Shuja’iya massacre will stain the hands of all who are silent and complicit

Photo,The Zionist enemy carried out a horrific massacre today against the civilians of Shuja’iya neighborhood in eastern Gaza City, targeting homes with mortars, tanks, missiles and aircraft, killing dozens of martyrs and wounding hundreds, where many remain under the rubble of their destroyed homes amid a barrage of shells and rockets.

Shuja’iya massacre will stain the hands of all who are silent and complicit
Jul 20 2014

The Popular Front for the Liberation of Palestine pledged that the blood of the martyrs of the Shuja’iya massacre, of the war crimes and genocide committed by land, air and sea in every inch of Gaza against civilians in their homes, children, women, and the elderly, will not be wasted, and that the enemy will never be able to break the will and steadfastness of our people and their valiant resistance which will fight and resist this cowardly and criminal enemy until the last breath.

The Front noted that the Zionist criminal occupation has brought death, destruction and devastation to our neighborhoods, camps and cities, saying that the occupation forces were incapable of stopping the resistance or its qualitative strikes against occupation forces, and have expressed their cowardice by targeting innocent civilians in their homes.

The Front saluted the brave resisters in all the Palestinian military organizations who are willing to sacrifice in order to block the progress of the occupation forces, for our people to survive and confront the war machine, and praised its ongoing painful strikes to the enemy.

Furthermore, the Front emphasized that the international community is responsible for the crimes against our people in Gaza with its ongoing military, financial, and political support to the occupation entity, providing it with political cover to commit crimes against our people.

The Front demanded that Palestinian Authority officials and spokespeople stop engaging in the language of defeatism and to instead respect the Palestinian popular mood, which shouts that no voice is louder than the voice of the resistance. Our legitimate resistance is a point of pride for all of our people; we are convinced that we will win, and we will mend our wounds, we will rise from the rubble and the ruins to rebuild our homes again.

The Front saluted with pride the steadfast people in Gaza from Rafah to Beit Hanoun who have suffered so much pain and yet refuse to concede to the threats of the occupation. People with such steadfastness will inevitably triumph and no war machine will be able to defeat them or to force them to abandon their embrace of the resistance.

The Front saluted the inspiring sacrifices and commitment of medical personnel, ambulance workers and civil defense, who faced extreme danger and came under fire in order to evacuate the dead and wounded, as well as the journalists who lost their lives in order to deliver the tragic images in the streets of Gaza to the world.

The Front called upon the Palestinian people throughout Palestine, in the West Bank, Jerusalem and ’48 and everywhere in diaspora and exile, saying that the land of the West Bank must burn under the feet of the occupiers, in their settlements and everywhere the occupation is. It is time that the earth is turned to flame beneath the feet of the criminal enemy. There can be no more waiting as the horrific massacres continue in Bureij, Rafah, Khan Younis, Beit Hanoun, Shuja’iya, Gaza.

It also demanded the Arab people and the democratic and progressive forces of the world to remain in the streets and squares, to occupy, surround and storm the Zionist and U.S. embassies and consulates in response to the crimes of the occupation forces, and to condemn the international and Arab official silence and complicity, demanding an immediate end to the siege on Gaza and the unconditional opening of Rafah crossing and in particular to facilitate the entry of medical personnel and aid.

The Popular Front for the Liberation of Palestine confirm that the crimes of the occupation will not go unpunished and resistance to the Zionist genocide against our people is our path. The banner of resistance and confrontation will be raised high by the Palestinian people.

The PFLP demanded that the PLO leadership immediately act to join the International Criminal Court and act to prosecute the fascist occupation war criminals for their massacres against the Palestinian people. The Front expressed its highest honor and salute and deepest mourning for the blood of the martyrs whose blood was shed on the land of Gaza, pledging to march on the path of freedom, self-determination, return and liberation, for which they were killed.

Abu Ali Mustafa Brigades continue confronting the occupier on the battlefield

Abu Ali Mustafa Brigades continue confronting the occupier on the battlefield
Jul 20 2014 PFLP

The Abu Ali Mustafa Brigades, the armed wing of the Popular Front for the Liberation of Palestine, is fighting alongside its fellow resistance factions in response to the Zionist aggression on Gaza from land, air and sea, and has engaged in many clashes dealing serious blows to the occupation army.

AAMB announced that it ambushed occupation soldiers east of Khan Younis and engaged with them directly, saying there were serious injuries in the ranks of the soldiers. It also announced that in a joint operation with the Brigades of the Martyr Abdelqader Husseini it confronted the enemy near the airport in Rafah, engaging them with a variety of weapons.

On Sunday, AAMB reported:

AAMB fighters clashed directly with occupation forces behind Kafarneh Street near the Agricultural College north of Beit Hanoun at 2:50 AM.

AAMB and Abdelqader Husseini Brigades infiltrated and engaged occupation forces at the Rafah airport area and confronted them with a variety of weapons including 4 “107″ type missiles.

Targeting enemy artillery east of Shuja’iya at 12:45 AM.

On Saturday, July 19:

* AAMB bombarded Eshkol settlement with three missiles at 11:00 PM.

* Ambushing ememy soldiers and clashing with them with confirmed casualties in their ranks

* Clashes with enemy forces in joint action with other resistance forces

* Targeting the enemy at Kerem Abu Salem at 10:15 pm with missiles

* Fighting with Israeli special forces in northern Beit Hanoun, causing confirmed enemy casualties

* Firing three rockets toward Bir Saba at 9:15 pm.

* The thirteenth day of the attack Saturday, 19/07/2014 AD

* In a joint operation with the Nasser Salahuddin Brigades, targeting occupation military northwest of Beit    Lahiya with anti-tank missiles, hitting their equipment directly at 7:25 pm

* Clashing with the occupation forces in one of the houses destroyed by their attacks in northern Beit Hanoun at 6:30 pm.

* Bombarding Eshkol settlement with missiles at 3:00 PM

* Confronting Zionist special forces that attempted to infiltrate Gaza

* Bombarding Asqelan with a Grad rocket at 3:00 AM

Israeli shells hit Gaza’s only power plant

A Palestinian man takes a picture of a fire raging in Gaza's main power plant following an overnight Israeli airstrike, south of Gaza City©EPA

July 29, 2014 12:00 pm
Israeli shells hit Gaza’s only power plant
By Joel Greenberg in Jerusalem FT

Israeli shells hit the fuel depot of the Gaza Strip’s only power plant on Tuesday, cutting electricity to Gaza City and wide areas of the coastal enclave as Israel intensified its bombardments of the territory after losing 10 soldiers in militant attacks.

Towering flames and plumes of smoke rose from the power station, as Israel’s offensive against the Islamist group Hamas entered its fourth week, with no signs of a breakthrough in US and regional efforts to broker a ceasefire.

Air strikes overnight targeted symbols of Hamas control in Gaza, hitting the studios of the group’s Al-Aqsa television and radio stations in a media complex in the centre of Gaza City that also contains offices of several Arab satellite television news channels. Al Aqsa television broadcasts continued from another location, according to local reports.

The vacated home of Ismail Haniyeh, the top Hamas leader in Gaza, was bombed, as well as the financial department of group’s administration in the territory, along with four mosques that the army said were used to store weapons.

“My house is not more valuable than the house of any other Gazan and destroying stones will not break our determination and resistance,” Mr Haniyeh said in a statement. “We will resist until freedom.”

The Palestinian death toll climbed beyond 1,100, according to health officials, as fresh strikes were reported on homes, some of which the army asserted had been used as “command and control centers” by Hamas militants.

A total of 53 Israeli soldiers have been killed in the fighting, along with three civilians who died in rocket and mortar strikes in Israel

Multiple members of extended families were reported to have been killed in strikes on houses in the al-Bureij refugee camp, where the home of the mayor was struck, in Khan Yunis and in Rafah, where seven members of the Abu Zeid family, including four women and a child, were reported to have died in a strike on their home.

The Israeli strikes followed the killing of 10 Israeli soldiers on Monday. Four died when mortars hit an army staging area in southern Israel near the Gaza border. Another five were killed when militants who had tunnelled into Israel attacked their position with an anti-tank rocket.

One of the infiltrators was killed in a subsequent exchange of fire as the rest fled back to the Gaza Strip, the army said. A bulldozer driver from the army’s corps of engineers was killed in Gaza when an anti-tank rocket hit his vehicle, the army said.

