul-Rahman Ayyash, born eight years afterMubarak came to power, said as he hugged fellow protesters inTahrir Square.

An astonishing day in which hundreds of thousandsmarched on Mubarak's palaces in Cairo and Alexandria andbesieged state TV wascapped by themilitary effectively carryingout a coup at the pleas of protesters. After Mubarak's fall, themilitary, which pledged to shepherd reforms for greaterdemocracy, told the nation it would announce the next stepssoon. Those could include the dissolving of parliament andcreationofatransitionalgovernment.

Mubarak's downfall at the hands of the biggest popularuprising in the modern history of the Arab world had stunningimplications for the United States and the West, Israel, and theregion, unsettlingrulers across theMideast.

The 82-year-old leader epitomized the complex trade-offthe United States was locked into in the Middle East fordecades: Support for autocratic leaders in return for stability, abulwark against Islamic militants, a safeguard of economicinterests with the oil-rich Gulf states and peace or at least aneffortatpeacewithIsrael.

The question for Washington now was whether that samearrangement will hold as the Arab world's most populous statemakes a potentially rocky transition to democracy, with noguaranteeof the results.

At the White House, President Barack Obama said"Egyptians have inspired us." He noted the important questionsthat lay ahead, but said, "I'm confident that he people of Egyptcanfind theanswers."

TheUnited States at times seemedoverwhelmed duringtheupheaval, fumbling to juggle its advocacy of democracy and theright to protest, its loyalty to longtime ally Mubarak and its fearsthat the fundamentalist Muslim Brotherhood or more radicalgroups could gain a foothold. Mubarak's fall came 32 years tothe day after the collapse of the Shah's government in Iran, theprimeexampleof a revolution thatturned to Islamic militancy.

Egypt rejoice,Mubarak has gone

C o v e r s t o r y


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In Egypt, persecuted democracy activists frequentlydenounced the U.S. government for notcoming down harder on

Mubarak's rights abuses. Washington's mixed messages duringthe crisis frustrated the young protesters. They argued thatwhile the powerful Brotherhood will have to be allowed to play afuture political role, its popularity would be diminished in anopensystem where other ideologiesare freed to outweighit.

Neighboring Israel watched the crisis with unease, worriedthat their 1979 peace treaty could be in danger. It quicklydemanded thatpost-MubarakEgypt continueto adhere to it.

Any break seems unlikely in the near term. The militaryleadership supports the treaty. Anti-Israeli feeling is strongamong Egyptians, and a more democratic government may take

a tougher line towards Israel in the chronically broken-downpeace process.But fewcall for outrightly abrogating a treaty thathaskeptpeace after three wars in thepasthalf-century.

From the oil-rich Gulf states in the east to Morocco in thewest, regimes both pro- and anti-U.S. could not help but worrythat they could see a similar upheaval. Several of the region'srulers have made pre-emptive gestures of democratic reform toaverttheir ownprotestmovements.

The lesson many took: If it could happen in only three weeksin Egypt, where Mubarak's lock on power appeared unshakable,it could happen anywhere. Only a month earlier, Tunisia's

presidentwasforcedtostepdowninthefaceofprotests.

"This is the greatest day of my life." Nobel Peace laureateMohammed ElBaradei, whose young supporters were amongthe organizers of the protest movement, told The AssociatedPress.

"The country has been liberated after decades ofrepression," he said adding that he expects a "beautiful"transition of power.

Perhaps most surprising was the genesis of the force thatoverthrew Mubarak.

The protests were started by a small core of secular, liberalyouthactivists organizing on the Internet who only a fewmonths

earlier struggled to gather more than 100 demonstrators at atime. Buttheir work through Facebook and other social networksites over the past few years built greater awareness andbitterness among Egyptians over issues like police abuse andcorruption.

When the online activists called the first major protest, onJan. 25, they tapped into a public inspired by Tunisia's revolt andthousandsturned out, beyond even the organizers' expectations.From there, protests swelled, drawing hundreds of thousands.The Muslim Brotherhood joined in. But far from hijacking theprotests as many feared, it often seemed co-opted by theprotesters, forced to set aside its hard-line ideology at least for

now to adhere to democratic demands.

About 300 people were killed in the course of the turmoil.Police attacked thefirst protests with water cannons and gunfireandthen a force of regime supporters believed to be paid thugs assaulted Tahrir trying to dislodge the protesters, only to bebeatenbackintwodaysofpitchedbattles.

Wael Ghonim, a Google Inc. executive who earlier this yearsecretly created a Facebook page that became a crucial protesterorganizing forum,said he "went mad" when he heard thenews ofMubarak's ouster.

"I expect a bright future. I trust in 80 million Egyptians,"Ghonim, whowas arrested immediately after the protestsbeganandheld for12 days, told TheAssociatedPress.

Mubarak,a former air force commander came to power afterthe 1981 assassination of his predecessor Anwar Sadat byIslamic radicals. Throughout his rule, he showed a nearobsession with stability, ensuring control through riggedelections, a constitution his regime wrote, a ruling party thatmonopolizedthe leversof state,and a hated police force accusedof widespread torture.


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He resisted calls for reform even as public bitterness grewover corruption, deteriorating infrastructure and rampant

poverty in a country where 40 percent live below or near thepoverty line.

Throughout the crisis, Mubarak backpedaled withconcessions, replacing his government, purging his ruling partyandmoving toprosecute some of itsmostunpopular figures.Butthe moves did nothing to diminish the regime's power and didnot satisfy the steadily swelling protests.

Up to the last hours, Mubarak sought to cling to power,handing some of his authorities to his newly appointed VicePresident OmarSuleiman,while keeping his title.

But an explosion of protests on Friday (February 11, 2011)rejecting the move appeared to have pushed the military intoforcing him out completely.

Hundreds of thousands flooded the main squares of citiesaround the nation. Soldiers stood by, even threw cookies andbiscuits to protesters who massed in frontof Mubarak's palaces in Cairo and Alexandria, chanting for him to go.Others blockaded the towering StateTe l e vi s i on a n d R a d io B u i ld i n goverlooking the Nile River in Cairo,blocking employeesfrom entering.

Ahmed Kassam, an engineer, saidthat he marched with crowds for twohours across Cairo from Tahrir to theOruba palace. "We were shouting atpeople standing in their balconies andthey came down and joined us. We have thousands behind us,"he said. "Today I feel that something is going to change. I feelvery, very powerful."

Protesters stormed the main security headquarters insouthern Egypt's main city Assiut, and two were killed by policeopening fire before the province's governor was forced to flee,escortedtosafetybythearmy.

The ousted Mubarak himself flew to his isolated palace inthe Red Sea resort of Sharm el-Sheikh, 250 miles from theturmoil in Cairo.

Suleiman who appears to have lost his vice president's postas well in the military takeover appeared grim as he deliveredthe short announcement on state TV Friday night that Mubarakwassteppingdown.

"In these grave circumstances that the country is passingthrough, President Hosni Mubarak has decided to leave his

position as president of therepublic," he said. "Hehas mandatedthe Armed Forces Supreme Council to run the state. God is our

protectorand succor."

The question now turned to what happens next. Protesterson Friday had overtly pleaded for thearmy to oust Mubarak. Thecountry is now ruled by the Armed Forces Supreme Council,consisting of the military's top generals and headed by DefenseMinister Field Marshal Hussein Tantawi

After Mubarak's resignation, a military spokesmanappearedon state TV and promised the army would not act as a substitutefora government based on the"legitimacyof thepeople."

He said that the military was preparing the next stepsneeded "to achieve the ambitions of our great nation" and wouldannounce them soon. He praised Mubarak for his contributionsto the country. Pointedly, he did not salute his formercommander-in-chief. Instead he stood at attention and raisedhishandtohiscapinasalutetoprotesterskilledintheunrest.

