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International Events and Relations



Mozambique visit of PM

Pact to buy pluses

Mr. Modi’s wide-ranging talks with Mozambique President Filipe Nyusi, the two countries signed three pacts, including a

significant “long-term agreement” under which India will buy pulses from this African nation to meet its recurring shortfall

and contain prices of this commodity.

Chilcot Inquiry committee report

Findings of the Inquiry Committee

1. The first is that the judgments of the severity of the threat posed by Iraq’s weapons of mass destruction were “presented [to

the British Parliament] with a certainty that was not justified”. Mr. Blair, in a misleading statement to Parliament in September

2002, had warned that the-then Iraqi President Saddam Hussein had chemical and biological capabilities that posed a threat to

the U.K. “with a certainty that was not justified”, the report states.

2. Second, the outcome of the invasion was underestimated by Mr. Blair, “despite explicit warnings”.While military action in

Iraq “might have been necessary at some point”, the report notes that in March 2003, when the U.S.-U.K.-led coalition entered

Iraq, “there was no imminent threat from Saddam Hussein.”

More than 1,50,000 Iraqis had died by the time most of the British troops withdrew in 2009, while 179 British soldiers also

lost their lives.

3. Third, planning for an Iraq after Saddam was “wholly inadequate”, and finally, the government “failed to realise its stated

objectives”.Mr. Blair did not establish clear ministerial oversight in planning and preparation for the war and his post-war

efforts in Iraq “never matched the scale of its challenge”, the report concluded.



Seven years later, the country remains badly plagued by sectarian violence, as shown notably by Sunday’s Baghdad suicide

bombing claimed by the Islamic State (IS) militant group which killed at least 250 people.

4. Mr. Blair faced particular criticism for pledging to support U.S. President George W. Bush the year before the invasion,

writing: “I will be with you, whatever”.

In the report, Mr. Blair emerges as not just an obedient junior ally of the then U.S. President George W. Bush, but as a powerful

backer and, sometimes, a step ahead of the U.S. President, first in pushing for regime-change in Iraq, and then endorsing

military invasion as a means to carry it out.

View Point of former British PM Tony Blair

Former United Kingdom Prime Minister Tony Blair, who took the controversial and unpopular decision to send British troops

into war in Iraq in 2003, said he would take the same decision today if he had the same level of information as he had then.

Mr. Blair argued that if the US-led coalition had withdrawn the threat of invasion in 2003, they would have found it impossible

to regroup the forces, and Saddam Hussein would have been strengthened by then insisting that they did not have “the option

to delay.”

Comprehensive Convention on International terrorism

Demand by India

India has revived its two decade old proposal for the adoption of the Comprehensive Convention on International Terrorism

(CCIT) at the UN General Assembly in September this year, given the recent spate of terror attacks across the globe.

Opposition to draft



India has been able to complete a draft which effectively counters the opposition from the three main blocs that have raised

objections: the U.S., the Organisation of Islamic Countries (OIC) and the Latin American countries.

Objections by US

The most powerful objector, the U.S. has been worried about the application of the CCIT to its own military forces especially

with regard to interventions in Afghanistan and Iraq.

Objections by OIC

Convention will be used against Pakistan and right of self-determination groups in Kashmir and Palestine. Both Pakistan and

Palestine are members of OIC.

Objections by Latin American Nations

Concerns that by application of harsh laws human rights may be violated.

Contents of original draft

The original draft that was tabled in 1996 and discussed until April 2013 includes amongst key objectives:

1. to have a universal definition of terrorism that all 193-members of the UNGA will adopt into their own criminal law

2. to ban all terror groups and shut down terror camps regardless of their stated objectives

3. to prosecute all terrorists under special laws

4. to make cross-border terrorism an extraditable offence worldwide.

India abstains at UN vote on LGBT

India’s avoided voting at UN

India avoided taking a position on the need to end discrimination based on sexual orientation at the Human Rights Council of

the UN.



Reason for India’s avoiding stand at UN

The issue of LGBT rights in India is a matter being considered by the Supreme Court. The Supreme Court is yet to pronounce

on this issue

World Bank approves aid for India’s solar programme

The World Bank Group president Jim Yong Kim who is on two-day trip to India announced $ 1 billion in support of India’s

ambitious solar generation plans, its largest financing of solar projects for any country in the world.

The projects now under preparation include solar rooftop technology, infrastructure for solar parks, bringing innovative solar

and hybrid technologies to the market, and transmission lines for solar-rich States.

About International Solar Alliance

International Solar Alliance aims to collaborate on increasing solar energy use around the world, with the goal of mobilising $1

trillion in investments by 2030. The Alliance, consisting of 121 countries, is led by India.

The World Bank Group president also signed an agreement to be the financial partner for the International Solar Alliance.

Other Important Projects Financed by World Bank in India

1. Smart Cities

2. Ganga Rejuvenation

3. Skill Development

4. Swachh Bharat

5. Power for All



Lionel Messi retires from international football

Ace footballer Lionel Messi announced retirement from International Football after Argentina's loss in Copa America final.

Chile stunned Argentina to win the Copa America Centenario in a penalty shootout.

Achievements of Messi

Messi, a five-time FIFA player of the year, winner of four Champions League titles and eight Spanish La Liga crowns with

Barcelona, was crushed. Much of his nation had counted on him to bring home its first major title since 1993.

Reason for retirement

Playing two days after his 29th birthday, Messi lost a final for the third year in a row and the fourth time overall with

Argentina. Messi has taken retirement from Argentina’s football team. However, he will continue to play for club.

India joins MTCR

About MTCR

The Missile Technology Control Regime (MTCR) is a multilateral export control regime. It is an informal and voluntary

partnership among 35 countries (including India) to prevent theproliferation of missile and unmanned aerial

vehicle technology capable of carrying above 500 kg payload for more than 300 km.

The Missile Technology Control Regime (MTCR) established in April 1987 by

the G7 countries: Canada, France, Germany, Italy, Japan, Great Britain, and the United States of America.

MTCR: Top five things to know

https://en.wikipedia.org/wiki/Multilateral_export_control_regime

https://en.wikipedia.org/wiki/Nuclear_proliferation

https://en.wikipedia.org/wiki/Missile

https://en.wikipedia.org/wiki/Unmanned_aerial_vehicle

https://en.wikipedia.org/wiki/Unmanned_aerial_vehicle

https://en.wikipedia.org/wiki/Group_of_Seven_(G7)

https://en.wikipedia.org/wiki/Canada

https://en.wikipedia.org/wiki/France

https://en.wikipedia.org/wiki/Germany

https://en.wikipedia.org/wiki/Italy

https://en.wikipedia.org/wiki/Japan

https://en.wikipedia.org/wiki/Great_Britain

https://en.wikipedia.org/wiki/United_States_of_America



» MTCR membership will enable India to buy high-end missile technology and also enhance its joint ventures with Russia.

» MTCR aims at restricting the proliferation of missiles, complete rocket systems, unmanned air vehicles and related

technology for those systems capable of carrying a 500 kilogramme payload for at least 300 kilometres, as well as systems

intended for the delivery of weapons of mass destruction (WMD).

» India’s efforts to get into the MTCR also got a boost after it agreed to join the Hague Code of Conduct, dealing with the

ballistic missile non-proliferation arrangement, earlier this month.

» China, which stonewalled India’s entry into the 48-nation Nuclear Suppliers Group (NSG) at the just-concluded Seoul

plenary, is not a member of 34-nation MTCR.

Brexit Vote: UK decides to leave EU

The United Kingdom opted to leave the European Union in a closely-fought referendum. The ‘Leave’ side won decisively with

52 per cent of the vote in the high-turnout vote.

This is the second referendum on Britain’s relationship with the European project. In 1975, in a referendum on whether the

U.K. should stay or leave the European Community (Common Market) Area, the country voted for staying in with a resounding

67.2 per cent vote.

What is 'Brexit'?

It's the issue of whether Britain should exit the European Union or not — a question that is decided through a historic

referendum.

When did Britain join the EU?



In 1973, though not without much hand-wringing beforehand. In fact, it has maintained a semidetached relationship, refusing

to sign on to the single Euro currency or the Schengen Agreement on passport-free travel throughout the Continent.

What are the pros of a Brexit?

Economically, Britain would immediately save $12 billion a year in EU budget payments. Freed from famously cumbersome EU

regulations, Brexit supporters say, Britain would attract greater investment and become a more dynamic economic hub —

particularly if it still had full access to the EU's tariff-free single market.

But that's a big if, and would rely on Britain renegotiating a new trade deal with the EU's remaining 27 member states — many

of whom, post-Brexit, would want to make a bitter example of the U.K., to discourage other members from fleeing.

What about immigration?

