CCEA gives nod to TUFS for 12th Plan

September 1, 2013

The Cabinet Committee on Economic Affairs (CCEA) gave nod for the implementation and

continuation of Technology Upgradation Fund Scheme (TUFS) during the 12th

Plan period

with a focus on powerlooms with a total outlay of Rs.11,900 crore.

What is the aim of TUFS (Technology Upgradation Fund Scheme)?

The aim of TUFS is to encourage and promote indigenous manufacturing of textile

machinery.

The scheme will provide for Interest Reimbursement (IR) on second hand imported shuttleless

looms to be slashed from 5% to 2%. Besides, for new shuttleless looms, capital subsidy would be

increased from 10% to 15%, IR from 5% to 6%, and margin money subsidy has been enhanced

from 20% to 30% with an increase in subsidy cap from Rs. 1 crore to Rs. 1.5 crore. The capital

subsidy for handloom and silk sectors would be increased from 25% to 30%. Margin money

subsidy limit would be increased from Rs.45 lakh to Rs. 75 lakh in respect of MSME and jute

sectors.

“HIP 102152″: Scientists discover Sun’s twin

September 1, 2013

An 8.2-billion-year-old twin of the Sun has been discovered by the astronomers. Astronomers in

Brazil used ESO’s Very Large Telescope to locate the star HIP 102152 located 250 light-years

away. It is very similar to the Sun- except that it is nearly four billion years older.

How would the discovery of Sun’s twin help?

Studying the ancient star allows researchers to predict what may happen to our own Sun when it

reaches that age. The discovery has already helped scientists to understand why some stars have

high lithium content like the Sun and others have a low content of it. It has been found now that

there is a strong link between the age of the star and its lithium content with scientists claiming

that youger and mid-aged stars have higher lithium whereas stars somehow destroy their lithium

as they age.

Current Affairs: Top Headlines for September 1, 2013

September 1, 2013

Curiosity to take pictures of solar eclipse

Mars rover Curiosity took pictures of the planet’s moon, Phobos, eclipsing the sun. NASA’s

Curiosity rover landed on the red planet in August 2012 for a 2-year mission to study if the

planet similar to Earth in the solar system ever had the chemical ingredients for supporting life.

RBI forbids overseas buying, plus point for Indian realty

In a bid to curb the outflow of capital from the country, the RBI has cut down the annual cap on

automatic outflows from $2,00,000 to $75,000 per individual. In addition to this, the central bank

has also imposed a ban on overseas real estate purchases with immediate effect. The move

expected to benefit the domestic real estate as the capital which otherwise would have been

diverted overseas will now remain in the country.

India’s foreign exchange reserves deplete by $1.08 billion

As per RBI’s data, India’s foreign exchange (forex) reserves reduced by $1.08 billion to $277.72

billion for the week ended Aug 23, 2013. The Special Drawing Rights (SDRs) decreased by $4.5

million to $4.38 billion for the same period. Gold reserves remained at the same level at $20.74

billion.

Decline in Rupee may not impact agriculture sector: NABARD

According to National Bank for Agriculture and Rural Development (Nabard) head Prakash

Bakshi the continuing depreciation of rupee against the dollar is unlikely to make any negative

impact on the agriculture sector. In the event rupee decline impacts the prices of fertilizers or

diesel it would be compensated either by the way of subsidy or by hiking the minimum support

price.

Delhi’s tops in per capita income in India

As per Delhi Development Report 2013, Delhi’s average per capita income stands at more than

Rs 2 lakh per year in 2012-13 which makes it the highest in India. It is around 3 times more than

the national average per capita income.

India approaching IMF for foreign exchange not imminent: Planning Commission

Planning commission deputy chairman Montek Singh Ahluwalia has assured that India has

adequate forex reserves to manage the current situation and ruled out approaching

the International Monetary Fund(IMF) for help, saying the economic situation has not

reached a point where outside aid is warranted. India’s foreign exchange reserves were up at

278.602 billion $ as of August 9, 2013.

Pakistan unable to qualify for the Hockey World Cup for the first time

Pakistan is aggrieved as the country lost berth for the Hockey World Cup 2014 tournament. It is

for the first time in Pakistan’s sporting history that it has been unable to qualify for the World

Cup Hockey tournament as it lost to South Korea in the semifinal of the Asia Cup being held in

Malaysia, a match they needed to win to qualify.

Pakistan not considering granting MFN status to India

Pakistan’s Finance Minister has communicated that, at present, it is not in talks to grant of Most

Favoured Nation (MFN) status to India. The remarks came within days of World

Bank suggesting in a report that Pakistan will benefit from granting the MFN status to India.

Pakistan already enjoys the MFN status which India extended to it in 1996. The bilateral trade

between the countries was at $2.35 billion in 2012-13, as against $1.93 billion in fiscal 2011-12.

RBI not considering to convert idle gold into bullion

Responding to the reports that Reserve Bank of India (RBI) is mulling over multiple measures,

including using thousands of tone of idle gold jewellery in temples, to replace for import, the

central bank said it did not have any proposal to convert idle gold from temples and individual

trusts into bullion.

President confers Khel Ratna on Ronjan Sodhi, Arjuna Award on Virat Kohli

President Pranab Mukherjee conferred country’s highest sporting honor- Rajiv Gandhi Khel

Ratna Award on the topnotch shooter Ronjon Sodhi. Cricketing star Virat Kohli was among

the 15 sports persons honored with Arjuna Award. Among the other Arjuna Awardees were

Kavita Chahal, for boxing, Gaganjit Bhullar for Golf, Saba Anjum, for hockey, Rajkumari

Rathore, for shooting, PV Sindhu, for badminton and Neha Rathi, for wrestling.

A total of 5 coaches were honoured with Dronacharya awards. KP Thomas was honoured with

the Award for their life time contribution to coaching in Athletics and Raj Singh in Wrestling.

Melbourne tops the list of livable cities in world

September 1, 2013

According to a survey conducted by the Economist Intelligence Unit, the Australian city of

Melbourne is the most liveable city in the world while conflict battered Syria‘s

capital Damascus is the least liveable city. The survey also lists Karachi and Dhaka among the

least liveable cities.

Top 10 livable Cities of the World:

Melbourne (Australia), Vienna (Austria), Vancouver, Toronto, Calgary (all three in Canada),

Adelaide, Sydney (both in Australia), Helsinki (Finland), Perth (Australia) and Auckland (New

Zealand).

Bottom 10 Least livable Cities:

Damascus (Syria), Tehran (Iran), Douala (Cameroon), Tripoli (Libya), Karachi (Pakistan),

Algiers (Algeria), Harare (Zimbabwe), Lagos (Nigeria), Port Moresby (Papua New Guinea) and

Dhaka (Bangladesh).

Current Affairs: Top Headlines for September 3, 2013

September 3, 2013

Moortidevi award to Haraprasad Das

Noted poet, Haraprasad Das has been honored with the Moortidevi Award for 2012 for

‘Vamsha’, a poetic recreation of the Mahabharata in contemporary dialect, which has been

heralded as a post-modern masterwork.

Food Security Bill passed in Rajya Sabha

The Rajya Sabha passed the ambitious Food Security Bill which aims to provide foodgrains at

highly subsidized prices to the 2/3rd

of country’s population. The bill will guarantee 5 kg of rice,

wheat and coarse cereals per month per person at Rs 3, 2, 1, respectively. The programme would

cost government Rs 1,30,000 crore government which will be the largest such programme in the

world. It would require 62 million tonnes of foodgrains.

Washington moves USS Nimitz towards Red Sea

In what could be seen as a surge in tension in the West Asia region, the Washington has moved

the aircraft carrier USS Nimitz towards the Red Sea, though the warship had not yet received

orders to support a strike on Syria. US President Obama and his team are lobbying hard to seek

US Congress approval for a military strike against the Syrian regime over the use of chemical

weapons in the country. Russia has warned that any US military aggression in Syria would derail

the Geneva peace plan and has suggested US Congress to take a balanced view of the situation in

Syria.

IAF inducts C-17 Globemaster III heavy-lift transport aircraft

The Indian Air Force inducted three Boeing C-17 Globemaster III, heavy-lift transport aircraft

into the newly-formed 81 ‘Skylord’ Squadron at the Hindan Air Base, Delhi. C-17 has the

potential to carry 75 tonnes of load which is almost double the capacity of Russian IL-76 in the

IAF inventory which can carry only around 40 tonnes. It will boost up IAF’s flexibility in terms

of operational response and with the heavy lift capability it could easily move troops and heavy

tanks to required locations.

PM unveils Gandhi Heritage Portal

Prime Minister Dr. Mamohan Singh launched the Gandhi Heritage Portal. The portal has been

designed to review the message of non-violence to the world as well as to the Indian youth,

besides highlighting significant aspects of the freedom struggle and Gandhiji’s message and

humanism. The portal is conceived around The Collected Works of Mahatma Gandhi. It makes

available the critical works in three languages: English (100 volumes), Hindi (97 volumes) and

Gujarati (82 volumes). These volumes are interlinked to provide easy navigation from one text

and language to the other.

India, Japan to restart talks on civil nuclear agreement

After a hiatus of nearly 3 years, India and Japan will resume talks on the civil nuclear pact in

Tokyo today. The nuclear-energy negotiations were initiated in 2010 but have been on hold

since the Fukushima nuclear disaster March 2011. This will be the fourth round of talks which

comes following a meeting between Prime Minister Manmohan Singh and his Japanese

counterpart Shinzo Abe in Tokyo in May, 2013 when they resolved to direct to expedite the

negotiations of an Agreement for Co-operation in the Peaceful Uses of Nuclear Energy towards

an early conclusion.

Himachal Pradesh imposes ban on sand transport to other states to curb illegal mining

In a bid to check illegal mining of sand the Himachal Pradesh government has decided to take

stringent measures and impose a temporary blanket ban on the transportation of construction

material like sand and grit to other states for 3 months. The government has also decided to

create a task force in each district to check not only the illegal mining but also to suggest ways to

curb these actives in future.

RBI asks banks to consider e-KYC a valid process

In a notification issued by the Reserve Bank of India, banks have been asked to avail the

electronic Know Your Customer, e-KYC service, launched by the Unique Identification

Authority of India, UIDAI. The notification directed banks to revise their KYC policy by

accepting the e-KYC as a valid process for KYC verification under the Prevention of Money

Laundering (Maintenance of Records) Rules, 2005. As per the notification, the information

containing demographic details and photographs made available from UIDAI as a result of e-

KYC process may be treated as an ‘Officially Valid Document’ under PML Rules.

The e-KYC service was launched by the UIDAI to help people link their existing records, like

ration cards, pension accounts, license and certificates, to their Aadhaar numbers in a safe and

easy manner.

Process of opening bank accounts for foreign students simplified: RBI

Simplifying bank account opening procedure for foreign students, RBI issued a notification

asking banks to open a Non-Resident Ordinary bank account of a foreign student on the basis of

his/her passport along with appropriate visa and immigration endorsement. As per the

notification foreign students who intend to open a bank account will have to submit a valid

address proof giving local address, in the form of a rent agreement or a letter from the

educational institution in case of hostel facility within 30 days of opening the account. Banks

have been asked not to insist on the landlord visiting the branch for verification of rent

documents and to take up alternative means of verification of local address.

Diana Nyad becomes first person to swim from Cuba to US without shark cage

American long-distance swimmer Diana Nyad (64) became the first person to swim across 166-

km long Florida Strait from Cuba to the United States without a shark cage. It took her about 53

hours after beginning from Havana. It was her 5th

attempt when set a record for the longest ocean

swim without a shark cage or flippers.

Current Affairs: Top Headlines for September 2, 2013

September 2, 2013

Hyderabad Hotshots clinch IBL

‘Hyderabad Hotshots’ defeated Awadhe Warriors in the final of the $1 million inaugural

Vodafone-Indian Badminton League (IBL) played in Mumbai. The event witnessed six teams

namely Banga Beats, Hyderabad Hotshots, Delhi Smashers, Mumbai Masters, Pune Pistons and

Awadhe Warriors competing against each other to reach the top spot.

To save forex India plans crude import from Iran

To tackle widening Current account Deficit (CAD) and continuous depreciation of rupee India

plans to exercise the option of importing crude oil from Iran. The move would India’s save $8.5

billion in foreign exchange as pays Tehran in rupee unlike other oil exporting countries. India

spent $144.29 billion for oil imports in the last fiscal.

Korea beat India to conquer Asia Cup

India lost to Korea in the final of Asia Cup hockey tournament. Korea won the match 4-3 which

brought them fourth triumph in the competition.

Final Positions of Teams: 1. Korea, 2. India, 3. Pakistan, 4. Malaysia, 5. Japan, 6.

Oman, 7.Bangladesh, 8. Chinese Taipei.

Player of the tournament: V.R. Raghunath (India)

Lungs of Indians functions 30% lower than Europeans: Study

It has been found in a study that Indians have 30% lower lung function as compared to

Europeans. The study conducted the Peak Expiratory Flow Rate (PEFR) measurement of 10,000

healthy, non-smoking individuals in Jaipur, Pune, Hyderabad, Kolkata and Kashmir and found

that lung function in Indians was 30% lower than Europeans. PEFR is the rate at which a person

exhales and it is measured to assess lung function. This puts Indians at more risk from air

pollution and smoking.

Indian capital markets witness $2.5 billion FIIs pull out

Foreign investors pulled out nearly Rs 16,000 crore (around $2.5 billion) from the Indian capital

markets in August 2013 amid fears over the falling rupee. As per experts, although there has

been a continous pull out of FIIs from Indian market due to India’s economic challenges,

depreciating rupee and volatile global markets, the outflows have slowed. The volume of

outflows marked the lowest net outflows from the Indian capital markets since June, when FIIs

had pulled out a record Rs 44,162 crore ($7.5 billion).

ICC T20 rankings: India No. 3, Sri Lanka tops list

With 121 rating, India have retained their rank three position among T20 teams. Sri Lanka tops

the chart which is followed by Pakistan. The Indian batsmen listed in top-20 list also managed to

retain their respective spots with star batsman Kohli at 6th

place while Suresh Raina remained at

8th

position.

Food Security programme begins in Delhi

Food Security programme has been started in National capital Delhi. The programme which

involves distribution of foodgrains under the highly subsidized prices has begun at four places in

the national capital. Under the programme, identified beneficiaries will be entitled to food grains

at Rs 3 per kg for rice, Rs 2 per kg for wheat and Rs 1 per kg for coarse cereals. Delhi

government has so far identified 35 lakh beneficiaries and is likely to expand it further to 73 lakh

people by January 2014.

Arab League calls for deterrent measures against Syria

The Arab League has exhorted the United Nations and the global community to take deterrent

and necessary action against the Syrian government under Bashar al Assad for the use of

chemical weapons while oppression of the rebellion there. However, Sunni Islam’s highest seat

of learning, Cairo ‘s Al Azhar has expressed opposition to any US military intervention on Syria,

saying this would lead to an aggression against the Arab and Islamic nation.

Health Ministry launches health schemes in Assam

Ministry of Health and Family Welfare launched in Assam various new health scheme mainly

focused on improving the maternal and infant mortality rates in the state. Among the scheme

launched were Mother and Child Tracking System (MCTS), Rashtriya Bal Swasthya Karyakram

(RBSK), national Iron Plus initiative, National Health Mission’s Free Drug Service, tele-

radiology service and hospital-to-hospital 102 ambulance services.

Factory activity of India contracts for first time since March 2009

It is for the first time in the last 4 years that Indian factory activity has registered a shrink

aggravating the concerns for the country’s deepening economic woes even as the Reserve Bank

of India (RBI) battles to defend the rupee currency. It came into notice from the Purchasing

Managers’ Index (PMI) data that showed Indian economy grew at its slowest quarterly rate in

the three months to June since the global financial crisis.