A total of 53 Israeli soldiers have been killed in the fighting, along with three civilians who died in rocket and mortar strikes in Israel.

Prime Minister Benjamin Netanyahu pledged on Monday to press on with the offensive, telling Israelis to “prepare for a prolonged campaign”.

Israel’s Netanyahu defiant despite pressure

July 28, 2014 5:11 pm
Israel’s Netanyahu defiant despite pressure
By Joel Greenberg in Jerusalem FT

Prime Minister Benjamin Netanyahu faced increased international pressure on Monday to wind down Israel’s military offensive against the Islamist group Hamas in the Gaza Strip, but he has strong support at home to continue the campaign.

“We have to be prepared for a protracted battle,” Mr Netanyahu told Israelis on Monday, pledging to continue the offensive until a network of Hamas attack tunnels was destroyed.

After US president Barack Obama and the UN Security Council called for an immediate and unconditional ceasefire, Mr Netanyahu lashed out at the council’s non-binding “presidential statement” calling for a halt to hostilities to allow for delivery of urgent humanitarian assistance, calling it one-sided.

In a conversation with Ban Ki-moon, the UN secretary-general, Mr Netanyahu charged that the statement dealt with “the needs of a murderous terrorist organisation that attacks Israeli civilians, and does not address Israel’s security needs”, according to an account by the prime minister’s office.

A key reason for Mr Netanyahu’s defiant tone has been the popularity of the Gaza campaign at home, where Israelis have rallied behind the government and the army in the war against Hamas.

Absorbing daily rocket strikes directed at big cities and towns, Israelis have accepted Mr Netanyahu’s depiction of the campaign as an effort to degrade Hamas’s military capabilities in Gaza, including its missile stocks and attack tunnels, while bringing a long-term halt to the rocket attacks.

Polls have shown overwhelming opposition to a ceasefire. One survey published by Israel’s Channel 10 television on Sunday showed that 87 per cent of Israelis were in favour of continuing the Gaza operation and just 7 per cent wanted a full ceasefire. Another poll showed similar figures, with only 9.7 per cent agreeing with the statement: “Israel had enough achievements, soldiers have died, and it is time to stop”.

“What most Israelis perceive is the fact that the Palestinians are sending rockets into Israel, to very central places, and this is something they expect the government to prevent, so they will not support leaving Gaza without getting the job done,” said Tom Segev, a historian and author. “There is no opposition, except for a few thousand people who demonstrated against the war.”

Contributing to this public perception is the sympathetic Israeli media coverage of the military campaign, which has largely shielded Israelis from the graphic scenes of death and destruction viewers are seeing around the world.

Israeli news broadcasts focus on military operations against the tunnels and the damage and disruption caused by the rocket strikes in Israel, with relatively few images of the civilian casualties and devastation in Gaza.

With Israeli journalists barred from the coastal territory, except when embedded with army units, the bulk of Israeli reporting on the war is being done by military correspondents, with studio commentary provided by an array of ex-generals.

Mr Netanyahu has also taken pains to limit public scrutiny of his conduct of the war. In televised statements to the nation, flanked by the defence minister and army chief of staff, he usually takes no questions from reporters. With parliament in summer recess and support for the campaign reaching across the political spectrum, the prime minister has not been summoned to explain his policies before the Knesset.

While the 47 soldiers killed so far is a relatively high death toll in Israel for a campaign in its third week, the military’s dead and wounded are widely seen as a painful but necessary price for halting years of rocket attacks on civilians.

Mr Netanyahu has praised the Israeli public for its resilience, asserting that it has enabled the government to prosecute the war. “Your steadfast fortitude gives us the ability and the time to take strong action against our enemies, and we are all proud of you,” he said in one national broadcast.

Israel’s Iron Dome missile defence system, which has intercepted scores of rockets headed for significant population centres, along with an early warning system that has sent millions of Israelis to shelters before rocket impacts, have kept the civilian casualty toll low. Two Israeli civilians and a Thai labourer have been killed in rocket strikes.

Many of the nearly 2,000 rockets and mortars that have hit Israel have landed in open areas.
After an ebb in fighting early on Monday at the start of the Muslim holiday of Eid al-Fitr, rocket fire at Israel and Israeli strikes in the Gaza Strip resumed, with fresh deaths reported on both sides.

Four Israeli soldiers were killed in a mortar strike near the Gaza border, and 10 Palestinians, most of them children, were reported killed in an explosion in a park that local officials said was caused by an Israeli airstrike. Another strike hit an outpatient clinic at Gaza City’s main hospital, Al-Shifa, but there were no casualties. The Israeli army said both blasts were caused by impacts of misfired rockets launched by militants.

As the offensive has moved from land, air and sea bombardments to a ground invasion by infantry and tanks, the war aims have expanded. Initial government statements that “quiet will be met with quiet” have given way to demands by Mr Netanyahu that the Gaza Strip be demilitarised, ridding it of Hamas’s stocks of missiles and tunnel networks, some dug toward Israel for cross-border attacks.

Mr Obama acknowledged that demand in a phone conversation with Mr Netanyahu urging a ceasefire, though he appeared to defer any resolution of the issue to a final political settlement with the Palestinians.

“Ultimately, any lasting solution to the Israeli-Palestinian conflict must ensure the disarmament of terrorist groups and the demilitarisation of Gaza,” Mr Obama said, according to a White House statement.

Many Israelis, meanwhile, seem to be in no mood for a truce until the declared aims of the Gaza campaign are achieved. A woman from a rocket-stricken city in the south of the country captured the public mood in comments broadcast on Israel Radio. “We’ve been suffering here for 14 years,” she said. “We’re ready to suffer more now, but until they finish it off. I’m not willing to even hear the word ceasefire, not even for a minute.”

Source: FT

Gaza Baby Delivered from Dying Mother

Gaza Baby Delivered from Dying Mother

By Adam Justice , July 28, 2014 13:16 PM BST

Doctors have delivered a Palestinian baby girl, Shayma Hussien, from the womb of her Mother, whom medics said was killed in an Israeli air strike on their house.

Israel is using shrapnel bombs in Gaza

Gaza July 2014 Mother and Child

Israel is using « DIME » shrapnel bombs in Gaza, against Geneva rules
PUBLISHED: 14 JULY 2014 HITS: 800

The information comes from the French newspaper l'Humanité. According to the testimony of a Norwegian surgeon, Israel is using Dense Inert Metal Explosive bombs in Gaza, violating the Protocol 1 of the Geneva Convention on Certain Conventional Weapons, to which Israel is party. Dr. Erik Fosse, who has come for humanitarian purposes, testifies that Israel is using in Gaza these bombs, which have a shrapnel effect on civilians. He knows them because he was already intervening in Gaza in 2008 – 2009, and already had to denounce the use of this weapon, together with Palestinian doctors. The way Israel is using DIME bombs in Gaza may amount to a war crime.

Dense Inert Metal Explosive are a mix of explosive material and small particles of chemically inert material, for instance tungsten. The metal is mixed in very small particles (1 – 2 mm) or in powder, and thus the micro-shrapnel can slice through soft tissue and bone. The mix, in a carbon fibre casing, has a very potent shrapnel effect in a small radius : the probability of killing people within a small radius is increased, and survivors may have to be amputated (esp. of the lower limbs), because the shrapnel cannot be detected through x-ray in the bodies of the victims and the injury cannot be cured. The tungsten powder « dissolves » in the body, and any minor injury interferes with the clotting process, leading to profuse bleeding.

DIME weapons have been developed among other things as a replacement for depleted uranium bombs. In theory, the long-range damage of the explosion is reduced (allowing for the use of the weapon in urban, asymmetric battles). Indeed, the effect of the explosion is dissipated at a range of 5 – 10 meters. DIME bombs are usually carried by drones ; they are the dreamed « smart bomb » for a « clean war ». But tungsten is also a known carcinogenic material : in addition to their amputations, survivors must therefore be followed for cancer risks. The destruction of the carbon case adds to the effect of the weapon, as it explodes into small fibre sharps, of 3 to 10 microns. The risk for respiratory diseases, and for lung cancer, is very important.

Actually, according to Israel's Manual on the Rules of Warfare on the Battlefield (2006 edition), shrapnel invisible to x-rays are forbidden. The manual, which is referred to on the ICRC's website ( http://www.icrc.org/customary-ihl/eng/docs/v2_rul_rule79 ), acknowledges that the Convention on Certain Conventional Weapons bans these weapons, that cause « damage over and above what is necessary and [are] therefore forbidden ». Why is Israel using them notwithstandingly ?

