UPA's headache reaches 11.63 on inflation scale
NEW DELHI, July 4 (Agencies): Double digit inflation continues to haunt the common man and the Congress-led UPA government, as WPI soared to a new 13 year high of 11.63 per cent for the week ending on June 21, up from 11.42 per cent recorded for the previous week. While food articles and textiles during that week went up 0.7 per cent, primary articles rose by 0.2 per cent, and fuel, power and energy were up by 0.1 per cent. A steep rise of 3.6 per cent was recorded in minerals, while tea was up by 3 per cent. Non-food articles, however, were down by 0.5 per cent.
The wholesale price index-based inflation has continued to rise despite efforts being taken by the government and RBI to tame prices through fiscal and monetary measures. According to Finance Ministry officials, the rate of inflation could rise to 13 per cent before making a slow descent.
The inflation was 4.32 per cent a year ago during the corresponding week. This latest peak is going to push the government even harder against the wall. The combo of inflation and nuclear deal has the nemesis for the UPA government for weeks. With 11.63 per cent for the week ending on June 21, UPA's headache has only aggravated.

Truckers call off strike; talks with govt successful
NEW DELHI, July 4 (Agencies): Truck owners called off their nationwide strike early today after a marathon eight hour meeting between the transporters' association and the government during which the administration agreed to lower service tax and provide unbranded diesel. "We have called off our strike since the government has assured us that our demands will be met," said Charan Singh Lohara, president of the All India Motor Transport Congress (AIMTC), an apex body of truck owners.
The AIMTC claims to represent nearly 4.8 million truck and two million mini-truck operators.
The AIMTC began the strike to protest rising taxes and fuel price hike after talks with the government failed Tuesday night. Several rounds of talks Wednesday also remained inconclusive. The final round of discussions was held till late on Thursday.
The petroleum ministry has assured truck owners that unbranded diesel would be made available at normal rates at petrol pumps and retail outlets. Unbranded diesel is cheaper by Rs 2.20 a litre than the branded varieties.

US Congressman Gary Ackerman meets PM
NEW DELHI, July 4 (Agencies): US Congressman Gary Ackerman today met Prime Minister Manmohan Singh in the Capital today in the backdrop of the Bush administration support to the Indo-US civil nuclear deal. Ackerman, who is also the chairman of the House of Representatives panel on west and south Asia, was accompanied by five other delegates at the meeting.
Ackerman had earlier expressed his doubts over getting the approval of the US Congress for the 123 Agreement, the final step towards operationalising the nuclear deal before the end of the term of George W Bush's administration. Ackerman's comments that time was running out ahead of US congressional and presidential elections in November and the inauguration of Bush's successor in January were the most explicit of a series of statements by lawmakers and officials.
The pact, which gives India access to US nuclear fuel and technology, is potentially worth billions of dollars to U.S. and European nuclear supplier companies and would give India more energy alternatives to drive a booming, trillion-dollar economy. The pact, signed by Bush and Dr. Singh in 2005, would give India access to U.S. nuclear fuel and technology the country had been denied after its 1974 nuclear bomb test.
The deal has been in doldrums due to stiff opposition by Left parties combine, which is supporting the India's ruling coalition from outside.

N-deal in national interest: Kalam tells Mulayam, Amar
NEW DELHI, he former President, A P J Abdul Kalam, on Thursday told Samajwadi Party leaders Mulayam Singh and Amar Singh that the nuclear deal with the United States was beneficial for India and they should keep national interests above politics while firming up their stand on the issue. The SP leaders met Kalam at his residence after a meeting of the United National Progressive Alliance (UNPA).
Mulayam Singh told reporters that Kalam told them that "the deal is in [the] national interest." "We will inform the UNPA leaders about our discussions with Mr. Kalam, who is a well-known and respected scientist. He is the father of nuclear technology of the country," Mulayam Singh said.
Both leaders put forth before Kalam the statement issued by the PMO, seeking to address the party's concerns, which were conveyed to National Security Adviser M K Narayanan. "He [Kalam] read it and said the country's interest is bigger than politics and political parties," Amar Singh said. Kalam told them, "I am not in politics but I have worked with nuclear weapon technology for a long time... the country needs clean nuclear energy."
Nuclear tests
On apprehensions over India's right to conduct nuclear tests once the deal comes into operation, he told them, "If other neighbouring countries like Pakistan and China make nuclear weapons, we will not be bound to the extent that we cannot scrap the deal for the sake of nation." The country had conducted five nuclear tests and does not need to carry out tests again and again. "We are a nuclear weapon state and we don't need to behave like any other country. In fact, we should have been in the NSG as a nuclear weapon state. The NSG is a grouping of 45 countries and not the US alone, and till we develop thorium-based plants, any one of these countries can supply uranium to us."
Kalam noted: "We need uranium, which is in short supply. That is why the present reactors are running at 30-40 per cent of their capacity. Till we develop thorium-based reactors, we need the deal for clean energy without compromising national sovereignty."