This is one of the biggest issues for Euroskeptics. Since it didn't embrace fully open borders with Europe, Britain can already

demand that visitors present a passport when entering the country. But under the EU's labor rules, any citizen of a member

state has the right to live and work in another member state — a rule that has allowed some 942,000 Eastern Europeans to

move to the U.K. as the EU has expanded its borders. Brexiters say these migrants have overwhelmed the housing system and

abused Britain's generous in-work benefits. At least 34,000 of them are getting child benefits for children who do not even live

in the U.K. and sending that money — totaling about $42 million a year — back to their home countries. Leaving the EU would

allow Britain more control over how many migrants are allowed to enter. That's become a big selling point after the influx of 1

million refugees into EU countries.

What would happen if Britain left?

A "Leave" vote would trigger Article 50 of the Lisbon Treaty, starting a step-by-step, two-year withdrawal process. Britain's

Parliament would have to repeal all the laws that bind the country to the EU and come up with new trading and travel

agreements with the remaining 27 nations.



What about the wider consequences?

There could be many. Scotland, which sends half of its international exports to the EU, strongly favors the Remain side, and has

threatened to hold a snap referendum enabling it to break away from the U.K. if there is a Brexit. Without a seat at the EU

table, Britain might find itself more isolated and its already diminished status as a world power weakened. The EU would lose

its second-largest financial contributor, and might find itself crumbling at the edges — particularly if other member states

decide to follow Britain's lead. But given that no country has ever left the EU, it's impossible to say with any confidence what

might happen.

Impact of Brexit vote for India

Possible concerns of India

1. India is less exposed to the external sector as compared to many other countries.

To some extent India is not a significant commodity exporter. The economy itself is on a stronger growth path than elsewhere

and after the initial concern of Brexit, people will look around for places that are relatively less affected.

2. There are concerns that Indian companies in the IT and automobiles sector, having base in the U.K., may face issues in

getting preferential access to the EU market post Britain’s exit.

Europe is the second largest market for Indian IT-BPM industry, constituting almost 30 per cent of the sector’s export revenue

of about $100 billion.



India has to complete a long process for SCO membership

A long-drawn process lies ahead for India to complete its entry into the Shanghai Cooperation Organisation (SCO) which has

begin its annual summit on June 23-24 at Tashkent.

At this upcoming summit, the process of India’s accession to the SCO will start with a signature on the ‘base document’ which

is called the ‘Memorandum of Obligations’.

Status of India in Tashkent Summit

A diplomatic source has confirmed that India will attend the summit as an “Acceding Member” but will speak from the

category of “Observers.”

“There is a schedule laid down for us to sign up to the other documents that are required that India needs to accede to and that

will happen as the year goes by,” Ms. Mehta said, explaining that India would have to sign at least 30 sets of documents that

would finally culminate in India acceding to the SCO.

The Memorandum of Obligations, however, will begin a process of more intense engagement.

Absence of Pakistan

Unlike the last SCO summit at Ufa, where the bilateral between PM Narendra Modi and his Pakistan counterpart Nawaz Sharif

was the highlight, this year Pakistan has not yet “formally communicated” to India about its representation at the SCO,

reducing the chances of a bilateral meet. However, Prime Minister Modi is expected to hold two bilateral meetings with

President Xi Jinping of China and President Vladimir Putin of Russia at Tashkent.



Bid for membership for Nuclear Suppliers Group

The NSG did not take up India’s application for membership in its plenary meetings on June 24 in Seoul.

Nuclear Suppliers Group (NSG)

Nuclear Suppliers Group (NSG) is a group of nuclear supplier countries that seek to prevent nuclear proliferation by

controlling the export of materials, equipment and technology that can be used to manufacture nuclear weapons. As of now,

the NSG has 48 nations as its members.

What will India get by becoming member of NSG?

India will get easy access of nuclear fuel and technology from other countries. This access is crucial for development of civilian

nuclear energy programme in India.

Past dealings of India with NSG

1. It is said that NSG was set up in response to nuclear test by India in 1974.

2. India got an exemption from the NSG for nuclear imports in 2008, following the civil nuclear deal with the U.S.

3. In 2010, the Obama administration declared its support for India’s “full membership” of the group, but things have not

moved far since.

Instances in favour of India getting NSG membership

1. Countries such as US, France, Germany support India for membership of NSG.

2. India has a clean record in context of nuclear proliferation and is considered a peaceful nation.

Instances against India getting membership of NSG

1. China, acting in concert with Pakistan, has thrown a spanner in the works for India, by linking New Delhi’s candidacy to

Islamabad’s.



2. NSG operates by consensus and all its current members are signatories to the Nuclear Non-Proliferation Treaty. However,

India is not a signatory of Nuclear Non-proliferation treaty. Namibia not allowed to export Uranium to India

Issue discussed during President Pranab Mukherjee visit to Namibia

What constrains Namibia from selling Uranium to India?

Namibia, the world’s fourth largest uranium producer, signed an agreement with India in 2009 for uranium supply. However,

as a member of the African Nuclear Weapon-Free Zone Treaty (ANWFZT), it is barred from trading in uranium with India,

which is not a member of the Treaty on the Non-Proliferation of Nuclear Weapons, aka the Non-Proliferation Treaty (NPT).

The ANWFZT also known as the Treaty of Pelindaba (named after South Africa’s main Nuclear Research Centre, run by The

South African Nuclear Energy Corporation and was the location where South Africa’s atomic bombs of the 1970s were

developed, constructed and subsequently stored), establishes a Nuclear-Weapon-Free Zone in Africa.

India-Bangladesh waterways transit inaugurated in Dhaka

The India-Bangladesh waterways transit, carrying goods from Kolkata, was inaugurated in Dhaka.

In a first for New Delhi-Dhaka relations, the vessel carrying Indian goods consigned for Tripura marked the official transit to

India’s north-east via the inland waterways of Bangladesh.

Background



The opening is part of the Indo-Bangladesh Protocol on Inland Water Transit and Trade signed by the Prime Ministers of the

two nations last year in 2015.

Benefits of transit

The transit would reduce the transportation cost substantially to carry goods from rest of India to country’s north-east as the

distance reduces from about 1,700 km via Siliguri in north Bengal to about 500 km via Bangladesh. UN plans to end AIDS threat by 2030

UN Resolution:

At the UN meeting, member states adopted a new political declaration, to end the AIDS epidemic as a public health threat by

2030, within the framework of the Sustainable Development Goals (SDGs).

India at UN:

Mr. Nadda, India’s Health Minister proposed a five-point strategy to end AIDS. He stated that India was committed to enforcing

TRIPS flexibilities to make drugs affordable. The low cost generic medicines produced by the Indian pharmaceutical industry

have been instrumental in scaling up access to HIV treatment not only in India but in other parts of the world. More than 80%

of the antiretroviral drugs used globally are supplied by the Indian pharmaceutical industry.

The five-point strategy includes:

1. Adoption of the fast track target i.e. reaching 90% of all people in need with HIV treatment.

2. Commitment to maintain the TRIPS flexibilities.

3. Creating an inclusive society with programmes that work towards restoring the respect and dignity of individuals.

4. Prevention must be the primary goal.



5. We need to increase investments.

Sustainable Development Goals (SDGs):

The Sustainable Development Goals (SDGs) are a proposed set of targets relating to future international development. They

are to replace the Millennium Development Goals once those expire at the end of 2015.

This agenda contains 17 goals and 169 targets. The goals are to be achieved by all member countries within the next fifteen

years, thereby giving it the moniker of ‘Agenda for 2030’.

RIMPAC 2016: World’s largest international maritime exercise kicks off

World’s largest international maritime exercise named RIMPAC (Rim of the Pacific) 2016 began in Pacific Ocean at Hawaii,

United States.

RIMPAC 2016 will see participation of navies from 26 countries. This year it is the 25th edition of biennial exercise in the

series that began in 1971.

Key Facts

26 Participating Countries are: Australia, Brunei, Canada, Chile, Colombia, Denmark, France, Germany, India,

Indonesia, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, China, Peru, Korea, Philippines, Singapore,

Thailand, Tonga, the United Kingdom and the United States.

About Rim of the Pacific (RIMPAC) Exercise

The RIMPAC is the world’s largest international maritime warfare exercise. It is held biennially during June and July of

even-numbered years from Honolulu to Hawaii.



AIIB approves first loans for projects in four countries

Asian Infrastructure Investment Bank (AIIB) has approved first set of loans totalling US 509 million dollars to finance projects

in four countries viz. Bangladesh, Pakistan, Indonesia and Tajikistan.

Projects approved

Bangladesh: US 165 million dollars loan for a Power Distribution System Upgrade and Expansion Project.