Land Acquisition Bill passed in Lok Sabha

September 1, 2013

The Lok Sabha passed the long-awaited Land Acquisition, Rehabilitation and Resettlement Bill

which seeks to replace the archaic land acquisition law dating back to 1894. The government

cleared the air on the reservations from some States against some provisions in the bill by

informing that the Bill only ideates for fair compensation, rehabilitation and resettlement in the

case of land acquisition and State Governments were free to improve upon it and enforce it as

per their specific needs.

What are the key features of Land Acquisition, Rehabilitation and Resettlement Bill 2012?

A key provision of the Land Bill is to get the consent of 80% of the landowners in case the land

is acquired for private purposes and in case the land is acquired for public projects then at least

consent of 70% of the landowners will be mandatory. The Bill also proposes that the farmers

and the landowners should be compensated up to 4 times the market value of land in rural areas

and two times the market value in urban areas.

Moody’s thumbs down to Food Security Bill

September 1, 2013

Rating agency Moody’s has given a thumbs down to the Food Security Bill saying the measure is

credit negative as it would wane government finances and make an bad impact on the

macroeconomic situation.

Why did Moody’s weigh the Food Bill as credit negative?

The Food Security Bill which entitles 2/3rd

of India’s population to food grain at subsidized

prices, will soar government spending on food subsidies to about 1.2% of GDP per year from an

estimated 0.8% currently, aggravating the government’s weak finances. The implementation of

the bill will cost the government about Rs.1.30 lakh crore at current cost.

What is India’s current rating according to Moody’s?

Currently, according to Moody’s India’s rating is ‘Baa3’ with a stable outlook. It shows medium

grade with moderate credit risk

Union Cabinet gives nod to set up “National Institute of

Solar Energy”

September 5, 2013

The Union Cabinet approved the proposal for setting up of an autonomous “National Institute

of Solar Energy” (NISE) to function as apex national body for research and technology

development and related activities in the area of solar energy technologies in the country. The

institute is to be set up by converting the Solar Energy Centre (SEC), Gurgaon with a long term

vision to develop it as a world class institute.

The setting up of National Institute of Solar Energy is a part of Jawaharlal Nehru National

Solar Mission (JNNSM) which will speed up the process to support induction of the latest

technologies to ensure maximum cost benefit and lead to early commercialization. Solar power

project developers will be motivated to use more efficient and optimized solar components.

IAF inducts C-17 Globemaster III heavy-lift transport

aircraft

September 5, 2013

The Indian Air Force inducted three Boeing C-17 Globemaster III, heavy-lift transport aircraft

into the newly-formed 81 ‘Skylord’ Squadron at the Hindan Air Base, Delhi.

About C-17 Globemaster III

It has the potential to carry 75 tonnes of load which is almost double the capacity of

Russian IL-76 in the IAF inventory which can carry only around 40 tonnes.

It will boost up IAF’s flexibility in terms of operational response and with the heavy lift

capability it could easily move troops and heavy tanks to required locations.

Indian Railways developing CReDI system to save fuel and

cut emissions

September 4, 2013

The research wing of Indian Railways, Research Development Standard Organisation

(RDSO) is in the process of developing a highly fuel efficient, Common Rail Electronic Direct

Fuel Injection (CReDI) system for its fleet of diesel locomotives. Indian Railways has taken a

global lead in initiating development of the CReDI for its fleet of diesel locomotives. In this

direction, an Indian manufacturer has set up a joint venture with a reputed firm from

Switzerland for design and development of the system under overall supervision of RDSO.

What is CReDI?

Common rail direct fuel injection is a modern variant of direct fuel injection system

for petrol and diesel engines. Indian railway is working on diesel engines. In the common rail

systems, fuel at a high pressure (1600 bars) is injected into the cylinder by using a magnetic

valve. It is possible to have multiple injections in the cylinder thereby reducing stress on the

cylinder parts and reduce fuel consumption and emissions at the same time. Common Rail

technology has been heralded as break-through invention for diesel engines across the globe.

How would CReDI help?

The Common Rail Electronic Direct Fuel Injection (CReDI) system would enable fuel

savings in the range of 3 to 4% and emissions reductions by about 20-30% are expected. Once

the systems are implemented on the complete fleet of locomotives, savings will be about Rs.

500-600 crore annually.

Research Development Standard Organisation (RDSO):

RDSO is the research wing of Indian

Railways.Railway Testing and Research Centre (RTRC) was setup in 1952 at Lucknow owing to

a phenomenal increase in country’s industrial and economic activity and a subsequent increase in

the demand for rail transportation.

Current Affairs: Top Headlines for September 4, 2013

September 4, 2013

Raghuram Rajan becomes 23rd

RBI Governor

Noted economist Raghuram Rajan became the new RBI Governor as he took charge from the

outgoing Governor D Subbarao. Rajan has been an Economics Professor and has also served as

chief economist at the International Monetary Fund. Rajan, who is known for having forecasted

2008 global financial crisis has taken charge of the vital position at time when rupee has declined

nearly 20% against dollar and the problem of widening current account deficit and declining

forex reserve has become serious.

Union Cabinet gives nod to set up “National Institute of Solar Energy”

The Union Cabinet approved the proposal for setting up of an autonomous “National Institute of

Solar Energy” (NISE) to function as apex national body for research and technology

development and related activities in the area of solar energy technologies in the country. The

institute is to be set up by converting the Solar Energy Centre (SEC), Gurgaon with a long term

vision to develop it as a world class institute.

Housing loans should be linked to stages of construction: RBI

The Reserve Bank of India has stated that housing loans from banks to individuals should be

linked to the stages of construction. It said such loan products, popularly called 80:20 or 75:25

schemes, are likely to make the banks as well as their home loan borrowers susceptible to

additional risks. It added that upfront disbursals of lump sum loans should not be made in case of

incomplete or under-construction housing projects.

SJAM to honor Tedulkar with ‘Century of Centuries’ award

Sports Journalists’ Association of Mumbai (SJAM) has selected famous batsman Sachin

Tendulkar for a special ‘Century of Centuries Award’. The Little Master has been chose for the

award for scoring 100 international hundreds.

Malala inaugurates new Birmingham Library

Famous brave schoolgirl and education activist Malala Yousufzai was the chief guest at the

opening ceremony of the new Birmingham Library which will now be the largest in Europe. On

this occasion she delivered a moving speech in which she called for peace and advocated free

education for children around the world.

Hyundai unveils new compact car ‘Grand i10′

With hopes to further strengthen its business in Indian car market, Hyundai Motor India (HMIL)

unveiled its new compact car ‘Grand i10′ priced between Rs 4.29 lakh and Rs 6.41 lakh. The car

has been launched in two engine variants 1.1 litre diesel and 1.2 litre petrol. While the diesel

version is priced between Rs 5.23 lakh and Rs 6.41 lakh, the petrol variant is priced from Rs 4.29

lakh to Rs 5.47 lakh.

Verizon Communications to acquire Vodafone’s 45% in JV for $130 billion

Verizon Communications has decided to acquire Vodafone Group’s 45% stake in Verizon

Wireless for $130 billion. The deal will be the third biggest acquisition in corporate history, after

Vodafone’s 1999 takeover of Germany’s Mannesmann for $203 billion and AOL’s $165 billion

buyout of Time Warner in 2000. It also marks British telecom heavyweight Vodafone’s exit

from the US mobile market.

Indian engineering grad wins $ 12,500 bounty from Facebook for detecting critical bug

Social networking website Facebook will pay Arul Kumar (21), an Indian engineering graduate,

a bounty of $12,500 for detecting a critical bug that allowed anyone to delete any photo hosted

on the social networking website. Earlier his claim of finding such a bug was rejected by the

Facebook but later when he sent a video to the website explaining how it could be done, they

agreed to pay the bounty. Facebook runs a programme which rewards people who find flaws on

the website.

Microsoft to buy Nokia for $7.2 billion

Software behemoth Microsoft Corp will buy Nokia’s business and its patents for 5.44 billion

euros with the aim to enter into mobile market. The deal will include Nokia’s mobile phones and

smart devices business units as well as operations including all Nokia devices and services –

related production facilities, sales and marketing activities and related support functions.

Birth certificate, Passport or Aadhaar card alone no proof of citizenship: Bombay HC

The Bombay high court, in a judgement, held that if an individual was born after July 1, 1987

then merely having a birth certificate, passport or even an Aadhaar card is not enough to prove

that he/she is an Indian citizen. As per Indian Citizenship laws, a person born in India after July

1, 1987 cannot claim automatic citizenship unless at least one of the parents is an Indian.

Gareth Bale signs 100 million euros contract with Real

Madrid

September 5, 2013

Footballer Gareth Bale signed a six-year contract with Real Madrid on a humongous fee of 100

million euros ($132 million) which is a new world record making it a biggest transfer of a

football player in the world. Previously, the record was with Cristiano Ronaldo when Madrid

paid 93 million euros to Manchester United for his transfer in 2009.

Who is Gareth Bale?

Gareth Frank Bale is a Welsh footballer who plays for Spanish La Liga club Real Madrid and

the Wales national team as a winger. Bale is described by his admirers as a footballer with

“tremendous speed, great crossing ability, a great left foot and exceptional physical

qualities”.Bale was awarded PFA Young Player of the Year, the PFA Players’ Player of the

Year and the FWA Footballer of the Year awards during the season 2012–13.

Rajya Sabha passes National Food Security Bill 2013

September 5, 2013

The National Food Security Bill 2013 has been passed in the Rajya Sabha.

What are the key features of the National Food Security Bill 2013?

Entitles 5 kg of rice, wheat and coarse cereals per month per person at 3, 2 and 1 Rupees

respectively to around 67% of nation’s population.

With this Bill, India will join the select club of nations which guarantee food-grains to

majority of its population.

It will be the largest programme of its kind in the world which will cost government Rs.

130,000 crore.

To implement the bill a total of 62 million tonnes of food-grains will be required.

It is being viewed as the first step towards universalization of Public Distribution System.

The Bill proposes to provide free meals to all the pregnant women as well as lactating

mothers during the pregnancy till six months post delivery.

Maternity benefit of Rs. 6000 will also be given to pregnant women.

Children till the age of 14 years will also be given free meals.

The state will pay the food security allowance to the beneficiaries in the event of non-

supply of the foodgrains.

The scheme will be linked to the Aadhar number that’s linked to a database that includes

the biometric information of all card-holders.

NSA snooped on Brazilian President’s phones and email

content

September 5, 2013

The secret documents disclosed by the NSA whistle-blower Edward Snowden in June have

revealed that NSA spied on the content of telephone calls, emails and cellphone messages of

Brazilian President Dilma Rousseff and her key aides. The secret document mentions both Brazil

and Mexico placing them in a group of nations that are being closely monitored as a “challenge”

by the U.S. Headlined “Friends, Enemies, or Problems?” The list starts with Brazil and Egypt. It

shows India at number 3 and concludes with Turkey and Mexico. The document dismantles the

NSA’s operation whose goal was “to improve understanding of the methods of communication

and the interlocutors of the President of Brazil, Dilma Rousseff, and her top aides.”

What may be the impact of these revelations?

The relations between the US and Brazil have already been under stress since it came into light

in July that the Americans were conducting electronic surveillance for collecting huge amount of

phone and Internet data from the country’s networks. The latest revelation may further harm the

ties.

RBI asks banks to consider e-KYC a valid process

September 5, 2013

In a notification issued by the Reserve Bank of India, banks have been asked to avail the

electronic Know Your Customer, e-KYC service, launched by the Unique Identification

Authority of India, UIDAI. The notification directed banks to revise their KYC policy by

accepting the e-KYC as a valid process for KYC verification under the Prevention of Money

Laundering (Maintenance of Records) Rules, 2005. As per the notification, the information

containing demographic details and photographs made available from UIDAI as a result of e-

KYC process may be treated as an ‘Officially Valid Document’ under PML Rules.

What is e-KYC? The e-KYC service was launched by the UIDAI to help people link their existing records, like

ration cards, pension accounts, license and certificates, to their Aadhaar numbers in a safe and

easy manner.

RBI allows companies to use ECB for general corporate

purposes

September 5, 2013

In a bid to attract capital flows, the RBI relaxed the External Commercial Borrowing (ECB)

norms by permitting companies to use funds raised from their foreign equity holder company

with minimum average maturity of 7 years for general corporate purposes. Till now borrowings

in the form of ECB were not allowed to be used for general corporate purpose.

Nevertheless, the RBI has put certain conditions. As per the conditions, the minimum paid-up

equity of 25% should be held directly by the lender (overseas partner) and the repayment of the

principal will commence only after completion of minimum average maturity of seven years and

no prepayment will be allowed before maturity.

What is External Commercial Borrowing (ECB)?

Any money that has been borrowed from foreign sources for financing the commercial

activities in India are called External Commercial Borrowings.

The Government of India permits ECBs as a source of finance for Indian Corporates for

expansion of existing capacity as well as for fresh investment.

The ECBs are defined as money borrowed from foreign resources including the following:

Commercial bank loans

Buyers’ credit and suppliers’ credit

Securitised instruments such as Floating Rate Notes and Fixed Rate Bonds etc.

Credit from official export credit agencies and commercial borrowings from the private

sector window of Multilateral Financial Institutions such as International Finance

Corporation (Washington), ADB, AFIC, CDC, etc.

Objective of External Commercial Borrowing (ECB):

Government permits the ECBs as an additional source of financing for expanding the

existing capacity as well as for fresh investments. The ECB policy of the Government

seeks to emphasize the priority of investing in the infrastructure and core sectors such as

Power, telecom, Railways, Roads, Urban infrastructure etc.

There is also emphasis on the need of capital for Small and Medium scale enterprises.

How ECB is different from FDI?

It must be noted that ECB means any kind of funding other than Equity. If the foreign

money is used to finance the Equity Capital, it would be termed as Foreign Direct

Investment.

The ECB should satisfy the ECB regulations stipulated by the Government or its agencies

such as RBI. The Bonds, Credit notes, Asset Backed Securities, Mortgage Backed

Securities or anything of that nature are included in ECB.

The following are not included in the ECBs

Any Investment made towards core capital of an organization such as equity shares,

convertible preference shares or convertible debentures. We should note here that those

instruments which can be converted into equity are called convertible. The convertible

instruments are covered under the FDI Policy.

Any other direct capital is not allowed in ECB.

Lok Sabha passes PFRDA Bill 2011

September 5, 2013

The Pension Fund Regulatory and Development Authority Bill (PFRDA), 2011 which aims

to regulate the New Pension System (NPS) has been passed in the Lok Sabha with official

amendments. The bill was introduced in the lower house in March 2011 to provide for a statutory

regulatory body. Currently the PFRDA has a non-statutory status. The legislation seeks to

empower PFRDA to regulate the New Pension System (NPS).

Some highlights of PFRDA Bill 2011:

It provides subscribers a wide choice to invest their funds for assured returns by opting

for government bonds as well as in other funds depending on their capacity for risk.

It allows for withdrawals from the individual pension account subject to the conditions,

such as, purpose, frequency and limits, as may be specified by the regulations.

It makes the Pension Fund Regulatory and Development Authority a statutory authority.

Presently, it has non-statutory status.

What is the main reason behind providing PFRDA a statutory status?

NPS which is compulsory for government employees (except defence) has been launched for

all citizens of the country including un-orgnised sector workers, on voluntary basis, with effect

from May 1, 2009. Further, the Government has launched the co-contributory pension scheme

titled “Swavalamban Scheme” in the Budget of 2010-11. Currently, the number of subscribers

under NPS is 52.83 Lakh with a corpus of Rs. 34, 965 crore. In order to effectively invest and

manage huge funds belonging to a large number of subscribers and to ensure the integrity of

NPS, establishment of a statutory PFRDA with well defined powers, duties and responsibilities

is considered absolutely necessary and would benefit all NPS subscribers.