Abdel-Rahman Samir, one of thep ro tes t o rganizers, s aid t hat t hemovement would now open negotiationswith the military overdemocraticreformsbutvowedthatprotests wouldcontinuetoensure that changeis carried out.

"We still don't have any guarantees yet if we end the whole situation now, thenit's like we haven't done anything," hesaid. "So we need to keep sitting in Tahriruntilwegetallourdemands."

But, he added, "I feel fantastic. .... I feel like we have workedso hard, we planted a seed for a year and a half and now we arenow finally sowing the fruits."

For the moment, concerns over the next step wereoverwhelmed by the wave of joy and disbelief and anoverwhelming pride that they had waged a peaceful campaigncrowned withsuccess.

In Tahrir Square, the crowds of several hundred thousandwatched and listed to Suleiman's speech on televisions and onmobile-phone radios. When he finished, they burst into wildcheers, waving flags and chanting "Allahu akbar," or "God isGreat" and"thepeople have brought down theregime."

Spontaneous lines of dancers threaded through the packedmass of people. One man kissed the ground and thanked Godwhile others screamed, "Hosni is gone, Hosni is gone." Aroundthe capital of 18 million, cars honked their horns incelebration.


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Outside theOruba presidential palace, oneman sprawled onthe grass in shock amid the cheers. Others handed out sweetsand waved their hands in V-for-victory signs. The crowd thenbegan to march in a sea of Egyptian flags back to the protest'sheart, Tahrir.

Throughout the night, Tahrir Square and the surroundingdowntown streets were transformed into a massive party.

Thousands streamed in from across the city, jamming bridgesover theNile.Army checkpoints surroundingthe square fordaysmeltedawayas some soldiers threw themselves into thethrongs.In thestreets, parents took pictures of their children posing withEgyptianflags.

State television, a bastion of unwavering support forMubarak, had an almost instant change of tone. Afterdisparaging the protesters as foreign-backed troublemakers fordays, it began reportingthe celebrationsas a victoryfor freedom.Egyptians, one reporter outside Oruba palace proclaimed, "areabletomovethewatersthathavebeenstillfor30years.

Incumbent President Hosni Mubarak, a long-timeheavyweight in the Middle East, was re-elected in Egypt's firstmulti-candidate presidential election, the Presidential ElectionCommission announcedon Sep.9, 2005.

Hosni Mubarak, Egypt's longest-serving ruler sinceMuhammad Ali in the early 19th century and one of the longest-serving leaders in the Arab world, succeeded Anwar Sadat, whowas assassinated on October 6, 1981 while attending a militaryparade to commemorate the1973Arab-Israeli war.

History

Born in 1928 in Munofiya governorate in theNile River delta,

Mubarak exhibited a leaning toward the military. A graduate ofthe Air Force academy, he served as its director between 1966and1969.

In 1972, Sadat appointed him as Air Force commander; helater received accolades from the late president over theEgyptian Air Force's accomplishments during the conflict withIsrael.

In 1975, Sadat appointed Mubarak to the post of vice-president and gave him his first taste of mainstream politics as asenior member of the ruling National Democratic Party(NDP).

It was not clear why Sadat chose Mubarak, although somebelieve it wasin reward forMubarak's effective tenureas chief oftheair force.

When Mubarak assumed power, Egypt was isolated from Arab and Muslim countries, many of whom had broken offdiplomatic ties after Sadat signed a peace treaty with Israel in1979.

In one of its greatest diplomatic defeats, Egypt was kickedout of the Arab League and its headquarters were moved fromCairo to Tunisia.

Mubarak's first foreign policy mandate was to bring hiscountry back into the Arab fold and to resume ties with majorplayers in theregion.

His first success wasin building a relationship with the theninfluential Arab leader Saddam Hussein, the Iraqi president,whosecountrywaslockedinabloodywarwithIran.

EGYPT'S ISOLATION

Sadat'sassassination

Talaat Sadat, the late president's nephew and currentmember of parliament, alleged that Mubarak was about to bedismissed from his post a few days before Sadat'sassassination.

In 2006,marking the 25th anniversary of his uncle's death,Sadat accused unnamed generals in the Egyptian military ofmastermindingtheassassinationplot.

The military strongly denied the allegations anda militarycourt sentenced Sadat to one year in prison for defaming thenational army.


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Egypt signed on as Iraq's ally in the conflict, providingmilitary assistance and expertise to Baghdad.

By the time the Iran-Iraq war ended in 1988, Egypt hadsuccessfully emerged from its isolation. In 1990, in a movespearheaded by Iraq and Yemen, the Arab League headquarterswere returnedto Cairo.

But the Arab rapprochement was short-lived as Egyptopposed Iraq's invasion of Kuwait in August 1990. Mubarakurged Saddam to withdraw his forces from Kuwait; whenBaghdad failed to do so, Egypt joined the US-led internationaleffortto drive Iraqi troops outof Kuwait.

Egypt's military and logistical role in the US-led coalitionduring the first Gulf Warearned for it Washington'sfavo ur, w hich, in t urn,pressured G8 countries to write off much of Cairo'sforeign debt.

The 1990s saw an increase in US financial aid to Egypt andrevived US-Egyptian strategic talks. The talks resulted in astrategic alliance between the two countries and theimplementation of the US-Egypt Science and Technology

CooperationAgreement.

The agreement was vital for Egypt, which is known to haveconsiderable high-calibre manpower, but suffers enduringfinancial problems.

One of the main objectives of the US-Egyptian alliance wasacommitment to the peace process in the Middle East.Throughout the 1990s, Egypt became the main peace brokerbetween the Israelis and Arabs, including thePalestinians.

In 1994, Jordan followed Egypt's diplomatic route and signeda peace treaty with Israel.

In successive years, the Egyptian resort of Sharm El Sheikh,which lies on the southern tip of the Sinai Peninsula - an areaseized by Israel in 1967 but returned in the 1980s as part of thepeacetreaty- hosted several peacesummits.

Arab press metaphorically nicknamed the resort the ArabianCampDavid.

In 2008, Mubarak managed todrawup a lull between Hamasand Israel. Mubarak's government is also currently playing amajorrole in Hamas-Fatah talksin Cairo for Palestiniannationalreconciliation.

ECONOMICGROWTH

CRACKDOWNS

POLITICALREFORMS

While Mubarak's foreign policies longdominatedthe MiddleEast, his domestic record was not nearlyas successful.

Mubarak refused to lift a martial law decree, in force sinceSadat's assassination, which allowed security forces to detaincivilianswithoutwarrants andto try them in military courts.

Opposition groups say that the decree has allowed thegovernmentto crackdown on politicalexpression.

In June 1995, Mubarak survived an assassination attempt onhismotorcade while he wasattending an Organisation of AfricanUnity Summit in Ethiopia.

Egyptian authorities accused al-Gama'a al-Islamiyya, a violent group which had targeted Egyptians and tourists inprevious attacks in Egypt in a bid to overthrow the government,of orchestratingthe attack.

Shortly after Mubarak's return to Cairo, the authoritiescracked down on Islamist groups, imprisoning hundreds,leading human rightsorganisations to accusethe government ofhumanrights violations.

In February 2005, Mubarakcalled on parliament to amendArticle 76 of the constitution toallow multiple candidates to runin elections scheduled for laterthat year.

However, opposition groupssaid that the reforms imposednew restrictions on independentpresidential candidatesthat werenot fielded by the ruling NDP.

Nevertheless, elections were held in September 2005, andfor the first time, Egyptians were able to vote for multiplecandidates. Mubarak won theelections with 88%of thevote.

Since his win, opposition and civil rights organisations haveaccused Mubarak of planning to pass the presidency on to hisyoungest son Gamal, who was appointed in 2002 as secretary-general of theNDP's policy committee.

The Muslim Brotherhood, an Islamist movement foundedin 1928, is considered one of the most effective and popularopposition groups in Egypt and is perhaps Mubarak's greatestanathema.