Indonesia: US 216.5 million dollars loan for a National Slum Upgrading Project. It is expected to be co-financed with

the World Bank.

Pakistan: US 100 million dollars loan for Shorkot-Khanewal Section of National Motorway M-4. It will be co-financed

with the Asian Development Bank (ADB) and the United Kingdom’s Department for International Development (DFID).

Tajikistan: US 27.5 million dollars loan for the Dushanbe-Uzbekistan Border Road Improvement Project. It will be co-

financed with the European Bank for Reconstruction and Development (EBRD).

Chile wins 2016 Copa America Football tournament

Defending champion Chile won the 2016 Copa America Football tournament by defeating Argentina in a penalty shootout.

This was second Copa America title won by Chile after winning it for the first title in 2015 after defeating Argentina. With this,

Chile also became the first team to win the title back to back since 1947.

About Copa America Football title

The Copa America (means America Cup in Spanish and Portuguese) title is an international football competition.

It is played between the men’s national football teams of South American Football Confederation (CONMEBOL).

Since the 1990s, teams from Asia and North America also are participating.

It is oldest international continental football competition established in 1916.

The present tournament format was restructured in 1993 which involves 12 teams. These teams compete at venues in

a host nation over a period of one month.



SCO summit 2016 begins in Tashkent, Uzbekistan

The 2016 Shanghai Cooperation Organization (SCO) summit started in Tashkent, Uzbekistan.

Key Facts

In it, India and Pakistan will sign a memorandum of obligation for obtaining SCO member states status.

About Shanghai Cooperation Organisation (SCO)

Its aim is jointly preserving and safeguarding regional peace, security and stability and also establishing a democratic,

fair and rational new international political and economic order.

Headquarters: Beijing, China.

Established: 2001 in Shanghai by the leaders 6 countries viz. China, Kyrgyzstan, Kazakhstan, Russia, Tajikistan, and

Uzbekistan.

It is an outcome of The Shanghai Five grouping established in 1996 by Kazakhstan, China, Kyrgyzstan, Russia and

Tajikistan.

SCO’s first enlargement was in 2001 with addition of Uzbekistan and second enlargement was in July 2015 with

addition of 2 new members India and Pakistan.

Presently, it has four observers Afghanistan, Belarus, Iran and Mongolia.

Since 2005, India was having an Observer status of SCO and had applied for full membership in 2014.

Sunil Mittal elected as Chairman of International Chamber of Commerce

The chief executive of Bharti Group, Sunil Bharti Mittal has been elected chairman of the International Chambers of Commerce

(ICC).

He succeeds Terry McGraw, Chairman Emeritus of S&P Global, who became ICC’s Honorary Chairman. Sunil Mittal is the third

Indian business leader to hold this position in ICC’s near 100 years history.



About Sunil Bharti Mittal

Sunil Mittal is Indian telecom tycoon, entrepreneur and philanthropist.

He is the founder, chairman and Group CEO of Bharti Enterprises, which has interests in telecom, financial services,

retail and agri business.

About International Chambers of Commerce (ICC)

ICC is the world’s largest business organisation that was founded in 1919.

It represents the private-sector’s views to national governments and intergovernmental bodies around the world.

Rio 2016 unveils official slogan ‘A New World’ for Olympic and Paralympic Games

The Rio 2016 organising committee has unveiled the official slogan (motto), A New World for the 2016 Olympic and

Paralympic Games scheduled to be held in August 2016 in Rio de Janeiro, Brazil.

Key Facts

2016 Rio Olympic and Paralympic Games will be the first Olympic and Paralympic Games to held in South America.

Background

The creation of official slogan for the Olympic and Paralympic Games is a tradition of each Olympic Games.

Kolkata-Ashuganj-Tripura transit facility between India, Bangladesh becomes operational

Kolkata-Ashuganj-Tripura transit facility under the revised Inland Water Transit and Trade Protocol between India and

Bangladesh became operational.

About Kolkata-Ashuganj-Tripura transit facility



The facility running through a land and river route crossing Bangladesh territory cuts the Kolkata-Agartala distance via

Siliguri’s ‘chicken neck’ from 1600 km to 800 km.

It also has reduced the time of the journey from 30 days (via Siliguri corridor) to just 10 days.

India, Japan and US navies kick off 2016 Malabar Exercise near South China Sea

India, Japan and United States (US) navies have kicked off 2016 MALABAR trilateral naval Exercise near South China Sea.

This year it is the 20th edition of the naval exercise.

Background

Since 1992, Indian and US navies have regularly conducted the annual bilateral exercise. Since 2007, Malabar has been held

alternatively off India and in the Western Pacific. In 2015, it was conducted off Chennai coast in Bay of Bengal and included

participation of Japan making it trilateral naval exercise.



National and State News



Pulses deficit in India

Reasons and Solutions for High prices of Pulses

1. Demand for pulses is rising even in parts of the world where it hasn’t been a staple diet. As population increases and

incomes rise, pushing up demand for high-protein foods like pulses, the weaker sections may be forced to simply cut back on

consumption. This is a worrying portent for a country where per capita pulse intake has already fallen by more than a third

over the past 55 years.

2. There are structural problems in boosting output. Farmers, for instance, prefer to sow wheat and paddy instead of pulses,

thanks to the Minimum Support Price regime.

3. Since the Centre may not have the resources to procure dal on the same scale as wheat and paddy, it needs to think beyond

the usual template.

4. Now that it has allowed 100 per cent FDI in food processing, dismantling the Agricultural Produce Marketing Committee

laws that cripple free trade for farmers could pave the way for them to deal directly with large traders and retailers.

Measures taken

The Centre has already undertaken some measures to deal with the current uptick in dal prices:

1. Creating a buffer stock,

2. Imposing stock limits on traders,

3. Offering tur dal at Rs.120 a kg through mobile vans.

4. Prime Minister Narendra Modi is signing a pact with Mozambique to double pulses imports from that country. More dal

diplomacy is under way to scale up the approximately 5 million tonnes of pulses India procures from 46 countries.



5. Government’s move to raise the minimum support price for pulses is expected to help push up their output and thereby

contain food inflation

Note: Food and Agriculture Organisation of the United Nations has designated 2016 as the year of pulses to highlight their

importance in curbing malnutrition.



All about NSCN (I-M)

Demands of National Socialist Council of Nagalim (Isak-Muivah)

1. NSCN (I-M) is the largest of the naga groups. Naga groups envisage a “Greater Nagalim” comprising the contiguous Naga-

inhabited parts of Assam, Arunachal Pradesh, Manipur and Myanmar with Nagaland.

2. NSCN (I-M) also demands sovereignty from India. It agrues that the Nagas were never part of the Indian union by consent of

the Naga people. That is why the Nagas will have the right to decide their role as we were never under Indian rule.

Main Leaders

1. Thuingaleng Muivah is a general secretary of the National Socialist Council of Nagalim (Isak-Muivah)

2. Recently, chairman of NSCN (I-M) Isak Chishi Swu died.

Opposition to demand

1. Adjoining states of Nagaland oppose inclusion of their regions in Greater Nagaland.

2. Government of India argues that Nagas have to give up demand for sovereignty and the rebel outfit can be given “a solution

within the Constitution of India.”

Framework agreement Last year, the government signed the framework agreement with NSCN-IM as it was the largest group representing the Nagas.The framework agreement carried broad parameters on which further negotiations will be carried out by GOI and NSCN-IM. Details of the framework agreement has been kept secret.



Union Cabinet Expansion and Reshuffle

The council of ministers now has 77 members, the largest in years. Ex- Environment Minister Prakash Javadekar is considered

most significant benficiary after being elevated to full Cabinet rank and given HRD ministry.Smriti Irani has been shifted to

Textiles from HRD ministry.

Finance Minister Arun Jaitley has shed Information and Broadcasting (I&B) portfolio and Venkaiah Naidu has been given

additional charge of I&B.

Besides Mr. Javadekar, 19 new Ministers (17 new faces and two old hands) took oath as Ministers of State. The previous

strength of the government was 63 (after Gopinath Munde died and Assam Chief Minister Sarbananda Sonowal and BJP

Maharashta chief Rao Saheb Danve quit). Five Ministers of State tendered their resignation on Tuesday, leaving 58 Ministers in

the earlier batch.

Criticism:

1. The size of the council of ministers has led to critics describing it as far removed from the PM's promise of "minimum

government and maximum governance" made during his campaign for the general election.

2. A number of new ministers belong to backward castes, which will play a critical role in next year's election in the largest

state of Uttar Pradesh. Important states like Gujarat and Punjab will also choose their next governments soon.

Appreciation:

Political analysts are arguing that cabinet reshuffle seems to be a consequence of a very thorough appraisal done by PM Modi

of his ministers over a period of last three months.