Cong may delay IAEA approach and monsoon session
NEW DELHI, July 4 (Agencies): The ruling Congress was on Thursday mulling whether the government's chances of survival would brighten if the IAEA approach was delayed and parliament's monsoon session pushed to mid-August, as was already being considered in some official quarters. Even as an endorsement of the nuclear deal by former president A P J Abdul Kalam seemed to have eased the pressure on the government to an extent on Thursday, an effort was also afoot to delink the forthcoming G-8 summit from finalising the nuclear accord and focus more on climate change.
Party sources said there was a suggestion to approach the International Atomic Energy Agency (IAEA) in August and also push the monsoon session, usually held in the third week of July, by some weeks to avert an immediate separation from the Left parties.
Congress president Sonia Gandhi will soon meet Prime Minister Manmohan Singh and External Affairs Minister Pranab Mukherjee to discuss the suggestions before taking a final decision, they added. By delaying approach to the IAEA, the Congress may give the Left parties the excuse not to withdraw their support to the United Progressive Alliance (UPA) government immediately and also have the requisite time to enlist support from the 39-member Samajwadi Party and some others to survive in the event a no-confidence motion was moved in parliament.
Meanwhile, Samajwadi Party chief Mulayam Singh Yadav and his party colleague Amar Singh met Kalam for an expert's view on the contentious nuclear deal. After the meeting, they told journalists that Kalam had said the nuclear deal was "in the interest of the nation". Yadav also added: "Without the interest of the nation, there is no politics."
But the Samajwadi Party still refused to commit itself categorically on supporting the government in the event the Left parties withdrew their support. "We will announce our decision after consulting our partners in the United National Progressive Alliance (UNPA)," Yadav added. Since the much-needed support from the Samajwadi Party and some of its allies still seemed uncertain, the government was seriously looking at ways to solve the political deadlock.
One way the Congress was thinking of doing so was by de-linking the nuclear deal from the forthcoming G-8 Summit in Japan next week. Prime Minister Manmohan Singh will attend the meeting and will also meet US President George W Bush. Communist Party of India-Marxist (CPI-M) general secretary Prakash Karat had earlier this week maintained that Manmohan Singh's decision to go for the G-8 will be tantamount to India approaching the IAEA.
But now the attempt is to highlight the fact that the meeting in Japan was to focus on arriving at a consensus on the important issue of climate change. Communist Party of India (CPI) leader A B Bardhan made it clear Thursday that the Left parties' decision to withdraw support from the government would depend on the latter's decision to approach the IAEA for signing an India-specific safeguards agreement.
In a day of high drama, the Samajwadi Party and the other members of the UNPA met at the residence of Amar Singh for over four hours to discuss the political crisis. After the meeting, the UNPA leaders held a joint press conference to announce that there was "no split in the UNPA and it was speaking in one voice".
The UNPA leaders made it clear that they were not yet giving the government a certificate of their support until efforts were made by the prime minister to start a national debate on the issue of the nuclear deal. The UNPA leaders pointed out that they will get the views of experts to form an opinion on the nuclear deal.
While a beleaguered Congress put up a brave face saying it was confident of completing its five-year term, the main opposition Bharatiya Janata Party (BJP), which has been passive vis-a-vis the political turmoil until now, became pro-active in a bid to trip the ruling party.

'Centre failing to look into priorities of people's issues'
CHENNAI, July 4 (Agencies): Charging Congress-led UPA at the Centre with "manufacturing a political crisis" by way of the Indo-US nuclear-deal, CPI(M) politburo member Brinda Karat, MP, on Thursday said the Centre was failing to look into the priorities of people's issues. "The Government of India is more committed to US President George Bush and his administration on the nuclear deal. But the real crisis in India is the growing inflation, which calls for immediate action from the Government," she said while speaking at a conference.
"What should be the Government's priority? It is common sense to control inflation and the spiralling price rise and strengthen the Public Distribution System," she said adding that the government was more concerned about the deal, which she described as an "obsession." "Give up your obsession and you will get other sources," for power generation, she said referring to the much-delayed Iran-Pakistan-India (IPI) gas pipeline.
"We are sacrificing and deliberately delaying the IPI due to pressure from the US. The project has been delayed for the last two years only because of the US," she later told reporters.
Reiterating that her party would not support Congress at the Centre if it went ahead with the nuclear deal, she said, "we will never support a Government that wants to do itself a 40 year imperial embrace." The Indo-US nuclear deal has a validity period of 40 years.