The New “King-Makers”

by Harish Gupta, National Editor, Lokmat Group

The New “King-Makers”

50 MP s of BJD, TRS, YSR make new PM 

Harish Gupta

New Delhi, Feb 6

If pollsters believe that Mamata Banerjee (TMC) or N Chandrababu Naidu (TDP) or Mayawati (BSP) will be the “king Maker” in a hung Lok Sabha after the 2019 polls, they may be sadly mistaken.

The new King Makers on the horizon are three non-aligned parties; Biju Janata Dal (Odisha), YSR Congress (Andhra Pradesh), and Telangana Rashtriya Samiti (Telangana) who are likely to get 45-50 Lok Sabha seats and play a crucial role in the formation of a new government if the BJP is restricted to 200 seats mark.

These three parties have decided to stay neutral and go it alone in the Lok Sabha polls. According to pollsters, YSR Congress is virtually sweeping the state of Andhra Pradesh which has 25 Lok Sabha seats. The YSR Congress is an off-shoot of the Congress Party and was formed when Y S Jaganmohan Reddy revolted after the tragic death of his father in a plane crash. He is expected to win at least 15-17 Lok Sabha seats. One of the reasons for Chandrababu Naidu to quit the NDA was his suspicion that BJP is hob-nobbing with the YSR Congress. Another indication of YSR Congress's friendly ties with the BJP is that Prashant Kishore is working with the party as its poll strategist. Jagan Mohan Reddy has already given Kishore a huge commercial space at Banzara Hills and he is running his poll campaign. K Chandrarao Rao is a known Modi Bhakt.

Similarly, the TRS headed by Telangana Chief Minister K Chandrashekhar Rao is expected to win 15 Lok Sabha seats out of 17. He recently swept the Assembly polls and showed his popularity with the voters. The Congress and the BJP are contesting all 17 seats in the state. But pollsters believe that both the parties will draw a blank.

The Biju Janata Dal headed by Odisha Chief Minister is likely to win anywhere between 15-17 seats. During the 2014 Lok Sabha polls, the BJD had won 20 out of 21 seats while the BJP won one seat and the Congress drew a blank. The BJP is so desperate to placate Naveen Patnaik that it dumped B J Panda, who had resigned his seat to join the BJP. Panda is now sulking and left high & dry. Even Prime Minister Modi who was toying with the idea of contesting from Puri Lok Sabha seat in Odisha and take on Pantaik decided to look the other way.

The fact that Naveen Patnaik's sister Gita Mehta was offered Padma Shri by Modi, though she declined later citing wrong political message, is an indication that there is some tacit understanding between BJD and BJP.

The third indication of bon homie is that the CBI has gone silent in Odisha though BJD leaders were equally involved in the Chit Funds scam.

So this block of 50 Lok Sabha seats in a house of 543 will play a very crucial role if the BJP doesn't cross the 200 seats mark. The NDA parties (Shiv Sena, Janata Dal (U), LJP, Apna Dal, Akali Dal, AIADMK) are expected to get another 25-30 seats. Thus, PM Modi will need new “King Makers” to chip in a post-poll scenario.

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Modi Govt. Clears Forest land for Anil Ambani

by Harish Gupta, National Editor, Lokmat Group

Modi Govt. Clears Forest land for Anil Ambani

1169 acres for Cement plant in Yawatmal

Harish Gupta

New Delhi, Feb 4

The Ministry of Environment and Forest has granted prior approval for diversion of 467.45 ha. of Forest Land for non-forestry purpose to M/s Reliance Cementation Private Limited, a company owned by Anil Ambani.

It is stated that the 1169 acres of land was given to Ambanis diverting Forest land in Pimaradwadi, Horapur and Govindpur villages of Yavatmal District of Maharashtra.

The Anil Ambani group is already in controversies due to Rafale deal and other issues. The company has also filed for insolvency recently. Now it emerges that the Maharashtra government and the Centre granted forest land to him for setting up a cement factory.

The Maharashtra government told the Centre that proposed area does not fall under any National Park, Wildlife Sanctuary, Biosphere Reserve, Tiger Reserve, Elephant Corridor etc. and no protected area was located within 10 kilometres distance from the forest land proposed for diversion in favour of M/s Reliance Cementation Private Limited, in Pimaradwadi, Horapur and Govindpur villages of Yavatmal District of Maharashtra.