Draft regional connectivity scheme for airlines

The civil aviation ministry released the draft regional connectivity scheme in a bid to make flying affordable and to revive

dormant airports.

Once the scheme is implemented, passengers will be able to fly an hour’s journey (of about 500 km) for an all-inclusive fare of

Rs 2,500.

Who will be eligible for subsidy?

1. The cap on the airfares will be applicable only to a limited number of seats in an aircraft and the passengers will be eligible

for subsidised fare on a first-come-first served basis. Subsidised fares will be applicable only on nine seats (for 12 to 18-seater

plane) and 40 seats (for aircraft with 80 or more seats).

2. Only routes covering a distance of 200-800 km connecting a ‘less connected or unconnected’ airport will qualify for the

regional connectivity scheme and the airfare cap will be proportional to the air distance travelled.

3. Airfares will be capped in the range of Rs.1,700-Rs.4,070 and will be revised every quarter based on the prevailing inflation

rate.

4. While the scheme will be applicable to airports with no flight connections in the previous two flying seasons, the

government has identified 16 airports, receiving seven flights a week, which will also fall under the scheme.

Some of them are: Agra, Allahabad, Pantnagar, Diu, Shillong, Jamnagar, Bhavnagar, Kullu, Tezpur, among others.

5. The airlines will be mandated to fly at least three flights every week on such regional routes and the subsidy will be

provided for maximum seven flights per week.

How much will be Subsidy given by government?



While the Centre will provide 80 per cent subsidy to airlines for three years to fund the losses they incur, to enable them to

charge lower airfares to passengers, the remaining 20 per cent will come from the states.

How the subsidy will be financed?

The Centre will set up a regional connectivity fund, to be be financed by a cess charged to airlines flying on metro or trunk

routes for each departure.

The cess, which will likely be levied beginning August 1, may marginally increase airfares on such routes.

If an airline is not able to develop a route within three years even after (our) giving viability gap funding, then it will be given a

cooling off period of two years before the route can again qualify to become a part of the scheme.

Skill banks to train workers for global market

What are Global Skill banks?

Prime Minister Narendra Modi’s plan to make India “the human resource capital” of the world will first take off in Uttar

Pradesh and Bihar, where the government is setting up 50 global skill banks this year to train potential immigrant workers in

110 job roles as per international standards.

Where these Skill banks will be set first?

Uttar Pradesh and Bihar were selected first due to their high population and for having the record for the maximum migration

for overseas employment.

What will these banks do?

These banks, or training centres, will impart skills across sectors such as medicine and healthcare, hospitality, IT, construction,

automobile and retail trade — where job opportunities exist or are likely to arise across different countries. Before they

emigrate, youth trained in these skill banks would also be made familiar with the respective local culture and language of the



country they obtain a job in as well as its work ethic.

When will these banks be set up?

The Ministry of Skill Development and Entrepreneurship is likely to sign a pact with the External Affairs Ministry to co-operate

on the initiative to realise the Prime Minister’s vision. By the end of this month, about 20 global skill banks are expected to be

up and running, with another 30 becoming operational by the end of the 2016-17 period.



Government stretches list of Smart Cities from 100 to 109

Decision of the government to increase number of Smart Cities

As per the Urban Development Policy, only 100 cities are listed to be developed as Smart Cities in the next five years. The



ministry, however, has now allowed nine more capitals, including Patna, Thiruvananthapuram, Bengaluru, Amaravati, Itanagar

and Gangtok, to participate in the next round of the competition. It has also allowed the governments of Jammu and Kashmir and Uttar Pradesh to nominate two cities each — Jammu and Srinagar, and Rae Bareli and Meerut respectively — in contravention of the rules.

7th Pay Commission recommendations

Decision of the government

1. The government announced an overall increase of 23.5 per cent for over one crore government employees and pensioners

in line with the Seventh Pay Commission’s recommendations.

2. The hikes will come with the August paychecks and be paid with effect from January 1, 2016. The arrears for the six months

will be disbursed during the current financial year (2016-17) itself.

3. Increase of 16% in pay and 24 per cent in pensions.

4. The starting salary for new recruits at the lowest level has been raised to Rs. 18,000 from Rs. 7,000 per month.



5. The approved maximum pay, drawn by the Cabinet Secretary, is Rs. 2.5 lakh per month (against the current Rs. 90,000),

higher than the salaries drawn by MPs.

6. The Cabinet also approved the recommendation of the commission to enhance the ceiling of house building advance from

Rs. 7.5 lakh to Rs. 25 lakh. All but four interest-free advances have been abolished

Background

The decision of the government has been taken on the recommendations of 7th Pay Commission headed by Justice A.K.

Mathur.

Arguments in favour

1. Raise of salaries and pensions for more than one crore government employees and pensioners will impart a fillip to

consumption demand and economic growth.

In Indian economy, robust private consumption is a key driver of current economic momentum, additional money in the hands

of the government staff and retired personnel is bound to fuel a healthy demand for a variety of goods and services.

2. The announcement of the pay increases has been welcomed by industry groups, from automobile manufacturers to

consumer durables sellers. And with the additional payout from the government toward the enhanced pay, allowances and

pensions projected to exceed Rs.1.14 lakh crore over the course of the current fiscal year ending in March 2017, the multiplier

effect is bound to be significant.

3. Centre’s decision will put upward pressure on salaries in State governments as well as the private sector.

4. The decision to more than triple the ceiling for house building advance to Rs.25 lakh from Rs.7.5 lakh is likely to provide a

much-needed incentive for more government and defence personnel to invest in housing, and thereby boost employment.



5. Besides the anticipated increases in spending, the higher pay and pensions are also expected to bolster savings, which could

help the banking and financial system channel funds to meet investment demand.

Arguments against

There are, however, some risks from the increased salary and pension outgo.

1. The RBI had flagged the upside risks to the inflation outlook posed by several factors including the implementation of the

Seventh Pay Commission’s recommendations.

2. The other concern relates to the impact on government finances, particularly the effort at fiscal consolidation. However,

Finance Minister Arun Jaitley is confident that the budget deficit will be contained within the 3.5 per cent of GDP target this

financial year.

NIA

National Investigation Agency (NIA) is a central agency established by the Indian Government to investigate terror related

crimes in India. The agency is empowered to deal with terror related crimes across states without special permission from the

states. The Agency came into existence with the enactment of the National Investigation Agency Act 2008.

About UAPA

Unlawful Activities (Prevention) Act is an Indian law aimed at effective prevention of unlawful activities associations in India.

Its main objective was to make powers available for dealing with activities directed against the integrity and sovereignty of

India. Parched Panchayati Raj Ministry on verge of closure



After facing massive budget cut last year, the future of Panchayati raj ministry looks bleak.

1. Last year, budget cut from Rs 7000 crore to Rs 96 crore.

2. Two of the key programmes - The Backward Regions Grant Fund (BGRF) and The Rajiv Gandhi Panchayat Sashaktikaran

Abhiyan (RGPSA) have been shuttered.

3. Role has been limited to that of an advisory group.

About the Panchayati Raj Ministry:

Ministry of Panchayati Raj looks into all matters relating of Panchayati Raj and Panchayati Raj Institutions. It was created in May 2004. The ministry is headed by a minister of cabinet rank. Currently, the ministry is headed by Ch. Birender Singh. Pulgaon ammunition depot fire

Cause of depot fire

Documents submitted to the Court of Inquiry into the deadly blast at the Central Ammunition Depot (CAD) in Pulgaon suggest

that defective anti-tank 1A ND mines made by the Ordnance Factory Chanda, packed with poor quality explosives, could have

been the cause of the disaster.

Pulgaon ammunition depot fire led to loss of 19 military and civilian personnel on May 31.

Flaw in design of mines

A major flaw in the mines, designed by the Armament Research and Development Establishment (ARDE) in 2004, is said to

have been the quality of TNT (trinitrotoluene) used in them. TNT has the property of exudation (leaking), the amount of

exudation directly linked with the purity of TNT.

Carelessness by administration



Ironically, this issue was flagged way back in February 2010, after which the anti-tank 1A ND mines were segregated; a ban

was also imposed on their use. However, the mines were not destroyed or replaced but remained in the depot despite several

internal communications among the various stakeholders.

About Cental Ammunition depot, Pulgaon

CAD Camp or Central Ammunition Depot Camp is a military area and the second largest ammunition depot in Asia. It is located

near Pulgaon in Wardha district in the Indian state of Maharashtra

Airlines can now import older planes

New rules

Domestic airlines can now import aircraft that are up to 18 years old into the country with the Directorate General of Civil

Aviation (DGCA) has made changes to rules that had come into effect way back in July 1993.