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Banned as a political party, the Brotherhood has persistentlycalled for political reforms and voiced strong opposition to

Mubarak's continuing presidency. Hundreds of its members,including senior leaders, have routinely beenarrested.

Under Mubarak's liberal economic policies, business inEgypt has experienced an unprecedented boom in the past fewyears, mostnotablyin therealestate sector.

However, Egypt is still plagued by rampant unemployment,withmillionsliving in poverty.

Thedichotomy of classes in Egypt hasexacerbated criticismthat Mubarak, and his son Gamal, favour a group ofbusinessmen within the NDP.

Opposition groups say that the NDP's business cartel haveused their authority to monopolise the country's wealth, whilemost ofthe Egyptianpeople are livingin despair.

The NDP has denied these accusations repeatedly andstressedthatthepartyisopentoallEgyptians.

Egyptian opposition groups also blame Mubarak'sgovernment fornot doing enough to fight corruption. Accordingto the corruption perceptions index compiled by GlobalCoalition Against Corruption, Egypt ranked 105 in the list ofleast corrupted countries in 2006, tied with Burkina Faso andDjibouti,and115in2008.

Mubarak is also accused by opposition groups of failing tofulfil the promise he made during his 2005 election campaign toincreasejob opportunities.

POVERTYANDCORRUPTION

This accusation has been denied by the NDP's economiccommittee which claims that the government managed to

reduce thenumber of unemployed Egyptians from 2.5million in2003to1.9millionin2008.

Mubarak has also come under severe criticism for crackingdown on the local press. Despite some progress - the press,theatre and cinema have become bolder in touching on issuesonce considered taboo, including serious criticism of thegovernment and ruling party - critiquing the president is stillconsidered a redline.

In September 2007, several opposition journalists and

editors were arrested for "harming the public interest" bypublishing articles which a judge said implied that theNDP wasdictatorial.

MohammedSherdy, the deputy editor of Al-Wafd newspaper,toldAlJazeerain2007thatthesentencingstandsasamessagetowriters and journalists in Egypt that they are not allowed toexercisetheir rightto criticisethe government.

Ibrahim Eissa, the editor of the opposition newspaper al-Dustour, was arrested in March 2008 and imprisoned inSeptember for publishing reports suggesting that the presidentwas ill. Eissa's arrest cast doubts over just how free the Egyptian

press really is.

Although pardoned by Mubarak, Eissa went on to criticisethelack ofpressfreedomin hiscountry.

"This verdict isn't just about freedom of the press andfreedom in this country. This proves that anything concerningthepresident is a sacred anduntouchablematter," he said.

"In this country, it's normal for journalists to be jailed whilebusinessmen are freed," he said in reference to an acquittal inAugust of five defendants over a 2006 ferry sinking, in whichmorethan1,000peopledied.

MEDIAFREEDOMS

V i c t o r y M a r c h


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VICE-PRESIDENT:OMARSULEIMAN

PERSONALLIFE:

Omar Suleiman was appointed as vice president in January2011 amid a popular uprising against the government and giventhetaskof opening talks with theopposition.

The post is the one that President Mubarak occupied beforehe was promoted to the presidency, but which he kept vacantuntil2011.

Mr Suleiman has been intelligence chief since 1993 and hasplayed a prominent public role in diplomacy - including inEgypt's relations with Israeland key aiddonor theUnited States.

As head of intelligence, he was said to be the mastermindbehind the fragmentation of Islamist groups which led theuprising against thestatein the1990s. He is describedas a long-termconfidantof Mubarak.

Born May 4, 1928, north of Cairo in Monufia governorate,whereSadatwasalsoborn.

Married to Egyptian-Welsh Suzanne Mubarak. They havetwo sons: Alaa, a businessman not involved in politics; andGamal, a banker who has reportedly been groomed to succeed

hisfather. Mubarak isin his83rdyear.

=

EGYPTFACTS:

Thepress

r

r

r

r

r

r

r

r

r

r

r

r

r

r

r

F u l l n a m e :

P o p u l a t i o n :

C a p i t a l :

A r e a :

M a j o r l a n g u a g e :

M a j o r r e l i g i o n s :

L i f e e x p e c t a n c y :

M o n e t a r y u n i t :

M a i n e x p o r t s :

G N I p e r c a p i t a :

I n t e r n a t i o n a l d i a l l i n g c o d e :

ArabRepublicof Egypt

84.5million(UN,2010)

Cairo

1millionsqkm(386,874sqmiles)

Arabic

Islam, Christianity

69years(men), 73years(women)(UN)

1 EgyptianPound= 100 piastres

Petroleum,petroleum products and cotton

US $2,070 (WorldBank, 2009)

+20

Al-Ahram - state-owned daily, the oldest newspaper in the

Arabworld

Al-AhramWeekly - English-language

Al-Jumhuriyah - state-owned daily

Al-Akhbar- semistate-owned daily

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r

r

r

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Al-Ahali- opposition

Al-Wafd - opposition

Al-Messa- pro-government

TheEgyptianGazette- pro-governmentdaily

TheDailyNewsEgypt-privatedaily

Egypt Today- English-languagemonthly

Egypt Radio Television Union (ERTU) - state-run,

operates domestic and satellite networks, including Nile

TV International and NileTV thematicchannels

Dream TV - private satellite network, operates Dream 1

targeting young viewers and Dream 2, an entertainment

channel

Al-Mihwar - private, via satellite

Egypt Radio Television Union (ERTU) - state-run,

operates eight national networks and external services

RadioCairoandVoiceoftheArabs

Nile FM- private, Westernpop

NogoumFM-private,Arabicpop

Middle EastNews Agency (MENA) - state-run

Television

Radio

Newsagency


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=

He r e i s a b a c k g r o u n d o n t h e 2 G s p e c t r u m c o n t r o v e r s y

t h a t r e s u l t e d i n C o m m u n i c a t i o n s a n d I T M i n i s t e r A .

R a j a o f D M K r e s i g n i n g .

T h e i s s u e d a t e s t o 2 0 0 8 , w h e n n i n e t e l e c o m c o m p a n i e s w e r e

i s s u e d s c a r c e a i r w a v e s a n d l i c e n c e s f o r s e c o n d g e n e r a t i o n ( 2 G )

m o b i l e p h o n e s e r v i c e s , a t R s . 1 , 6 5 8 c r o r e ( l e s s t h a t $ 3 5 0 m i l l i o n ) ,

f o r a p a n - I n d i a o p e r a t i o n . A s m a n y a s 1 2 2 c i r c l e - w i s e l i c e n c e s

w e r e i s s u e d .

T h e o p p o s i t i o n s a i d t h a t b y g i v i n g t h e

a i r w a v e s c h e a p , t h a t t o o i n t h e c o n t r o v e r s i a l

m a n n e r o f f i r s t - c u m - f i r s t - s e r v e d b a s i s , t h e

e x c h e q u e r h a d l o s t b i l l i o n s o f d o l l a r s . T h e c u t -

o f f d a t e f o r a p p l i c a t i o n s w a s a l s o a r b i t r a r i l y

a d v a n c e d .

L a t e r , b a s e d o n t h e a u c t i o n o f a i r w a v e s f o r t h i r d g e n e r a t i o n

( 3 G ) s e r v i c e s , w h i c h g o t n e a r l y $ 1 5 b i l l i o n t o t h e e x c h e q u e r , a n d

t h a t f o r b r o a d b a n d a c c e s s , w h i c h f e t c h e d o v e r $ 8 . 5 b i l l i o n , t h e

n o t i o n a l l o s s w a s e s t i m a t e d a t $ 3 8 b i l l i o n t o t h e e x c h e q u e r .

