LEAD:

While the first signs of Pakistan moving forward on the Mumbai investigation emerged on Wednesday in the form of media reports confirming the role of the Lashkar-e-Toiba, India was clear that any concrete result could only be expected when US investigators obtain access to Zaki-ur-Rehman Lakhvi and Zarar Shah the two Lashkar kingpins that FBI wants to interrogate at the earliest. It is learnt that Washington has conveyed to New Delhi that it is trying to land US investigators in Pakistan "very soon", possibly in the next few days. Sources said Islamabad is moving slowly on letting US investigators on its soil but Washington has made it clear that its domestic laws require FBI to fully investigate any case where US citizens had been killed and so it would need to go to Pakistan as the next step. Six US nationals were killed in the attacks. (IE)

• US President George W Bush on Wednesday spoke to Prime Minister Manmohan Singh and Pakistan B President Asif Ali Zardari and all the three leaders agreed to avoid any action that would "raise tensions" in the region. Mr. Bush "called prime minister (Manmohan) Singh of India and separately president (Asif Ali) Zardari of Pakistan. President Bush urged both ... to cooperate with each other in the Mumbai attack investigation as well as on counter-terrorism in general," White House spokesman Gordon Johndroe said. Mr. Bush spoke from his ranch in Crawford in Texas. "All three leaders from the United States, India and Pakistan agreed that no one wanted to take any steps that unnecessarily raise tensions," Mr. Johndroe emphasised.(HINDU)
• Congress chief Sonia Gandhi has blamed organisations based in Pakistan for the Mumbai terror attacks, in a comment which is sure to add to the seriousness of India's demand that Islamabad act on perpetrators of 26/11. In her message in party mouthpiece 'Sandesh', Sonia said, "It is abundantly clear that the perpetrators of these barbarous acts belong to organisations based in Pakistan." It is the first time that Congress chief has named Pakistan for Mumbai attacks. While she has taken care to mention "Pakistan-based organisations" and not blame the country itself for the dastardly act, her remarks convey a message that the Centre was unlikely to relent on Pakistan after the latter raised a war hysteria to divert attention from the issue at hand. Sonia added, "These organisations (Pakistan based) must and will be dealt with in a resolute manner." Her stinging remarks come after Pakistan repeatedly rejected charges that LeT was behind the Mumbai attacks.(TOI)
• New Delhi: Even as BJP, reeling under the embarrassment caused by the disappearance of Rs 2.6 crore from its central coffer, barred its accountant Nalin Tandon from entering the party headquarters, Congress sought to rub it in. Reacting to media reports, Congress suggested that the money lost to the heist could be part of the cash BJP brought to Lok Sabha to allege that UPA had bribed its MPs to defect to the treasury bench during the trust vote. "Or, it could be meant for some similar future operation," Congress spokesperson Abhishek Singhvi said. The decision to bar Tandon was taken on Wednesday by party president Rajnath Singh after a meeting with treasurer Ramdas Aggarwal and office secretary Shyam Jaju. The BJP has not lodged a police complaint into the theft but has engaged a private detective agency to investigate the matter. Though it did not find the money in Tandon's house, the needle of suspicion pointed to an insider job. Sources said 260 bundles containing 100 notes of Rs 1,000 denomination were found missing from the chest. The party has not said who it suspects could be behind the theft. (TOI)
• Lucknow: More than a week after PWD executive engineer Manoj Kumar Gupta's murder, the police have said that prime accused BSP MLA Shekhar Tiwari's wife Vibha Tiwari was present in Gail Vihar colony where Gupta lived on the night of December 23. Vibha Tiwari is president of the Dibiyapur Nagar Panchayat. Rajbir Singh, Kanpur Mandal in-charge of the BSP, confirmed that she is a member of the party. On Tuesday, the police sent her a notice, asking her to join the investigation and present herself for questioning. Since she was not at her residence, the notice was pasted on the door. Inspector General of Kanpur zone Bhanu Pratap Singh, who confirmed that a notice had been sent, said, "We are now waiting to question her". Attempts to contact Vibha Tiwari failed and her cellphone was switched off. Sources said that she had rarely been seen in the town after her husband's arrest on the evening of December 24. (IE)