.

Till now, aircraft that are more than 15 years old were not allowed to be imported.

Pressurised aircraft

With the revised norms, pressurised aircraft that are not over 18 years old or those which have not completed 50 per cent of

design economic pressurisation cycle can be imported.

A pressurised aircraft is one which is equipped to handle cabin pressure at an altitude of above 10,000 feet.

“Aircraft intended to be imported for air cargo operations shall not have completed 25 years in age or 75 per cent of its design

economic cycles or 45,000 landing cycles,” it noted.

The regulator also said that studies were conducted by international aviation community on the correlation between fatal

accidents and age of the aircraft.

“Such studies have not clearly established that there is a correlation between accident rate and aircraft age up till 18 years,” it



added.

Unpressurised aircraft

With respect to unpressurised aircraft, the decision would be taken on a case to case basis after examining the record of the

plane that is to be procured from overseas.

Objective of new rule

The move is expected to provide a fillip for the government’s ambitious efforts to boost regional air connectivity as it gives

more leeway for operators in expanding their fleet.

Demand for Status of state for Delhi by AAP government

The AAP govt. in Delhi demand for a status of state for Delhi. Presently, Delhi doesn’t enjoy status of a state. It has an elected

assembly but is does not have police and land powers.

Demand for stat rood for Delhi has led to defences between AAP govt. and central govt.

Whether statehood should be given to Delhi?

Arguments in favour

Elected representatives from Delhi will be able to able to exercise power according to will of people of Delhi .

Arguments against

If land and police powers are given to Delhi govt., then there powers may be misused against central govt. officials positioned

in Delhi.

Present Status of Delhi is given under Art 239AA



1. UT of Delhi shall be called National capital territory of Delhi and administrator of Delhi shall be called Lieutenant Governor.

2. There shall be a separate Legislative assembly and Council of Ministers for Delhi.

3. Legislative assembly shall have the power to make laws on all matters of state and concurrent list with the exception of

public order, police and land.

However, Parliament also has the power to make laws with respect to any matter (mentioned in all the three lists) relating to

Delhi.

In case of conflict between law made by legislative assembly and law made by Parliament with respect to a particular matter,

law made by Parliament shall prevail. However, law made by legislative assembly can prevail if the law has been reserved for

the consideration of the President and has received assent from the President.

4. The strength of Council of Ministers shall not exceed 10% of total strength of the legislative assembly (The strength of

Legislative assembly of Delhi is 70 members).

5. Lieutenant Governor is required to act in accordance with the aid and advice of Council of Ministers except in those matters

where he is required to act in his own discretion.

DGCA to get more punitive powers

For better enforcement of air safety standards, the Directorate General of Civil Aviation (DGCA) will soon be empowered to penalise airlines and airports for various offences and non-compliance of air regulations. Present powers of DGCA Under the present rules, the DGCA is authorised to either suspend the operations of airlines or airports or take away their licence, but has no powers to impose fines or penalties.



Generally DGCA is not able to take any action because it does not want to take extreme steps such as suspending the operations as it also affects customers. Currently, it has to file a case in the court to take any action against the operators even for small violations. New proposed powers of DGCA The Civil Aviation Ministry will soon send a proposal to amend the Aircraft Act, 1937, to the Law Ministry, to empower the DGCA to impose fines for violations under the Act. The violations include operating aircraft without the specified minimum crew, flying without a valid pilot licence or medical fitness, not maintaining records, fraudulent entry in logbooks and not maintaining airports. Many of the violations can be easily controlled. The DGCA can levy a fine immediately which the operator will have to pay.The DGCA may be empowered to fill vacancies on deputation or promote its employees without getting the consent of the Union Public Service Commission (UPSC).The Union Civil Aviation Ministry is expected to take up the proposal with the Department of Personnel and Training soon. The DGCA will be given full financial autonomy, enabling it to spend money without taking the consent of the Civil Aviation Ministry. Present criticism of DGCA The DGCA needs a complete overhaul before being converted into an operationally and financially independent civil aviation authority. The head of the DGCA should not be a political appointee and should be with proven knowledge of aviation and should be given at least a three-year term, instead of appointing an IAS officer for a short tenure of six to 12 months. Madras, Bombay HCs to reflect city names

Two decades after the city of ‘Madras’ became ‘Chennai’ and ‘Bombay’ became ‘Mumbai’, the High Courts in both the cities will

finally adopt the names by an act of Parliament during the upcoming monsoon session.

The Law Ministry has prepared a Cabinet note on a Bill changing the names of the High Courts. According to senior Ministry



sources, not only State governments but also the HCs have to concur with the name change as it involves technical issues

regarding statute books and the fact that the courts, especially the three presidency courts of Madras, Bombay and Calcutta,

were established under the Indian High Court Act of 1861.

Other pending name changes

1. The third presidency High Court in Calcutta, however, will have to wait a while for its own name change to ‘Kolkata High

Court’ as the court is yet to give its concurrence. “The West Bengal government has asked for a name change but the

honourable high court has not responded to our letters yet.

2. With the change in the official spelling of ‘Odisha’ from ‘Orissa’, there have been demands that the State’s high court too

changed its name, which still goes by the old spelling.

Panel on education policy wants UGC Act to lapse

A high-power committee headed by former Cabinet Secretary T.S.R. Subramanian has recommended that the law that set up

the higher education regulator University Grants Commission (UGC) be allowed to lapse.

Present functions of UGC

The UGC’s mandate includes

1. overseeing disbursal of grants to colleges

2. fellowships to students

3. recognising and monitoring institutions.

Why UGC should be abolished?

The committee says the following arguments:



1. UGC has been unable to effectively implement its regulations aimed at ensuring the quality of higher education in the

country over the years.

2. The Committee was informed that there are widespread irregularities in grant of approval of institutions and courses.

3. There are serious concerns about the quality of education provided by a large number of colleges/universities; it is the

responsibility of the UGC to monitor standards of education in higher education institutions and the UGC has not succeeded in

ensuring this.

What alternative arrangement has been suggested for UGC?

“The UGC could be revamped, made considerably leaner and thinner, and could be the nodal point for administration of the

proposed National Higher Education Fellowship Programme, without any other promotional or regulatory function.

Expert committee Report on examination of UGC

The Subramanian Commission report refers to a recent “expert committee's” examination of the working of the UGC.

“An expert Committee recently has examined thoroughly the past, present and future role of UGC; the report is under

examination by the Ministry.

It is understood that the report had concluded that the UGC does not have the adequate number of personnel, of requisite

quality, to be an effective regulatory force in the higher education sector,” says the TSR Subramanian Commission report,

referring to the recent Hari Gautam committee report. “It is recommended that as the new overarching higher education

management law is enacted, which the Committee suggests should be very soon, the UGC Act should be allowed to lapse.”

First women fighter pilots earn their stripes

History was created at the Air Force Academy (AFA) at Dundigal in state of Telangana when Defence Minister Manohar

Parrikar presented ‘wings and brevets’ to three women — Avani Chaturvedi, Bhawana Kanth and Mohana Singh — and

commissioned them as fighter pilots.



Chauhan appointed as NIFT chief

Former cricketer and two-time BJP MP Chetan Chauhan has been appointed as Chairperson of the premier National Institute

of Fashion Technology (NIFT).

About NIFT

The NIFT Act, 2006, says the chairperson to the statutory body under the Ministry of Textiles is expected to be an eminent

academic, scientist or technologist or professional to be nominated by the Visitor of the institute, who is the President of India.

Criticism of appointment

1. The former Indian cricketer played “a major role in shielding” the Union Minister, against the criticism levelled against

DDCA — especially of a financial nature — last year.

2. It is also alleged that Mr. Chauhan does not know much about fashion.

Other controversial appointments

1. Gajendra Chauhan as head of the FTII (Film and Television Institute of India)

2. A relatively unknown historian Y. Sudarshan Rao as chairperson of the Indian Council of Historical Research

3. Pahlaj Nihalani as CBFC chairperson (Central Board of Film Certification) Gulbarg Society verdict

The special Special Investigation Team trial court awarded life imprisonment to 11 persons found guilty of murder, one has

received a 10-year jail term and 12 others have been sentenced to seven years in prison in the case of the brutal killing of 69

people including a former lawmaker Ehsan Jafri and arson during the 2002 riots in Gujarat. Twenty-four persons were



convicted and 36 acquitted in the case.

Background

The Gulbarg Society massacre took place on 28 February 2002, during the 2002 Gujarat riots, when a Hindu mob attacked the

Gulbarg Society, a Muslim neighbourhood in Chamanpura, Ahmedabad. Most of the houses were burnt, and at least 35 victims,

including a former Congress Member of Parliament, Ehsan Jafri, were burnt alive, while 31 others went missing after the

incident, later presumed dead, bringing the total deaths to 69.