Source: < The European Institute for International Law and International Relations >  http://www.eiilir.eu/

RSS link with the Bodu Bala Sena - Swapan Dasgupta

For West, Rajapaksa is Sri Lanka’s Modi
Jul 25, 2014

Swapan Dasgupta

''The belief is that India will endorse Sri Lanka’s growing impatience with NGOs and multilateral bodies that use the cover of human rights and reconciliation to carry out a political agenda''

It is a measure of Sri Lanka’s return to “normal” democratic politics that conspiracy theories are once again resonating in Colombo.

Compared to the situation just three years ago when “politics” continued to centre on the 30-year-long bloody civil war that mercifully came to an end in May 2009, the sub-text of political discussions today is the presidential election, due some time in early-2015.

It is not that the unending tensions between the Central government in Colombo and the Provincial Council in Jaffna have become so drearily routine that they cease to excite the public imagination. The Tamil National Alliance-controlled local administration in the Northern Province has reverted to the constitutional brinkmanship that marked Jaffna politics in the days before the Liberation Tigers of Tamil Eelam’s conquest of the province. The loquacious Tamil politicians now in charge of the provincial administration know that they owe their return to the centrestage to the total decimation of the Tigers by the Sri Lankan Army five years ago. Yet, such are the charms of posturing that it is obligatory for them to pretend that the three lost decades were just a footnote.

When I was in Sri Lanka exactly 13 months ago, the conspiracy theory centred on President Mahindra Rajapaksa’s “secret” plan to either avoid provincial council elections in the Northern Province altogether or rig the results in favour of the pro-government Tamil parties. At that time TNA leaders were quite vocal in insisting that the so-called hardliners in the Rajapaksa government would never allow democracy in the Tamil areas.

Predictably, the conspiracy theory turned out to be spurious. Elections were held in the Northern Province as per the President’s commitment; there was a high turnout of voters and no suggestion of electoral malpractice; and the TNA won a resounding victory.

Since then, there is an ongoing cold war between the TNA and the government in Colombo over Jaffna’s claim for unhindered powers over land and police — the 13th Amendment controversy. Colombo is adamant that it cannot afford to relax its guard and allow any possible revival of terrorism in the province. The TNA feels that this is tantamount to reneging on a sovereign commitment given by President J.R. Jayawardene to Indian Prime Minister Rajiv Gandhi and enshrined in the Indo-Sri Lanka Accord of 1987. It believes that India must use its muscle power to secure something akin to the “special status” of Article 370 for the Lankan Tamils. New Delhi, which is understandably wary of over-involvement in Sri Lanka after the Indian Peace Keeping Force experience of the late 1980s, isn’t too keen to meddle beyond a point and would rather that the matter be resolved within Sri Lanka. The TNA, however, loves to play the India card to replenish its bargaining clout with Colombo. The progress has been zero but the use of a foreign power to resolve domestic disputes has created complications for the larger relationship between New Delhi and Colombo. It has also created the conditions for China to cosy up to a country that is anxious for deepening economic engagements without strings attached.

The election of the Narendra Modi government has created a mood of anticipation in Colombo.

First, there is satisfaction that a BJP government with a majority of its own will not have to accommodate every unreasonable demand from Tamil Nadu on the course of bilateral relations. There is an expectation that the unfortunate situation of India voting against Sri Lanka at the UN Human Rights Commission and Manmohan Singh’s boycott of Commonwealth Heads of Government Meeting in Colombo won’t be repeated.

Secondly, given Mr Modi’s own unfortunate experiences with the global human rights industry, it is expected that India will be more understanding of Sri Lanka’s position on the collateral damage of the civil war. The belief is that India will endorse Sri Lanka’s growing impatience with NGOs and multilateral bodies that use the cover of human rights and reconciliation to carry out a political agenda. Certainly, India will have reason to be concerned about the precedents being set by the UN office in Colombo. Last month, for example, the UN attempted to conduct “voter education” workshops in a country that had universal adult franchise even before India and where voter turnout has always been extremely high. My own interaction with UN staffers leave me in little doubt that the local outfit sees itself as a facilitator for a type of politics that in Lanka’s context is decisively anti-Rajapaksa.

Thirdly, the BJP has had a more rounded view of India’s civilisational links with Sri Lanka than some of those who saw the relationship through an exclusively Tamil prism. Since the time Syama Prasad Mookerjee took an active role in the Mahabodhi Society and the return of Bodh Gaya to Buddhist control, the (Rashtriya Swayamsevak)Sangh fraternity has cherished both the Nallur Kandaswamy temple in Jaffna and the Buddha tooth shrine in Kandy. These ties have been supplemented in recent years by exchanges with the Madhya Pradesh government and Colombo’s support for the preservation of the “Ram setu” linking the two countries.

Maybe it is because of an expected shift away from big-brotherly condescension to a more civilisational-cum-economic relationship that the conspiracy theories are certain to multiply in Colombo. There are certain to be suggestions of a Rashtriya Swayamsevak Sangh link with the extremist Bodu Bala Sena that many people feel was responsible for the recent attacks on Muslims in Sri Lanka. More fanciful suggestion will hold that defence secretary Gotabaya Rajapaksa is behind a sinister plot to ensure a Hindu-Buddhist alliance in Colombo and the Central Provinces to counter an exaggerated Muslim cultural separatism.

There will be many more theories that will be lapped up by an impressionable media for whom President Rajapaksa is just another version of the dreaded Mr Modi in India. Like in India, the foreign media and NGOs in Sri Lanka believe that it is their responsibility to ensure natives vote according to the high moral standards set by the West.

The writer is a senior journalist
http://www.asianage.com/

Children killed in Gaza playground shelling

"It's believed that because it's been relatively calm, many of these children went outside to enjoy themselves on this Eid holiday but tragically they've been killed," Tyab said.

Children killed in Gaza playground shelling
Israel denies hitting Gaza's main hospital and a playground, where seven children were killed.

Last updated: 28 Jul 2014 18:03

Eight people including seven children died following a missile strike on a park inside the Shati refugee camp [AFP]

Missiles have struck several sites in Gaza, including a park inside a refugee camp and an outpatient building of the strip's largest hospital, disrupting a relative lull at the start of the Muslim Eid al-Fitr holiday.

Eight people, including seven children, died following missile fire on a park inside the Shati refugee camp on the edge of Gaza City, medics said.

The children were playing on a swing when the strike hit the park, Ayman Sahabani, the head of the emergency room at Shifa hospital, told reporters.

 The Israeli army swiftly denied it was behind the strike, tweeting that a misfired rocket from Gaza had hit the playground.

"We had no activity in the area. We know it was launched from within Gaza and landed short," Lieutenant Colonel Peter Lerner, an Israeli army spokesman, said.

However Hamas denied it had fired any rockets in the area and said it was "categorically an airstrike by Israel". It said it had collected schrapnel from the scene that it could prove was from an Israeli munition.

Medics said that an Israeli missile also hit a building, believed to be an outpatient clinic, close to the main gate of Shifa hospital, the same hospital where the victims of the playground strike were taken.

Al Jazeera's Imtiaz Tyab, reporting from the hospital, said there were chaotic scenes as "a number of small bodies were brought into this hospital".

"It's believed that because it's been relatively calm, many of these children went outside to enjoy themselves on this Eid holiday but tragically they've been killed," Tyab said.

Israelis killed

Also on Monday, four Israelis were killed in a mortar attack at Eshkol in southern Israel near the Gaza border.

The Israeli army hasn't commented on whether the four were soldiers or civilians, but the army has been deployed heavily in that area.

Monday’s violence followed an almost 12-hour pause in fighting and came as international efforts intensified to end the three-week war between Israel and Hamas.

The United Nations on Monday called for an "immediate" ceasefire in the fighting that has already killed more than 1,040 Palestinians, 43 Israeli soldiers and three civilians on the Israeli side.

At least two more Palestinians were killed in other attacks on Monday. A four-year-old boy died when tank shells hit his family's house in Jabaliya, in the northern Gaza Strip, Gaza health officials said. Another person was killed by tank shelling in a separate incident, also in Jabaliya.

The military said at least a dozen rockets had been fired from Gaza at Israel since midnight.