B u t P r i m e M i n i s t e r M a n m o h a n S i n g h h i m s e l f d e f e n d e d

R a j a ' s d e c i s i o n a n d s a i d t h a t a l l t h a t h i s C o m m u n i c a t i o n s

M i n i s t e r h a d d o n e w a s t o i m p l e m e n t a p o l i c y a l r e a d y i n p l a c e a n d

n o n e o f t h e n o r m s w a s f l o u t e d .

T h e o p p o s i t i o n f u r t h e r s t e p p e d u p i t s a t t a c k w i t h t w o

e x a m p l e s o n 2 G a u c t i o n :

A n e w p l a y e r , S w a n T e l e c o m , b o u g h t l i c e n c e s f o r 1 3

c i r c l e s w i t h t h e n e c e s s a r y s p e c t r u m f o r $ 3 4 0 m i l l i o n b u t

m a n a g e d t o s e l l a 4 5 - p e r c e n t s t a k e i n t h e c o m p a n y t o U A E ' s

E t i s a l a t f o r $ 9 0 0 m i l l i o n . T h i s s w e l l e d i t s v a l u a t i o n t o $ 2 b i l l i o n

w i t h o u t a s i n g l e s u b s c r i b e r .

A n o t h e r n e w p l a y e r , U n i t e c h , p a i d $ 3 6 5 m i l l i o n a s

l i c e n c e f e e b u t s o l d a 6 0 - p e r c e n t s t a k e t o N o r w a y ' s T a l e n o r f o r

$ 1 . 3 6 b i l l i o n , t a k i n g i t s v a l u a t i o n t o n e a r l y $ 2 b i l l i o n , a g a i n

w i t h o u t a s i n g l e s u b s c r i b e r .

S i m i l a r l y , a n o t h e r l i c e n s o r , D a t a c o m , l a t e r b e c a m e V i d e o c o n

M o b i l e a n d S T e l n o w h a s l a r g e s t a k e b y B a h a r i a n T e l e c o m . T h e

o t h e r c o m p a n i e s a r e T a t a T e l e , I d e a C e l l u l a r , L o o p T e l e c o m ,

S h y a m T e l e l i n k a n d S p i c e .

A s r e c e n t l y a s l a s t m o n t h , t h e S u p r e m e C o u r t a s k e d t h e

s o l i c i t o r g e n e r a l w h y t h e p r i m e m i n i s t e r h a d n o t r e s p o n d e d t o

t h e r e p r e s e n t a t i o n b y t h e o p p o s i t i o n t o s a n c t i o n p r o c e e d i n g s

a g a i n s t R a j a .

T h e f i n a l b l o w c a m e a f t e r t h e C o m p t r o l l e r a n d A u d i t o r

G e n e r a l o f I n d i a s a i d t h a t t h e e n t i r e p r o c e s s o f s p e c t r u m

a l l o c a t i o n w a s u n d e r t a k e n i n a n a r b i t r a r y m a n n e r a n d t h a t t h e

a d v i c e o f t h e i n d u s t r y w a t c h d o g w a s i g n o r e d a n d m i s u s e d .

What is the 2G spectrumscam about?

2 G ( o r 2 - G ) i s s h o r t f o r s e c o n d - g e n e r a t i o n w i r e l e s s

t e l e p h o n e t e c h n o l o g y . S e c o n d g e n e r a t i o n 2 G c e l l u l a r t e l e c o m

n e t w o r k s w e r e c o m m e r c i a l l y l a u n c h e d o n t h e G S M s t a n d a r d

i n F i n l a n d b y R a d i o l i n j a ( n o w p a r t o f E l i s a O y j ) i n 1 9 9 1 . T h r e e

p r i m a r y b e n e f i t s o f 2 G n e t w o r k s o v e r t h e i r p r e d e c e s s o r s w e r e

t h a t p h o n e c o n v e r s a t i o n s w e r e d i g i t a l l y e n c r y p t e d ; 2 G

s y s t e m s w e r e s i g n i f i c a n t l y m o r e e f f i c i e n t o n t h e s p e c t r u m

a l l o w i n g f o r f a r g r e a t e r m o b i l e p h o n e p e n e t r a t i o n l e v e l s ; a n d

2 G i n t r o d u c e d d a t a s e r v i c e s f o r m o b i l e , s t a r t i n g w i t h S M S

t e x t m e s s a g e s .

F i r s t d o w n l o a d e d m e d i a c o n t e n t w a s a l s o i n t r o d u c e d i n 2 G

p h o n e s . R i n g t o n e s w e r e d o w n l o a d e d a n d p a i d f o r . M o b i l e

a d v e r t i s i n g w a s a l s o i n t r o d u c e d w h e n S M S w a s u s e d f o r

s e n d i n g a d v e r t i s e m e n t s a n d s h o r t h e a d l i n e s o f n e w s .


18/75


GOVT SCRAPSISRO-DEVASDEAL ONS-BAND

SPECTRUMALLOCATION

The controversial S-Band spectrum

deal between ISRO's commercial arm A n tr i x a n d p r iv a te f i rm D ev a sMultimedia was scrapped.

The decision to annul the deal wastaken at a meeting of the Cabinet

Committee on Security (CCS) chaired by Prime MinisterManmohan Singh on the basis of a recommendation from theSpace Commission.

The annulment comes in the wake of a raging controversyover the deal for handing over 70 MHz of S-Band spectrum tothe private firm for Rs 1,000 crore on which the CAG has already

initiated action.

According to certain estimates, this deal may have resultedinalossofRstwolakhcroretotheexchequer.

After news reports about the possible revenue loss appeared,the Government and ISRO said the project was already underreview and action has been initiated for termination of thecontract.

The Prime Minister said that the deal had never beenoperationalised and rejectedsuggestions that his office had held"backroom" talks with Devas after the Space Commission's

decision toscrapthe deal.

He hadsaid that if there hasbeen delay in scrappingthe deal,thishas been"onlyprocedural".

Devas Multimedia had termed as "disturbing andinappropriate" the government's "unilateral" decision toterminatethe agreementand threatened to take legalaction.

It said the government had reached the decision "withoutdue investigative process and without following the principles ofnatural justice".

VETERANVOCALIST PTBHIMSEN JOSHI DEAD

ALL SPECTRUMDECISIONSSINCE 2003-08WERE

WRONG: TELECOM PANEL

Legendary vocalist Pandit Bhimsen Joshi, who enthralledgenerations of connoisseurs with his renditions of Hindustani

classical music, passed away at a city hospital, Pune after aprolonged illness. He was 84.

A recipient of Bharat Ratna, the highest civilian award, Joshihad been put on life support system, following old age- relatedailments leading to kidney and respiratory failure after hisadmissionto hospitalon 31stDecember, his family said.

Joshi, the most-celebrated exponent of 'Kirana gharana' ofKhansahib Abdul Karim Khan, leaves behind three sons and adaughter.

A pall of gloom descended on the city as the news of his

demise spread, with people making a beeline to his residence topay their last respects to the singer who was the most powerfulfigure ontheHindustanimusic concert platformof 'khayal gayki'.

tututu

All decisions on spectrum allocation since 2003 bysuccessive govts, including the UPA, were procedurally wrong,concluded the one-man committee, which probed into theprocedural lapses followingthe telecom scam.

Unveiling the report of the Shivraj V Patil committee,Telecom Minister Kapil Sibal said in New Delhi that thefindings on procedural lapses are being sent to the CentralBureau of Investigation, which is looking into the criminalculpability in the scam.

Addressing a press conference after the arrest of formertelecom minister A Raja, Sibal said hispredecessorhad said thathe had "not deviated from the previous policies (the NDAgovernment) but the problem was that the previous policieswere wrong."

C u r r e n t e v e n t s

India


19/75


Quoting the report, Sibal said that the committee found thatoriginal spectrum allocation was "bad" and procedures were not

followed both duringthe NDA government till 2004 andthe UPAgovernmentupto2008.