The Supreme Court of India had stayed the trial in major Gujarat cases on petitions filed by the National Human Rights

Commission and the Citizens for Justice and Peace, who sought a probe by the Central Bureau of Investigation and transfer of

the cases outside Gujarat. The SC bench directed the Gujarat government to constitute a Special Investigation Team (SIT),

headed by R. K. Raghavan, a former head of the Central Bureau of Investigation (CBI) in the case.

It reopened nine crucial riot cases. Seven years after the incident, in February 2009, Erda, the Deputy Superintendent of Police

with the Gujarat Police at the time was arrested on charges of dereliction of duty and for tampering with evidence, as some

survivors alleged that he not only allowed the killings to happen but also helped rioters to burn the dead bodies.

SIT submitted its entire report including case papers, witnesses’ testimonies and other details in March 2012. On the basis of

SIT report, SC has given the verdict.

Teesta Setalvads NGO wont get foreign funds, MHA cancels FCRA licence

What is the decision of the government?

The FCRA (Foreign contribution regulation act) licence of an NGO run by activist Teesta Setalvad was cancelled by the

government for alleged violation of various provisions of law.

As a result, the NGO will not be able to secure donations from outside India to fund its activities.



What is the basis of action by government?

The Home Ministry said various irregularities were found in Sabrang Trust, where Teesta and her spouse Javed Anand work as

chief functionary or trustee, and after careful examination of the NGO’s response, its registration was cancelled.

Irregularities:

1. According to the Home Ministry, Teesta and Anand are also working as directors, co-editors, printers and publisher in the

company namely Sabrang Communications & Publishing Pvt Limited (SCPPL) and published a magazine called Communalism

Combat.

Sabrang Trust has spent an amount of Rs 50 lakh for SCPPL clearly violating the mandate of the FCRA. By this action, the NGO

has not only unauthorisedly utilised the foreign contribution for the purposes of an unregistered entity but also that entity

being a self-owned media and publication company, utilised that amount for activities totally prohibited by FCRA.

2. The order said the NGO has transferred an amount of Rs 2.46 lakh from its foreign contribution designated account to

Sabrang Trust domestic account, thus mixing of domestic and foreign funds and violating the rules.

3. Sabrang Trust has made direct payments of approximately Rs 12 lakh from FCRA designated account to Citi Bank and Union

Bank of India on account of credit cards belonging to Teesta and Anand respectively.

The cards are issued in the name of the individuals and the above payments of the foreign contribution shall be treated to have

been used for personal gain, the Home Ministry said.

4. In 2010-11, the NGO has incurred 64.23 per cent of the foreign contribution on administrative expenditure and during

2011-12, it incurred 55.14 per cent on administrative expenses without obtaining the prior approval of the central

government, which is in violation of FCRA.

FCRA rules state that if an NGO’s administrative expenses exceed 50 per cent of total foreign donations, the organisation needs

an approval from the Home Ministry.



Possibility of victimization by Government

Teesta has pursued the cases of post-Godhra riots victims in Gujarat whenNarendra Modi was Chief Minister of the state.

Another NGO run by Teesta and Anand — Citizens for Justice and Peace — has already been put under prior permission

category, thus making it mandatory for the organisation to take permission from the Home Ministry before accepting or

utilising any foreign contribution.

Following a recommendation of the Home Ministry, CBI has already registered a case and launched a probe against Sabrang

Communication and Publishing Pvt Limited for allegedly accepting and utilising foreign contribution in violation of FCRA.

New Civil Aviation Policy

First National Civil Aviation Policy emphasizes on three objectives:

1. Allowing new domestic airlines to fly abroad quickly. According to a 2004 norm, which is also known as the ‘5/20 rule’,

a domestic airline is allowed to go international only after flying for five years to domestic destinations and operating at least

20 aircraft.

New airlines, such as Vistara and AirAsia, will no longer have to wait for five years before starting operations on international

routes. Start-up airlines can now fly abroad after operating at least 20 planes or 20 per cent of their total flying capacity,

whichever is higher, on domestic routes.

View of Airline industry on introduction of 0/20 rule:

a. Old airlines feel that they have been brought at power with new airlines by scrapping 5 year condition.

b. New airlines said that replacement of 5/20 with 0/20 was a non-event. It is not going to benefit new players as they cannot

scale up immediately to be eligible to fly international. It should have been 0/0.



2. India will have an open-sky policy for countries beyond the 5,000-km radius from Delhi on a reciprocal basis. This means

that airlines from European or SAARC countries will have unlimited access, in terms of number of flights and seats, to Indian

airports, leading to increased flight frequencies with these countries.

3. Enhancement for regional connectivity:

a. As a part of its regional connectivity scheme, passengers will be charged Rs. 2,500 for an hour’s flight on regional routes by

the airlines. The ceiling on airfares will be proportionate to the flying hour. For instance, airlines will charge passengers

around Rs. 1,200 for a 30-minute flight and around Rs. 1,800 for a 45-minute journey.

b. Domestic airlines will be required to provide more flights to the north-eastern region, Jammu and Kashmir, Andaman and

Nicobar Islands and Lakshadweep as the route dispersal guidelines have been amended to add six more sectors to the metro

routes. As per the guidelines, on such north-eastern and other routes, airlines are mandated to fly 10 per cent of their total

capacity they deploy on metro routes.

c. The government has grand plans to revive 50 airports in the next two years through the regional connectivity scheme.

Review of functioning of Censor Board

The Shyam Benegal Committee, which recently submitted its report on norms relating to film certification, recommended that

the CBFC should be nothing more than a certification body. It has suggested that films be classified on the basis of their

suitability to different age groups.

About CBFC:

Central Board of Film Certification (CBFC) is a Statutory body under Ministry of Information and Broadcasting, regulating the

public exhibition of films under the provisions of the Cinematograph Act 1952.

Films can be publicly exhibited in India only after they have been certified by the Central Board of Film Certification.



The Board, consists of non-official members and a Chairman (all of whom are appointed by Central Government) and functions

with headquarters at Mumbai. It has nine Regional offices.

Saina clinches second Australian Open title

Saina Nehwal clinched her second Australian Open title of the Super Series badminton tournament.

About Saina:

1. London Olympics bronze medallist.

2. It is Saina’s second Australian Open victory, having clinched the title in 2014 as well.

3. She is also the first Indian afterPrakash Padukone and the first Indian woman to become world number 1 badminton

player.

4. She was also the first Indian to win a Super Series tournament, by clinching the Indonesia Open on 21 June 2009.

Dabholkar murder case accused in CBI custody

Rightwing Hindutva activist arrested by the CBI in connection with the 2013 murder of rationalist-thinker Dr. Narendra

Dabholkar.

This is the first arrest in Dr. Dabholkar’s murder nearly 34 months since his death. The CBI had taken over the probe in May

2014 following the directions of the Bombay High Court.

Who was Dr. Narendra Dabholkar ?



Narendra Achyut Dabholkar (November 1945 – August 2013) was an Indian rationalist and author from Maharashtra, India. In

1989 he founded and became president of the Maharashtra Andhashraddha Nirmoolan Samiti (MANS), (the Committee to

Eradicate superstition in Maharashtra). Triggered by his murder on 20 August 2013, the pending Anti-Superstition and Black

Magic Ordinance was promulgated in the state of Maharashtra, four days later. The next year, in 2014, he was posthumously

awarded the Padma Shri for social work.

National Apprenticeship Promotion Scheme

The Union Cabinet has approved a National Apprenticeship Promotion Scheme (NAPS) for providing apprenticeship training

to over 50 lakh youngsters in order to create more jobs. The Scheme has an outlay of 10,000 crore rupees and a target of

training 50 lakh apprentices by 2019-20.

Key Feature of Scheme

It will be implemented by Director General of Training (DGT) under the aegis of Union Ministry of Skill Development

and Entrepreneurship (MSDE).

Union Government for the first time will provide financial incentives to the employers to engage apprentices.

Union Government will directly share 25% of the total stipend payable to an apprentice with employers.

In addition, Union Government will also support basic training which is considered an essential component of

apprenticeship training.

Union Government will bear the 50% of the total expenditure incurred on providing basic training to an apprentice.

Background

Apprenticeship Training is considered as one of the most efficient and effective way to develop skilled manpower for

the country. It provides for an industry led, practice oriented, effective and efficient mode of formal training.

The NAPS has been framed to meet objective of National Policy of Skill Development and Entrepreneurship, 2015 which

focuses on apprenticeship as one of the key components for creating skilled manpower in India.