The state government sent the proposal to the Centre for its prior approval which agreed and granted the same.

The Forest land is not acquired but the forest land is given to the User Agency by the State Government for non-forestry purpose and Compensatory Levis such as Compensatory Afforestation cost, Net Present Value and other charges are deposited by the User Agency in Compensatory Afforestation Fund.

In this case M/s Reliance Cementation Private Limited has deposited Rs. 52,06,22,016.63/- ( Fifty Two Crore Six Lakh Twenty Two Thousand Sixteen and sixty three paisa) amount as compensatory levies in Compensatory Afforestation Fund of Maharashtra.

The Minister of state for Environment & Forest Mahesh Sharma confirmed the information in Rajya Sabha today.

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Akalis give new Headache to Fadnavis

by Harish Gupta, National Editor, Lokmat Group

Special report

Akalis give new Headache to Fadnavis

Amit Shah issues sermon; Amend Nanded Gurudwara Act

Harish Gupta

New Delhi, Feb 4

Shiromani Akali Dal (SAD) may be BJP's ally in Punjab. But it is giving a new headache to the Devendra Fadnavis government in Maharashtra.

It now transpires BJP president Amit Shah spoke to the Maharashtra Chief Minister Devendra Fadnavis and impressed upon him to re-look at the Gurudwara Act governing the historic Gurudwara at Nanded in the state.

The tiny issue of the Nanded Gurudwara has rocked the decades old relationship of the BJP with the SAD which threatened to walk out of the NDA and quit the Modi government. Sukhbir Singh Badal, president of the SAD, had met the BJP president had told him in no uncertain terms that his party would be left with no option but to quit the NDA. Even Harsimrat Kaur Badal, Food Processing Minister would quit the Modi government if the Maharashtra government continued to play with the religious sentiments of the Sikh community in the state. Since the Akalis had refused to attend the NDA meeting held on Friday last, Amit Shah swung into action and held a marathon meeting with Akali leaders to appease the discontentedThe SAD had made it clear that its core committee would meet and severe ties with the BJP forever.

Obviously, the BJP found the issue too hot to handle after what is happening in the North East and with other allies.

The Akalis told Shah that a section of the BJP and the Rashtriya Swayamsevak Sangh (RSS) are trying to interfere in matters related to Sikhs. Functionaries who were privy to discussions said the both leaders managed to hammer out a truce after the two-hour meeting.

The bone of contention between the BJP and Akali Dal is over the amendments made in the Takht Hazoor Abchal Nagar Sahi Nanded Act, 1956 by the BJP government in Maharastra. The amendment empowered the Government to nominate six members to the Gurudwara Prabandhak Committee of Nanded and also its chairman. The committee has 15 elected elect members. But the power to nominate as many as six members and also the chairman made the Akalis angry. Their argument was that its a religious matter of the Sikh community and the government should not interfere in the Sikh sangat.

Fadnavis is understood to have told Shah that the amendments to the Act were made at the behest of the Rashtriya Sikh Sangat, another frontal organisation of the RSS working in the Sikh community.

It is learnt that the Gurudwara Act would be amended shortly ensuring that an elected president is appointed and the state would not nominate six members and number would be brought down to two.

Shah, after talking to Fadnavis assured Badal that the state would not interfere in the affairs of Sikhs. Both parties are learnt to have agreed not to step on each other’s political turf.

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Modi's imprint on Full “Interim” Budget

by Harish Gupta, National Editor, Lokmat Group

Modi's imprint on Full “Interim” Budget

Rs one lakh crore to benefit 55 crores in Poll year

Harish Gupta

New Delhi, Feb 1

The imprint of Prime Minister Narendra Modi on the Union Budget 2019-20 was clearly visible. The Modi government has done what no previous government dared do in the past – presented a full budget and yet called it an Interim Budget. Insiders say during one of the interactions with the Finance Minister Piyush Goyal, it was the PM who suggested that “big Bonanza” is needed for the salaried middle class tax-payers to win back the lost ground in urban areas. “Why not double the Exemption limit from Rs 2.50 lakhs to Rs 5 lakhs?” was the poser and Goyal did it exactly the same today.

