SNAPSHOT-Indian policy highlights on Thursday, Aug 26

Aug 26 (Reuters) - Following are statements from Indian policymakers as well as the latest news and scheduled events. * Denotes new entry.

* India's cabinet is likely to approve on Thursday a bill to simplify its direct tax laws, a finance ministry source said.

"Yes, the cabinet is likely to take up for consideration the direct tax code," said the official, who spoke on condition of anonymity.

"If it is approved and I am hoping it will, then we will place it in parliament on Monday."

* The Indian government will start last-ditch talks with Canadian smartphone maker Research in Motion (RIM.TO) (RIMM.O) on Thursday to resolve BlackBerry security issues ahead of an Aug. 31 deadline.

"Deliberations will go on for the next two days and a final decision will be taken on Monday," a senior interior ministry official told Reuters.

"Hopefully they will come up with some solution."

Indian prime minister Manmohan Singh said late Wednesday the country's new nuclear bill does not damage the national interest.

"To say that we have in anyway compromised with India's national interest would be a travesty of facts," he told parliament.

Rahul Gandhi, son of the ruling Congress party chief Sonia Gandhi and a general secretary of the party, often referred to in the media as prime minister-in-waiting, has called on Prime Minister Manmohan Singh to address the issue of farmers' protests over acquisition of land for industry and development, the Business Standard newspaper reported on Thursday.

"The Prime Minister has assured us that the land bill will come in the next session of parliament," another general secretary of the party Digvijay Singh was reported as saying.

The Indian government has expressed concern over a proposed cap on skilled immigrants to Britain's immigration minister, The Economic Times reported on Thursday.

"We have had discussions with the visiting minister and have explained to him that India with its huge pool of young and skilled workers is emerging as an economic powerhouse and should be viewed differently from most other countries when it comes to setting quotas," Vayalar Ravi, minister for overseas Indian affairs, was quoted as saying.

CONTEXT NEWS:

* The proposed direct taxes code will cut tax rates to bring in more people and companies under the tax net, phase out firms' profit-linked exemptions and replace them with investment-linked incentives, in a push to raise government revenues.

If approved by the cabinet, the reform could be debated and passed by parliament before the current session ends next week.

* Research In Motion (RIM) faces an Aug. 31 deadline to give India the means to track and read secure email sent by its BlackBerry mobile device that officials fear have the potential to be misused by militants.

A shutdown would affect 1 million BlackBerry users in India, and cut RIM out of the world's fastest-growing telecoms market.

The passing of the nuclear liability bill by India's Lok Sabha Wednesday, which is crucial for the entry of companies like U.S.-based General Electric (GE.N) and Westinghouse Electric into India's $150 billion nuclear power market, follows months of negotiation between the government and opposition parties.

The Congress party-led coalition government agreed to hike compensation caps and extend liability to suppliers in order to secure the necessary votes in parliament. [ID:nSGE67J07L].

The proposed land acquisition bill will amend the current act from 1894. It makes provisions for social impact assessments prior to large-scale acquisition, payment for loss or damages to land, and costs related to resettlement of displaced residents.

Developers will have to offer shares or debentures in projects as compensation, while the bill makes special provisions if land is acquired under an undefined "urgency' clause. First proposed three years ago, the bill has been delayed due to resistance from railways minister and key Congress ally Mamata Banerjee who opposes any government role in land acquisition.

In June, the British government announced a temporary limit on the number of skilled non-EU immigrants allowed to enter the country, ahead of a permanent cap to be introduced in April.

Britain is a top destination for Indian IT companies, while Indian students currently form the largest body of foreign students in the country.

SCHEDULED EVENTS THIS WEEK

FRIDAY, August 20

Data: Forex reserves at 5 pm (1130 GMT). (Compiled by Henry Foy; editing by Malini Menon)