current diplomacy_ nalanda university,

9/26/2014 Mrunal Current Diplomacy: Nalanda University,

http://mrunal.org/2014/09/current-diplomacy-sepw1-defense-procurement-fdi-reforms-nalanda-university-nepal-power-pact.html/print/ 1/6

- Mrunal - http://mrunal.org -

[Current] IR-Diplomacy SepW1: Defense FDI reforms,procurement; Nalanda University, APF Human rightssummit, PTA with Nepal

1. D1: Defense FDI reformed2. D2: Defense Procurement:3. D3: India-Nepal agreements during Modi visit4. D4: Power Trade agreement (PTA) with Nepal5. D5: Nalanda University6. D6: APF: Human rights conference 20147. D7: Border security Management: Gujarat8. D8: Letting states have foreign relations

D1: Defense FDI reformed

Old policy New policy

FDI 26%49% govt. approvalAbove 49% also allowed, if access to modern and state of art technology

FII banned

24% automatic approvalAllowed FPI, FII, QFI, NRI, foreignventure capital investment.Only 24% because hot money andsometimes hard to trace real owners.

JVSingle Indian resident tohave 51% share

NO such requirement

DurationThree years lock-inperiod on foreigninvestor.

No such requirement.

Who approves what?

Investment limit Approving agency

Upto 1200 crore FIPB

>1200 crore CCEA

>49% FDI CCS (cabinet committee on security)

Challenges in Defence FDI



1. 49% FDI means the foeigner still cant get management control of the Jointventures with Indian companies.

2. Hence theyll be hesitant in transferring the proprietary technology to India.3. This was the same reason why old policy did not attract large investmnt.4. Secondly, Government has yet to notify what constitutes modern and state of

art technology, (because there more than 49% FDI permitted, and foreigncompanies may get attract to invest and transfer secret technology.)

D2: Defense Procurement:

Defense Acquisition Council (DAC) is chaired by Defense Minister.

This DAC cleared following proposals (in August 2014):

1. Stopped the tender process to import helicopters for army. (perhaps dontwant to burn hands again like UPA did with AgustaWestland)

2. Instead, Government will now buy 400 desi helicopters from HindustanAeronautics Ltd. for moving men and material in border region.

3. Will induct 118 new (Desi) Arjun tanks.4. Will produce Self Propelled (SP) guns to mount on Arjun tank- this will give

us advantage in swift desert battles in Rajasthan and Western Border.5. Will upgrade six submarines.

D3: India-Nepal agreements during Modi visit

Happened in August 2014. Just a brief outline here:

India Nepal Agreements during Modi visit:

InfraHIT Highways, Information ways, Transways.Modi promised them $1 billion loan for infrastructure andenergy projects

BorderWill form Boundary working group to construct boundarypillars.Joint commission on border issues

EnergyRaxaul-Amlekhgunj petroleum pipelineHydel projects- Upper Karnali (Nepal and GMR), Arun III, UpperMarsyangdi and Tamakoshi III

Transport

Cross border railways at 5 border points, 4 integrated checkpostsBridges over Mahakali river at Mahendra nagarIndia to allow 3 additional air entries Janakpur, Bhairahawa,Nepalgunj



3 MoU

Pancheshwar Developmental AuthorityTourism in NepalDoordarshan and Nepal TV

Trade India will remove quantitative restrictions on Nepalese products.

Misc.Grant to provide iodized salt to Nepalis.Donated 2500 kgs of Sandlewood to Pashupatinath temple.

D4: Power Trade agreement (PTA) with Nepal

Happened in September 2014, after Modi came back.

Now any Nepali public or private entity can sell electricity to India.India wanted to setup a joint venture Company with Nepal- for tradingelectricity. But Nepali Government did not agree.India even offered to help developing Nepals hydro-electricity power buttheir political factions disagreed.Modi has earlier said- Nepal has immense hydropower and just be sellingelectricity to India, they can become a developed country(!)

Includes Doesnt

electricity power trade, cross-border transmission,inter-connection and grid-connectivity

Indian investment inNepali power sector.

Dont confuse

Power trade agreement Power Development pact

Between respective Governments ofNepal and India

Between GMR India with NepaliGovernment to develop Karnalihydropower.

Signed with consensus of Maoists andother political factions of Nepal.

Nepali maoists dont like this, not one bitso theyve began protests.