It also said the DoT did not follow the advice of the LawMinistry or the views of the Finance Ministry over pricing ofspectrum.

The committeehas also recommended reforms in allocationof spectrum and penalty on hoarding of the scarce naturalresource.

The former telecom minister has been arrested by CBI, which is investigating the case under the supervision of the

SupremeCourt.

After four decades, the Indian Air Force (IAF) inducted anAmerican origin aircraft, the C-130J 'Super Hercules' transportplane, augmenting its specialoperationalcapability.

Defence Minister A K Antonyformally commissioned the

aircraft into the newly formed 77 Squadron of the IAF byhanding over the keys of the aircraft to Unit CommandingOfficer (CO) Group Captain Tejbeer Singh at Hindon air basenear UP.

"C-130J will help theIAF to maintain its qualitative edge andenhance itswar fighting capabilities," Antonysaid in his addressat the inductionceremony.

Besides the Defence Minister, IAF chief P V Naik and the

American Ambassador to India Timothy J Roemer were alsopresent at the ceremony.

The C-130Js, the latest version of Hercules, with fourpowerful engines and around 20-tonne payload-carryingcapacity, will enhance India's rapid reaction capabilities sincethe rugged aircraftcan landon unprepared.

Asked if the IAF would exercise the option of procuringanother sixaircraft, theDefence Ministersaid, "We will increasethenumberofaircraftinthetransportfleetoftheIAF".

tututu

IAF INDUCTS 'SUPERHERCULES' TRANSPORT

AIRCRAFT

"The process to get the C-17 heavy-lift aircraft is in the finalstages. We are not satisfied with six C-130J only."

With its 20-tonne payload capacity, the aircraft will also helpthe IAF bridge the gap in load-carrying capabilities of theRussian Ilyushin-76 andAntonov-32, which canferry loads up to40 tonnes and 8 tonnes respectively.

The contract with the US includes training of aircrew andmaintenance technicians, spares, ground support and testequipment, servicing carts, forklifts, loading vehicles, cargopallets and a team of technical specialists who will be based inIndiaduring a three-year initial support period.

The Super Hercules is a highly integrated and sophisticatedconfiguration, primarily designed to support India's specialoperations requirement.

Equipped with an Infrared Detection Set (IDS), the aircraftcan perform precision low-level flying, airdrops and landing inblackout conditions.

But in absence of defence agreements such as the CISMOA,the C-130Js will be without some of the critical communicationequipmentthat is fitted on the American aircraft.

The USAF, which is executing the government-to-

government deal, had taken possession of the first C-130J at aceremony at Marietta near Atlanta on 16th Dec last year andhandeditovertotheIAFthesameday.

The IAF along with Lockheed Martin has modernised thehome base of theC-130Js andcreatedinfrastructure forhousing12 such aircrafts there, along with creating servicing andoperations facilitiesfor theaircraft.

The company has also reinvested over USD 260 million intoIndian defence sector under the offsets clause, which mandatesinvestment of at least 30 per cent of the worth of deals over Rs300 crore in Indian defence companies.

Referring to the growing defence relationship between thetwo countries as a key component of the US-India strategicpartnership, the US ambassador said, "The sale of six C-130Jaircraft strengthens our bilateral military relationship andenhances joint regional security efforts between our twodemocracies."

Roemer also mentioned that the US President BarackObama also, while addressing the Parliament during his Indiavisit, referredthe two countriesas "twoglobal leaders".

Defence

Minister added.


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21/75


The DMK MP would be confronted with some questionsand documents recovered from the computers seized duringraids conducted by the investigation agency earlier at hispremises.

Raja was on earlier occasions questioned at length on thecircumstances leading to spectrum allocation which has beencriticised severely by the Central Vigilance Commission and theComptroller and Auditor General (CAG).

He was also asked about his conversations with corporatelobbyist Niira Radia and the reasons of advancing the cut-off

date of allocation of thespectrum in 2007.

Raja was forced to resign on November 14 last year in thewake of the CAG report which held that the spectrum allocationat undervalued prices resulted in a notional loss of Rs.1.76 lakhcroretothestateexchequer.

Raja got the telecom portfolio on 18th May, 2007 and was re-elected as a Member of the 15th Lok Sabha and continued asTelecom Minister from31stMay, 2009, till 14thNovember, 2010before he tenderedhis resignation.

The Supreme Court has asked CBI and Enforcement

Directorate to submit status reports on their investigations intothe 2G spectrum case to it by February 10 when the case willcome up forfurther hearing.

In its FIR, CBI mentioned the loss as Rs 22,000 crore basedonCVCfindingswhichhadreferredthecasetoit.

Radia was quizzed by CBI as she had come under thescanner after her tapped telephonic conversations with variousinfluential people including industrialists, politicians andjournalists became public.

CBI has also questioned former Telecom RegulatoryAuthority of India (TRAI) chief Pradip Baijal, a 1966 batch IAS

officer of Madhya Pradesh cadre, and former TelecomSecretaries Siddarth Behuraand D S Mathurin connection withthe case.

The Reserve Bank of India hasasked state-run banks and someprivate lenders to accept 25 paisecoins for exchange until end-June2011.

T he h um bl e 2 5 p ai se c oi nrepresenting 'four annas' of a bygoneera will soon be history. The RBI hassaid that coins with a denomination of25 paise and below will be pulled out of circulation by June 2011afterwhichtheywillceasetobelegaltender.

Raging inflation has reduced the monetary value to such anextent that it will not buy even the cheapest lozenge. Also, thecost of minting these coins is higher than their value because ofwhich they are no longer minted. Although many traders alreadyrefuse to accept payments in small change below 50 paise, these

coins are currently legal tender and it is an offence to refusethem.

The RBI has for some time now been working on a strategyforthe reverse flow of coins from circulation before withdrawingthem as legal tender. Having now put in place a process, the RBIhas asked 45 banks, including all government-owned banks,which maintain small coin depots to arrange for exchange ofcoins.

The general public can exchange small denomination coinsatanybranchofthesebanks.

The government had earlier under Section15A of theCoinage Act, 1906 decided to withdraw the coins ofdenomination of 25 paise and below from circulation,with effectfrom June 30, 2011. From this date, these coins shall cease to belegaltenderforpaymentaswellasonaccount.

Some time back, the RBI had recommended that thegovernment should withdraw coins below 50 paise. The centralbank had also asked for coinization of low-denomination notesof up to Rs 10, since these are high velocity notes and have to bereplacedvery frequently.

tututu

25P COINSTOBEHISTORY AFTER JUNE


22/75


ANAND FINISHES SECOND IN TATACHESS;

NAKAMURAWINS

Five times winner Viswanathan Anand had to be content with asecondplace finish, followinga drawwith Ian Nepomniachtchi of Russiain the 13th and final round of 73rdTata Steel Chess tournament in theNetherlands.

The World Champion coulddraw a big consolation from the factthat he would be the number 1

ranked player all over again as theresults proved that he will be

overtaking world number 1 Magnus Carlsen of Norway in thenextrating list.

Hikaru Nakamura of United States owns the title afterdrawing hisfinalround game with Wanghao of China.

For the records, Nakamura tallied 9 points in all, a half pointmore than Anand in this category-20super tournament between14-players.

The American not only performed way beyond his rating of

2751 but also finished ahead of the world's top four rankedplayers.

Anand gotthe better position with hisblack pieces but couldnot find a breakthrough AS Nepomniachtchi simply got animpregnable position in the end game arising out of a Siciliandefense game.

The Indian ace settled for a draw in 37 moves.Disappointing," saidAnand afterthe finalresultswere out.

"When I reached a plus-four score (Four wins and restdraws), I felt I was well on my way to a final victory but Hikaru

just kept winning, picking up sixpoints in a row, which wasquiteamazing.