India’s first Commercial Court and Commercial Disputes Resolution Centre inaugurated in Chattisgarh

India’s first Commercial Court and Commercial Disputes Resolution Centre was inaugurated at Raipur, capital of Chhattisgarh.

Key facts

It will help in improving the judicial system and the investors and business world. It will also facilitate the investors in

their commercial dealings.

The court also consists of arbitration centre and a mediation centre

National Mineral Exploration Policy

The NMEP primarily aims at accelerating the exploration activity in the country through enhanced participation of the private

sector.

Key Facts

The policy seeks to uncover full mineral potential in order to put the nation’s mineral resources (non-fuel and non-coal)

to best use and maximize sectoral contribution to the Indian economy.

It emphasizes on making available baseline geoscientific data of world standards in the public domain, quality research

in a public-private partnership (PPP).

It also seeks to pave way for the special initiatives for search of deep-seated and concealed mineral deposits.

It also seeks to undertake quick aerogeophysical surveys of country and creation of dedicated geoscience database etc.

The Union Ministry of Mines will carry out auctioning of identified exploration blocks for exploration by private sector.

It will be done on the revenue sharing basis in case their exploration leads to auctionable resources. The revenue will

be borne by the successful bidder of those auctionable blocks.



Assam’s Majuli becomes India’s first island district

The Assam Government has granted district status to Majuli, a 400 square kilometres island in the Brahmaputra River. With

this it becomes India’s first island district.

With this erosion-troubled Majuli island will become the 34th district of Assam. Earlier it was sub-division of Jorhat district.

About Majuli island

Geographical occurrence: The fluvial riverine island is formed by the Brahmaputra river system. It is the world’s

largest mid river delta (island) system.

The island is surrounded by Subanisri River in the North and main Brahmaputra River on the South.

People and Culture: Majuli island is mostly inhabited by Mishing tribal people.

The island had some 65 satras (monasteries adhering) to Vaishnavism. But large numbers of them were relocated to

the mainland after being washed away.

BCCI appoints Anil Kumble as the head coach of Indian Cricket Team

The Board of Control for Cricket in India (BCCI) has appointed former spinner Anil Kumble (45) as the head coach of Indian

Cricket Team. He will have tenure of one year.



Economy



FCNR (B) Redemption:

The redemption pressure of the Foreign Currency Non-Resident (bank) deposits, or the FCNR(B) deposits, as outflows will

start from September. These deposits were raised in 2013 when the rupee was depreciating sharply and went on to hit its

lowest against the dollar in August 2013. While Mr. Rajan said the outflows, estimated at about $20 billion, was a non-event,

there are concerns of foreign inflows slowing down.

Monetary Policy Committee established by amendment to RBI act



The Centre brought the Monetary Policy Committee (MPC) one step closer to reality on Monday by notifying the changes made

to the Reserve Bank of India (RBI) Act.

What would be MPC?

Monetary Policy Committee will have the responsibility to take decisions on monetary policy matters to meet inflation target

as decided between Central Government and RBI.



Composition

The six-member Committee— will comprise three members from RBI, including the Governor, who will be the ex-officio

chairperson, a Deputy Governor and one officer of the central bank.

The other three members will be appointed by the Centre on the recommendations of a search-cum-selection committee to be

headed by the Cabinet Secretary. These three members of MPC will be experts in the field of economics or banking or finance

or monetary policy and will be appointed for a period of four years and shall not be eligible for re-appointment.

Decision making by MPC

The Committee is to meet four times a year and make public its decisions following each meeting. Decisions by MPC will be

taken on majority basis and chairman of the committee will have casting vote only (and not veto power.)

Implications of setting up MPC

Earlier decisions on monetary policy were taken solely by RBI. With the establishment of MPC, Central Government will have

equal say in deciding on Monetary policy matters.

US firm Lockheed Martin to set up Manufacturing in India

American military manufacturer Lockheed Martin could soon be producing F-16 fighters in an assembly line based in India,

taking advantage of the new liberalised FDI conditions announced by the government on Monday.

Rafael deal future uncertain

Negotiations with the French government for the purchase of 36 Rafale fighters haven’t succeeded yet in securing a

competitive price.



Other defence firms interested in India

Several foreign defence firms have been expressing their willingness to set up assembly lines in India. Among them are the

Eurofighter consortium and Sweden’s Gripen. Both Lockheed Martin and Boeing from the U.S. in April held discussions in New

Delhi about the possibility of producing their jets in India. While Lockheed has proposed F-16, Boeing has offered to make

F/A-18s in India.

FDI Reforms in Defence, Airlines, Pharmaceutical and Retail sectors

The NDA government announced a “radical liberalisation” of the Foreign Direct Investment (FDI) regime by easing norms for a

host of important sectors including defence, civil aviation and pharmaceuticals, opening them up for complete foreign

ownership.

FDI reform in Single Brand Retail

The government has tightened rules for such companies producing items with cutting-edge and state-of-art technology -- by

giving them only a three-year blanket exemption from the 30 per cent local sourcing norm over and above the five years

where the 30 per cent procurement requirement would have to be met as an average of five years’ total value of the goods

purchased.

This is to ensure that they manufacture in India rather than making profits through just trading activities. This is expected to

pave way for companies such as Apple Inc to immediately set shop in India.

FDI reforms in Defence

In defence, foreign investment beyond 49 per cent (and upto 100 per cent) has been permitted through the government

approval route, in cases resulting in access to modern technology in the country. The condition of access to ‘state-of-art’

technology in the country has been done away with, as many foreign investors had complained about the ambiguity regarding

that term.



FDI reforms in Pharmaceutical sector

To promote the development of pharmaceutical sector, the government has permitted up to 74 per cent FDI under automatic

route in existing pharmaceutical ventures. It added that the government approval route will continue beyond 74 per cent FDI

and upto 100 per cent in such brown-field (existing Projects) pharma. 100% FDI is already permitted in Green-field projects (

new projects).

FDI in airline sector

The government has permitted 100 per cent FDI in India-based airlines. However, a foreign carrier can only own upto 49 per

cent stake in the venture, and the rest can come from a private investors including those based overseas. This is expected to

bring in more funds into domestic airlines.

To boost airport development and modernisation, 100 per cent FDI in existing airport projects has been allowed without

government permission, from 74 per cent permitted so far. The move comes close on the heels of the new civil aviation policy

that relaxed norms for domestic carriers to fly abroad.

Winsome Group Rs. 7,000-cr. default

Winsome Group The Winsome Group, involved in diamond and gold trade, through its three Dubai-based companies, has committed the second biggest bank loan default after Kingfisher Airlines. Default of loan According to official records of Indian banks, the Winsome Group has now accumulated defaults of almost Rs. 7000 crore on loans from a consortium of 15 public sector banks.

Raghuram Rajan not to seek second term as RBI Governor



Announcement by Raghuram Rajan

Governor of the Reserve Bank of India Raghuram Rajan announced that he would not continue to head the central bank after

his term expires on September 4.



Merger of SBI with associate banks

What is the decision?

The Union Cabinet has approved the merger of State Bank of India (SBI), the country’s largest lender, and its associate banks

State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner and Jaipur, State Bank of Patiala, State Bank of

Hyderabad and Bhartiya Mahila Bank.

What is the history of merger?

The merger of SBI with its associates began eight years ago when SBI merged State Bank of Saurashtra with itself in 2008. In



2010, State Bank of Indore was also merged with the larger bank. SBI has since made repeated attempts to merge its units but

none came to fruition due to a shortage of capital.

What will be the benefits of merger?

1. The merged entity will have an asset base of about Rs.37 lakh crore, with nearly 24,000 branches and about 58,700 ATMs

across the country as of March 2016-end . SBI and its associates employed 2.85 lakh people in 2014-15.

2. While the network of SBI would stand to increase, its reach would multiply. Rationalisation of branches would be

undertaken.

3. Currently, no Indian bank features in the top 50 banks of the world. With this merger, some visibility at global level is likely

to increase.

4. Any introduction of new technology by SBI would simultaneously be available uniformly. The scale of operations and

common cost would get rationalised.

GST

Explaining the road map for GST:

1. The first thing which will have to be done is to pass the constitutional amendment.

2. It will have to be then ratified by the States.

3. Then Parliament will have to pass the Central GST (CGST) Bill and States, the State GST (SGST) Bills.

4. He assured the States of full compensation in lieu of losses that might arise out of the transition to the new levy.



Goods and Services Tax (GST):

As the name suggests, the Goods and Services Tax (GST) will be levied both on goods (manufacturing) and services.

GST will convert the country into unified market, replacing most indirect taxes with one tax. It would have a dual structure – a

Central component levied and collected by the Centre and a state component administered by states.

