Sunday, October 5, 2008

N-deal: Bush may sign away Indian concerns on Oct 8

new delhi: President George W. Bush will sign the Congressional approval of the Indo-US nuclear deal into law on Oct 8, hopefully taking care of Indian concerns over a couple of new riders in the legislation.

US Secretary of State Condoleezza Rice and Indian External Affairs Minister Pranab Mukherjee failed to sign the implementing 123 agreement during her just concluded visit to New Delhi due to Indian insistence that Bush must first sign the approval legislation.

While Rice and other US officials had taken the plea of pending "administrative details" for Bush not signing the legislation, but apparently what really kept him was how to allay Indian concerns regarding nuclear fuel assurances and technology transfers for uranium enrichment and reprocessing of spent nuclear fuel.

But White House invitations Saturday for Wednesday's ceremony indicate that the two sides may have found the right formulation to allay India's concerns over these issues by way of a signing statement as he did over certain "extraneous and prescriptive" provisions in the Hyde Act in December 2006.

"My approval of the Act does not constitute my adoption of the statements of policy as US foreign policy," he then said in a presidential statement asserting that he would specifically treat three sections - 103, 104 and 109 - relating to India's Iran policy, NSG transfer guidelines and a joint scientific cooperative nuclear non-proliferation programme at best as "advisory".

US presidents have often used such signing statements to interpret a law the way they choose without taking the extreme step of rejecting a bill outright with a veto. Usually these are quietly listed in the Federal Register recording all executive actions without a public announcement.

India's concerns over "H R 7081, United States India Nuclear Cooperation Approval and Nonproliferation Enhancement Act," stem from its mover Howard Berman making Bush's controversial statement about "political commitments" regarding nuclear fuel supply assurances not being "legally binding" a part of the legislation.

Berman, Democratic chairman of the House Foreign Affairs committee, who had initially strongly opposed to the deal on non-proliferation grounds, was brought around to supporting the legislation with the inclusion of a couple of new provisions in the bill.

He also extracted an assurance from Rice that the US would work with members of the Nuclear Suppliers Group to "prohibit" transfers of enrichment and reprocessing technology to non-members of Non-Proliferation Treaty. Rice later clarified that she had used the word "limit" not "prohibit".

Section 104 of the approved bill requires that licenses may not be issued by the Nuclear Regulatory Commission for transfers of nuclear fuel, equipment and technology until after the president determines and certifies to Congress that (1) the safeguards agreement approved by the IAEA Board of Governors on August 1, 2008, has entered into force; and (2) India has filed a declaration of facilities that is not materially inconsistent with the facilities and schedule described in its separation plan.

The legislation also requires a future administration to submit a "subsequent arrangement" for India establishing a dedicated facility to reprocess US-origin spent nuclear fuel to Congress, which would have the power to pass a resolution of disapproval.

To be sure "administrative details" too have to be worked out before the president signs a bill into law. For one, the House clerk has to first enrol the bill, print a copy on parchment paper and then send it to the White House for the president's signature. But it took just a couple of hours to do so in the case of the administration's $700 billion financial rescue package.

Another reason for the delay was as Rice put it the administration's desire to "use it as an opportunity to thank all of the people who have been involved in this", including the Indian American community and the business community which played a key role in pushing the deal through the Congress.
Source: www.mid-day.com

Govt. may introduce insurance bill in next session

New Delhi: The much-awaited comprehensive insurance bill, which seeks to raise foreign direct investment cap in private sector to 49 per cent from 26 per cent, is likely to be introduced in the forthcoming session of Parliament.
The draft is being vetted by the Law Ministry and would be moved for Cabinet approval once it is cleared by the Ministry, Finance Ministry sources said.
It is expected to go to the Cabinet for clearance before the session begins, sources said.
Parliament session is scheduled to begin from October 17.
Last month, a Group of Ministers headed by External Affairs Minister Pranab Mukherjee had cleared a proposal to hike FDI limit from 26 per cent to 49 per cent.


The proposed changes include amendments in the IRDA Act, 1999 and LIC Act, 1956 among others.
The UPA regime had proposed raising the FDI cap in its first budget in 2004-05. However, opposition from the Left parties forced the government to refer it to GoM in 2006-end.

The government failed to pursue the insurance sector reforms because of pressure from the Left, which was their ally.
The government took a conscious view to pursue the pending economic reforms, including those in the insurance sector.
Following opening of the insurance sector in 2000, about 3 dozen private companies have started operations in the country. Many of them are constrained by the 26 per cent FDI and have been making a case for raising the foreign investment cap.
Following withdrawal of support by the Left, Finance Minister P Chidambaram had earlier expressed confidence over pursuing the economic reforms agenda by pointing out that BJP is "obliged" to support certain key financial sector legislations.
Source: www.mid-day.com

Note to PM for amendment of Article 355

Alappuzha: Union Minister for Parliamentary Affairs Vayalar Ravi today said that he had forwarded a note to Prime Minister Manmohan Singh, proposing amendment of Article 355 of the Constitution. Article 355 would enable the Centre take control over districts in states where violence was prevalent.

Speaking at a function organised by the Aratuvazhi Holy Angel Charitable Trust in Alappuzha, the minister said that the proposal was made in view of the continuing violence against Christians in Orissa. "The proposal, if adapted, will be beneficial in future."

The union cabinet will soon meet to discuss the violence against Christians in Orissa, he said.

The ministeralso added that it was against Hindu dharma to attack any community
Soruce: www.mid-day.com