"But I'm notunhappy;it's difficultto be unhappy with a plus-four score. It's a pityI didn't manage to win the tournament but Ithink I performed above my rating, which isn't bad at all," theWorldChampion said.

The third place was shared by Magnus Carlsen and LevonAronian of Armenia who both scored 8 points apiece. The lastround of the tournament turned out to be a damp with all thegamesendingindrawsforthefirsttimeintheeventthisyear.

GOVT GRANTSCONDITIONAL CLEARANCETOPOSCO

CBI REGISTERSCASE INADARSH HOUSINGSOCIETY

SCAM

E n v i ro n m en t m i n i st r y a p p ro v e d S o u th K o r ea nPOSCO's plans for a $12 billionsteel plant in Orissa, a boost forthe foreign investment climateafter several setbacks for bigticket industrial projects.

The long-delayed clearancefor India's biggest foreign directinvestment as long as the company meets a series ofenvironmental standards follows a year in which Environment

Minister Jairam Ramesh has blocked several projects, raisingcriticismthat he was jeopardizingIndia's growth story.

"Undoubtedly, projects such as that of POSCO haveconsiderable economic, technological and strategicsignificancefor the country," the statement said. "At the same time, laws onenvironment and forestsmust be implemented seriously."

The plant in eastern Orissa state has been delayed bycriticismthat it would ruinlivesof thousandsof poverty-strickenpeople, who say the plant will disrupt their betel leaf plantationsand forest-basedlivelihoods.

India, one of the world's fastest growing major economies,needs foreign capital to boost infrastructure and allow itseconomy to grow at near double digits. But projects have met with protests from local farmers in this densely-populatedcountry.

A government panel had earlier said that there were noecological concerns over the plant and the final decision waswith Ramesh.

Posco is among several corporations, including VedantaResources, which have come under scrutiny from Ramesh,putting his ministry in conflict with others in the government

whoare pushing for rapidindustrialization.

The Central Bureau of Investigation registered a caseagainst some retired Army officials and bureaucrats ofMaharashtra Government in connection with the Adarshhousing society scam.

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The case was registered after

the CBI received flak from theBombay High Court for its tardyprobeinthecase.

It was not immediately clearwhether the name of the formerMaharashtra Chief Minister, MrAshok Chavan, figures in the FIR

registered at thespecial designatedcourt in Mumbai.

The CBI FIR names two former senior Army officials of therank of Major General and Brigadier, sources said. The agencyhadregistered a preliminary enquiry into thescam in November

last year.

Thedecisionto register a case wastaken after seeking a legalopinion on theevidence which had favoured registeringof a caseagainst some people for allegedly forging the documents andabusing official position.

During hearing of a petition in the Adarsh case, a DivisionBench of Mr Justices B.H. Marlapalle and Mr U.D. Salvi hadaskedCBIwhyithadnotregisteredthecase.

It has been more than two months since CBI has beenconducting a preliminary inquiry into the case. Why have you

(CBI)notregisteredFIRasyet?ithadasked.

Two former army chiefsGen. DeepakKapoor and Gen. N.C.Vij andex-navy chief Admiral Madhavendra Singh owned flats inthe scam-hit society building in upscale Colaba. However, theformer top chiefs have claimed that they have now surrenderedtheflats.

The Union Ministry of Environment and Forests had on January 16 ordered demolition of the building within threemonths, holding it as unauthorised andbuiltin violationof thespirit of coastal regulations.

Apart from violating the CRZ norms, the society is alleged tohave got clearances from various authorities through dubiousmeans.

The plush housing society, built on prime defence land hasbeen constructed in alleged violation of rules. The building wasoriginally meant to be a six-storey structure to house Kargil warheroes and their kin but was later extended to 31 floors withoutmandatory permission.

Mr Chavan had resigned as chief minister in the wake of thescam.

SIBAL DELINKS SPECTRUMFROM LICENCES;NEW

TELECOM POLICYSOON

I n a m aj or s hi ft i nspectrum allocation policy,Telecom Minister Kapil Sibalannounced that henceforth nolicence w ould be iss uedbundled with spectrum andalso the operators would haveto pay a market price for anadditional spectrum.

He also said that for new

operators, the contractedamount of spectrum would be 4.4 Mhz and for the incumbentplayers like Bharti, Vodafone and Idea, the limit would be 6.2Mhz.

"In future, the spectrum will not be bundled with licence.The licence to be issued to telecom operators will be in thenature of 'Unified Licence' and the licence holder will be free toofferany of themultifarious telecom services," Sibalsaid.

"In the event, the licence holder would like to offer wirelessservices, it will have to obtain spectrum through a market drivenprocess," the minister said.

This means the new operators, if their licences are heldvalid, would have to paya market price forthe additional 1.8Mhzof 2G spectrum and this may make their operations financiallyunviable.

While the old operators, who are holding spectrum beyond6.2 Mhz, would have to pay market driven price for the extraairwaves.

These changes would be implemented with immediateeffect, Sibalsaid.

"We need to seriously consider the adoption of an auctionprocess for allocation and pricing of spectrum beyond 6.2 Mhzwhile ensuring that there is adequate competition in the auctionprocess," Sibalsaid.

He also announced that there would be a uniform rate ofrevenue share to be paid by the operators as spectrum charge tothegovernment,as part of level playing field forall players.

These changes would be part of new telecom policy beingframed by the Department of Telecom.


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NCC STRENGTHTORISETO 15LAKH: PM

STATESNOTREADY FORSUGARDECONTROL: SHARAD

PAWAR

The strength of the National CadetCorp will increase to 15 lakh, with PrimeMinister Manmohan Singh announcingthe government's nod for addition of twolakhcadets.

"I am very happy to inform you that inrecognition of the good work done by theNational Cadet Corps, the Governmenthas sanctioned an enhancement in its

authorised cadet strength from 13 lakh to 15 lakh," Dr. SinghsaidaddressingtheNCCRallyinNewDelhi.

The NCC is a voluntary organisation which recruits cadetsfromhigh schools, colleges and universities all overthe country.

The increase in the number of cadets will facilitate theraisingoffivenewgroupheadquartersand40NCCunits.

The Prime Minister said that the NCC was a proud symbolof national integration and of the values of discipline, patrioticservice andteamwork.

"I believe that value education is a vitally important part ofour upbringing and organisations such as the NCCshould showthe way forward. NCC cadets should set an example of working

withlocal communities,"he said.

Dr. Singh asked the cadetsto imbibe the inspiring teachingsof Swami Vivekananda by trying to achieve excellence inwhatever fields theychoose in life.

Observing that theyoung cadetscomefromevery cornerandcommunity of the country, he said, "You speak differentlanguages and profess different faiths. The work of the NCCshows that diversityin oursociety does notcausedifferences butrather is a source of strength and vitality. The multitude oftalent, experience and learning in the NCC are a great resourcefor the country," Dr. Singhsaid.

Decontrol of the sugar industry (from levy and monthly freesale quota obligations) will seemdifficult as several producingStates, including Uttar Pradesh, Punjab, Karnataka and TamilNadu are not ready for it, Union Agriculture Minister SharadPawar said in NewDelhi.

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Speaking to journalists afterCabinet reshuffle, Mr. Pawar said

only Maharashtra and Gujarat hadagreed to the decontrol proposal.Unfortunately, many States arenotreadyforit.IfonlythreeorfourStates accept, it is difficult toimplement. And Prime Ministerhas alwayssaidthat for this kind ofpolicy, States should be taken intothe confidence.

Asked if this meant the proposal would be put on the backburner, Mr. Pawar said, You can't say. If there is moreproduction and prices come down, then States may rethink and

accept.

Referring to the proposed National Food Security Bill, Mr.Pawar said the Ministry had not received either therecommendations of the National Advisory Council or the viewsof the C. Rangarajan Committee that examined the NACsuggestions.