BJP

With L K Advani deciding to play a privotal role in the selection of the party's Lok Sabha candidates unlike 2004, the stage is set for the BJP supremo's projection as the "man who can deliver" in the 2009 General Elections. Insisting that the Lok Sabha candidates be finalised by January 2009, Advani has given clear indications of being more assertive in party affairs. The BJP's prime ministerial candidate has also defined his agenda for the next 120 days in the run-up to the general election and plans are afoot for his intensive touring of at least 200 Lok Sabha constituencies once the party candidates are finalised in January 2009. After intensive deliberations, it has been decided that tickets for the Lok Sabha would be given on the basis of the winnability of the candidate, including his or her potential to nurture the constituency for the next five years, and clean past record. Selection of candidates on the basis of preferences of senior party leaders or on the basis of sundry surveys as in the past elections would be avoided this time. Advani made this loud and clear at the core committee meeting, attended also by the state RSS leadership, in Shimla on Monday. (IE)

CONGRESS

Even as Congress considered staking claim to 50% of ministerial berths in the new Jammu & Kashmir government and keeping open the option of a "rotational" chief minister, the party was cautiously optimistic over how Omar Abdullah would shape up at the helm of the strategically crucial state. The party chose to take some credit in nudging National Conference patriarch Farooq Abdullah to nominate Omar, claiming that it saw the younger Abdullah's dynamism an opportunity to project a youthful leadership. The party seemed to confirm having a role in Omar's elevation as CM candidate. Congress was, however, quick to clarify that it did not force a choice with party spokesman Abhishek Singhvi saying, "It was not an antagonistic decision but represents the constructive, consensual and collaborative effort of NC and Congress." Senior Congress leaders met on Wednesday to consider the next steps to operationalise the alliance with NC and it was felt that having quickly accepted NC's request for support, the party could, despite having 17 MLAs to its partner's 28, seek half the portfolios. While Omar becomes CM, Congress has not yet decided against pressing for a change of guard after three years. Congress sought some mileage for having "respected" the popular mood and rejecting NC rival PDP's offer to support a Congress CM for all six years of the new assembly's term. But the party is also looking to see Omar's first steps as CM, wondering whether he would be able to rein in the youthful impetuousness that sometimes marks his manner. (TOI)

STATES

ANDHRA PRADESH

A local court here on Wednesday acquitted 17 persons in a criminal conspiracy case registered following a bomb blast triggered in Mecca Masjid by terrorists in May 2007. This is the second criminal conspiracy case connected to the terror attacks in 2007 in which the court had set free the accused persons. Earlier, the same Second Additional Metropolitan Sessions Judge Court had acquitted four persons, including one Shoaib Jagirdar from Jalna of Maharshtra, of charges of conspiring to wage a war against the State and transporting explosive substances. The present case was registered on June 15, 2007. The police continued to include the names of accused persons in the case based on the progress in the investigation. So far, police included names of 64 persons in the case registered in Gopalapuram police station. Twenty one persons were arrested in the case till now. While charge-sheet was filed against the 17 persons and the court found them not guilty for lack of evidence, trial is pending against the four remaining accused, including Mohtasim Billa, whose arrest led to violence with women attacking the Saidabad police station in March, 2008. (HINDU)