Ministry of MSME sets up District-level Advisory

Committee to monitor PMEGP

September 5, 2013

The Ministry of Micro, Small and Medium Enterprises (MSME) has established an Advisory

Committee for each district of the country for monitoring the progress of Prime Minister’s

Employment Generation Programme (PMEGP) with active role of Members of Parliament

from the district.

What is Prime Minister’s Employment Generation Programme (PMEGP)?

Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy

programme launched by the Government of India by merging the two schemes namely Prime

Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme

(REGP) for generation of employment opportunities through establishment of micro enterprises

in rural as well as urban areas. PMEGP is a central sector scheme administered by the Ministry

of Micro, Small and Medium Enterprises (MoMSME).

What are the objectives of PMEGP?

Objectives of PMEGP are:

1. To generate employment opportunities in rural as well as urban areas of the country

through setting up of new self employment ventures/projects/micro enterprises.

2. To bring together widely dispersed traditional artisans/ rural and urban unemployed

youth and give them self employment opportunities to the extent possible, at their place.

3. To provide continuous and sustainable employment to a large segment of traditional and

prospective artisans and rural and urban unemployed youth in the country, so as to help

arrest migration of rural youth to urban areas.

4. To increase the wage earning capacity of artisans and contribute to increase in the growth

rate of rural and urban employment.

What will be the constitution of the District Level Advisory Committee who will monitor PMEGP?

The District Level Advisory Committee will comprise around 30 members chaired by the

Member of Parliament (Lok Sabha) elected from the District having the largest part of the

district under his/ her Parliamentary constituency. The Committee would provide overall

guidance and suggestions for the implementation of the PMEGP programme. The committee

would liaise and coordinate with Khadi and Village Industry Commission (KVIC) which is

the nodal agency for the scheme, State Government and other agencies including Banks for

effective mobilization of young entrepreneurs under PMEGP. It would also ensure that the

scheme is implemented in line with its guidelines.

Other member of the Committee:

Members of Parliament of Lok Sabha having part constituency in the district would be

co-chairperson and Member of Parliament of Rajya Sabha will be a member.

Members of State Legislative Assembly and Legislative Council, Chairperson of Zilla

Panchayat, representatives of SC/ST, OBC, minority and women and one professional

from social work/ social science, representatives of bank and financial institutions.

District Magistrate/ Collector will be its member-convener.

MoE slaps Rs 200 crore penalty on Adani group

September 5, 2013

A committee, established by the Ministry of Environment and Forests, under the

chairmanship of Sunita Narain, director general of Centre for Science and Environment, has

slapped a penalty of Rs 200 crore on the Adani Group’s Mundra Port and Special Economic

Zone for inflicting harm to mangroves, creeks and the local environment at the project site. In

addition to the fine, a part of the project could face suspension after a more detailed probe into

the alleged violation of environmental clearance norms. The money from the fine will go into an

environment restoration fund for the area.

Why did the environment ministry impose fine on Adani Group?

As per the report submitted by Sunita Narain panel, it was found the Adani Group infringed

environmental norms in the country’s largest private port in Mundra and special trade zone that it

operates in the Kutch district in Gujarat. The penalty has been slapped for damaging

mangroves, creeks and the local environment at the project site. During its investigation the

panel found widespread destruction of mangroves-75 hectares of mangroves have been lost in

Bocha Island, which was declared as a conservation zone under the environmental clearance

conditions.

The panel stated in its report that “the company has not taken precautions to guard against

blocking of creeks because of construction activities; satellite imagery shows signs of

deterioration and loss of creeks close to the proposed North Port.”

Scientists close to find cure of Down syndrome

September 6, 2013

US scientists have identified a compound that seems to reverse the learning deficits associated

with Down syndrome in lab mice. In their experiment, they injected the compound in mice

which had a condition similar to Down syndrome and they found that single injection enabled

the cerebellum of the rodents’ brains to grow to a normal size. It is to be noted that most people

with Down Syndrome have a cerebellum that’s about 60% of the normal size as it does not

develop properly. The compound needs to go through further tests before it is available for

human use.

What is Down Syndrome?

Down Syndrome is one of the most common chromosomal abnormalities in children, and a

leading cause of intellectual disability. It occurs due to trisomy of chromosome 21 i.e. when

people have 3 instead of the two usual copies of the chromosome 21. This trisomy adds extra

copies of more than 300 genes, leading to intellectual disabilities, distinctive facial features and

sometimes heart problems and other health effects.

Indian scientists undertake earthquake prediction research,

measure the ‘Deccan Trap’

September 6, 2013

Researchers from the Hyderabad-based National Geophysical Research Institute are

conducting deep-earth study in the Koyna-Warna region of Maharashtra with the aim to

enhance understanding of seismic activities and improve earthquake prediction.

What is special about this study?

The study is first of its kind in India which involves drilling deep holes of up to 8 km into the

earth to directly visualize and measure rock changes during earthquakes. NGRI recently

concluded airborne gravity gradeometery studies to get a closer look at Earth’s interior, again a

first of its kind in the country. Recently, when scientists drilled 1.5 km into the earth during a test

of drilling technology they accurately measured the ‘Deccan Trap‘ in the study region.

What are Deccan Traps?

The Deccan Traps are large volcanic deposits located on the Deccan Plateau of west-central

India and one of the largest volcanic features on Earth formed due to eruptions about 65 million

years ago at the end of the Cretaceous period.

How would this study help?

As per scientists, the project would take 5 to 10 years during which they expect to have a better

understanding of below-the-surface phenomena during and after an earthquake. The Koyna-

Warna region is known for frequent seismic activity, linked to changes in water levels in water

reservoirs present in the region. Researchers will try to determine how the changes in water-

reservoirs exactly triggers earthquake. In addition to that, drilling will also allow them to plant

underground earthquake detection devices which will lead to creation of highly efficient warning

systems.

ECB keeps key rate unchanged at 0.5%

September 6, 2013

The 23-member governing council of European Central Bank has left its benchmark interest

rate unaltered at a record low of 0.5%. The council said that the slowly recuperating eurozone

economy didn’t need a further stimulus.

The 17 European Union member countries that used the euro came out of recession in the

second quarter when the economy posted 0.3% growth from the quarter before, discontinuing a

series of 18 months of falling output.

About European Central Bank

Established in 1998 through Treaty of Amsterdam in 1998. It is one of the seven institutions of

the European Union (EU) listed in the Treaty on European Union(TEU).

Headquarters: Frankfurt, Germany.

Current President: Mario Draghi

It is central bank for the euro and administers the monetary policy of the 17 EU member

states which constitute the Eurozone. However, capital stock of the bank is owned by the

central banks of all 28 EU member states.

Primary Objective: To maintain price stability within the Eurozone. It has this single ill-defined

primary objective, with other objectives subordinated to it.

Basic Tasks of ECB:

To define and implement the monetary policy for the Eurozone

To conduct foreign exchange operations

To take care of the foreign reserves of the European System of Central Banks

To promote smooth operation of the financial market infrastructure under

the TARGET2 payments system and the technical platform (currently being developed)

for settlement of securities in Europe (TARGET2 Securities).

Exclusive right to authorize the issuance of euro banknotes.

Montreal Protocol helps reduce the size of hole in Ozone

September 6, 2013

According to experts at University of Canterbury, the hole in the earth’s

stratospheric ozone layer over Antarctica is recovering slowly and should close completely in the

latter half of this century. However, its effect on global climate change is still uncertain.

As per researchers, the Montreal Protocol, which effectively banned chlorofluorocarbons

(CFCs), had aided in reducing the size of the hole in the ozone layer. The protocol, which came

into existence in 1989, is an international treaty to phase out substances believed to be

responsible for ozone depletion. The scientists are of the view that if the protocol is adhered to,

the ozone layer is expected to recover by 2050.

Uncertainty over the effect of Ozone Recovery

Contrary to our expectations, stratospheric ozone depletion is also believed to have indirectly

protected Antarctica from the worst of greenhouse gas-related warming. The creation of ozone

hole acted to change the circulation of the Southern Hemisphere so that the strong winds linked

to the jet streams moved towards the pole. However, scientists are uncertain about the effect of

ozone recovery on the Antarctic climate. There are views that ozone recovery should act to move

the winds back towards the equator, but greenhouse gases might counteract this effect on the jet-

stream positions, which help to control the width of tropical and polar weather belts.

Bill prohibiting Manual Scavenging passed in Lok Sabha

September 9, 2013

The Lok Sabha passed the Prohibition of Employment as Manual Scavengers and their

Rehabilitation Bill 2012. The Bill prohibits employment of manual scavengers, manual cleaning

of sewers and septic tanks without protective equipment and construction of insanitary latrines. It

also seeks to rehabilitate manual scavengers and provide for their alternative employment.

What are the key points in the Prohibition of Employment as Manual Scavengers and their Rehabilitation

Bill 2012 ?

According to the Bill:

The employment of manual scavengers, the manual cleaning of sewers and septic tanks

without protective equipment, and the construction of insanitary latrines is prohibited.

It provides for rehabilitation of manual scavengers and their alternative employment.

Each local authority, cantonment board and railway authority is responsible for surveying

insanitary latrines within its jurisdiction. They shall also construct a number of sanitary

community latrines.

Each occupier of insanitary latrines shall be responsible for converting or demolishing the

latrine at his own cost. If he fails to do so, the local authority shall convert the latrine and

recover the cost from him.

The implementing authorities shall be District Magistrate and the local authority.

Offences under the Bill shall be cognizable and non-bailable, and may be tried

summarily.

Lok Sabha passed Street Vendors (Protection of Livelihood

and Regulation of Street Vending) Bill, 2012

September 9, 2013

The Lok Sabha has passed Street Vendors (Protection of Livelihood and Regulation of Street

Vending) Bill, 2012. The bill is aimed at safeguarding rights of urban street vendors from

harassment by police, municipal authorities and providing them opportunity to live with dignity.

What is the objective of the Street Vendors (Protection of Livelihood and Regulation of

Street Vending) Bill, 2012?

Aim: To protect the livelihood rights of street vendors as well as regulate street vending through

demarcation of vending zones, conditions for and restrictions on street vending.

As per the Bill:

Any individual who wants to undertake street vending will be required to register with

the Town Vending Committee (TVC). He may then apply for a vending certificate that

will be issued based on various criteria.

The state government shall frame a scheme for street vendors. The local authority shall,

in consultation with the planning authority, frame a street vending plan once every 5

years.

The TVC comprises of the municipal commissioner, representatives of street vendors,

local authority, planning authority, local police, resident welfare association and other

traders associations.

This Bill shall not apply to Railways land, premises and trains.

Current Affairs: Top Headlines September 6, 2013

September 6, 2013

Iran to set free Indian tanker after 24 days of detention

Iran ordered release of an Indian tanker detained by it for the past 24 days at its Bandar Abbas

port after being seized in Persian Gulf while carrying crude from Basrah in Iraq. The move

comes after hectic negotiations between the two nations with India showing strong objections to

the detention, saying it was a “colourable” exercise in violation of UN Convention on the Laws

of the Sea (UNCLOS) and warning of serious consequences. The tanker belonging to India’s

largest ocean liner SCI was impounded by Iranian Revolutionary Guards Corps (IRGC) on

August 12, 2013 citing environmental and pollution concerns.

Government will not breach 4.8% fiscal deficit: Finance Minister

Finance minister P Chidambaram on Thursday reiterated that the fiscal deficit of 4.8% budgeted

for the year 2013-14 will not be breached even as he accepted that the economy was going

through a challenging period and that continuous decline in the rupee was a concern.

National Tobacco control program to be expanded to cover all districts

The National Tobacco control program which is currently operational in 42 districts of the

country will soon be extended to all districts of the country during the 12th plan. The health

ministry is pursuing with the finance ministry on developing a taxation policy on all tobacco

products. The government started the National Tobacco control program in 2007 during the 11th

plan period . The programme has taken several initiatives to curb tobacco use in the country.

These include establishing a National Regulatory Authority, State and district level Tobacco

Control cells, Anti Tobacco Public Awareness Campaigns, establishment of tobacco testing labs,

research, training, monitoring and evaluation to check the use of Tobacco in the country

Zubin Mehta conferred with Tagore Award for Cultural Harmony

Renowned western classical music maestro Zubin Mehta was conferred with the Tagore Award

for Cultural Harmony for year 2013. The award was presented by President Pranab Mukherjee at

a lively function at Rashtrapati Bhavan. Mehta is second person after late sitar maestro Pandit

Ravi Shankar to receive Tagore Award for cultural harmony.

BRICS to contribute $100 bn to Forex fund

The BRICS group of nations will commit $100 billion to a fighting fund to stabilize currency

markets destabilised by an expectations of tapering of U.S. monetary stimulus. The major portion

of the currency pool will come from China which holds world’s largest foreign exchange

reserves.

Deepak Sandhu: First woman Chief Information Commissioner of India

Deepak Sandhu, former Indian Information Service officer of 1971 batch, became the first

woman Chief Information Commissioner of the country. She was administered the oath of office

by President Pranab Mukherjee at a function in Rashtrapati Bhavan.

IOC not ready to compromise on chargesheet clause, delays India’s return to Olympic

The International Olympic Committee (IOC) has clarified that the Indian Olympic

Association (IOA) has to adopt the chargesheet clause in its constitution which bars charge-

sheeted persons from contesting elections for key posts of the sports body. The stand taken by

IOC has further delayed India’s return to Olympic group. IOA had proposed a compromise

formula according to which the sanction will apply only to those officials who are convicted and

sentenced to a jail term of more than two years.

Crisis risks are high in Pakistan: IMF

IMF suggested Pakistan to bring in comprehensive economic reforms to tackle the ‘serious

economic challenges’ its faces amid subpar growth and unsustainable fiscal and balance of

payments positions. The International Monetary Fund suggested it after approving financial

assistance of $6.7 billion to Pakistan to save it from economic crisis.

Banks agree to be lenient towards mining dependent loan defaulters

In a meeting of RBI and other banks in Goa, banks agreed to be soft towards mining dependent

loan defaulters. They resolved “not to be harsh on the defaulters till March next year“. Banks

took into account the fact that mining business in the state is in a state of impasse. As per

government data, the loan liability of people dependent on mining activity is around Rs 1,734

crore, of which Rs 570 crore is NPAs through various banks, including cooperative and urban

banks. The state government has also decided to exempt road tax for mining related trucks.

Sub-debt ratings of 11 Indian banks downgraded by Moody’s

The subordinated debt ratings of 11 Indian banks including SBI, ICICI Bank and HDFC Bank

have been downgraded by Moody’s Investors Service. The other banks affected are Axis Bank,

Bank of Baroda, Bank of India, Canara Bank, IDBI Bank, Indian Overseas Bank, Syndicate

Bank and Union Bank of India. The downgrade has been keeping in mind the increasing

international trend of imposing losses on holders of subdebt securities as a pre-condition for

distressed banks to receive government support. As a result, Moody’s assumes that Indian

government support is less likely to be approaching for the holders of such securities.

‘KitKat’: New version of Android software

September 6, 2013

Google, on its 15th

birthday, revealed that the next version of Android will be

called “KitKat” continuing its predilection for naming its software after famous delicacies. Over

the years, Google launched several versions of Android naming each of them after a dessert.

The other versions of Android mobile-operating system are:

Cupcake

Donut

Froyo

Éclair

Gingerbread

Honeycomb

Ice Cream Sandwich

Jelly Bean

Android software powers more than a billion smartphones or tablets worldwide, according to

Google. Android’s share of the smartphone market expanded to 79.3% in the second quarter

while that of iPhone fell to 13.2% period.

Which are the main mobile Operating Systems?

As of 2011, the top mobile operating systems marketed as “smartphones” by market share

were Android, Symbian, Apple iOS, BlackBerry, MeeGo, Windows Phone and Bada.

Mobile Os and its owner Company

Android: Google Inc.

Symbian OS: Nokia and Accenture.

Bada: Samsung Electronics.