D5: Nalanda University

Nalanda: Ancient times

During the rule of Kumargupta of Gupta dynasty.Mahayana monks Asnaga and Vasubandhu said to have found Nalanda in 400-500ADChinese pilgrim Hiuen Tsang, came during Harshas reign, gave detail accountof Nalanda University.

Nalanda was a huge monastic-educational establishment.Teaching done in Sanskrit.Primary teaching focus: Mahayana Buddhism, yet included other



secular subjects as well- Like, Grammar, logic, epistemology andsciences.Active discussions and debates were taking place.Harsha is said to have invited a thousand learned monks of Nalanda totake part in the philosophical assembly at Kanauj.

Another Chinese scholar, Itsing, mentioned that Nalanda housed 2,000students, was funded by revenues of 200 villages.

Thus university continued to be the centre of intellectual activity till the 12th century1193 AD: Turkish ruler Qutbuddin Aibaks general Bakhtiyar Khilji destroyedNalanda University.

Nalanda: Modern times

2006: President Kalam proposed setting up this university as an internationallearning institute, a link between the past, present and future, a channel forknowledge exchange between scholars of the worldSingapore, China, Thailand and Australia have contributed funds.university came into existence by a special act The Nalanda University Act2012: Noble Laureate Amartya Sen was appointed the ChancellorTotal 7 schools- including ecology, environment and historical studies.2020: will become fully operational, with campus in Rajgir foothills.Until then, temporary classes at Rajgir convention hall, students will live in ahotel.Foreign minister Sushma Swaraj inaugurated in 2014, September.University aims to become a research university, not a teaching university.

D6: APF: Human rights conference 2014

1991: UNs Paris principles- to establish norms for various human rightsbodies across world.Later, an International coordination Committee of National Human RightsInstitutions setup.This Committee has 4 regional networks, one of them is Asia Pacific forum(APF) with 21 member-nations.2014, Sep: Indias national human rights commission headed the conferenceof this body, at New Delhi.

Outcomes of this Human rights conference

1. Until now NHRCs have focused on human rights violations by state actors2. But, economic scenario has changed, weve to focus on human rights

violations by companies- pollution, tribal-displacement, sweatshops, labourexploitation and negative-externalities created by MNCs.

3. For Prevention of Torture , well create a working group including the NGOs.4. Members agreed to use a five-pronged strategy to protect human rights from

2015 to 2020: Gender equality, peace , security, Business, Vulnerablegroups-children, women, the disabled, the elderly and displaced persons.



D7: Border security Management: Gujarat

Following reforms taken: (aka fodder for GS3)

1. Men from Puggie community are expert in reading camel footprints. Theybelong to Kutch and Banaskantha districts of Gujarat.

2. Theyve been recruited to trace the movement of smugglers, terrorists andrefugees across western border through desert.

3. Police has enrolled more friends of police in border villages- to act asinformants.

4. For coastal security the security forces are keeping surveillance on fisher-communities including Hindus- because some of them were caught by Pakis,brainwashed and then released back to India- they supply sensitive informationto Pakis in lure of money.

5. Stringent identity verification of fishermen and those returning from Dubaiand Karanchi via sea route.

6. Intelligence agencies keep a tab on terror website, online groups, peoplereturning from specific countries and dollar transactions. Because dollartransactions give footprints of any terror activity.

D8: Letting states have foreign relations

1. After LPG reforms the CMs of Andhra Pradesh and Karnataka actively soughtout FDI from MNCs. As as result, Hyderabad and Banglore have developed asIT hubs.

2. On similar lines, the then Chief Minister Modi began hosting Vibrant Gujaratsummits to attract investment in his state.

3. Therefore, all state Government should actively seekout FDI and establishdirect-relations with foreign Governments- many American states do thesame- they setup standalone offices in foreign nations to boost trade-tourismto their home state.

4. Since 80s- Even the authoritarian Chinese leadership has permitted theirprovinces to establish sub-regional links with other Asian countries. As aresult, Yunan is thriving as a trade hub.

Challenges?

1. Border states- what if Pakistan wanted to invest in Punjab or China inArunanchal or Bangladesh in W.Bengal? Even if they wanted purely economicrelations, the security aspects will overshadow and the Union Governmentmay not allow the deals.

2. While Madhya Pradesh, Gujarat, Maharashtra and other big states can affordto host investors summits, the interior and backward states cant host suchlavish events -given the lack of event managers, rail-road-air connectivity,media publicity etc. Union Government needs to help them.

Published on 24/09/2014 @ 8:48 pm under Category: Current Affairs Weekly



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