Eid of mourning

As Muslims began celebrating Eid al-Fitr, there was fear and mourning on Monday instead of holiday cheer in large parts of Gaza.

Palestinian families huddled inside their homes, fearing more airstrikes, while those who came to a cemetery in Gaza City's Sheik Radwan neighbourhood to pay traditional respects at their ancestors' graves gathered around a large crater from an airstrike a week ago that had broken up several graves.

Amid an eerie calm, the call to Eid prayer echoed in the southern town of Rafah on Monday morning. Dozens of worshippers lined the rows of a severely destroyed mosque, with a collapsed roof and missing walls. Many of the faithful looked sombre during the traditional holiday sermon.

In Gaza City, dozens of men prayed in the courtyard of a UN school surrounded by school desks. Children and women stood on a higher level overlooking the worshippers.

"We are suffering and will suffer but we need our rights, our houses, our lands and our farms to return to us and we will not accept living a miserable life," said Abu Saber Jalees, who fled fighting to seek shelter at the school.

Amid a slowdown in the fighting, rescue teams uncovered five bodies in a village east of Khan Younis, said Saed al-Saoudi, the commander of the Civil Defence in Gaza.

UN unsuccessful truce bid

In New York, an emergency meeting of the UN Security Council called for "an immediate and unconditional humanitarian ceasefire".

And while it was the council's strongest statement yet on the Gaza war, it was not a resolution and therefore not binding.

The council's presidential statement also called on the parties "to engage in efforts to achieve a durable and fully respected ceasefire, based on the Egyptian initiative."

Benjamin Netanyahu, the Israeli prime minister, spoke with UN chief Ban Ki-moon, according to a statement from his office, in which he voiced his dismay with the announcement.

"It does not include a response to Israel's security needs and the demilitarization of the Gaza Strip," he said.

Palestinian UN Ambassador Riyad Mansour also did not hide his disappointment.

He said the council should have adopted a strong and legally binding resolution a long time ago demanding an immediate halt to Israel's "aggression," providing the Palestinian people with protection and lifting the siege in the Gaza Strip so goods and people could move freely.

"You cannot keep 1.8 million Palestinian civilians in the Gaza Strip in this huge prison," Mansour told reporters. "That is a recipe for disaster. It is inhumane, and it has to be stopped and it has to be lifted."

Shujayea: Massacre at Dawn - Special series - Al Jazeera English

Shujayea: Massacre at Dawn - Special series - Al Jazeera English

ஒரு அயோக்கியனின் அர்த்தமற்ற வாக்குறுதி!- டேவிட் கமெரன்

''We should shine a light on Sri lanka'' David Cameron England PM

Hamas calls Israel truce terms 'unacceptable'

போரின் 20ம்  நாள்,  குழந்தைகள்,பெண்கள்,ஊனமுற்றோர்,முதியோர்,பொதுமக்கள், சில போராளிகள் 1050 பேர் பலியெடுப்பு! 

Hamas calls Israel truce terms 'unacceptable'

Palestinian group says ceasefire should include withdrawal of Israeli troops and deal for residents to return to homes.

Last updated: 26 Jul 2014 23:04

At least 1,049 Palestinians, mostly civilians, have been killed in the fighting since July 8 [AP]
Palestinian group Hamas has said an Israeli offer to extend a humanitarian ceasefire in Gaza is unacceptable because it does not include provision for the withdrawal of Israeli troops and for residents in the enclave to return to their homes.

Israel's security cabinet earlier approved extending the humanitarian ceasefire, which begun early on Saturday, until midnight local time (2100 GMT) on Sunday.

"At the request of the United Nations, the cabinet has approved a humanitarian hiatus until tomorrow (Sunday) at 24:00.
The IDF (Israel Defence Forces) will act against any breach of the ceasefire," an Israeli official said in a statement.

Sami Abu Zuhri, Hamas spokesman in Gaza, told Al Jazeera that "any humanitarian ceasefire that doesn't include the complete withdrawal of its positions in the Gaza Strip, doesn’t enable the residents to go back to their homes and doesn’t allow the evacuation of the wounded, is unacceptable."  

An earlier extension of the ceasefire, until midnight local time on Saturday, was broken shortly after 8pm, with the Israeli military announcing three mortar rounds had been fired from Gaza into southern Israel.

There was no damage and reports said the military did not regard the incident as a major violation.

Al Jazeera's Stefanie Dekker, reporting from Gaza, said she had been told there was no agreement among Palestinian factions in Gaza on extending the ceasefire.

"We've had it confirmed that the al-Qassam Brigades (the military wing of Hamas) has fired rockets at Israel. What they're saying is a four-hour ceasefire at night doesn't serve any purpose and the people will agree with them," Dekker said.

After the ceasefire began early on Saturday, Gazans took advantage of the lull in fighting to retrieve their dead and stock up on food, flooding into the streets to discover scenes of massive destruction in some areas.

At least 1,049 Palestinians, mostly civilians, have been killed and more than 6,000 injured since Israel launched its offensive on July 8.

Israel said five more of its soldiers were killed in pre-truce fighting in Gaza and two others died of their wounds in hospital, bringing the army death toll to 42 as troops battled fighters in the tiny Mediterranean enclave that is home to 1.8 million Palestinians.

Three civilians, including two Israeli citizens and a Thai labourer, have been killed by rockets fired from Gaza.

Source: Al Jazeera

ஒபாமா இஸ்ரேல் பாசிசத்தை எதிர்த்த உலக மக்களின் ஜனநாயகக் குரல்

கனடா அகதிகள் கொள்கையில் மாற்றம்!

மோடி ஆட்சியும் ஈழப்புரட்சியும்

மோடி ஆட்சியும் ஈழப் புரட்சியும்

http://senthanal.blogspot.co.uk/2014/07/2014.html

Israel’s Gaza Conflict is no concern of Indian Parliament

A SPECIAL NEWS DOCUMENT

Israel war against Palestine Gaza and Modi Regime 

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''Every Sovereign State has a Right to defend its citizens, be it Israel or India'' Modi Regime

Israel’s Gaza Conflict is no concern of Indian Parliament
Amol Parth17 Jul 2014

The Indian Parliament was witness to a bold Foreign Affairs decision rooted in realism when on July 15, the Modi Government refused to pass a resolution to condemn Israel’s attacks on Gaza. While, it is sad that there may have been some civilian casualties during the ongoing Gaza Conflict, the NDA Government’s decision to not allow the Indian Parliament to become a theatre for empty moral grandstanding was in the best interests of India.

Amid uproar in the Parliament from parties like Congress, Left, SP and PDP which were demanding that the Government bring a resolution condemning Israeli action, the Government didn’t give in to the demands of these pro-minority appeasement political forces.

The previous UPA Government during its reign had condemned the Israeli counterattacks on Palestine with its own domestic political calculations in mind. The new BJP-led Government has on the other hand chosen to put India’s interests above cynical domestic politics by refusing to meddle in a dispute in which India has hardly any interests at stake or any leverage to influence.

In Israeli-Palestinian conflict, weapons are frequently fired from both sides in which both Israel and Palestine face casualties but the number of death in Israel is very few because of Israel’s strong Defence. Israel has increased the size and number of walls separating Israeli from Palestinian territory. Israel has also withdrawn its military and all settlers from Gaza, Palestine.

India’s national interest

“We have diplomatic ties with both nations. Any discourteous reference to any friendly country can impact our relations with them,” NDTV quoted Minister of External Affairs Sushma Swaraj as saying, in the Rajya Shabha.

The Arab countries hold significance for India because of our dependence on their oil. At the same time, Israel is also important to us because of our military and strategic ties with it. India is the largest customer of Israeli military equipment and Israel is the second-largest military partner of India after Russia. Israel has poured billions of dollars of investment into Gujarat and has promised to invest in Bihar. Israel was one of the few selected nations to not condemn India’s 1998 Pokhran-II nuclear tests.

On security front, India and Israel face similar problem of terrorist attacks sponsored by neighbouring countries. According to a 2003 Rediff report, since its formation India’s intelligence agency RAW has had secret links with that of Israel, Mossad.

According to a report in Al Jazeera, Israel helped India militarily in 1962 India-China war, India-Pakistan war in 1971 and 1999 (Kargil). Israeli sensors and satellites are used extensively to monitor the Kashmir border to detect infiltration by insurgents from Pakistan. India recently put an Israeli satellite into orbit. India is also increasingly using Israel’s sophisticated drip irrigation technology to boost agricultural production.