BlackBerry Tablet OS: QNX Software System/BlackBerry

Windows Phone: Microsoft

GridOS: Fusion Garage

S40 (Series40): Nokia

webOS: LG

Asha: Nokia

Maemo: Nokia

Tokyo bags 2020 Olympic hosting right

September 9, 2013

The 2020 Olympic Games will be hosted by Tokyo as it has won the right to host the games,

beating Istanbul in the second round of voting in Buenos Aires, Argentina. This makes Tokyo to

be the first Asian city to host the Olympics twice, having also hosted the 1964 Games.

Note: Olympics 2016 will be held in Rio de Janeiro, Brazil.

RBI notifies norms for currency swap window

September 9, 2013

RBI has notified norms for currency swap window. As per the notification, the swap facility will

be available to scheduled commercial banks for fresh Foreign Currency Non-Resident Bank –

FCNR(B) deposits mobilized for a minimum period of 3 years. It further says that the deposits

raised may be in any permitted currency, but the swap would be available only in dollars.

Although the swap window will be operated on a daily basis on all working days in Mumbai, a

particular bank can avail of the swap facility only once in a week.

What is Currency Swap?

A currency swap is a foreign-exchange agreement between two institutions to exchange aspects

(namely the principal and/or interest payments) of a loan in one currency for equivalent aspects

of an equal in net present value loan in another currency.

Currency swaps are over-the-counter derivatives, and are closely related to interest rate swaps.

However, unlike interest rate swaps, currency swaps can involve the exchange of the principal.

What are the main uses of Currency Swap?

Currency swaps have two main uses:

To secure cheaper debt (by borrowing at the best available rate regardless of currency and

then swapping for debt in desired currency using a back-to-back-loan).

To hedge against (reduce exposure to) exchange rate fluctuations.

India suggest to avoid any action against Syria without UN

report

September 9, 2013

India is not in support of any action against Syria without a report of the UN Inspectors on the

alleged use of chemical weapons and it asserted that no action should be taken without UN

authorization.

Prime Minister Dr. Manmohan Singh clarified India’s stance in the recently concluded G-20

Summit in St. Petersburg condemning the alleged use of chemical weapons in Syria and

anywhere else in the world. India’s view is that what happened in Syria should be ascertained

before taking any action.

India’s view were also supported by United Nations Secretary General Ban Ki moon as he noted

that the ongoing conflict in Syria must be resolved diplomatically and arms must not be supplied

to any conflicting side.

Lok Sabha passed Parliament (Prevention of

Disqualification) Amendment Bill, 2013

September 9, 2013

The Lok Sabha passed the Parliament (Prevention of Disqualification) Amendment Bill, 2013 for

keeping the chairpersons of National Commissions for the SC and ST out of purview of office of

profit. Previously, on May 9, 2013, Union Cabinet of India gave its nod to Amendments in the

Parliament (Prevention of Disqualification) Act, 1959.

What is Parliament (Prevention of Disqualification) Act, 1959?

Section 3 of the Parliament (Prevention of Disqualification) Act, 1959, which has been

periodically amended, lists certain offices of profit under the Government of India or the

Government of any State, which do not disqualify the holders thereof for being chosen as, or for

being, a Member of Parliament. Sub-clause (ii) of clause (ba) of section 3 of the Parliament

(Prevention of Disqualification) Act, 1959, exempts the Chairperson of the National

Commission for Scheduled Castes and Scheduled Tribes from such disqualification.

What these amendments have been made?

The National Commission for the Scheduled Castes and Scheduled Tribes was divided

into two independent Commissions i.e. (i) the National Commission for the Scheduled

Castes and (ii) the National Commission for the Scheduled Tribes by the Constitution

(89th

Amendment) Act, 2003.

Through this amendment Act, Article 338 of the Constitution was amended and a new

article, namely, Article 338A was introduced in the Constitution. With the bifurcation of

the National Commission for the Scheduled Castes and Scheduled Tribes, consequential

amendments are required in sub-clause (ii) of clause (ba) of section 3 of the Parliament

(Prevention of Disqualification) Act, 1959, so as to exclude the Chairperson of the

National Commission for the Scheduled Castes and the Chairperson of the National

Commission for the Scheduled Tribes from incurring any disqualification for being

chosen as or for being a Member of Parliament.

The Constitution (89th Amendment) Act, 2003, came into force from February 19, 2004

and therefore, it is proposed to give effect to the present amendment from the same date

NASA launches LADEE probe to study lunar atmosphere

September 9, 2013

NASA launched a robotic explorer LADEE (Lunar Atmosphere and Dust Environment

Explorer) into space from the Mid-Atlantic Regional Spaceport in Virginia.

About LADEE spacecraft:

LADEE is Lunar Atmosphere and Dust Environment Explorer or LADEE.

Cost: $280 million

Launching Site: Mid-Atlantic Regional Spaceport in Virginia on September 6, 2013.

Carrier: Minotaur V launched from Wallops Flight Facility

Mission: To study the lunar exosphere (outer atmosphere) and dust in the Moon’s

vicinity.

Key Instruments: A dust detector, a neutral mass spectrometer, and an ultraviolet-

visible spectrometer, as well as a technology demonstration consisting of a laser

communications (lasercomm) terminal.

Special focus:

Scientists want to explore the composition of the moon’s very thin atmosphere and how it might

change over time. Researchers also want to solve a puzzle that whether dust actually rises from

the lunar surface. On board there is laser communication test equipment which NASA will

experiment with hopes to eventually replace its traditional radio systems with laser

communications, which would revolutionize communication with its faster bandwidth using very

less power and smaller devices.

Indian scientists detect endogenous water on the Moon

September 9, 2013

In a latest development in the field of science, Indian scientists from the Space Applications

Centre (SAC) of the Indian Space Research Organisation (ISRO) in Ahmedabad have

found evidence of water of volcanic origin. Unlike previous findings indicating the presence of

water-containing igneous surface, this water has originated from deep within the Moon’s interior.

What are the findings by Indian Scientists?

Indian researchers have detected the endogenous water in the igneous surface on the Moon’s

non-polar region. So far, scientists had believed lunar rocks do not contain water and that any

water detected in lunar samples was either due to contamination from the Earth or produced

by solar wind and other exogenous extra-lunar sources. However, after analyzing the spectral

data of the Compton-Belkovich Volcanic Complex (CBVC) region on the far side of the Moon

obtained by the NASA instrument Moon Mineralogy Mapper (M3), which was sent aboard the

Indian lunar mission Chandrayaan-1, India researchers have detected a significant concentration

of the water— 0.55% by weight — which is the highest ever found on the Moon. The geology of

CBVC area in the non-polar region of moon is quite different from the polar regions and has also

high silica content.

Previous findings by Indian Scientists:

The Indian findings have come after a similar work based on M3 data on the central peak of the

volcanic crater Bullialdus, reported by R. Klima and associates recently. The findings observed

that presence of water could be of magmatic or volcanic origin as the non-polar Bullialdus

crater region is an unfavourable environment for solar wind to produce significant amounts of

water on the surface. Indian researchers have reported the findings relating to a different

volcanic region which supports the previous finding.

Sebastian Vettel lifts Italian Grand Prix

September 9, 2013

Red Bull’s star driver Sebastian Vettel has won the Italian Grand Prix

Championship. He left behind Ferrari driver Fernando Alonso and Red Bull teammate Mark

Webber, who finished second and third respectively.

Sebastian Vettel:

Sebastian Vettel is a German Formula One racing driver, currently driving for

the Austrian racing team Red Bull Racing. He is the current World Champion, having won the

championship in 2010, 2011, and 2012.

Paes-Stepanek clinch US Open men’s doubles title

September 9, 2013

The pair of India’s Leander Paes and Czech’s Radek Stepanek clinched

US Open men’s doubles title as they vanquished Alexander Peya and Bruno Soares in the final

held in New York. For Paes, it is his eighth men’s doubles Grand Slam title.

Leander Paes won his eighth men’s doubles Grand Slam title, and overall this was his 14th.

Mamnoon Hussain sworn in as Pakistan President

September 11, 2013

India-born Mamnoon Hussain sworn in as the 12th

President of Pakistan. He was

administered the oath by Supreme Court Chief Justice Iftikhar Chaudhry.

Hussain, born in Agra, India, is also a textile businessman. He tenured as the

Governor of Sindh for a very short period when his appointment was dismissed by a military

coup d’état in 1999. succeeded Asif Ali Zardari.

Civil servants to get medical treatment expenses incurred

abroad

September 11, 2013

As per the new norms by Ministry of Personnel, a member of All India Services — Indian

Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFoS) —

can also be airlifted outside the state in cases of a medical emergency. An attendant of the

member of services will also be entitled for to and fro airfare.

What are the medical conditions for which a civil servant can avail treatment abroad?

An IAS, IPS and IFoS officer may avail medical treatment outside India for himself or for a

member of his family for complex or high-risk cardio-vascular surgery, bone marrow transplant,

complex medical and oncological disorders, such as leukaemia and neo-plastic conditions and

also for complex high-risk cases in micro-vascular and neuro surgery and extremely complex

ailments. A screening committee will decide on recommending cases for treatment abroad.

Earlier, compensation of the cost of medical treatment incurred abroad by all India services

officers was not allowed.

OMCs seek compensation in case of loss through RBI’s

currency swap window

September 11, 2013

Oil Marketing Companies (OMCs) are not content with RBI’s currency swap facility through

which it sells and buys dollars from OMCs as part of its measures to control the rupee decline.

Though the rupee has gained some stability but the OMCs are unhappy with the hedging

mechanisms as they feel that with RBI’s swap window, there is uncertainty of being

compensated if they incur loss in the swap transactions.

Why OMCs are unhappy with RBI’s currency swap window facility?

RBI has recently started a currency swap window to sell dollars to oil companies in exchange for

rupees on condition that they reverse the transaction at a future date. The swap window is for

fresh Foreign Currency Non-Resident (banks) (FCNRB) dollar funds, mobilised for a

minimum tenor of three years and over. This is similar to RBI lending dollars to oil companies.

Since OMCs are the biggest buyers of foreign currency which they use to buy petroleum/oil, RBI

selling dollars directly to them will keep them away from FOREX market thereby helping the

rupee to recuperate. Under the swap arrangement, the RBI will sell dollars to OMCs on condition

that OMCs will repay the same amount of dollars.

However, the OMCs are unhappy over the facility as they feel insecure about the future adverse

changes in the rates of dollar which could cause loss to them. There are apprehensions that if

something bad- US strike on Syria impacting oil supply and further tightening of dollar

(expensive dollar)- happens then there will be losses to OMCs who will have to pay the dollars

they bought under swap arrangement. Although, in such a situation, RBI has the option to roll

over the transactions until the rupee stabilizes, OMCs seek compensation for any future losses.

Bihar, UP to be key contributor to workforce of the future:

Census

September 11, 2013

As per the Census data, Uttar Pradesh and Bihar with their highest under-14 child population will

be the major contributor to the workforce, with developed States like Kerala and Tamil Nadu

reaching or already crossed their peaks.

The census shows that India’s demography is undergoing two simultaneous and opposing

changes.

1. A decline in absolute child population under the age of 14 is being witnessed States like

Kerala, Andhra Pradesh, Maharashtra and Himachal Pradesh as was expected due to

decrease in female fertility that began in the 70s in the southern States. Although, other

States like Tamil Nadu, Gujarat and Uttarakhand have shown small rise in child

population, in the total child population falling.

2. However, the share of Bihar and Uttar Pradesh, that still have high fertility, has increased

acutely. One in every three children under the age of 14 in India comes from Bihar or

Uttar Pradesh.

As per the Census data:

U.P. with 35.69% and Bihar with 40.1% of its population under the age of 14, have

much higher figure than India as a whole which has 31% of its population under the

age of 14. While the rest of the country has witnessed a decrease in the proportion of its population

that is under 14, for Bihar, this proportion has surged by over 10% points since 2001

which makes it the only State that has added more persons under the age of 14 than

over the age of 60. Developed States are hitting their peak working age populations, and are ageing faster

than the rest of the country.

At present, Tamil Nadu has the highest proportion of its people in the working age

population with 66.66% of three residents of the State are between the ages of 15 and 59.

India as a whole has 8.5% of its population over 60.

Tamil Nadu and Kerala have older populations; nearly 13% of Kerala is over the age of

60.

What does the data suggest towards policy formulation?

The two processes taken together indicated that today’s children, who come mostly from U.P.

and Bihar, will form the workforce of the future. This is of major significance for State and

Centre policy. It means that northern States will have to spend more on school education, while

southern States can begin to focus more on quality. The other implication is that skill

development is going to be critical for India’s demographic dividend to yield.

North, South Korea to reopen Kaesong joint industrial park

September 12, 2013

Following long negotiation, North and South Korea decided to reopen their Kaesong joint

industrial park next week. The industrial complex has been shut for the last five months during

heightened military tensions between the two nations. The North accepted the South’s demand of

allowing foreign investments in Kaesong- which Seoul views as a guarantee against the North

shutting the complex down again in the future.

What is Kaesong industrial park?

Kaesong Industrial Park is a special is an economic unit in the Kaesong Industrial Region which

lies 10 kilometres over the border in North Korea. The park was being operated in collaboration

with South Korea. The idea of the park came into being through the “sunshine” reconciliation

policy initiated in the late 1990s by then-South Korean president Kim Dae-Jung as a symbol of

cooperation.

What are the benefits of Kaesong Industrial Park?

The Kaesong Industrial Park will revive trade between the two adversaries and may work

towards easing tensions. On the economic front, the reopening of the park will specially benefit

North Korea as it will provide important hard currency source for the impoverished country

through taxes, other revenues, and its cut of workers’ wages.

In a quid pro quo, Pyongyang is likely to pressurize on Seoul to resurrect another cross-border

project – South Korean tours to the North’s Mount Kumgang resort which could also

significantly earn the country the hard currency. The tours were froze by the South after a North

Korean soldier in 2008 shot dead a female tourist from the South who strayed into a restricted

zone. In reaction to that, the North trashed a deal with the resort’s developer – Seoul’s Hyundai

Asan company – and impounded its properties there.

Tamu Massif: Largest volcano on Earth discovered

September 11, 2013

Scientists have found the single largest volcano in the world called Tamu Massif- a dead

colossus deep beneath the Pacific Ocean. It is spanned across over an area of 310000 sq km and

can be compared with Mars’ Olymus Mons volcano, the largest in the Solar System. The volcano

was located around 2 km below the ocean. Previously, Mauna Loa in Hawaii was considered the

largest volcano on Earth.

About Tamu Massif:

It is an extinct submarine shield volcano located in the northwestern Pacific Ocean.

It is largest known volcano on Earth.

It is located in the Shatsky Rise about 1,600 km (990 mi) east of Japan.

Its summit lies about 1,980 m below the surface of the sea, and its base extends to a depth

of about 6.4 km.The volcano is about 4,460 metres tall.

Quadricycle to hit country’s roads from Oct 2013

September 11, 2013

The government has issued a draft notification that intends to classify the quadricycle as a

commercial vehicle under the Central Motor Vehicles Rules. It will facilitate introduction of

quadricycle to Indian roads.

What is a Quadricycle?

Quadricycle is a four-wheeled vehicle that is bigger than an auto-rickshaw but smaller than a

compact car and will be used for commercial purpose – transporting passengers and goods on

non-highway stretches in cities and villages.

What does the draft notification on Quadricycle say?

As per the notification:

The use of quadricycles for transporting passengers as well as goods on non-highways

will be allowed.

The vehicle must have a fully-enclosed body with a steering wheel, and that an empty

quadricycle must not weigh more than 450 kg if used for transporting passengers and 550

kg if it’s is made for carrying cargo.

A passenger quadricycle will have the maximum seating capacity for 3 passengers and a

driver, while the goods variant will be allowed to carry only one passenger along with the

driver.

Materials such as rexin, cloth and plastic cannot be used to cover the sides or the top of a

quadricycle.