At the Central level, it will subsume Central excise duty, service tax and additional customs duties while at the state level it will

include value-added tax, entertainment tax, luxury tax, lottery taxes and electricity duty.

But state taxes on petroleum products will continue for a few years after GST is introduced, as per the deal brokered between

the Centre and states. State taxes on alcohol and tobacco, too, would remain.

The administration of the Central GST to the Centre and for State GST to the States would be given. This would imply a

reduction in unhealthy competition among the centre and the states over tax revenue that was prevalent earlier and an

increase in harmonious functioning between them.

As with VAT, the tax will be charged on each stage of value addition. At each stage, a supplier can off-set the levy through a tax

credit mechanism. This means, the consumer pays GST added on by only the last dealer in the supply chain.

Retail inflation rises to 21-month high

Retail inflation, as measured by the Consumer Price Index (CPI), accelerated to 5.76 per cent in May, its highest level in 21

months.

The index came in at 5.47 per cent in April 2016. It was 5 per cent in May last year.

The last time the retail inflation was higher was in August 2014 when it crossed 7 per cent.



Expect easing to commence only when the RBI is sure of hitting the 5 per cent target in March next year.

Reason:

It is driven primarily by rising food prices such as sugar, tomato and pulses.

Fund of Funds for Startups under SIDBI

The Union Cabinet has approved setting up of Fund of Funds for Startups (FFS) under Small Industries Development Bank of

India (SIDBI) for extending support to Startups.

This 10,000 rupees corpus fund will be established in line with the Start up India Action Plan, an initiative of Department of

Industrial Policy & Promotion (DIPP) which was unveiled by Union Government in January 2016.

Key Facts

Allocation of Resources: It will be built up over the 14th (2015-2020) and 15th (2020-2025) Finance Commission

cycle. However it will be subject to progress of the scheme and availability of funds.

Execution and Monitoring: The day to day operations of the FFS will be managed by the expertise of SIDBI.

Union Cabinet approves Mega Spectrum Auction

The Union Cabinet has approved mega auction of all available spectrum (more than 2300 Megahertz) across the seven bands.

This decision will pave way for the largest-ever spectrum auction in the country and could potentially fetch the exchequer

about 5.5 lakh crore ruppees going by the reserve price.

Key Facts

The airwaves in the seven spectrum bands to be auctioned are 700, 800, 900, 1800, 2100, 2300 and 2500 MHz.

The auction of such a large quantity of spectrum will give a fillip for Digital India programme.



It will also allow telecom operators to purchase spectrum at par with international holding values and end spectrum

shortage.

This auction for the first time will sell 700 MHz band which is preferred for offering high-speed broadband services.

The 700 MHz band is approximately 70% cheaper than in the 2100 MHz band (used for 3G services). Thus help to

increase internet penetration in the country.

India ranks 10th in FDI inflows: UNCTAD report

As per the recently released 2016 World Investment Report, India ranks 10th in FDI (Foreign Direct Investment) inflows.

As per the report, India’s FDI inflows have increased to 44 billion dollars in 2015 as compared to 35 billion dollars in 2014.

Key highlights of the report

Top 10 Countries are: United States, Hong Kong, China, Ireland, Netherlands, Switzerland, Singapore, Brazil, Canada

and India.

United States with 380 billion dollars FDI inflows has topped the list.



Contract for Exploration of Poly metallic Sulphides

The Union Cabinet has given its approval for signing of 15 years contract for undertaking exploration and other developmental

activities related to Poly-Metallic Sulphides (PMS).

The contract was approved between the Union Ministry of Earth Sciences and the International Seabed Authority (ISA). The

exploration and other developmental activities has been allotted in the area of 10,000 sq km in parts of Central and South –

West Indian Ridges (SWIR), located in the Indian Ocean.

Benefits of signing contract

India’s exclusive rights for exploration of PMS in the allotted Area in the Central Indian Ridge (CIR) and South West

Indian Ridge (SWIR) in Indian Ocean will be formalized.

It will enhance India’s presence in the Indian Ocean where other players like China, South Korea and Germany are

active.

This exploration program will be implemented by the Union Ministry of Earth Sciences with the participation from

various national institutes and research organisations/ laboratories.

What are Poly-Metallic Sulphides (PMS)?

PMS are mineral deposit with three or more metals in commercial quantities that may occur in volcanogenic, magmatic

or hydrothermal environments.

Deep seabed PMS mainly contain iron, silver, gold, zinc, copper, platinum in variable constitutions.

They are formed due to precipitation of hot fluids coming from deep interior of the oceanic crust due to upwelling hot

magma discharged through mineralized chimneys.

Owing to their long term commercial as well as strategic values, PMS found in the Ocean Ridges have attracted

worldwide attention.

About International Seabed Authority (ISA)



The International Seabed Authority (ISA) is an intergovernmental body that organizes, regulates and control all mineral (non-

living resources) related activities in the international seabed area beyond the limits of national jurisdiction. It functions under

the aegis of the United Nations Convention on Law of the Sea (UNCLOS).



Laws and Rulings



Madras High Court ruled in favour of Perumal Murugan

Judgement of Madras High Court

The Madras High Court ruled in favour of Perumal Murugan, author of novel Madhorubhagan, granting him relief from all the

controversies that affected the work of fiction that compelled him to announce that he would withdraw his entire body of

work from publication and never write again.

Background

Perumal Murugan was forced to agree to a written “unconditional apology” at a ‘peace committee’ meeting organised by local

officials in the face of orchestrated protests to demand a ban on his novel Mathorubhagan (One Part Woman) and his

prosecution.

Basis of Judgement

The judgment builds on a series of progressive rulings. It has applied the contemporary community standards test in

concluding that there is nothing obscene in the novel.

Govt. bats for big diesel cars, tells SC that they pollute less

Union govt arguments favouring big diesel cars

1. Big and high-end diesel cars have better emission norms and pollute less than the commoner’s small cars, the Centre told

the Supreme Court on Monday .Big diesel cars and SUVs have better emission norms than smaller cars. Just because a car is big

and powerful does not mean it is more polluting.

2. Global car makers would opt to leave India , rendering lakhs of youths without jobs and FDI in a shambles.



Background The arguments by Mukul Rohtagi were in response to the court’s blanket ban on fresh registration of diesel luxury cars and SUVs with over 2000 CC engine capacity in the national capital.



Supreme Court: 3 per cent quota for disabled must in all posts

The SC quashed central government’s earlier orders on restricting reservation for the differently-abled in promotion to Group

A and Group B posts, the Supreme Court has ruled that three per cent reservation shall be provided to them in all posts and

services under the Government of India. The government had confined such reservation to Group C and Group D posts.

The SC declared government order as “illegal and inconsistent” with the Persons with Disabilities (Equal Opportunities,

Protection of Rights and Full Participation) Act, 1995.This judgment has directed the government to give benefits of

reservation to the differently-abled, without any classification.

Govt. View:

The government opposed reservation to the disabled, contending that they have no right to demand reservation in promotion

to identified Group A and Group B posts.It also cited the nine-judge bench ruling by the apex court in the Indra Sawhney

(Mandal reservation) case which said reservation should be confined to recruitment at the initial level and not at the stage of

promotions.

SC view: The bench said that Indra Sawhney’s case shall not impose a bar on reservation for the disabled, since the principle laid down in this case is applicable only when the State seeks to give preferential treatment in the matter of employment to the backward class.

Is the appointment of Parliamentary Secretary unconstitutional?

Delhi Chief Minister Arvind Kejriwal reacted strongly to the President’s rejection of proposed legislation by the Delhi

government to exempt the post of Parliamentary Secretary from the purview of ‘office-of-profit’.

The CM said that Delhi is being singled out as other States too have instituted the post of ‘Parliamentary Secretary.’ The posts

do exist in various States at present, including Gujarat, Punjab and Rajasthan where the BJP is in power.



Who are Parliament Secretaries:

A parliamentary secretary is a MP who assists a more senior minister with his or her duties.

Current position of Parliament Secretaries in various states:

Some argue that PS are in contradiction to Article 164 (1A) of the Constitution which provides for limiting the number of

Ministers in the State Cabinets to 15 per cent of the total number of members of the State Legislative Assembly.

Because a Parliament Secretary often holds the rank of Minister of State, various High Courts, have quashed the appointment

of Parliamentary Secretaries in West Bengal, Goa and Himachal Pradesh dubbing it unconstitutional. The Hyderabad High

Court stayed the appointment of Parliamentary Secretaries in Telangana. The matter is sub judice in Punjab and Haryana.

The number of Cabinet Ministers in Delhi cannot exceed 10 per cent of the total 70 seats that is seven as per Article 239(A) of

Constitution. As of now, only one Parliamentary Secretary to the Chief Minister is authorised.



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