Israel’s domestic conflicts are its internal issue. Narendra Modi Government did the right thing rejecting attempts by Left, Congress and other so-called ‘secular’ parties to discuss Israel’s internal issues in Indian Parliament. It has become a bad habit for the Leftist ecosystem in India to ignore India’s national interests while taking sides in a domestic matter of a foreign nation.

However, according to reports on July 17, official sources said that the debate on Gaza situation will take place in Rajya Sabha on July 21.

Every Sovereign State has a Right to defend its citizens, be it Israel or India. The NDA Government’s decision on July 15 respects that Sovereign Right. The Government should remain firm on its stand and not entertain any debate in the Parliament.

ENB WEST: A plan to divide California into six states is one...

ENB WEST: A plan to divide California into six states is one...: A plan to divide California into six states is one step closer to a vote. Silicon Valley venture capitalist Tim Draper got the go-ahea...

பாலஸ்தீனத்தில் படுகொலை, மோடி ஆட்சி `நடுநிலை`!

சதார் பட்டேல் இந்திய விரிவாதிக்கத்தின் பிதா மகன்

சதார் பட்டேல் இந்திய விரிவாதிக்கத்தின் பிதாமகன்!

Building of a United India

Soon after the Indian Independence, 565 princely states, some of which were ruled by Maharajas and others by Nawabs started believing they would become independent rulers of their kingdoms like in the pre-British era.  

They argued that the government of free India should treat them as equals. 

It was Sardar Patel’s insight, wisdom and diplomacy that drove sense into the minds of the monarchs who agreed accession to the Indian Republic. 

However there were two rules - the Nizam of Hyderabad and the Nawab of Junagarh- continued to resist. 

Although, the repeated fruitless negotiations pointed to a show might by use of military force the Sardar persisted with his tactful dealings, finally winning over both the rulers without bloodshed.

Industry captains hail Modi govt's first Budget: PTI

Union Budget 2014-15: Industry captains hail Modi govt's first Budget
Last Updated: Thursday, July 10, 2014, 21:54

New Delhi/Mumbai/Kolkata:

Welcoming the Narendra-Modi-led NDA government's maiden Budget 2014-15, industry players said it sets the tone for attaining higher growth trajectory, job creation and attracting investments for an economy grappling with multiple challenges.

"I think the approach of creating a stable business environment to attract investment and boost economic growth, that direction comes across clearly. I am very happy personally by his (Finance Minister Arun Jaitley's) focus on job creation," CII President Ajay Shriram said.

HDFC Chairman Deepak Parekh said: "Infrastructure funding had become a bad word for banks. Banks were not willing to fund. With this move, an out of the box thinking will enable long term lending for infrastructure sector".

State Bank of India chairperson Arundhati Bhattacharya welcomed the pronouncements on the consolidation of banks, saying it should be done in a time-bound manner.

"The budget emphasises a bottoms-up approach to reignite growth," she said.

"The Finance Minister's maiden budget signals, both in sentiment and policy, the new government's intention to drive the next generation of reforms and swiftly put India on a higher GDP growth path," Tata Consultancy Services Chief Executive and Managing Director N Chandrasekaran said.

Y C Deveshwar, chairman, ITC, said, "Within the constraints of time and a challenging economic environment, the Finance Minister has presented a comprehensive budget which addresses some key reforms with a welcome focus on physical and social infrastructure".

Kris Gopalakrishnan, co-founder, Infosys said Digital India project is an important initiative taken by the government to leverage technology to serve citizens better. It will also help grow the domestic IT industry, he added.

"Initiatives to promote entrepreneurship and startup's are also welcome. This will benefit the IT industry since many startup's happen in the IT sector," he said.

Joint chairman of Emami group R S Agarwal said the maiden budget presented by the BJP-led NDA Government is in overall a very good budget, adding that the budget is aimed towards expansion of the country's economy and develop a future roadmap for growth.

Presenting his maiden Budget, Jaitley said the prevailing economic situation presents a great challenge and there was a need to introduce fiscal prudence that will lead to fiscal consolidation and discipline.

Mahindra and Mahindra Director Arun Nanda, however, termed the budget as a "populist budget".
"Looks like it is more of a populist budget. Much of the hype was created but there was disappointment. I personally feel a status-quo type of situation," he said.

K V Kamath, Non Executive Director at ICICI Bank said: "The budget shows that the government is willing to listen and then state that they will act in due course".

Tata Chemicals Managing Director R Mukundan welcomed the budget and said it is a good start by the new government.

"We are not looking at T-20 match. It is a like a series where you have to play step by step and I think they have done right by laying a road map on GST, DTC and also on what the fiscal deficit will be," Mukundan said.

"One of our key priorities was to see a clear course of action to end tax adventurism. The government has tried to address this by promising to not to change any of the tax provisions retrospectively which creates a fresh liability and committing to provide a stable and predictable taxation regime that will be investor friendly and spur growth," said Ficci President Sidharth Birla.

ICICI Bank CEO and MD Chanda Kocchar said the budget has sought to lay out a prudent fiscal path for the country; and address existing issues that have halted infrastructure investment.

"The policy direction is clear, and as the decisions and plans announced today are executed, I am sure the country will move back towards a robust growth path," she added.

Sanjiv Goenka, chairman of the RP-Sanjiv Goenka Group said reduction of fiscal deficit, attracting investments in the manufacturing sector, attracting investments in infrastructure to kick start the economy and restoring investor confidence with a stable and predictable tax regime are the four positive areas in the Budget.

Srei Group Chairman Hemant Kanoria said the budget "has given boost to the infrastructure and manufacturing sectors. The Budget has addressed many issues which will trigger growth. Prima facie, the budget looks progressive in nature".

"The FY15 Union Budget makes a fervent pitch for attaining a balance by creating growth, preserving an ideal level of deficit, and destroying (supply side) inflation," Assocham President Rana Kapoor said.

Terming the budget as "pragmatic and extensive", CII Director General Chandrajit Banerjee said that it "lays out a medium-term vision for the economy and meets industry expectations on growth and employment creation".

Executive Director of Mahindra & Mahindra Pawan Goenka said: "Though there were no big bang announcements, the intent of the budget is clear. I see this budget as a blueprint to the direction the Government will take over the next nine months".

Sandipan Chakravortty, managing director, Tata Steel Processing and Distribution Ltd, in his reaction said it was a long-term budget aimed at increasing employment through a national skill programme and promoting
entrepreneurship.

Terming the union budget positive but largely directional and aspirational, Kiran Mazumdar-Shaw, Chairperson and Managing Director of Biotech major Biocon said: "This Budget is positive but largely directional and aspirational. I was expecting bolder reforms for boosting investor sentiments".

"The pronouncements on the retrospective tax issue, easier FDI rules, jobs creation in manufacturing sector and improving predictability in India's tax regime will improve the investment sentiment in the country. As will measures for addressing the funding needs of small entrepreneurs," she added.

GVK Reddy, Founder Chairman & Managing Director, GVK Power and Infrastructure Limited, views on the budget.

"The assurance to ensure adequate supply of coal for thermal projects, allocation of over Rs 37,000 crore for roads etc indicate the government?s recognition of the fact that a strong foundation of infrastructure can only help realise a country?s economic growth," GVK Reddy, Founder Chairman & Managing Director, GVK Power and Infrastructure Ltd, said.

"Extending of 10 year tax holiday for power companies by March 31, 2017, provides much required predictability for investors investing in power projects. The target of the new government is to provide 24/7 uninterrupted power supply to all homes augurs well for the growth of energy sector in India, Tulsi Tant, CMD Suzlon said in a statement.

PHD Chamber President Sharad Jaipuria said: "The Budget is encouraging on building consumers', investors' and general confidence and aims at enhancing growth, creating additional employment opportunities and containing inflation with the desired focus on garnering much needed investments, both public and private".
Meanwhile, electrical equipments manufacturer IEEMA President Raj Eswaran said the hike in FDI limits in some sectors, infrastructure investment trusts, investment allowance of 15 per cent to manufacturers investing above Rs 25 crore on plant and machinery will boost economic and industry sentiments.

"The budget has ushered in prudent policies in areas like manufacturing, housing, tax concessions for individuals, education that will boost the economy as a whole and create job opportunities," said Anil Rai Gupta, Joint Managing Director at Havells India.