Maximum length of the passenger variant at 3 metre, effectively disqualifying all

compact cars from being used as quadricycles.

For a goods quadricycle, the maximum length has been set at 3.7 metre. The overall

width of these vehicles must not exceed 1.5 metre.

The vehicles will have to comply with the emission norms stipulated for auto rickshaws,

which are less rigorous than norms such as Bharat Stage III and IV that are mandatory for

passenger cars.

Why government supporting the idea of quadricycle?

As per the government, the policy on quadricycles will provide a natural upgrade to the old

three-wheeler auto rickshaws and will serve as a better form of transport with improved stability

and modern features needed for intra-city transport.

Why there is opposition to the idea of quadricycle?

Many auto manufacturers in the country including Tata Motors, TVS Motors, Maruti Suzuki and

Mahindra & Mahindra are against the idea, debating that quadricycles will take the Indian

automotive industry back by many years. Currently, Bajaj Motors is the only automaker in India

that has developed a four-wheeled passenger carrier, the RE60, and plans to launch it by the end

of this fiscal.

Serena Williams wins US Open 2013

September 11, 2013

World no.1 Serena Williams conquered her fifth US Open title by defeating second

ranked Victoria Azarenka to clinch her 17th

career Grand Slam crown.

Serena became the oldest Open Era women’s winner in US Open history, 293 days older

than Margaret Court when she set the prior mark in 1973, and the third-oldest Grand Slam

women’s champion of the Open Era.

She is the first top-seeded champion since Justine Henin in 2007 and the first woman to defend

the US Open crown since Kim Clijsters in 2010.

RBI asks banks to consider using business correspondents to

distribute currency

September 12, 2013

In the backdrop of growing currency demands, the RBI, in a notification, asked banks to explore

the possibility of distributing banknotes and coins through business correspondents.

Earlier, RBI, in its Monetary Policy Statement 2013-14, had acknowledged the need to identify

alternative distribution possibilities to effectively meet the rising demand for banknotes and

coins.

What role the business correspondents are currently playing?

Currently, business correspondents are in the activities which include identification of borrowers,

collection and preliminary processing of loan applications, creating awareness about savings and

other products and processing and submission of applications to banks.

What did the RBI suggest banks to enhance currency distribution?

RBI has said that services of business correspondents could be used for distributing banknotes

and coins. Their services could also be used by banks for follow-up for recovery, disbursal of

small value credit and collection of small value deposits. As per the notification by RBI, NGOs,

micro-finance institutions, section 25 companies and post offices, among others, could act as

business correspondents.

RBI notifies norms for banks to swap overseas borrowings

September 12, 2013

The Reserve Bank of India, in a notification, said that banks can raise funds overseas above 50%

of their Tier I capital with a minimum maturity of 3 years and swap these borrowings with the

RBI at a concessional rate of a 100 basis point below the market rate with a minimum tenor for 1

to a maximum of 3 years. Bank can use this swap facility to sell dollars in multiples of a million

to RBI. At the end of the swap period, the bank would have to buy the same amount of dollars.

As per the new norms by the RBI for banks to swap overseas borrowings:

The swaps should be available at a concessional rate of a 100 basis points below the

market rate for all fresh borrowing with a minimum tenor of 1 year and a maximum tenor

of 3 years, irrespective of whether such borrowings are in excess of 50% of their

unimpaired Tier I capital or not.

While the swaps would be for the entire tenor of the borrowing, the rate would be reset

after every 1 year from the date of the swap at 100 basis points lower than the market rate

prevailing on the date of reset.

Although the banks are permitted to borrow in any freely convertible currency, the swap

will be available only for conversion of US dollar equivalent into rupees and the

American currency equivalent would be computed at the relevant cross rate prevailing on

the date of the swap.

Banks can now borrow funds from their Head Office, overseas branches and

correspondents and overdrafts in nostro accounts up to a limit of 100% of their

unimpaired Tier I capital as at the close of the previous quarter or $10 million, whichever

is higher, as against the existing limit of 50%.

Issue of corporate guarantee on behalf of second generation or subsequent level step

down operating subsidiaries will be considered under the approval route for Overseas

Direct Investment, provided the Indian Party indirectly holds 51% or more stake in the

overseas subsidiary for which such guarantee is intended to be issued.

Russia removes ban on non-basmati rice and oilseeds

imports from India

September 12, 2013

In what can be a major boost to Indian agricultural exports, Russia has

removed the ban on import of non-basmati rice and oilseeds from India.

Why Russia had earlier imposed a ban on import of Indian non-basmati rice and oilseeds?

Russia had imposed the ban on import of Indian non-basmati rice due to the presence of khapra

beetles pest in rice and aflatoxin contamination of peanuts.

Government to evolve new index to fix rural MGNREGA

wages

September 12, 2013

The government is working on a new index based on the consumption pattern of rural landless

labour to fix wages under the Mahatma Gandhi National Rural Employment Guarantee Act.

Why the need for a new index for fixing MGNREGA wages?

Currently government uses Consumer Price Index for Agricultural Labourers (CPI-AL) with

a base year of 1986-87 to calculate MGNREGA wages. The high MGNREGA wages have been

often blamed for causing a hike in farm labour wages. It has been observed that the consumption

pattern of the rural laborers have undergone a change and therefore the base year of 1986-87 has

become outdated. While the weight assigned to food items in the CPI-AL is 69.15%, expenditure

on food as a proportion of total household consumption spending fell from 64% in 1987 to

48.6% in 2011-12, as per the latest household consumption expenditure survey by NSSO. Hence,

wages indexed on rural consumption pattern may lead to lesser inflation adjustment as the food

component in the basket will decrease, which has been facing double-digit inflation for quite

some time now.

What would be the effect of the use of new index for fixing MGNREGA wages?

The new index will incorporate latest rural consumption pattern. As the new consumption pattern

shows decrease in the expenditure on food as a proportion of total household consumption, the

new wages indexed on rural consumption pattern may lead to lesser inflation adjustment as the

food component in the basket will fall, which has been witnessing double-digit inflation. It

visible from the latest inflation data that food is more volatile in terms of inflation as compared

with non-food inflation

Indian regains WHO-SEAR directorship after 44 years

September 14, 2013

The member nations of the World Health Organization’s South-East Asia Region (SEAR)

have chosen Poonam Khetarpal Singh, a former Indian IAS officer, as the regional director of

WHO (SEAR). It is after a gap of 44 years that an Indian has been elected for the post. India had

last occupied the chair from 1948 to 1968 but has not held it since then. Singh succeeds

Plianbangchang of Thailand, who has served as regional director for 10 years now. She will

serve the post for 5 years.

Which are the countries in WHO-SEAR group?

World Health Organization’s South-East Asia Region (SEAR) has 11 nations. They are:

1. Bangladesh

2. Bhutan

3. Democratic People’s Republic of Korea

4. India

5. Indonesia

6. Maldives

7. Myanmar

8. Nepal

9. Sri Lanka

10. Thailand

11. Timor-Leste

‘Slum Free India’ mission to be launched soon

September 14, 2013

The Union government has planned to start a ‘Slum Free India’ mission with Rajiv Awas

Yojana(RAY). The programme will be implemented on a mission mode during 2013-22.

What is ‘Slum Free India’ mission?

The ‘Slum Free India’ mission will be aimed at bringing all existing slums within the formal

system and enabling them to avail the basic amenities that are available for the rest of the city. In

the implementation phase, RAY will cover all towns, cities and urban agglomerations in the

country.

How would the selection of slums be made?

The selection will be made by the states in consultation with the centre giving priority to district

headquarters, cities of religious, heritage and tourist importance with due consideration to the

criterion of speed of growth of the city, slums within the city and predominance of scheduled

caste, scheduled tribe and minority population and other weaker and vulnerable section of the

society.

What would be the government funding structure of ‘Slum Free India’ mission?

The Union government would fund 50%, 75% and 80% of the project cost for towns, cities and

urban agglomerations respectively with population of more than 5 lakh, less than 5 lakh for those

in northeastern region.

WHO praises India’s efforts in eliminating Polio

September 12, 2013

India’s efforts in eliminating polio have been exalted by WHO which said

the country has not reported a single case of polio in the last 30 months.

WHO Director General Margaret Chan said India accomplished the feat even as 194

countries in the world were pondering whether it can interrupt the transmission of polio. She

urged other nations in the South–East region to introduce universal access to healthcare. She

complimented India’s healthcare initiatives in improving the health of its mothers and children.

She also expressed concern over the increasing incidence of heart disease which caused 9.4

million deaths every year. High blood is a main contributor to heart diseases and more than one

in three adults across the world is suffering from high blood pressure.

Thomas Bach is new President of International Olympic

Committee

September 12, 2013

Thomas Bach (59) from Germany has been elected as the President of the

International Olympic Committee (IOC). He is the first Olympic gold medallist to become the

President of the IOC. He will succeed Jacques Rogge, who stepped down after 12 years in

service.

Who is Thomas Bach?

Thomas Bach is a German former fencer and is the President of the International Olympic

Committee and the German Olympic Committee. He won a gold medal in the team foil event at

the 1976 Summer Olympics

ATMs, PoS machines to scan UID biometrics

September 14, 2013

The RBI is understood to be preparing a directive for banks to introduce additional facilities in

all new credit card swipe (Point of Sales, or PoS) machines and Automated Teller Machines

(ATMs) for providing a mechanism for Aadhaar authentication using biometrics.

The central bank intends to have an Aadhaar-based authentication to provide additional security

for card transactions. Although RBI seems to have accommodated to a combination of ‘chip and

PIN’ authentication for existing customers and biometric checks for hitherto unbanked

cardholders, the challenge is in the acceptance devices.

Banks are of the view that the additional facilities would significantly increase investment costs.

The other challenge is that conventional phone lines may not work to transmit scanned

fingerprint images for verification. As per banks, the new machines will require the equivalent of

3G data speeds to transmit biometric data.

UNCTAD forecasts India’s growth at 5.2% in 2013

September 14, 2013

As per the Trade and Development Report 2013 released by the United Nations Conference on

Trade and Development (UNCTAD), Indian economy is likely to grow at 5.2% in 2013 calendar

year on account of rising domestic demand.

UNCTAD’s India growth prediction at 5.2% for 2013 is however lower than the International

Monetary Fund’s forecast of 5.6% for the same period.

For China, the report projected a moderate decline to about 7.6% in 2013 from 7.8% last year.

India’s economic growth declined to a decade’s low of 5% in 2012-13 fiscal. The RBI has

projected a growth rate of 5.5% for the current fiscal.

As per UNCTAD, the global growth in 2013 is likely to marginally drop to 2.1% from 2.2% in

2011 and added that developing countries would be affected by slowdown in developed nations.

Government sets up mechanism to prevent wastage of

foodgrain

September 14, 2013

The government has set up a detailed mechanism to ensure procurement of good quality

foodgrain, its safe storage, transportation and distribution in order to prevent wastage of

foodgrain.

Some key points in the mechanism to prevent wastage of foodgrain:

The procurement of foodgrain is to be according to the uniform specifications formulated

by the government.

Procured foodgrain are to be stored in scientific storage system. During storage,

prescribed code of practices are to be followed to avoid any damage/wastage.

There is a regular monitoring mechanism under which inspections at all levels are carried

out to ensure safe preservations of foodgrain in Food Corporation of India (FCI)

godowns.

The FCI and the state governments are to ensure that all godowns are constructed as per

specifications.

In order to check moisture from seeping into foodgrain, adequate dunnage materials such

as wooden crates, bamboo mats, polythene sheets are to be used.

Pest-control measures like providing fumigation covers, nylon ropes, nets and

insecticides will be taken in all the godowns.

IONS workshop in Mumbai to analyze security aspects in

IOR

September 14, 2013

The IONS Operational Seminar and Preparatory Workshop – 2013 was hosted by the Western

Naval Command at Mumbai on the theme, ‘Roles and Expectations of Emerging Navies in

Cooperative Engagement for Peace and Stability in IOR’. The seminar was attended by 39

delegates from 21 countries.

What is ‘Indian Ocean Naval Symposium’ (IONS)?

The ‘Indian Ocean Naval Symposium’ (IONS) is a maritime security construct on similar lines

as the WPNS. Whilst the WPNS is for the region of Asia-Pacific, the IONS addresses the Indian

Ocean Region (IOR).

The IONS is a voluntary initiative that seeks to increase maritime co-operation among navies of

the littoral states of the IOR by providing an open and inclusive forum for discussion of

regionally relevant maritime issues. It endeavors to generate a flow of information between naval

professionals that would lead to common understanding and possibly cooperative solutions on

the way ahead. The inclusiveness of this forum means that all the principal maritime agencies of

states in the IOR are members, unless they desire otherwise, thereby involving participation by

almost all the littorals in the region to address cooperative maritime issues.

Who are the members to IONS?

There are 35 members - navies of the IONS which have been geographically grouped into the

following four sub-regions:

1. South Asian Littorals: Bangladesh, India, Maldives, Pakistan, Seychelles and Sri

Lanka

2. West Asian Littorals: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, UAE

and Yemen

3. East African Littorals: Comoros, Djibouti, Egypt, Eriteria, France, Kenya,

Madagascar, Mauritius, Mozambique, Somalia, South Africa, Sudan and Tanzania

4. South East Asian and Australian Littorals: Australia, Indonesia, Malaysia, Myanmar,

Singapore, Thailand and Timor Leste

What are the objectives of IONS?

The key objectives of the IONS are:

To promote a shared understanding of the maritime issues facing the littoral nation-states

of the Indian Ocean and the formulation of a common set of strategies designed to

enhance regional maritime security.

To strengthen the capability of all littoral nation-states of the Indian Ocean to address

present and anticipated challenges to maritime security and stability.

To establish and promote a variety of trans-national, maritime, cooperative-mechanisms

designed to mitigate maritime-security concerns within the Indian Ocean.

To develop interoperability in terms of doctrines, procedures, organisational and logistic

systems and operational processes, so as to promote the development of regional naval

capacities for speedy, responsive and effective Humanitarian Assistance and Disaster

Relief (HADR) throughout the Indian Ocean region.

According to Dr C Raja Mohan, recognized fellow at the Observer Research Foundation,

there are three imperatives demanding greater maritime security cooperation in the IOR:

1. The management of the global maritime commons is becoming complex due to deepened

divisions amongst the world’s leading nations on account of changing global distribution

of power.

2. Pressures on the defence budget forcing retrenchment of armed forces thereby

constraining maritime powers from delivering public goods in the maritime domain.

3. Growing interests of the littoral states and the opportunity provided by the IONS

construct for the region to reclaim its maritime destiny

India, Kyrgyzstan agree to bolster defence ties

September 16, 2013

India and Kyrgyzstan have agreed to further strengthen bilateral defence cooperation in areas,

including training, UN peacekeeping and defence industry. It was decided at a meeting between

Defence Minister A K Antony and Kyrgystan Defence Minister Taalaibek Omuraliev who is on

India visit.

Indo-Kyrgyztan relations:

India has traditionally warm and friendly political ties with the Kyrgyz Republic. Kyrgyzstan

also supports India’s stand on Kashmir and have welcomed the ongoing peace process.

Kyrgyzstan also supports India’s claim for permanent seat at the United Nations Security

Council and India’s role in the Shanghai Cooperation Organization(SCO).

On the trade side, Indo-Kyrgyz trade totaled US$23.56 million in 2010-11. India’s exports to

Kyrgyzstan was US$22.56 million whereas Kyrgyz exports to India amounted to only US$1.2M.

Apparel and clothing, leather goods, drugs and pharmaceuticals, fine chemicals, and tea are some

of the important items in India’s export basket to Kyrgyzstan. Kyrgyz exports to India consist of

raw hides, metalifers ores and metal scrap etc.