J&K

With the political focus shifting towards the selection of CM-designate Omar Abdullah's team, which includes the deputy chief minister, Congress appears to be zeroing in on the name of former J&K chief secretary B R Kundal. While Kundal has the advantage of having worked with the state administration, his clean image is being considered a plus. In the process, the names of certain other candidates for the job former J&K speaker Tara Chand, senior MLAs Janak Raj Gupta, Raman Bhalla and Chowdhary Mohammed Aslam are now on the backburner. Congress sources in Delhi said that the high command on J&K comprising party president Sonia Gandhi, Union ministers Pranab Mukherjee, Prithviraj Chavan and Saifuddin Soz, as also former J&K CM Ghulam Nabi Azad had a long discussion on the shortlist. While Chowdhary Aslam, Congress's senior-most leader from Jammu, was struck off as the party would prefer a Hindu to represent Jammu's majority, Tara Chand was rejected as his name figured in the sex scandal. The name of Raman Bhalla was also dropped after he was described as junior leader. As for Omar's team, Aga Roohullah, Abdur Rahim Rather, Ali Mohammed Sagar and Chowdhary Mohammed Ramzan all NC MLAs are clear-cut entrees. (TOI)

KARNATAKA

Janata Dal (Secular) leader and former Chief Minister HD. Kumaraswamy has said that his party decided to go it alone in the byelections only after the Congress spurned its offer for an alliance. Addressing presspersons here on Wednesday, Mr. Kumaraswamy said the Congress, which drew a blank in the byelections, was itself to blame. "Do not blame the Janata Dal (Secular) or its national president H.D. Deve Gowda for the failure of the two parties to come an understanding for the by polls," Mr Kumaraswamy said referring to a Congress leader's reported statement that the tie-up failed to materialise on account of Mr. Gowda's rigid stance on the issue. Mr. Kumaraswamy recalled that it was Mr. Gowda who first proposed an alliance between the Janata Dal (Secular) and the Congress to work for the defeat of the Bharatiya Janata Party, which had engineered defections from both the parties. "I even went to New Delhi and discussed the matter with Congress leaders and assured them that the oneupmanship will not come in the way of seat adjustment," he said.(HINDU)

RAJASTHAN

The first session of the new Rajasthan Assembly beginning here on New Year's Day will test the strength of the ruling Congress with the Ashok Gehlot Government going in for the vote of confidence on January 3. Mr. Gehlot, who took over as the Chief Minister on December 13, was given one month to prove his majority on the floor of the House. Following the accommodation of as many as seven independent MLAs in the State Cabinet, the tally of the treasury in the 200-member House easily goes beyond the majority figure of 101. The Congress, which has 96 MLAs, claims to enjoy the support of 11 Independents . making passage of the vote of confidence almost a foregone conclusion. The first day of the session will begin with swearing-in of the newly-elected MLAs, which is likely to continue till the next day. According to Assembly Secretariat sources, Speaker Pro-Tem Devi Singh Bhati will administer the oath of office to the members. The election of the Speaker will be held on January 2 and followed by the customary address of Governor S. K. Singh on January 3. Assembly Secretariat sources said the floor test of the Congress-led Government would be taken up on that day after the obituary references.(HINDU)

EDITORIAL

Never mind 2008: Many would argue that 2008 was, in the words of the Queen of England who was talking about another year, an annus horribilis. On a global scale, few years since 1991 could be considered so important; and few since the '70s could be considered as devastating. 2001 saw terrorist attacks, 2003 a war in West Asia; but 2008 saw both, and in the last few weeks of the year. And the year was devastating not only in real terms, but at the level of commentary, of public discourse. As our columnist today points out, some orthodoxies have been overturned and some shibboleths broken. The global financial crisis has brought humility to some and empowered others those who have been pessimistic about finance, about globalisation, about all that makes the modern world modern. But, in India at least, there is little room for such pessimism it is completely misplaced. However troubled the world's response to the crisis and however deep the depression into which the rest of the world is plunged, one thing is almost certain: India will be less harmed by it than other places. The opportunity has now arisen to demonstrate that the Indian growth story is not an artefact of good times; it is something that can survive bad times as well and not only survive, but do better than the competition. (IE)