"The budget is forward-looking and has provided fillip to the capital goods, consumer durables and automobile sectors. Kanwal Jeet Jawa, MD, Daikin Air-conditioning India said.

Though the earlier decision to continue the excise duty concession till December 2014 along with the reduction in steel prices and elimination of customs duty on auto components certainly bodes well for the sector," President of Nissan India Operations Kenichiro Yomura said.

Chairman & MD of Bharat Forge Ltd Baba N Kalyani said: "From a Policy perspective, the decision to raise FDI in the Defence sector from 26 per cent to 49 per cent through the FIPB (Foreign Investment Promotion Board) route with management control in Indian hands will provide a boost to domestic manufacturing industry".

"Announcement of investment allowance is a boost for manufacturing sector. The budget should also bring a smile to the consumers with the increased tax exemptions that will leave them with extra disposable income and prospects to invest in white goods," Managing Director of LG India Soon Kwon said.

Wholetime Director at JK Lakshmi Cement Shailendra Chouksey said the Government has very appropriately chosen to focus on housing and infrastructure as a means to kick-start the economy. He said the Cement sector can certainly look forward to revival of growth in its consumption which has been languishing for last 3-4 years at very low levels.

Speaking on behalf of the footwear sector, Managing Director of Woodland Harkirat Singh said the announcement to cut excise duty to 6 per cent from 12 per cent on footwear up to MRP of Rs 1,000 per pair is a welcome move for SMEs and will help provide them with a level-playing field.

The government today announced the launch of a national multi-skill programme -- 'Skill India', that will skill the youth with an emphasis on employability and entrepreneurship.

Commenting on the Skill India initiative, fashion designer Ritu Kumar said: "I welcome the Skill India scheme and look forward to working in a newly motivated environment which is set to encourage the designers, which has been long overdue".

However, Managing Director of Swiss Military Worldwide Anuj Sawhney said: "From the retail sector point of view, the implementation of Goods and Services Tax (GST) is crucial in order to get rid of the bottlenecks the industry is facing and increase efficiency...".

MD & CEO of Hero MotoCorp Pawan Munjal said: "The budget is also an earnest attempt to revive the manufacturing sector by increasing FDI in defence, and by making it possible for a large number of SMEs to gain tax benefits from their investments".

"Finally, for the first time there is an attempt to strongly back start-up entrepreneurship - by setting up a Rs 10,000 crore risk fund," he added.

Reacting to union budget, Suresh Senapaty, Executive Director & Chief Financial Officer of IT major Wipro, congratulated the Finance Minister for delivering the Budget on the dual mandate of kick-starting economic growth and seeding reforms.

"I would like to congratulate the Finance Minister for delivering the Budget on the dual mandate of kick-starting economic growth and seeding reforms while re-affirming election promises within a short span of 45 days of forming the government," Senapaty in a statement said.

PTI

India Budget promises reform: FT

India budget fails to excite investors, but promises reform
Jul 10, 2014 2:54pm by Avantika Chilkoti

Arun Jaitley, India’s finance minister, unveiled a maiden budget on Thursday which failed to excite stock market investors but made several pledges for reform which – if they are implemented – may coax future efficiencies out of an economy burdened by red-tape, corruption and opacity.

The budget outlined plans to raise foreign investment limits in defence and insurance, overhaul India’s US$43bn subsidy regime, and simplify its archaic tax system to make it more transparent and bolster revenue growth. That, the government expects, will help raise growth from last year’s level of about 4.6 per cent.

However, investors did not get the “big bang” reforms that many were expecting, sending the benchmark Nifty equities index down 0.2 per cent in the day to 7,567.75. Nevertheless, there was much in Jaitley’s budget to suggest optimism.

First, investors had been hoping for the retrospective amendment of laws on indirect transfers, which have left multinational groups such as Vodafone fighting retrospective taxes with Indian authorities.

On this topic, Jaitley simply said that, if a new case comes up related to the amendment it will be referred to a high level committee. In reaction, Ketan Dalal, senior tax partner, PwC India said in an emailed statement:

There was a widespread expectation regarding neutralisation of the retrospective amendment re indirect transfer. However, that has not happened, but at least there has been a clear acknowledgment now that retrospective taxation in future will not be resorted to.

The decision has left analysts unclear about what will happen to existing cases and almost as soon as Jaitley wrapped up in New Delhi, Vodafone said it would push for international arbitration in its seven-year battle with the Indian tax authorities over capital gains involved in the telecom group’s 2007 acquisition of Hutchinson Whampoa.

On the question of the Goods and Services Tax (GST), the introduction of which many had hoped would be announced, Jaitley offered a half-way house. He said the government is ready to approve a legislative scheme to enable the introduction of a GST to “streamline the tax administration, avoid harassment of the business and result in higher revenue collection”.

This suggests the government intends to push through this tax reform but that no roadmap has been laid out as yet.

In some areas, Jaitley did meet expectations. He opened up foreign direct investment in ecommerce, and upped the cap on foreign direct investment (FDI) in defence to 49 per cent, from 26 per cent previously.

But then there was a whiff of questionable policy too: the decision to devote Rs2bn ($33.34m) to a statue of Sardar Vallabh Bhai Patel in the home state of Narendra Modi, the prime minister, prompted some jibes on social media.

Modi’s administration will retain the previous Congress government’s ambitious 4.1 per cent fiscal deficit target for this year, despite pressure on state coffers from sluggish tax revenue, rising oil prices linked to turmoil in Iraq and concerns about a poor monsoon.

Jaitley also set a fiscal deficit target of 3.6 per cent of GDP for the next financial year, which starts in April, and 3 per cent the subsequent year. For a pre-budget discussion of budget deficit expectations, see here.

With equity markets rallying in the past six months on hopes of a strong new government at the centre, the government may expect to make money by selling off stakes in public sector companies, and to earn revenues as these groups post good profits and dividends. However, if tax receipts disappoint, New Delhi could struggle to meet its budget deficit target.

“While tax revenue growth seems a tad high that is on an assumption that the manufacturing sector growth will pick up in the second half,” says Shubhada Rao, chief economist at Yes Bank. “At this juncture it looks slightly optimistic.”

And, all in all?

“The reactions maybe on the Sensex were because people really get thrilled if you see some big bang changes,” says Vipul Jhaveri, partner at Deloitte Haskins & Sells. “What is refreshing here is that rather than any big bang changes what he has done is made very small changes across geographies, across various sectors.”

PM Modi wants to be seen as 'pro poor'

Why budget 2014 was 'socialist': PM Modi wants to be seen as 'pro poor'

Well known economic writer Swaminathan Aiyar wrote today,"It's not a radical Modi budget but a Chidambaram budget with saffron lipstick added." But this may be a superficial understanding of the Modi-Jaitley thought process. There seems to be a method in the madness, especially when you see the way the NDA is simply repackaging the many social sector schemes of the UPA.

True, the similarity between the UPA and NDA was reinforced by the fact that Jaitley had retained the fiscal deficit figures presented in the interim budget a few months ago. The interim budget presented by P.Chidambaram projected a fiscal deficit target of 4.1 percent of GDP for 2014-15 and also showed that the government had achieved a fiscal deficit of 4.6 percent of GDP in 2013-14.

Arun Jaitley surprised everyone by retaining these figures in his budget. He even kept the same the revenue growth target as in the interim budget. There was a lot of continuity in the way Jaitley made the budget projections.

This was surprising because the BJP had been very critical of the interim budget, saying that the targets were not realistic and that the UPA government had burdened the NDA by doing 'creative accounting'. But Arun jaitley has now accepted all the key UPA projections for 2013-14 and 2014-15.

The NDA has also retained most of the UPA social sector schemes with some repackaging. This prompted Congress President Sonia Gandhi to say “this is like our UPA budget”.

This writer spoke to finance minister Arun Jaitley after the budget and asked him why he had been so generous to the UPA finance minister. Jaitley gave a smart answer by saying controlling expenditure and aiming at fiscal correction is a good thing. So he had decided to go with the tough targets set by the previous government. The finance minister also admitted that his government had indeed continued many of the social sector programmes of the previous government and would aim to remove their weaknesses because such policies are needed for the poor.

Jaitley said in a country with so many poor people, any economic philosophy which is totally market based will not work. When asked whether the BJP was practicing its own version of socialism, he admitted that a strong dose of inclusive policies were indeed needed. Again the language sounded a lot like the UPA’s.Only BJP is inventing new social sector projects named after Deendayal Upadhyay, Shyama Prasad Mukherjee etc. Jaitley said more such schemes named after relatively unsung heroes from the past will come.