Liberian President Ellen Johnson Sirleaf honored with

Indira Gandhi Peace Prize

September 14, 2013

Indian President Pranab Mukherjee conferred the Indira Gandhi peace prize on Liberian

President Ellen Johnson Sirleaf in recognition of her inspiring efforts for ensuring the return of

peace, democracy, development, security and order in Liberia and for her strong interest in the

consolidation and betterment of relations between both the countries.

About Ellen Johnson Sirleaf:

Current President of Liberia.

Earlier, served as Minister of Finance under President William Tolbert from 1979 until

the 1980 coup d’état, after which she left Liberia and held senior positions at various

financial institutions.

Won the 2005 presidential election and took office on 16 January 2006, and she was a

successful candidate for re-election in 2011.

First democratically elected women Head of State of any African country. Awarded 2011 Nobel Peace Prize, jointly with Leymah Gbowee of Liberia and Tawakel

Karman of Yemen.

Oil production kicks off in Kashagan, world’s largest oil

field outside the Middle East

September 14, 2013

World’s largest oil field outside the Middle East- Kashagan field in Kazakhstan started

production of crude. Although the starting production is just 26,000 barrels a day, the reservoir

promises about 1.5 million barrels of oil a day to global output in future. If it attains that level,

the oil will be equivalent to about 1.6% of the world’s total, or roughly the amount Libya

produces.

A consortium of oil companies including KazMunayGas, the national oil company of

Kazakhstan; Shell of the Netherlands; Total of France; Inpex of Japan; Exxon; Conoco; and Eni

– are slowly but –steadily developing the oil field.

Kashagan Oilfield:

Kashagan Field is an offshore oil field in the Kazakhstan’s zone of the Caspian Sea. The field, discovered in 2000, is

located in the northern part of the Caspian Sea close to Atyrau and it is considered the world’s largest discovery in

the last 30 years, combined with the Tengiz Field.

Delay in the Project: Although it was discovered in 2000, the project was delayed due to technical problems, disputes

with the Kazakh government, and infighting among the oil companies. The project is already five

years behind schedule and has cost $41 billion.

A Challenging Project: The Kashagan oilfield project is one of the world’s most challenging projects as the developers

have to confront harsh conditions as sea ice during the winter, temperature variation from -35 to

40 °C, extremely shallow water and high level of hydrogen sulphide. There are environmental

concerns too as the oil in the field in under high pressure which increases the chances of spills.

Obama nominates person of Indian origin to key post

September 14, 2013

US President Barack Obama has nominated Indian-American Puneet Talwar as assistant

secretary of state for political military affairs.

Talwar has served Obama’s top advisor on the Middle East region for over four years. He is the

second Indian-American to be nominated as the assistant secretary position in the state

department. In July, 2013, Nisha Desai Biswal was nominated as the assistant secretary of state

for South and Central Asia. Both the nominations are yet to be confirmed by the Senate. If

confirmed by the Senate, Talwar, will provide policy direction in the areas of international

security, security assistance, defence strategy and plans, military operations, and defence trade.

Rupee at present level is well corrected, gaining stability: C

Rangarajan

September 16, 2013

As per Prime Minister’s Economic Advisory Council Chairman C Rangarajan, the rupee at

the current level is “well corrected” and stability is returning to the forex market, amidst

volatility in the exchange value of the local currency.

The rupee has recuperated to 63 level after plunging its life-time low of 68.85 towards August-

end. As per C Rangarajan rupee will strengthen with increase in capital inflows and fall in

Current Account Deficit (CAD).

India to buy six more C-130J ‘Super Hercules’ aircraft

September 16, 2013

The Defence Acquisition Council (DAC) headed by Defence Minister A K Antony has given

approval for the purchase of 6 more C-130J “Super Hercules” aircraft from the US in a deal

worth over Rs 4,000 crore. It will now need a final approval from the Cabinet Committee on

Security.

The DAC also gave nod for placing an order for 235 T-90 tanks worth Rs 6,000 crore with the

Ordnance Factory Board. These battle tanks would be manufactured under the Transfer-of-

Technology agreement India has inked with Russia.

The Indian Air Force already has six C-130J planes which are deployed at its Hindon

airbase. The new lot of six planes will be positioned at Panagarh in West Bengal, which would

be headquarters of the proposed Mountain Strike Corps of the army along the China border.

Factbox: C-130J ‘Super Hercules’

Manufactured by the United States. World’s most advanced and tactical aircraft.

Primarily designed to support India’s special operations requirement.

Equipped with an Infrared Detection Set (IDS), the aircraft can perform precision low-

level flying, airdrops and landing in blackout conditions.

Self-protection systems and other features are included to ensure aircraft survivability in

hostile air defense environments. The aircraft also is equipped with air-to-air receiver

refueling capability for extended range operations.

Ideally suited to India’s mission environment, which often involves operating out of

austere, high-elevation airstrips in hot conditions.

Powered by four Rolls Royce AE2100 engines and Dowty six bladed props which

provide the aircraft with tremendous power.

The aircraft has already demonstrated its responsiveness during the recent

Uttarakhand flood disaster and 2012 Sikkim earthquake where it played a major

role in relief operations.

The aircraft demonstrated its agility when IAF landed it at the world’s highest

airstrip in Daulat Beg Oldi, in J&K, the place where Indian and Chinese troops had

a stand-off recently.

SEBI relaxes KYC norms for foreign investors

September 16, 2013

In a bid to attract foreign investors to Indian capital markets, stock market regulator SEBI eased

registration and disclosure norms for low-risk foreign investors and exempted low-risk overseas

entities from onerous paper work.

SEBI has formed 3 categories which classifies foreign investors eligible to make portfolio

investments in the country as per their risk profile. They are:

Category I: Government and other sovereign entities, it is the lowest-risk category.

Category II: Well-regulated entities such as mutual funds, insurers, investment trusts,

banks, university funds and pension funds.

Category III: Corporate bodies, individuals and family offices.

Those with low-risk profile, the Know Your Client (KYC) requirements, which entail

submission of various documents and disclosures to get registered and operate in Indian markets,

would be relaxed.

SEBI has also exempted Category I investors from submission of documents such as financial

statements and board resolution papers, while their top management, partners, directors, trustees

and authorised signatories would not be required to submit proof of identity, proof of address and

photographs.

In addition, such entities would be exempted from submission of the list, identity proof, address

proof and photographs for their ultimate beneficial owners.

Why has SEBI taken measures to ease KYC norms?

The central objective behind SEBI relaxing KYC norms for low risk investors is to make it easier

for the foreign investors to enter the country’s market and make decisions. The step has been

taken at a time when concerns are being raised about outflows of foreign capital and weakening

of the rupee against the dollar and other foreign currencies. SEBI is hopeful that these measures

will attract more capital towards India.

Union Cabinet’s nod to RBI for buying $4.3 bn World Bank

bonds

September 16, 2013

The Reserve Bank of India (RBI) was given nod by the Union Cabinet to invest $4.3 billion in

special bonds of the World Bank as it would help in securing extra funding from the multilateral

lending agency for infrastructure development projects.

How would this move benefit?

With this decision, RBI will be able to sign a special private placement bond agreement with the

International Bank for Reconstruction and Development, the World Bank’s lending arm,

which will provide additional borrowing space.

US, Russia agree to eliminate Syria’s chemical weapons

September 17, 2013

The long intensive negotiations between Russia and the United States in Geneva on the issue of

chemical weapons of Syria have reached a deal on a timetable for the fast elimination of Syria’s

stockpiles of chemical weapons, with the provision that the non-compliance by Damascus would

mean that the United Nations Security Council will direct the future course of action.

What is the agreement between Russia and the United States on Syria’s chemical weapons?

The framework agreement envisages that all Syrian chemical weapons will either be removed or

destroyed by the middle of 2014. By November 2013, the inspectors belonging to the

Organisation for the Prohibition of Chemical Weapons (OPCW), the UN and other supporting

staff enter Syria. They will have the authority to inspect any and all sites in the country. The

security of inspectors will be the responsibility of Syrian government and the opposition. The

disposal of chemical weapons will take place under the embedded guidelines of the Chemical

Weapons Convention.

The agreement is in the direction to create a Middle East zone free of weapons of mass

destruction —a move that would also cover the elimination of Israel’s atomic weapon

stockpiles. As per experts, a zone free of mass destruction weapons in West Asia would

encourage Syria to cooperate as it had stockpiled chemical weapons to deter a nuclear armed

Israel.

Under the plan, the Syrian government has been given one week to handover the stock of its

chemical weapons arsenal. The deal covers not only the destruction of weapons but also

capabilities to produce and refine chemical arms. In turn, Syria will become a member of the

OPCW, which outlaws the production and use of these arms.

What if Damascus is unable to abide by the provisions of the agreement?

There are differences between the US and Russia over the role of the Security Council in case

the Syrian government is unable to strictly abide by the provisions of the agreement. While the

Russians are not in favor of penalizing Syria under Chapter VII provisions of the UN charter

that allow the use of force, the US thinks that the provision could be invoked that allow “action

by air, sea, or land forces as may be necessary to maintain or restore international peace and

security” in the event other measures don’t work.

RBI invites bids to implement global Legal Entity Identifier

system

September 16, 2013

In order to have a better control on financial transactions, such as equity and currency

derivatives, the Reserve Bank of India has invited limited bids from about six entities, including

depositories, depository participants and custodians, to issue unique identification codes to

market participants.

The RBI will select one or two entities to assign them the responsibility of implementing a global

Legal Entity Identifier (LEI) system that will uniquely identify parties to financial

transactions.

What is Legal Entity Identifier (LEI) system?

LEI is a unique global identifier for each legal entity operating in the financial markets. The need

to have such a system was felt after the global financial crisis of 2008. The system will work

under the supervision of the RBI. LEI will aid in identification of participants in different

trading, clearing and settlement systems, thus enabling aggregation of exposures and

identification of linkages across markets as well as institutions, both domestic as well as global.

What are the objectives of LEI system?

The key objectives of Legal Entity Identifier (LEI) system are:

Improved risk management in firms

Better assessment of micro- and macro-prudential risks

Facilitation of orderly resolution

Containing market abuse and curbing financial fraud

Enabling higher quality and accuracy of financial data overall

How would the LEI system help?

As per Financial Stability Board, the LEI system would cut operational risks within firms by extenuating the need

for tailored systems to reconcile the identification of entities and support aggregation of risk positions and financial

data, which inflict substantial burdensome costs across the economy. It would also facilitate easy processing.

What is Financial Stability Board (FSB)?

FSB is an international body which was established after the 2009 G-20 London summit in April

2009 as a successor to the Financial Stability Forum. FSB work is to coordinate at the

international level the work of national financial authorities and international standard-setting

bodies and to develop and promote the implementation of effective regulatory, supervisory and

other financial sector policies. The Board includes all G-20 major economies, FSF members, and

the European Commission. It is headquartered in Basel, Switzerland.

Who are the members of FSB form India?

The Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) and

the Ministry of Finance are the members of FSB from India.

eBay opens Development Centre in Bangalore

September 16, 2013

Online e-commerce company eBay has opened a new development centre in Bangalore and

plans to recruit 1,000 IT professionals by 2016. eBay already has two development centers one

each in Chennai and Mumbai.

The centre will work on technologies relating to eBay and Paypal, a company that it acquired

which allows payments and money transfers to be made through the Internet.

The new development centre will work on mobile commerce-related apps, design for the eBay

Web site, analytics and online security solutions for traditional and mobile channels of

commerce.

Definition of ‘control’ in relation to FDI notified by RBI

September 16, 2013

The Reserve Bank of India notified the definition of term ‘control’ in the context of Foreign

Direct Investment (FDI) and revised the list of states where FDI is allowed in multi-brand

retail.

What is ‘Control’ as per RBI notification?

‘Control’ shall include the right to appoint a majority of the directors or to control the

management or policy decisions including by virtue of their shareholding or management rights

or shareholders agreements or voting agreements. The tighter definition is to ensure foreign

investors do not acquire indirect control in sectors where FDI is prohibited or capped at 49%.

States ready to implement FDI in Multi-Brand Trading:

The list of states which have given consent to implement FDI in Multi-Brand trading has been

modified with the addition of Himachal Pradesh and Karnataka. With this, the number of states

and Union Territories which have given consent to implement the FDI policy on multi-brand

retail has increased to 12.

Latest in FDI:

Norms for multi-brand retail trading have been relaxed and the mandatory 30% local

sourcing norms for companies have also been eased.

FDI in insurance stands at 26%.

The cap in telecom enhanced to 100% with automatic route allowed for FDI of up to 49%

IITs agree to get accredited by NBA

September 18, 2013

After years of procrastination, IITs have agreed to get themselves accredited by the National

Board of Accreditation (NBA). However, the HRD Ministry has given these premier

institutions freedom to conduct the review themselves and submit the report to the NBA. IITs

have been asked to put more efforts to reinvigorate its brand in order to enhance its chances of

making it to esteemed ‘QS Ranking’ of best institutions.

The internal departmental review would be completed by December 2013. For external peer

review, a panel of ten names of eminent persons from industry and academia would be sent to

the HRD ministry by October 2013.

How would accreditation of IITs help India?

IITs accreditation would help India become a part of the Washington Accord, an international

pact among accrediting agencies of 14 countries that recognizes engineering degree programmes

of each other. India is currently a provisional member of the Washington Accord. One of the

main criteria for any country to be part of the Accord is that its engineering degrees should be

accredited.

Other Decisions: The HRD Ministry also took a number of decisions on the basis of the recommendations made

by the Anil Kakodkar committee in order to increase the number of PhDs from IITs. As per

Kakodkar panel, at least 10,000 PhDs should be graduating from 2024-25. The HRD Ministry

has also requested the chairman of National Coordination Board (NCB) of Graduate Aptitude

Test in Engineering (GATE) to allow third year BTech students from centrally funded technical

institutions with Cumulative Performance Index of 7.00 to appear in GATE. The matter is under

consideration of Kakodkar panel.

South East Asian countries aim to get rid of Measles by

2020: WHO

September 17, 2013

As per the World Health Organization (WHO), South East Asian countries have set a target to

wipe out measles and control rubella and congenital syndrome by the year 2020. The effort is

estimated to cost $ 800 million.

What is the status of measles in South East Asia region?

An estimated 8 million children are vulnerable against measles in South East Asia region as they

are not vaccinated against the disease. Measles accounted for the death of over 70,700 children

in the region in 2011, which was about 45% of global measles deaths.

What is measles?

Measles is an infection of the respiratory system caused by a virus, specifically

a paramyxovirus of the genus Morbillivirus which are enveloped, single-stranded, negative-

sense RNA viruses.

Symptoms: Fever, cough, runny nose, red eyes and a

generalized, maculopapular, erythematous rash. The disease is contracted by children with low

immunity and can cause acute respiratory problems, diarrhoea and pneumonia. It can also result

in disabilities such as visual impairment.

Transmission: Through respiration (contact with fluids from an infected person’s nose and

mouth, either directly or through aerosol transmission).

What is the status of measles in India?

Although the expansion of vaccine coverage India has significantly reduced the child mortality

due measles, the disease continues to remain a major cause of death among children, claiming

between 50,000 to 100,000 lives every year. At present, only 70% of children in the country are

protected against it.

How can measles be prevented?

Measles can be prevented by a single dose of vaccine if given when the child is between 9 and

12 months.

China unveils world’s first deep UV laser device

September 17, 2013

China has become the first country in the world to possess Deep Ultraviolet (DUV) solid-state

laser device. The device was launched by the Chinese Academy of Sciences (CAS) after its

successful testing. The device marks the world’s first-ever output of 1,064-nanometer’s 6-

harmonic frequency multiplication, shortening the diode-pumped solid-state laser (DPL)’s

wavelength to 177.3nm.

What can be the use of Deep Ultraviolet (DUV) solid-state laser device?

The device can be used to enhance the production of grapheme, superconductors, insulators

and catalysis. The device which uses Potassium Beryllium Fluoroborate (KBBF) prism coupling

device-based DPL source features a smaller size, higher energy resolution and higher photon

influx density.