So what the cost to the exchequer will be Rs 18500 crores plus Rs 4700 crores in other benefits. But it will help BJP win three crores tax payers. It was Prime Minister Modi's big ticket relief to 3 crore Income-Tax payers that stumped the Opposition completely.

Earlier, the dole to farmers was to be to the tune of Rs 10000 per year to farmers owning 5 acres of land. But Modi scaled it down to Rs 6000 per year as he wanted the total relief under Rs one lakh crores to maintain fiscal deficit targets. Thus the 12 crores farmers will get a direct bank transfer cash subsidy to the tune of Rs 75000 crores. Then, 40 crore workers in un-organised sector will benefit from the pension scheme which has been introduced first time. The amount, however, for 40 crores work force, is a mere Rs 500 crores. Its a scheme where every worker will have to chip in Rs 55 per month and centre will match it by paying Rs 55. The government should have allocated Rs 2200 crores. But only Rs 500 crores as government knows such pension accounts can't be opned. Modi also kept in mind his core constituency by setting up Kamdhenu commission for the welfare of cow and allocated Rs 750 crores.

Modi may have tried to woo the distressed farmer, middle class groups and un-organised sector workers and the cow by doling out Rs one lakh crores approximately. The farmers will get the first installment of Rs 2000 cash in their bank account before March 2019 – i.e. merely a month before the polling begins. The huge tax exemption limit will bring down the number of income tax payees from 6 crores to three crores. But riders may be attached when the Full Budget is presented by the government in July.

Any way, its a win win for Modi before the polls.

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Govt buckles under Pressure

by Harish Gupta, National Editor, Lokmat Group

Govt buckles under Pressure

It will be Interim Budget now on February 1 

No tinkering with Income-tax code 

Harish Gupta

New Delhi, Jan 30 

Stung by wide-spread criticism of government's intentions to present a full budget on February 1, the Union Finance ministry today clarified that it will present an “interim budget” . 

Finance ministry officials denied reports in the media that it will be a full budget for the year 2019-20 by Union Finance Minister Piyush Goyal.  

The Ministry official asserted that it will be a vote-on-account, as the Lok Sabha elections are likely to be held in April and May. “The Budget will be called Interim Budget 2019-’20,” Ministry of Finance Official Spokesperson DK Joshi said today. 

The official asserted that there was no confusion in the ministry. However, if there is any policy announcement, it is not a budgetary exercise.

Obviously, the government wants to douse the fire on the issue after shouting from the roof-tops that it had every right to take into account the needs of the people and incorporate the same in the proposed Budget. In fact, Arun Jaitley asserted this in a statement before leaving for the USA for treatment. Some of the Cabinet Ministers of the Modi government have also been saying that several new schemes are at works. 

These assertions sparked condemnation by the Opposition and the Congress even threatened to stage protests if the government presents a full budget instead of a vote-on-account, which is a convention followed by outgoing administrations for decades. Congress leader in Rajya Sabha Anand Sharma had said that such a step would be a “blatant violation of Constitutional propriety”.

Insiders in North Block, however, say that the Interim Budget may not propose any Income-tax related slab changes. But offering relief to targeted section will not fall in the full budget category. 

While several governments have tinkered with indirect taxes, most finance ministers have kept income tax rates unchanged in the interim budget.

In 1977-78, the then finance minister H M Patel  proposed to enable companies to make deposits with the industrial development bank  of india in lieu of payment of surcharge of income tax. The bill proposed the discontinuance of the duty on salt for the year.

In 1980-81, Finance Minister R Venkataram proposed income tax exemption for residents of Ladakh those assesses engaged in poverty alleviation, corporations or other bodies promoting the interests of the Scs/STs.  The Bills proposed to levy auxiliary duties of customs on all imported goods.

In 2004-05, Finance Minister Jaswant Singh proposed levy of national calamity contingent duty on certain items. Amendments  were proposed in baggage rules also. In 2014-15, even Finance Minister P Chidambaram proposed changes in customs duty structure on non-edible grade industrial oils, fatty acids and fatty alcohols, Exemption from countervailing duty on specified imported road  construction machinery withdrawn and Concessional customs duty on imported capital goods to encourage domestic production of security paper for printing currency notes