A lot of this thinking also comes from Prime Minister Narendra Modi.

If you carefully trace Modi’s statements in the past few weeks, he has explicitly said that the government coffers are meant for the poor. This statement is very socialist in its tenor and intent. The reason why NDA has carried forward many of UPA’s social sector programme is because eventually Modi wants to take away the historically evolved branding of the Congress party as welfarist and pro poor. From Nehru to Indira Gandhi to Sonia Gandhi, the Congress has acquired a certain image of welfarism. Narendra Modi will gradually want to appropriate some of this. So there seems to be a strategy behind the way the NDA budget carries forward a lot Congress’s social sector programs.

There is another subtle message in the budget. Modi is conscious that he is seen by many as pro big business because of his perceived proximity to some big industrialists. So the budget has been careful in not giving any obvious benefits to big business. On the contrary, it sets up a Rs.10,000 crore fund to help small and medium enterprises to access much needed equity capital. This will also please the Sangh Parivar which has always wanted the BJP to focus more on smaller businesses who really form the backbone of India’s economy.

There was much humour generated by many "token" Rs.100 crore social sector schemes announced by NDA. A careful scrutiny will tell you these are promises Modi had made to various states during his whirlwind election tour. This is partly Modi's way of signalling he was putting in the seed amount and the rest will follow as the economy recovers. So the thinking behind the budget is not as random as some commentators would have us believe.

Surprisingly there was no bitter medicine for the common man in the budget. This is partly because some of it was already delivered before the budget in the form of price hikes in rail fares, sugar and petroleum products. So finance minister Arun Jaitley decided to provide some relief to the middle class in the form of raising the tax exempt salary limit to Rs.2,50,000 pre annum and providing additional tax relief on some savings instruments. All taken together means a monthly salary of upto Rs.30,000 will be free of any income tax.
Another significant development that Jaitley did not specify in the budget but is close to finalizing, is the new Goods and Services Tax(GST) regime which will truly help widen the tax base and bring areas like real estate and construction into the indirect tax net and also attack the menace of black money.

Jaitley told this writer he had almost worked out all the details with the Chief Ministers in the implementation of GST. Only a few issues remain to be resolved, such as bringing the contentious petroleum taxes within the GST ambit. The CMs have agreed to bring real estate under the GST net. This is a big achievement. The finance minister could have announced this in the budget but he chose to play safe.

Overall, the budget is a consolidation exercise though many expected some big vision statement in it. Here also Jaitley chose to play safe by not giving any big bang vision statement because he knows there are many economic risks on the horizon coming largely from an impending drought situation and potential inflationary flare up in the months ahead.

He is betting on growth by promising a big boost to infrastructure sectors and manufacturing. He will hope that growth picks up and increases employment and prosperity. Jaitley admits many factors, like global economy and monsoons, are outside his control. Running an economy of India’s size and complexity is always a gamble. You have to work with very few certainties.

The author is Executive Editor at Amar Ujala publications group.

Budget 2014: Will Arun Jaitley's gamble on growth work for India?

Budget 2014: Will Arun Jaitley's gamble on growth work for India?

Jaitley's first budget is done. And how does it rate? Is it what the doctor ordered? Will it bring down inflation, boost investment, and set the economy on a new virtuous cycle of self-sustaining growth?
Let’s be clear. This is not a budget that breaks the mould and is very much on the lines of what one could have expected from any government. Moreover, by announcing initiatives for everything from cleaning the Ganga, to clean energy, to girl child schemes, to expansion of gas grids, to providing urban amenities in rural areas and starting work on Narendra Modi’s pet idea of smart cities, one cannot escape the impression that small outlays have been spread thinly over many, many ideas. Smart cities, though, get a fairly substantial Rs 7,060 crore.

The budget should thus be seen as a statement of intent and directional change – and not as something that will have high short-term impact.

But then, Arun Jaitley warned us upfront that reviving the economy will take three to four years, and the initiatives taken in this budget have to be carried forward to the next one due in February 2015. So, if we judge it from the perspective of the short time available to a new government to start making its priorities clear, it is a good, but conventional, effort. One can give Jaitley an A-.Image from PIB Image...

However, one cannot be sure the final budget numbers will all add up, for Jaitley has taken a gamble: he has gambled that he will boost growth to reduce his fiscal deficit, and not immediately cut expenditures it to bring finances in order. In this way he has done the opposite of what Chidambaram did: the latter cut spending to reduce the deficit, Jaitley is gambling that higher growth will improve tax revenues and obviate the need for cutting subsidies sharply. In a sense, Jaitley's is a budget of hope over experience.
Here are some of the key takeouts from Jaitley’s budget speech.

Fiscal consolidation: Jaitley has promised to try and meet the 4.1 percent target proposed by P Chidambaram, but this will be daunting. A lot depends on how the economy shapes up in the remaining half of the year, and whether tax revenues start rising. The budget says tax receipts will rise 19.7 percent – which will not be easy given the slowdown. A lot depends on whether subsidies can be reined in, but all that we have is a statement that Jaitley will overhaul the subsidy regime, and that there will be an expenditure reforms commission which will give its report by the end of this financial year. This means, the reforms will happen only in the next budget. However some tentative “tough” steps cannot be ruled out after the assembly elections are done.

Reforms: The finance minister has formally committed the NDA government to the goods and services tax (GST). The direct taxes code will come later, but no specifics were given. Even for GST, while giving states an assurance that he will lend a sympathetic ear, there is no timeline given for its implementation. No reforms have been announced in energy pricing – fuels, food or fertiliser beyond general assurances.

Growth: The big impetus for growth will come from three announcements - the 27 percent hike in plan outlays over what was actually spent in 2013-14, the 15 percent investment allowance for corporate investments above Rs 25 crore for three years, and the freedom for banks to avoid CRR/SLR on long-term deposits raised to fund infrastructure. Banks are currently allowed to lend up to seven years, but their deposits attract CRR of 4 percent and SLR of 22 percent – which raises costs.

But one should take the hike in plan outlay with a pinch of salt. When the deficit widens, the tendency is to cut plan expenditure – which is what Chidambaram had been doing over the last two years.

However, Jaitley said public sector undertakings will invest Rs 2.5 lakh crore this year. Whether this is an addition to what they did last year or not, if this materialises in full, it will boost the investment cycle.

Employment: Will jobs boom as a result of this budget? The positive vibes in the market suggest that India Inc will now begin investing in new projects and upgrade existing ones – especially if government plan spending improves this year.

The Rs 10,000 crore fund for start-ups suggests that the government is keen on boosting enterprise. It is small and medium enterprises that create jobs, and if this sector starts looking up, job growth will improve. But this will happen from next year, not this one. These things take time to implement. The 15 percent investment allowance for investments upto Rs 25 crore – last year Chidambaram had put the threshold at Rs 100 crore – will benefit medium and smaller enterprises, which are engines of employment.

Taxation: There will be more money in the hands of marginal taxpayers – with the basic exemption limit going up by Rs 50,000 for all categories – including senior citizens. The 80 C tax deduction limit is up by Rs 50,000 to Rs 1.5 lakh, and the public provident fund (PPF) limit is up to Rs 1.5 lakh. The deductions available on EMI interest on housing loans are up to Rs 2 lakh for self-occupied property. All these will allow consumers to spend more and save more – whatever they choose. Depending on what they choose, it could boost growth or inflation, or both.

Tax terrorism: Jaitley promised to avoid retrospective taxation, but did not roll back the one legislated by Pranab Mukherjee in 2012 to deal with the Vodafone judgment. This may be tactical, since without the law there would be no pressure on Vodafone to even offer a compromise.

In any case, the matter is going into arbitration and the government has asserted its sovereign right to impose retrospective taxes if it chooses to. But Jaitley had emollient words that ordinarily the government would avoid retro taxes, and announced some changes in the approach to transfer pricing and advance rulings so as to reduce tax disputes.

Privatisation: Jaitley declined to make any mention of privatising banks, and said government holdings will not fall below 51 percent even when banks raise more capital. The disinvestment target is only Rs 63,000 crore this year. This shows a cautious approach to privatisation and raising more resources for growth.