‘Epsilon’: Japan’s new, cheaper rocket successfully

launched

September 17, 2013

Japan’s Aerospace Exploration Agency or JAXA successfully launched a new rocket named

Epsilon which is cheaper and more efficient than its previous rockets.

About Epsilon:

Japan’s three-stage rocket which uses solid-fuel propellant

Launched from a space centre on Japan’s southern main island of Kyushu

Main payload: SPRINT—A – First space telescope designed to observe other planets.

It is the first new rocket design for Japan since the H2A was introduced in 2001. The

H2A remains Japan’s primary rocket but JAXA hopes the Epsilon will lead to

improvements in the more costly H2A program.

It costs about 3.8 billion yen ($40 million), one-third the cost of the H2A.

Extensive use of computer technology enables it to be controlled on a single laptop

Governmet sanctions 158 ‘Eklavya Model Residential

Schools’ for ST students

September 18, 2013

Govt. of India has approved a total of 158 Eklavya Model Residential Schools (EMRSs) for

Tribal students out of grants under Article 275(1) of the Constitution of India in 23 states out of

which 111 schools have become fully functional with all facilities. Gujarat has been sanctioned

22 schools which is the highest for any state followed by Madhya Pradesh (20) and Rajasthan

(17). Chhattisgarh and Odisha have been sanctioned 16 schools each.

All the facilities for a proper study environment like adequate number of class rooms, computer

and science laboratory , library , recreation room, hostels for students and housing facilities for

the teaching and other supporting staff are made available in the EMRSs. Further, the school

buildings have been made accessible to students with disabilities.

What are the objectives of ‘Eklavya Model Residential Schools’?

The objective of EMRS is to provide quality middle and high level education to Scheduled Tribe

(ST) students in remote areas, not only to enable them to avail of reservation in high and

professional educational courses and as jobs in government and public and private sectors but

also to have access to the best opportunities in education at par with the non ST population. This

would be achieved by:

Comprehensive physical, mental and socially relevant development of all students

enrolled in each and every EMRS. Students will be empowered to be change agent,

beginning in their school, in their homes, in their village and finally in a larger context.

Focus differentially on the educational support to be made available to those in Standards

XI and XII, and those in standards VI to X, so that their distinctive needs can be met.

Support the annual running expenses in a manner that offers reasonable remuneration to

the staff and upkeep of the facilities.

Support the construction of infrastructure that provides education, physical,

environmental and cultural needs of student life.

Researchers develop world’s first self-healing polymer

September 18, 2013

The researchers, from the CIDETEC Centre for Electrochemical Technologies in San Sebastian,

Spain have created the world’s first self-healing polymer that spontaneously and independently

repairs itself without any intervention.

How does the self-healing polymer work?

The scientists developed the self-healing thermoset elastomers from common polymeric starting

materials using a simple and inexpensive approach. A double decomposition reaction of aromatic

disulphides, which naturally exchange at room temperature, causes the regeneration. The

polymer behaves as a Velcro-like sealant or adhesive, displaying an impressive 97% healing

efficiency in just 2 hours.

What could be the use of self-healing polymer?

The new material could be used to improve the security and lifetime of plastic parts in everyday

products such as electrical components, cars and even houses.

Govt. establishing INOIC : India’s sovereign wealth fund

September 18, 2013

The Government of India is establishing a company —India Overseas Investment

Corporation (INOIC) — under the Ministry of Finance similar to a sovereign wealth fund to

impart financial power for securing access to overseas natural resources.

What is INOIC?

India Overseas Investment Corporation (INOIC) will be like India’s sovereign wealth fund

which will function as a development finance institution with the specific mandate to provide

equity and debt to Indian public sector enterprises (PSEs) for securing natural resources abroad.

How would INOIC function?

INOIC would like the government’s holding arm and registered with RBI as a nonbanking

financial institution with a paid-up capital of Rs 10 crore. The company will raise funds through

rupee bonds of 15-20 years with sovereign guarantee. State-run entities, banks and financial

institutions will subscribe to these papers using their surplus funds. It will not borrow from the

RBI unlike IIFCL. The company will purchase or swap its rupee funds with foreign currency

from the RBI at market-related rates. This will provide for a market-oriented mechanism and

avoid management of temporary surplus forex funds. The formation of the company will follow

amendments in guidelines so that state entities don’t have to seek Public Investment Board’s

clearance if the quantum of overseas investment is within INOIC’s ambit. The company will act

as a singlewindow clearing and financing framework that will be more expeditious than the

current system involving multiple layers of approvals for foreign acquisitions. Basically, it

means ready cash for an entity acquiring assets overseas.

Note: Formation of INOIC will place India into a select club of economies such as US, Russia,

China, South Korea, Singapore, Malaysia, Brunei, Qatar and UAE that have pushed overseas

acquisitions and business through such funds.

Naxalites using RTI as a weapon to target contractors

September 18, 2013

As per police investigation, the Maoists are using the Right to Information law to get the details

of the contractors and businessmen for extortion. They use proxies to file Right to Information

applications to collect data about government projects in order to target businessmen and

contractors for extortion.

Police have recovered RTI documents from a training camp of the People’s Liberation Front of

India, once a faction of the CPI(Maoist), in Torpa forests, which have details of 30-odd

government projects under Khunti district rural development agency, with names of contractors

and estimated costs.

Voyager 1 crosses Solar System, enters interstellar space

September 21, 2013

Voyager 1 became the first man-made object to cross the Solar System and enter into interstellar

space on August 25, 2012. The space probe is at a distance of more than 19 billion km from the

Sun.

What is Voyager 1?

Voyager 1 is a space probe launched by NASA in 1977 alongside its identical sister probe

Voyager 2 to study the outer Solar System and the interstellar medium – the physical space

within a galaxy not occupied by stars or their planetary systems.

Salient facts about Voyager 1:

Flew by Jupiter in 1979 and Saturn in 1980, concluding its primary mission and became

the first spacecraft to transmit detailed images of the two planets and their moons.

In 1990, 9.6 billion km from Earth, it turned around and clicked the entire Solar System.

Since then it has been flying toward the edge of the Solar System at some 17 km/s,

surrounded by a hot ‘sea’ of charged particles called plasma.

Crossed the heliopause and entered interstellar space on August 25, 2012.

Nina Davuluri : First Indian American to become Miss

America

September 20, 2013

Nina Davuluri has become the first winner of the Miss America 2014 from

an Indian background. Previously, she won Miss New York 2013.

Nina Davuluri was born in Syracuse, New York to Telugu parents of Hindu faith. Her mother

Sheila Ranjani, software engineer, and father Davuluri Koteshwara Choudhary, gynecologist,

both hailed originally from Vijayawada, Andhra Pradesh, India.

Patna to build a Science City: Nitish Kumar

September 20, 2013

With an aim to nurture scientific temper among children, the Bihar government has decided to

build a ‘Science City’ with state-of-the-art technology.

The Science City would cost Rs. 500 crore and is proposed to be built on 15 acres of land, near

the Moin-Ul-Haq Stadium in Patna. The firm Lord Cultural Associate has been entrusted with

the task of preparing the concept for the city. A village dedicated to alternative energy sources

would also be part of this scientific centre.

Apex court backs government’s decision to charge

deregulated diesel prices to bulk oil buyersC

September 20, 2013

The government’s decision to charge market prices for diesel sold to bulk buyers such as

defence, railways and transport corporations has been endorsed by the Supreme Court. The

decision had been stayed by some courts after transport corporations challenged it.

The apex court held that the decision by the government was right. As per the court, due to

subsidy on oil, declining value of rupee and expanding Current Account Deficit (CAD) country’s

economy is suffering. The court conceded to the government’s rationale for increasing prices of

petroleum prices in a phased manner over the years

Microsoft Corp to buy back up to $40 billion of shares

September 21, 2013

Technology giant Microsoft Corp increased its quarterly dividend by 22% to 28 cents per share

and launched a new share buyback program of up to $40 billion. Microsoft has been going

through a slew of changes, with Chief Executive Steve Ballmer announcing to retire soon, just

weeks after the company’s poor performance on sales of its new Surface tablet. Microsoft is

likely to buy Nokia’s phone business in this month and would license Nokia’s patents for 5.44

billion euros ($7.2 billion).

RBI tightens norms for companies lending against gold

September 21, 2013

As per the notification by the RBI, the central bank has tightened rules for finance companies

which lend against gold, in line with the suggestions of an internal panel. As per the new rules:

The lenders need to value the pledged gold at the average closing price of 22-carat gold

for the preceding 30 days as quoted by the Bombay Bullion Association Ltd, to arrive at

the loan-to-value ratio. The ratio would remain at 60% for loans against jewellery.

At present, there is no standard method for arriving at the value of gold accepted as

collateral and valuation is arbitrary.

The process by which lenders auction gold when a borrower defaults has also been

streamlined by the RBI. Lenders will now need to declare a reserve price for the pledged

ornaments.

Lenders would also need RBI clearance to open branches exceeding 1,000.

New branches would not be allowed without sufficient storage facility for gold.

Large scale irrigation Projects no more feasible: Jairam

Ramesh

September 21, 2013

Minister for rural development Jairam Ramesh clarified that with the enactment of Land

Acquisition Bill acquisition of land for another major irrigation project like the Sardar Sarovar

Dam would not be feasible. He held that enormous and major irrigation projects are no longer

practicable as it requires large-scale land acquisition and displacements of habitations.

What is the controversy about Sardar Sarovar Dam?

The Sardar Sarovar Dam is a gravity dam on the Narmada River near

Navagam, Gujarat in India. The dam took form in 1979 as part of a development scheme to

increase irrigation and produce hydroelectricity. It is the largest dam and part of the Narmada

Valley Project, a large hydraulic engineering project involving the construction of a series of

large irrigation and hydroelectric multi-purpose dams on the Narmada River. The dam is one of

India’s most controversial dam projects and its environmental impact and net costs and benefits

are widely debated. The World Bank was initially a funder of the SSD, but withdrew in

1994. The project led to large scale displacement of tribal people inhabiting in the project region

as well as damage to environment. The development of the project witnessed protests including

Narmada Bachao Andolan. Land acquisition, displacement and rehabilitation of ousted

families still remains a matter of conflict and dispute between the state governments and citizens.

Responding to difficulties faced by the state governments in implementing, some provisions of

the Land Acquisition Bill, some exemptions have been made. These are:

1. Land or compensation may be provided to the displaced family but not both. And land

may be provided wherever possible. However, this exemption will not apply when the

affected family belongs to the Dalits and tribals community. For SC, ST the government

will have to provide land for land.

2. Waiver has been given for conduction the social impact assessment process since the

environment impact assessment asked all the relevant questions about displaced and

affected families.

Government to aid textile start-ups via equity fund model

September 21, 2013

Considering the huge export potential of some areas like textile, leather and toys, Government is

planning to fund and provide workspace to start-ups in these sectors. The project will be tested in

the textile sector where space will be provided to entrepreneurs at textile parks while funds will

be given through the state-supported Textile Equity Fund.

The Ministry of Textile is working with SIDBI to launch the first state-supported, dedicated

Textile Equity Fund in the next three months, which will ensure easy availability of equity for

start-ups as well as expansion for smaller enterprises. Government aims to replicate the success

story of the IT sector which boomed on similar models. If successful, the model will be

replicated in leather and toys industries.

About 40 textile parks have already been established in the country, while another 20 were

announced last year to boost the competitiveness of the sector. Textile has a share of about 14%

to industrial production, 4% in the GDP and 17% in the export earnings. The sector is the

second-largest employment provider after agriculture.

China launches its first direct bank

September 22, 2013

China launched its first direct bank, a new mode of providing online banking services without

any entity outlets. The direct bank has been launched by the Bank of Beijing in co-operation

with the Netherlands-based ING Group.

What is a Direct Bank?

A direct bank is a bank without any branch network that offers its services remotely via online

banking and telephone banking and may also provide access via ATMs (often through interbank

network alliances), mail and mobile. By eliminating the costs associated with bank branches,

direct banks can make substantial savings which they may pass on to clients via higher interest

rates or lower service charges.

September 21 observed as International Day of Peace

September 21, 2013

International Day of Peace was observed on September 21 across the world to acknowledge

the efforts of those who have strived to end conflict and promote peace. The International Day of

Peace is also observed as a day of ceasefire. The theme for the year 2013 is Education for

Peace.

About International Day of Peace:

The International Day of Peace was established in 1981 by resolution 36/67 of the United

Nations General Assembly to coincide with its opening session, which was held annually on the

third Tuesday of September. The first Peace Day was observed in September 1982. In 2001, the

General Assembly by unanimous vote adopted resolution 55/282, which established 21

September as an annual day of non-violence and cease-fire.

U.N. finds extensive use of chemical weapons in Syria

September 21, 2013

As per the report released by the U.N., the experts have found large-scale use of banned

chemical weapons in Syria. The U.N. inspectors have found clear evidence that “Sarin

Gas” killed hundreds of people in an attack on Ghouta near Damascus on August 21, 2013.

The attack triggered threats by the US and other western nations of a military action against

President Bashar al-Assad regime. The United States says more than 1,400 people died in

Ghouta. Mr. Assad has rejected the allegations of using sarin and blamed opposition rebels for

the attack whereas Western nations say only the government has such weapons.

Recently, the US and Russia agreed to destroy the Syrian stockpiles of chemical weapons. A

U.N.-mandated independent panel of inquiry into rights violations in the Syria war announced

separately that it was investigating 14 alleged chemical weapons attacks in Syria. The latest

findings are likely to affect the future course of action by the UN on Syria issue. However,

Russia has made it clear that it is not in favor of any military strike against Assad regime.

Indian Navy to get Vikramaditya in mid-November 2013

September 21, 2013

The Indian Navy will soon get its second aircraft carrier, 45,000-tonne Vikramaditya as the

warship has successfully completed all aviation trials in the White Sea. Formerly Admiral

Gorshkov which has been renamed INS Vikramaditya, the ship has been undergoing refitting and

refurbishment at the Sevmash shipyard in the Russian city of Severodvinsk. It is likely to be

delivered to the Indian Navy in mid-November. Currently, the Navy operates INS Viraat.

India’s first indigenous aircraft carrier, Vikrant, is being built by the Cochin Shipyard, and it

is likely to be ready for commissioning in 2017-18.

Salient features of INS Vikramaditya:

Russian aircraft carrier which was originally commissioned in 1986 and decommissioned

in as she was too expensive to operate on a post-Cold War budget.

It has been purchased by India at a final price of $2.35 billion.

Achieved its top speed of 32 knots

MiG-29K fighter jets successfully completed take-offs and landings on its deck.

284-metre-long and 60-metre-high, can easily carry 30 fighter jets and helicopters, is

fitted with latest communication systems, protective coating, a telephone exchange,

pumps, hygiene and galley equipment, lifts and many more facilities.

Govt gives nod to 10% hike in DA, to benefit 80 lakh

employees, pensioners

September 22, 2013

The Union Cabinet has given approval to a 10% additional instalment of Dearness Allowance

(DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect

from July 1, 2013. This will benefit around 50 lakh serving employees and 30 lakh retired

employees.

The latest increment will increase the effective rate of DA and DR to 90% and will cost

government an additional Rs 7,253 crore in 2013-14 and Rs 10,879 crore 2014-15 onward.

About Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) :

DA and DR are revised twice a year, first in January 1 and second from July 1. The revisions

are based on the change in the Consumer Price index for Industrial Workers (CPI-IW).

Draft norms on new Company Law make companies to

disclose management’s pay

September 22, 2013

As per norms stipulated in the second set draft rules for the new company law, listed firms have

been mandated to disclose in the board’s report the ratio of the remuneration of each director

to the median remuneration of employees.

The new company law seeks to improve the regulatory framework around disclosure of

managerial remuneration.

