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SEPTEMBER 07-13, 2014

02
Boston: Aggressive monetary policy by de-
veloped economies may hurt global growth
by pushing emerging markets to pile up for-
eign-exchange reserves instead of spending,
Reserve Bank of India governor Raghuram
Rajan said.
Rajan, a regular critic of the unprecedent-
ed monetary stimulus the worlds richest na-
tions have put in place, said the world is set-
ting the stage for a repeat of the years that
followed the Asian financial crisis of the late
1990s. At the time, developing
economies traumatized by cap-
ital outflows and painful bail-
outs started accumulating re-
serves as insurance, leaving it
to US consumers to buoy global
consumption.
Any emerging market today
is going to look at the currency
volatility and say whatever money
comes in, Im going to be care-
ful about it, Im going to build some re-
serves, Rajan said in a speech in Chi-
cago. That kind of policy will depress
global demand.
Overseas investors pulled $8 bil-
lion from rupee-denominated debt
last year, pushing the currency to an
all-time low, as the US Federal Reserve
signalled it would
begin paring its
record mone-
tary stimulus. Rajan, who took office a year
ago, has overseen a recovery of the Indian
currency, raising interest rates three times in
his first five months as he also seeks to tame
Asias fastest inflation.
Indian policymakers have now rebuilt for-
eign exchange reserves to a near-record high
as investors weigh the timing of an interest-
rate increase by the Fed. India will probably
be less vulnerable to a global shift of funds,
Rajan said last month. Bloomberg
Sukna land scam
accused Gen says
hes vindicated
New Delhi: Former army command-
er PK Rath, who was given a clean
chit by Armed Forces Tribunal in the
Sukna land scam, on Saturday said
the verdict has vindicated his stand.
The tribunal yesterday quashed the
court martial of Lt Gen (retd) Rath,
former commander of 33 Corps who
was punished for his alleged role in a
land dealing in West Bengal. I have
suffered so much because of this for
all these years. But the tribunals
verdict has vindicated my stand,
Rath said. PTI
Govt to set up
rhino task force
Guwahati: Union environment min-
ister Prakash Javadekar announced
the setting up of a special rhino pro-
tection force for Assam to protect
the endangered species. Rhino
poaching had snowballed into a ma-
jor political issue during the Lok
Sabha polls. Narendra Modi termed
the spurt in poaching as an attempt
by the Congress-led government to
settle Bangladeshis in protected
areas. We will have zero tolerance
for rhino poaching. A special rhino
protection force will be created
which will recruit local youths, said
Javadekar who was on a two-day
visit to Assam. At least 22 rhinos had
been killed this year, while 24 poach-
ers were arrested.
Our Bureau/ Guwahati
Modi govt will
clear hurdles to
build Ram temple
Hyderabad: The BJP-led NDA govern-
ments immediate priority is to en-
sure that the economic parameters
of the country are improved, though
issues such as Ram Janmabhoomi are
still on the agenda, the partys na-
tional general secretary P Muralidhar
Rao said. Whether it is Ram Janmab-
hoomi or uniform civil code or Arti-
cle 370, there is an agenda for BJP. We
are not going to build a Ram temple.
[but] the government will pave the
way by clearing hurdles for the peo-
ple who are going to construct Ram
mandir, he added. PTI
T
he flood situation in Jammu and Kash-
mir continued to worsen today with the
death toll mounting to 107 while rescu-
ers struggled to evacuate thousands of people
to safety as major rivers and streams were in
spate due to incessant rains.
Home minister Rajnath Singh held a meet-
ing with chief minister Omar Abdullah to take
stock of the flood situation soon after he ar-
rived on Saturday morning in Srinagar but
could not undertake an aerial survey due to
inclement weather.
In Jammu region, 11 more deaths were re-
ported on Saturday, including seven in two
house collapse incidents in Udhampur. Four
more bodies were recovered from Thursdays
bus mishap in which 63 members of a mar-
riage party were washed away in Rajouri dis-
trict, Mubasir Latiffe, SSP Rajouri, said, adding
a total of 29 bodies have been recovered so far.
With Saturdays deaths, a total of 100 people
have died in the state hit by floods and land
slides due to incessant rains since Wednesday.
While 89 people have been killed in Jammu, 11
have died in the Kashmir Valley so far.
At least nine army personnel, including an
officer, were trapped in strong water currents
as their boat capsized during a rescue opera-
tion in Pulwama district, where River Jhelum
has breached embankment prompting author-
ities to issue a red alert for people living in low
lying areas of south Srinagar.
In Jammu, authorities have closed four
bridges connecting two parts of the city after
they suffered damage due to River Tawi flow-
ing above the danger mark.
The situation is very bad. It is becoming
more critical as rains have not stopped making
the rescue and relief operation difficult, offi-
cials said.
As many as 7,000 people were rescued in
various areas in Jammu by army and IAF teams.
Several rivers have been flowing above the
danger mark and most parts of south Kashmir,
including Pulwama, Anantnag and Kulgam
districts, have been submerged. The Jhelum is
flowing several feet above the danger mark at
Sangam in Anantnag district of south Kashmir,
which has been inundated.
The threat of flood in other areas of the Val-
ley, including central Kashmirs Ganderbal
district, and water levels in north Kashmir dis-
tricts have also increased as all rivers and rivu-
lets are flowing above the danger mark.
Authorities today sounded a red alert asking
people living close to River Sindh to move to
safer places following cloudbursts and flash
floods in the higher reaches triggered by the
continuous rains for the past five days.
PTI/ Jammu/ Srinagar
J&K flood situation worsens,
death toll mounts to 107
Residents look on towards threatened houses as waters from the overflowing Tawi river rage past in Jammu AFP
Rajan says monetary stimulus may backfire, provoke forex savings