The Minister said the two considerations would beavailability of marketable surplus and the subsidy that wouldaccrue when wheat was given at Rs. 2 a kg and rice at Rs. 3, theeconomic cost to the government being estimated at Rs. 16 andRs. 22. Even now when States have been given an additional

allocation at 50 per cent of the economic cost, the lifting is noteven30percent.

Mr. Pawar, who is the president of the Nationalist CongressParty, said that he was much relieved and happy that PrimeMinister Manmohan Singh had lightened his burden. I hadbeen asking the Prime Minister for more than a year that myburden should be eased. Relieved of the charge of Food andConsumer Affairs, he will now handle only the Ministry ofAgriculture and Food Processing.

Expressing confidence that the agriculture growth rate thisyear would be 3.5 per cent (from 0.2 per cent the previous year)as good production of wheat, rice, pulses and sugarcane wasexpected, Mr. Pawar said: Not production, but storage offoodgrains will be an issue in thecoming months.

Up to 10 per cent of paddy crop had suffered in quality dueto weather conditions in Andhra Pradesh and Orissa but nodrop in output was expected. As for cotton, he said thatproduction this year was estimated to be more than last year,but whether more exports should be allowed before cottonfrom the United States hit the global market would have to bedecided by the Empowered Group of Ministers, headed byPranab Mukherjee.


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PRIMEMINISTERHASUNDERMINEDMGNREGA, SAY

SOCIAL ACTIVISTS

Expressing distress at thePrime Minister's refusal to paythe statutory minimum wages toworkers under the employmentguarantee programme, a group of150 social activists has criticisedthe government's decision tomerely allow an index-linked risein current wages.

They accused the PrimeMinister of further undermining

the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) by delinking the remuneration from theMinimum Wages Act that too after the Ministry of RuralDevelopment arbitrarily froze the wage at Rs. 100 a day inJanuary 2009.

The present controversy stems from the Prime Minister'sletter to the National Advisory Council chairperson SoniaGandhi in response to her request for payment of minimumwages to MGNREGA workers.

The Prime Minister turned down the proposal but agreed tolinkthewagerateofRs.100adaywiththeConsumerPriceIndexfor Agricultural Labour to cover erosion in real wages due toinflation.

Indexation resulted in a rise in MGNREGA wages between17 and 30 per cent in most States, but still fell short of thestatutory minimum wage in 11States

Describing the Prime Minister's action as immoral, thesignatories alleged that it amounted to denial of Constitutionaland legalprotection to the lowest stratumof workers.

The statement expressed surprise that the Prime Ministerhad ignored not only an Andhra Pradesh High Court rulingsuspending the notification freezing wages for workers underMGNREGA, but also the opinion of the Additional SolicitorGeneral and the Labour Ministry that non-payment ofminimum wages was a violation of the Constitution.

Even the pleas of United Progressive Alliance chairpersonSonia Gandhi failed to influence the Prime Minister, who alsoignored the request of Andhra Pradesh Chief Minister to abidebytheHighCourtruling.

The Prime Minister's stand belied his promise of notallowing anyone to sleep on a hungry stomach, the signatories,

who included Aruna Roy, Jean Dreze, Nikhil De, Annie Raja,Yogendra Yadavand Medha Patkar, alleged.

The statement demanded that the government uphold thefundamental right of the poorest of workers and declare anational floor-level need-based wage, below which no legal wagecould be paid.

Foreign Secretary Nirupama Rao

wrapped up a three-day official visit toNepal, which focused on the country'spolitical situation and bilateralrelations.

During the visit, she met Nepal'sentire top political leadership,including President Ram Baran Yadav,Prime Minister Madhav KumarNepal, and Unified Communist Partyof Nepal (Maoist)chairmanPushpa KamalDahal Prachanda.'

Elaborating on Ms. Rao's meetings, the Indian Embassy in

Kathmandu said in a statement: The political leaders of Nepalstressedthe importance theyattachedto closerelations betweenNepalandIndia.

The Foreign Secretary stressed to all the leaders that Indiastands for a democratic, stable, peaceful and prosperous Nepal.She also assured them of India's support to the constitution-drafting process while strengthening inclusive multi-partydemocracy in Nepal, and also for successfully concluding theNepali-ledpeace process.

During her meeting with Mr. Prachanda, Ms.Rao is learnt tohave asked him about his party's anti-India stance. Mr.

Prachanda clarified that the Maoists were not anti-India but feltthat certain historical issues like treaties had to be looked atina newmanner, sources said.

The Maoist leader asked Ms. Rao about India's position ongovernment formation in Nepal and expressed concern thatIndia may be seeking to isolate the Maoists. She stressed thatthis was entirely up to Nepal'spolitical parties and that India waswilling to work with anygovernmentin Nepal.

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NIRUPAMARAOCONCLUDESNEPAL VISIT

=

The is observed on .W o r l d T o u r i s m D a y S e p t e m b e r 2 7

N i r u p a m a R a o


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ASEAN TO DISCUSSTHAI-CAMBODIA SKIRMISHES

OVER SHRINEDISPUTE

As tension continuesto simmer

on the Thailand and Cambodiaborder over a 11th century HinduShiva temple, a concerned Aseangrouping has asked all its foreignministers to meet for an urgentconclave to discuss the Preah Viharshrine dispute.

The invitations to the foreign ministers have been sent byIndonesian Foreign Minister Marty Natalegawa, the current

ASEANchairandthemeetingissettobeheldon22ndFebruary.

While Cambodia has sought an urgent Security Council

meeting calling for a UN buffer force to be put in place,Thailand has saidthatthe dispute should be resolvedbilaterally.

Meanwhile, Thailand has saidthatmore than20,000 soldierswill be deployed on the Thai-Cambodian border as part of anational defence plan and an incident action plan approved bythe army commander, 'Bangkok Post' quoted army sources assaying. Theplanistoremainineffecttill30thMarch.

Themain entrance of theShiva templeknown as Preah Viharis officially on the Cambodian side but mostof the other parts ofthetemplespillovertotheThaiside.

Officially the foreign ministers have been invited to discuss"regional and international issues," but the purpose of themeeting is clear, senior Asean officials toldthe Bangkok Post.

The Indonesian foreign minister has met both Cambodianand Thai foreign ministersso far. He hassaid that Asean's role isone thatsupports bilateral efforts to resolve the conflict.

Recent reports had said that parts of the temple had beendamaged in the recent skirmishes between the two neighboursafter Cambodian troops used the shrine as a military base to fireon theThaisoldiers.

Thai Prime Minister Abhisit Vejjajiva has sent a letter to the

UN Security Council saying Thailand's action during the

clashes in recent months with Cambodia was appropriate and is

in line withinternational principles.

UN Secretary-General Ban Ki-moon has urged both the

countries to come up with mechanisms to solve their disputes

and end armed confrontation as soon as possible. US has also

calledfor Thailand and Cambodiato exerciserestraint.

The construction of the first temple at the site began in the

early 9th century and continued in the following centuries

dedicated to Shiva in his manifestations as the mountain gods

Sikharesvaraand Bhadresvara.

The earliest surviving parts of the temple dates from early

10th century, when the empire's capital was at the city of that

name.

In the wakeof the decline of Hinduism in the region, the site

was converted to use by Buddhists. In 1954, Thai forces

occupied the temple, following the withdrawal of French troops

from Cambodia.

Cambodia protested and turned to the International Court

of Justice, which later ruled in 1962 that the shrine belonged to

Cambodia.

The Israeli cabinet unanimously approved the appointment

ofMajGenBennyGantzasthenextchiefofthearmedforces.

The appointment of Maj Gen Gantz comes at a time when

the region, engrossed in a strong political turmoil, faces one of

its worst instability in decades.

"Maj Gen Benny Gantz is an outstanding officer and an

experienced commander," Israel's Prime Minister Benjamin

Netanyahutold his ministers.