Markets: The announcement that foreign portfolio investments will be taxed as capital gains will prompt fund managers sitting abroad to move back here and invest more. However, corporate investors in debt funds have been disincentivised as the long-term capital gains tax has been raised to 20 percent and the definition of long-term has been extended to three years. This will indirectly benefit banks – who will now be able to attract more direct deposits. Banks shares form a huge chunk of stock market capitalisation and when bank shares rise, the markets cannot remain behind. This is one reason why the Sensex has shot up after the budget speech.

Sin taxes: The bulk of the tax-raising effort is focused on sin taxes – on cigarettes (up 11-72 percent), pan masala, gutka, unmanufactured tobacco, and aerated soft drinks. The clean energy cess on the use of coal, peat and lignite, all dirty fuels, has been doubled from Rs 50 to Rs 100 a tonne. This will push up thermal power costs but raise revenues.

Political messaging: In keeping with the fact that Modi promised a Congress-mukt Bharat and would like to herald a directional shift away from the Nehru-Gandhi brand of politics, many of the budget schemes are named after BJP or non-Congress icons. Thus the Sardar Patel statue planned in Gujarat gets a Rs 200 crore allocation, there is a Deendayal Upadhyaya power scheme for rural areas, there is a Shyama Prasad Mookerji Rurban Mission, and there is a scheme named after Loknayak Jayaprakash Narayan.

The conclusion is this: this is a decent effort given time constraints. But it is not something to shout about from the rooftops. It is not radical or revolutionary. Will we see more radicalism in February 2015, or will it be incrementalism all the way? That question is still unanswered.

Source: F.India

Indian Budget - Taimur Baig

July 11 (Bloomberg) -- Taimur Baig, director of Asia economics in Singapore at Deutsche Bank AG, talks about the Indian government's budget and economic policies. He speaks with Angie Lau on Bloomberg Television's "First Up." (Source: Bloomberg)

Corporate winners and losers from budget - Reuters

Corporate winners and losers from budget
Thu Jul 10, 2014 5:15pm IST

CREDIT: REUTERS/RUPAK DE CHOWDHURI/FILES

REUTERS - Prime Minister Narendra Modi's new government on Thursday unveiled its first budget of structural reforms aimed at reviving growth, winning praise from investors despite a lack of clarity over how it would cap the big fiscal deficit.

Modi's government, in office for less than two months, said it would raise caps on foreign investment in the defence and insurance sectors, and launch a tax reform to unify India's 29 states into a common market.

The following sectors/companies will benefit or be impacted by the budget proposals:

 WINNERS:

* Increase in foreign direct investment cap in the insurance sector to 49 percent from 26 percent now will benefit companies such as ICICI Bank Ltd (ICBK.NS), Max India Ltd (MAXI.NS), Housing Development Finance Corporation Ltd (HDFC) (HDFC.NS) that have insurance ventures with foreign partners.

* Real estate companies such as DLF Ltd (DLF.NS), Unitech Ltd (UNTE.NS), Phoenix Mills Ltd (PHOE.NS), Parsvnath Developers Ltd (PARV.NS) will benefit from the proposal to provide incentives for setting up real estate investment trusts.

* Plan to develop 100 smart cities and increase in allocations to support rural housing will help developers and housing finance companies such as HDFC, LIC Housing Finance Ltd (LICH.NS) and Dewan Housing Finance Corp Ltd (DWNH.NS).

* The proposal to allow manufacturing units to sell products via e-commerce platforms is likely to benefit the local units of foreign retailers such as Nike Inc (NKE.N), Marks and Spencer Group (MKS.L) and Puma SE (PUMG.DE).

* Insurance and asset management companies will gain from a proposal to increase the tax exemption limit on certain investments to 150,000 rupees from 100,000 rupees per year.

* Companies such as Larsen & Toubro Ltd (LART.NS), IL&FS Transportation Networks Ltd (ILFT.NS) and IRB Infrastructure Developers Ltd (IRBI.NS) will benefit from plans to increase spending to build roads and ports.

LOSERS:

* A proposal to increase excise duty on cigarettes is negative for companies such as ITC Ltd (ITC.NS) and VST Industries Ltd (VSTI.NS). Cigarette makers usually pass on any tax hikes to consumers, which may impact sales.

* A more than $2 billion tax dispute between Vodafone Group PLC (VOD.L) and the Indian government will likely drag on after the finance minister did not propose revoking a controversial retrospective tax rule change in 2012.

Vodafone said in a statement on Thursday it intended to push ahead with international arbitration to resolve the dispute.

* No change in import duty on gold and silver from the current 10 percent is negative for companies such as Titan Company Ltd (TITN.NS) and Gitanjali Gems Ltd (GTGM.NS) as some had expected a cut.

(Reporting by India Company News team; Compiled by Devidutta Tripathy; Editing by Sumeet Chatterjee and Miral Fahmy)

Highlights Modi Budget - REUTERS

Highlights - Modi targets growth in maiden budget
NEW DELHI Thu Jul 10, 2014 1:46pm IST

CREDIT: REUTERS/STRINGER/FILES

Finance Minister Arun Jaitley (C) poses as he leaves his office to present the federal budget for the 2014/15 fiscal year, in New Delhi July 10, 2014.

(Reuters) - Prime Minister Narendra Modi's new government on Thursday unveiled a first budget of structural reforms that seek to revive growth, while spurning the temptation to resort to higher borrowing.

Here are the highlights of the budget presented by Finance Minister Arun Jaitley.

FISCAL DEFICIT

* Accepts fiscal deficit target of 4.1 percent of GDP for 2014/15

* Fiscal deficit seen at 3.6 percent of GDP in 2015/16

* Finance Minister says: "We cannot spend beyond our means"

* Tax-to-GDP ratio must be raised

GROWTH

* Aims for sustained growth of 7-8 percent in the next 3-4 years

* Finance minister says he is bound to usher in policies for higher growth, lower inflation

TAXATION

* Jaitley vows to maintain a stable tax environment but stops short of scrapping rules on retrospective tax

* All pending cases of retrospective tax for indirect transfers to be examined by committee before action is taken

* Government will not ordinarily bring any change retrospectively that creates a new liability, Jaitley says

* Aims to approve goods and services tax by end of this year

* Extends 5 percent withholding tax on corporate bonds until June 30 2017

* To provide necessary tax changes to introduce real estate investment trusts and infrastructure investment trusts

* Extends 10-year tax holiday for power generation companies

REVENUES and EXPENDITURE

* Estimates that total expenditure will be 17.95 trillion rupees in 2014/15

* Revenue deficit seen at 2.9 percent of GDP in 2014/15

* Capital receipts seen at 739.5 billion rupees in 2014/15

* Retains tax collection targets and makes no major changes to direct tax rates

* Allocates 2.29 trillion rupees for defence spending in 2014/15; capital outlay raised by 50 billion rupees over interim budget

* Earmarks 70.6 billion rupees to create 100 "smart cities"

* Proposes 50 billion rupees for warehousing capacity; 100 billion rupees of private capital for start-up companies; and 378 billion rupees of investment in national and state highways

* 40 billion rupees for affordable housing proposed through national housing bank; 80 billion rupees proposed for rural housing scheme

FOREIGN DIRECT INVESTMENT

* Raises limit on foreign direct investment in defence sector from 26 percent to 49 percent

* Raises FDI limit in insurance sector from 26 percent to 49 percent

SUBSIDIES

* Plans to make food and petroleum subsidies more targeted

* Rural job-guarantee scheme, which provides 100 days of paid employment a year, will become more focused on asset creation

AGRICULTURE

* Will focus on acheiving 4 percent growth per year in agriculture

* Sets farm credit target at 8 trillion rupees for 2014/15

* Proposes a long-term rural credit fund with an initial corpus of 50 billion rupees

FINANCE MINISTER COMMENTS

* "The fiscal deficit target of 4.1 percent put out by my predecessor is indeed daunting. But I have decided to accept the target."

* "The task before me is challenging because we need to revive growth in manufacturing and infrastructure. We need to introduce fiscal prudence and cannot spend beyond our means. For this, the tax-GDP ratio must be improved."

* "A high-level committee will scrutinize retrospective tax cases. We are committed to providing a stable tax regime."

* "We have no option but to take some bold steps to spurt economy; these are only the first steps and are directional."

* "[India's farming sector] has risen to the challenge of making India largely self sufficient in providing food for growing population" but there is "an urgent need to set up investment, both public and private"

(Compiled by Tommy Wilkes & Shyamantha Asokan)