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BENNY GANTZAPPOINTED HEAD OF ISRAELI MILITARY

C u r r e n t e v e n t s

World


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Unlike the earlier protests in Yemen, which were highlyorganized and marked by color-coordinated clothing and signs,the spontaneity of the younger demonstrators appeared to havemore in common with popular uprisings in Tunisia and Egypt,

where opposition groups watched from the sidelines asleaderlessrevoltsgrew intorevolutions.

The opposition coalition said at a news conference in Sana'athat it welcomed the new street protests, but cautioned that thesituation could quickly escalate if mass uprisings took hold in

Yemen,a country witha well-armedpopulace.

PresidentSaleh, an importantally of theUnited States in thefight against terrorism, in recent months sought to counter arising tide of opposition and preserve his three-decade rule byraising army salaries, having income taxes and ordering pricecontrols, among otherconcessions.

US Secretary of State Hillary Rodham Clinton has urgedSaleh to enter into a dialogue with the opposition, in the interestof preserving stabilityin Yemen.

The opposition coalition has said it would be willing torestart talks with theruling party if specific conditions were met,like including members of the southern separatist movement inthe dialogue.

It remained unclear to what degree a widening popularuprising could set off renewed armed clashes in the south.Protests across the south have been notably more violent thanthose in thecountry'snorth.

A Pakistani anti-terrorismcourt issued a non-bailablearrest warrant against former

President Pervez Musharraf tosecure his presence in thehearing in the Benazir Bhuttoassassinationcase.

The court in Rawalpindiiss ued t he w arrant aft er

hearing theargumentsof prosecution lawyers.

The Federal Investigation Agency also submitted a detailedchargesheet that named Musharraf as an accused in the caserelatedtothemurderofBhutto.

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PAK COURT ISSUES NON-BAILABLE ARRESTWARRANT

AGAINSTMUSHARRAF

The FIA had earlier named Musharraf as an "absconder" forfailing to cooperatein the probe intothe assassination.

Musharraf, currently living in self-exile in Britain, hadrefused to cooperate with investigators and answer theirquestions, prosecutors said.

The detailed charge-sheet said that there was a conspiracybehind Bhutto's assassination, and that Musharraf allegedlyprovided slain Tehrik-e-Taliban Pakistan chief BaitullahMehsud with the opportunity to carry out a suicide attack onBhutto by failing to provideher adequatesecurity.

A report compiled by the FIA's investigation team said:"Musharraf was equally responsible for facilitation andabetment of the assassination of Benazir Bhutto through hisgovernment and justified failure in providing her the requisitesecurity protection that her statusdemanded twice. There wasasecurity lapse."

The FIA has also alleged that two top former police officials,who were recently arrested for alleged negligence in providingsecurityto Bhutto, were actingon theorders of Musharraf.

Musharraf's spokesman and legal aides have dismissed thecharges levelled against him, saying that the Pakistan People'sParty-led government was trying to deflect attention fromcharges of inefficiency and corruption levelled against it.

Bhutto was killed by a suicide bomber shortly after sheaddressedan election rallyin Rawalpindi in December2007.

The former military ruler has been living out of Pakistansince April 2009. Former Pakistani Taliban chief BaitullahMehsudwaskilledinaUSdronestrikein2009.

Nepal's veteran communist leader Jhalanath Khanal wassworninasthenewprimeminister,evenashispartyfailedtoinka power sharing deal with its key ally Maoists, delaying thecabinet formation.

President Ram Baran Yadav administered the oath of officeand secrecy at a grand function in the presence of top Nepaleseleaders, including Vice President Parmananda Jha, caretakerprime minister Madhav Kumar Nepal, Maoist chairmanPrachanda, Nepali Congress president Sushil Koirala andParliament SpeakerSubhas Chandra Nembang.

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KHANALSWORN IN ASPMAMID POWER SHARING

ROWWITH MAOISTS


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"I will remain committed and honest to the nation and itspeople to fulfill my duty," said

60-year-old Khanal.

Even as it ended a seven-month leadership vacuum inthe country, the cabinetformation was postponed asthe CPN-UML failed tofinalise a power sharing deal

with its main supporterU CP N -M a oi s t w h o a r eseeking their pound of fleshfor having ensured Khanal's

victory, sources said.

The UCPN-Maoist has238 seats and the CPN-UML has 108 seats in the Constituent

Assembly, which actsas thecountry's interim Parliament.

The former rebels are pushing for key portfolios, includingHome Ministry, which was rejected by Prime Minister Khanal,leading to the delay in cabinet formation, according to a seniorleaderof CPN-UML.

CPN-UML sources said that the party has finalised thenames of Bharat Mohan Adhikari, Bishnu Poudyal and GangaLal Tuladhar forkeyportfolios of Finance, Home and Education.

Two Terai based parties, Madhesi Peoples Rights Forum ledby former Foreign Minister Upendra Yadav and MadhesiPeoples Rights Forum (Nepal) led by Mahendra Yadav are likelyto jointhe government, sources said.

Nepali Congress, the second largest party with114 membersin theHouse, hasdecided tosit in theopposition.

There is growing anger in a section of the CPN-UML partyand the Nepali Congress, which supported the Communistparty-led government since 2009, over a secret deal with theMaoists during thevoting in theparliament, sources said.

Khanal's party, which is the third largest party in theparliament, got support from the main Opposition Maoist Partyafter Prachanda quit theracein a last minutedecision.

Nepal's parliament voted under revised election rulesdesigned to break a deadlock that had left the country without agovernmenteven after 16 rounds of elections.

The political deadlock over the last seven months has beenhugely damaging for Nepal, which is still reeling from itsdecadeofcivilwarthatendedin2006.

The standoff has also delayed the drafting of a newconstitution and conclusion of the peaceprocess.

The Maoists, who fought a 10-year battle against the statebefore entering politics and winning elections in 2008, had

pushedfor leading a newcoalition.

But they did not have an absolute majority and had beenunableto winthe support of smaller parties that they wouldneedto forma coalitiongovernment.

ThePalestiniancabinet wasmeetingto seta date forthe firstelections since 2006. Speaking on condition of anonymity, it saidthat mid-July was the most likely date for the local elections,

which would probably be limited to the West Bank following therefusal of theGazaStrip's Hamas rulersto take part.

Local polls were originally set for 17th July 2010 but

postponed after the Islamic movement said that it would notparticipate. Hamas restated its opposition to a vote after PrimeMinister Salam Fayyad said that local polls would be held "this

year" and that it was also time to start preparing for a generalelection.

"The movement will not participate in this farce," Hamas

said in a statement in response. "The movement will notrecognisethe result of thisprocess."

Hamas has refused to recognise the authority of the WestBank-based government of president Mahmud Abbas since hisfour-year term expired in January 2009 andwas then indefinitelyextendedby his supporters pending new elections.

The Gaza Strip and the West Bank are separated by Israeliterritory and are ruled by rival administrations. Abbas'sgovernment called a general election for January 2010, then

backed down after Hamas refused to hold parallel polls in theGazaStrip.

Hamas, which won the 2006 parliamentary race by a

landslide, has said that there can be no fresh vote withoutreconciliation with the rival Fatah party, which is headed by

Abbas and dominates the Western-backedPalestinian Authority.

The Islamist movement took power in Gaza in June 2007when it drove out forces loyal to Abbas in a week of bloody streetbattles, the culmination of years of struggle between the two

main Palestinian movements.

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PALESTINIANS TO HOLD ELECTIONSIN JULY


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ASSANGE WARNSOFRELEASINGOF 'ENCRYPTED KEYS'

WikiLeaks founder Julian Assangehas warned of releasing "encryptedkeys" containing large amount of secretinformation, if the whistleblower

website is permanently shutdown.

Assange was speaking to CBSNews's "60 Minutes" at a country housein Engl

e-preptalk feb 2011

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