The new rules also prohibit companies from issuing shares with differentiated rights as to voting,

dividend or otherwise unless certain conditions are fulfilled. A key condition is that shares with

differential rights should not exceed 25% of the post issue paid up capital.

It has also been stipulated that the company should have a 10% dividend payment track record

for the last 3 financial years immediately preceding the financial year in which such shares are to

be issued.

US puts Prudential Financial into ‘too big to fail’ list

September 22, 2013

The US Financial Stability Oversight Council’s (FSOC) designated insurance company

Prudential Financial to its list of “too big to fail” institutions. The company has become the third

non-bank firm placed under a tighter regulatory regime to reduce risks to the financial system.

What are “too big to fail” institution?

This is a popular term used in the US for the firms which are so large and so interconnected that

their failure would be disastrous to the economy. As per US Federal Bank Chief Ben Bernanke

“A too-big-to-fail firm is one whose size, complexity, interconnectedness, and critical functions

are such that, should the firm go unexpectedly into liquidation, the rest of the financial system

and the economy would face severe adverse consequences.” The idea proposes that in a crisis

situation these too-big-to-fail firms should be given government assistance not out of favoritism

or particular concern for the management, owners, or creditors of the firm, but because they

recognize that the consequences for the broader economy of allowing a disorderly failure greatly

outweigh the costs of avoiding the failure in some way. Common means of avoiding failure

include facilitating a merger, providing credit, or injecting government capital, all of which

protect at least some creditors who otherwise would have suffered losses.

As per FSOC naming financial institutions “too big to fail” companies is an important tool to

mitigate risks posed by those companies, fill gaps in their overall supervision, tighter control,

and provide enhanced capital standards under which they must operate.

Which are the three non-bank financial companies designated as “too big to fail” institutions?

The three companies designated as “too big to fail” are:

1. Prudential Financial

2. American International Group

3. General Electric Capital Corp.

What is Financial Stability Oversight Council (FSOC)?

The FSOC is a United States federal government organization, which operates under the US

Treasury. It was established under the Dodd–Frank Wall Street Reform and Consumer Protection

Act, which came up in response to 2008 financial crisis and was signed into law in 2010. FSOC

has broad authorities to identify and monitor excessive risks to the U.S. financial system arising

from the distress or failure of large, interconnected bank holding companies or non-bank

financial companies, or from risks that could arise outside the financial system; to eliminate

expectations that any American financial firm is “too big to fail”; and to respond to emerging

threats to U.S. financial stability.

RBI hikes repo rate by 25 basis points to 7.5%

September 22, 2013

In a surprising move, the Reserve Bank of India Governor Raghuram Rajan, in his maiden mid-

quarter monetary policy review, hiked the short-term lending (repo) rate to 7.5%, seeking to

control inflation. The Cash Reserve Ratio (CRR) was left untouched at 4%.

To ease liquidity, the Marginal Standing Facility (MSF) rate, at which banks borrow from the

RBI, was reduced to 9.5% from 10.25% and the minimum daily maintenance of the CRR was

lowered to 95%.

In reaction to RBI’s decision the rupee slipped 46 paise to close at 62.23 against the dollar in line

with a sharp decline in local stocks.

However, RBI Governor Raghuram Rajan has made his stance clear that RBI wants lower

inflation and aims to curb it to 5% mark.

Govt to set up world’s largest solar power plant in

Rajasthan

September 22, 2013

The government has begun the process of building 4,000 MW ultra mega green solar

power project near Sambhar lake in Rajasthan. The project which has been named as

Sambhar Ultra Mega Green Solar Power Project is being set under the Department of

Heavy Industry (DHI) in the 23,000 acre area of Sambhar Salts Limited (SSL), subsidiary

of Hindustan Salts Limited (HSL) located in Rajasthan. It will be the world’s largest solar based

power project

First Phase Sambhar Ultra Mega Green Solar Power Project:

In the first phase the project will generate 1,000 MW which will be commissioned in 3 years i.e.

by the end of 2016.

Partners in the development of the first phase are BHEL, Solar Energy Corporation of India,

Power Grid Corporation, Satluj Jal Vidyut Nigam and Rajasthan Electronics and

Instruments Ltd. The development of the later phases will be based on the experience gained

during implementation of the first phase of project.

President’s assent to Prohibition of Employment as Manual

Scavengers and Their Rehabilitation Bill, 2013

September 22, 2013

The Prohibition of Employment as Manual Scavengers and Their Rehabilitation Bill, 2013 has

received the assent of the President of India. It has now been published in the Gazette of India on

September 19, 2013.

What are the key points in the Prohibition of Employment as Manual Scavengers and their Rehabilitation

Bill 2012?

According to the Bill:

The employment of manual scavengers, the manual cleaning of sewers and septic tanks

without protective equipment, and the construction of insanitary latrines is prohibited.

It provides for rehabilitation of manual scavengers and their alternative employment.

Each local authority, cantonment board and railway authority is responsible for surveying

insanitary latrines within its jurisdiction. They shall also construct a number of sanitary

community latrines.

Each occupier of insanitary latrines shall be responsible for converting or demolishing the

latrine at his own cost. If he fails to do so, the local authority shall convert the latrine and

recover the cost from him.

The implementing authorities shall be District Magistrate and the local authority.

Offences under the Bill shall be cognizable and non-bailable, and may be tried

summarily.

Bharatiya Mahila Bank to recruit POs

September 22, 2013

India’s first all-women bank, Bharatiya Mahila Bank, which expected to be operational from

November 2013, has invited online applications from female candidates for the 115 Probationary

Officer posts. The last date for online application is till September 30, 2013.

About Bharatiya Mahila Bank:

Bharatiya Mahila Bank is India’s first all-women public sector bank. The bank proposes to

complete the first six branches at Mumbai, Delhi, Kolkata, Chennai, Indore and Guwahati by

October 2013. The Government has already approved Rs 1,000-crore seed capital for the bank as

announced by Finance Minister P. Chidambaram in Budget 2013-14. The bank was already

given in-principal approval by the RBI and the banking company is being set up.

Headquarter of Bharatiya Mahila Bank will be in Delhi.

Objective: One of the key objectives of Bhartiya Mahila Bank is to focus on the banking

needs of the women and promote economic empowerment. It will also addresses the

gender related issues and will be helpful in financial inclusion.

Tata and Singapore Airlines ink MoU to set up a new full-

service airline

September 22, 2013

A Memorandum of Understanding (MoU) was signed between Tata Sons and Singapore

Airlines to enter into a joint venture to set up a full-service airline. Both the partners have

applied for Foreign Investment Promotion Board approval.

The initial investment in the project is estimated to be $100 million, with Tata Sons injecting $51

million for a 51% stake and Singapore Airlines pumping in $49 million for the remaining 49%.

This is the third proposal in the aviation sector since the Government permitted 49% FDI in

domestic airlines in September 2012.

Although Tata is already into a separate joint aviation venture with AirAsia and Telstra

Tradeplace for a low-cost airline, there will be no conflict of interest as the two airlines do not

compete in the same space. AirAsia has been fully aware of this joint venture and has no

objection to the deal

Presidential assent to Rajiv Gandhi National Aviation

University Bill, 2013

September 23, 2013

The Rajiv Gandhi National Aviation University Bill, 2013 has received the assent of the

President of India. It has now been published in the Gazette of India.

What the Rajiv Gandhi National Aviation University Bill, 2013 is all about?

The Bill proposes to create a central university to be named as Rajiv Gandhi National Aviation

University on 26 acre plot at the Indira Gandhi Rashtriya Udaan Academy Rae Bareli in Uttar

Pradesh. The university will be an autonomous body under administrative control of the Civil

Aviation Ministry. The university would promote aviation studies, training and research and the

focus would remain on the emerging areas such as aviation medicine, aviation safety and

security, aviation law, aviation science and engineering, aviation history, aviation regulation and

policy and aviation management. The University will also be a knowledge partner to safety and

security regulators by providing required academic inputs to help them execute their enforcement

responsibility better.

The Bill proposes that although the airports in India will be owned by the Airports Authority of

India, but the construction or development of the airports which are existing, shall be undertaken

on the basis of Public-Private Partnership (PPP).

RBI relaxes for opening new bank branches in Tier I cities

September 22, 2013

Now banks will have freedom to open branches in tier-I cities (those with population over 1

lakh) without seeking RBI’s approval in each case.

However, as per RBI guidelines, there are some conditions on opening branches, these are

stipulated below:

Banks should open 25% of their branches in a financial year in Un-banked tier-V and

tier-VI centres as earlier.

Total number of branches in tier –I centre’s can’t exceed the number of branches opened

in tier-2 to tier-6 centres during a year.

If the banks are unable to open all tier – 1 branches during that year, they can carry it

over for next 2 years.

If the banks unable to open requisite branches in tier- II to tier- VI centres for some

reason, it should necessary correct the shortfall in the next financial year.

Obabiyi Aishah Ajibola is Miss Muslimah World 2013

September 22, 2013

Nigerian beauty Obabiyi Aishah Ajibola (21) was announced the winner of the

Miss Muslimah World contest organised by the World Muslimah Foundation in Jakartha,

Indonesia. The event was held exclusively for Muslim women, who were assessed not only for

their appearance (in Islamic dress) but also for their piety, religious knowledge and

understanding of the Quran. Participants were asked to talk to people through their path to the

religion and what wearing a headscarf meant to them.

The Miss Muslimah World is an annual Islamic beauty pageant held at Indonesia. This

year, for the first time, the organizers allowed foreign participants from Iran, Malaysia,

Bangladesh, Brunei and Nigeria to take part.

Mohameddan Sporting Club wins Durand Cup after 73

years

September 22, 2013

After a long gap of 73 years, Mohammedan Sporting Club (MSC) of Kolkata won the Durand

Cup football tournament. The club vanquished ONGC 2-1 in the 126th

edition of the tournament

played at the Ambedkar Stadium in New Delhi. It was in 1940 when MSC last lifted the Durand

Cup when they won the tournament defeating Warwickshire Regiment.

The Durand Cup:

The inaugural Durand Football Tournament was held at Simla in the year 1888 by Sir Henry

Mortimer Durand, who was then, the Foreign Secretary to Government of India. Durand is the

third oldest football tournament in the world and oldest in Asia and India.

Fitch slashed India’s growth projection

September 23, 2013

Global rating agency Fitch has scaled down its projections on India’s growth to 4.8% for the

current fiscal from the earlier estimate of 5.7% made in June, 2013.

Why did Fitch scaled down India’s growth prospects?

The following are the key reasons behind the cut in growth projections:

Weak Indian currency against dollar

Expanding Current Account Deficit (CAD) on account of rising crude prices and falling

rupee

Weak demand

RBI confident of financing CAD without drawing much

from reserves

September 23, 2013

RBI Governor Raghuram Rajan evinced confidence that the country would be able to finance the

Current Account Deficit (CAD) without drawing down much from the forex reserves.

RBI is of the view that CAD could be brought down to $70 billion or even below that. In fiscal

2012-13, CAD stood at a historic high of 4.8%, or $88 billion, of the GDP. The government has

set a target of 3.7% CAD, or $70 billion, this fiscal.

The efforts of the RBI through FCNR-B and swap facility have yielded a total of nearly $1.4

billion. The market has also recuperated considerably after the US federal bank postponed the

tapering of stimulus. Mr. Rajan stressed on improving country’s economic parameters regardless

of the actions that the U.S. took.

RBI slashes MSF rate to 9.50%

September 23, 2013

The Reserve Bank of India slashed the Marginal Standing Facility rate (MSF) by 75 basis points

from 10. 25% to 9.50%. The central bank also rolled back minimum daily maintenance of the

Cash Reserve Ratio (CRR) from 99% to 95% keeping the CRR unchanged at 4%.

RBI has assured that it will reduce the difference between the MSF and repo rate to 100 basis

points. RBI raised the repo rate by 25 basis points to 7.50%.

What is MSF?

Marginal Standing Facility (MSF) was introduced by the Reserve Bank of India in 2011-12 as

part of its monetary policy. Under this facility, banks can borrow funds from RBI at 8.25%,

which is, generally, 1% or 100 basis points above the Liquidity Adjustment Facility-repo rate

against pledging government securities.

Banks can borrow funds through MSF when there is a considerable shortfall of liquidity. This

measure was introduced by RBI to regulate short-term asset liability mismatches more

effectively.

What is the difference between Liquidity Adjustment Facility-repo rate (LAF) and Marginal Standing

Facility (MSF) rate?

Banks can borrow from the RBI under LAF-repo rate, which stands at 7.50%, by pledging

government securities over and above the Statutory Liquidity Requirement of 24% (SLR). Banks

cannot sell government securities to RBI that is part of its SLR quota while availing LAF on the

other hand they can do so while availing MSF.

MSF is open to the banks that want to borrow from the RBI even if the credit is costlier by a

percentage point or so. Through MSF banks can borrow funds up to 2% of their Net Demand and

Time Liabilities (NDTL), at current 9.50%. However, it can be availed with securities above the

SLR of 24% and even below.

S. Korean scientists decode Genome of Tigers

September 23, 2013

Scientists from the Personal Genomics Institute in Suwon, South Korea have revealed that they

have done first ever DNA analysis of the tiger as well as four other big cats. The DNA analysis

was carried out in the project for aiding the critically-endangered cats for their survival.

The team of scientists sequenced the genome of a Siberian tiger. They compared this genome

with the genome of white Bengal tiger, the snow leopard, the African lion and white African

lion. Scientists found shared characteristics among all these close, yet distinct species of cats. All

these species of tigers included common genes which indicated towards extreme muscle strength

as well as the ability to metabolize hyper-carnivorous diet.

There were variants also which accounted for certain differences such as fur color. The

information from these genomes provides a diverse and crucial data source which can be used

for conservation of these tigers.

As per scientists, of the overall nine subspecies of tiger, four were already extinct in the last

century. These four extinct species included Javan, Balinese, South China and Caspian tigers. As

per estimates, at present the number of wild tigers range from just 3050 to 3950.

Indian Team reserves berth Wrestling World Cup for the

first time

September 23, 2013

With India finishing 6th

in the men’s freestyle at the World Championships in Budapest,

Hungary, it also reserved its maiden Wrestling World Cup berth. India qualified for the big

event by finishing sixth behind Iran, Russia, Georgia, Ukraine and the USA. As per FILA

norms, the top 8 teams in the World Championship automatically qualify for the World Cup.

Tata-Singapore new company to be named as ‘Tata SIA

Airlines Limited’

September 23, 2013

Tata group initiated the process of incorporating a new company for its proposed aviation

venture with Singapore Airlines as it sought to register this entity as ‘Tata SIA Airlines

Limited’.

Tata took the first step by filing an application for registration of this name with the Registrar of

Companies through submission of form ‘1A’. The brand name of the proposed airline, however,

is yet to be announced.

The initial investment in the project is estimated to be $100 million, with Tata Sons injecting $51

million for a 51% stake and Singapore Airlines pumping in $49 million for the remaining 49%.

This is the third proposal in the aviation sector since the Government permitted 49% FDI in

domestic airlines in September 2012.

Although Tata is already into a separate joint aviation venture with AirAsia and Telstra

Tradeplace for a low-cost airline, there will be no conflict of interest as the two airlines do not

compete in the same space.

The Tatas have a long history of association with civil aviation in India. In 1932 JRD Tata had

started Tata Airlines, which was later in 1946 renamed Air India and was subsequently

nationalized in 1953.

Jawaid Akhtar is the Chairperson of International Coffee

Council

September 23, 2013

Jawaid Akhtar, the Chairman of Coffee Board of India, has been elected as the

Chairperson of the International Coffee Council.

What is International Coffee Organization (ICO)

Some key points about ICO:

Established in 1963 in London.

Initiated in collaboration with the United Nations (UN) to enhance cooperation between nations

that consume, distribute and produce coffee.

It has 39 members consist of 33 exporting nations, 5 importing nations and 1 importing

community (the European Union).

The ICO’s highest body is the International Coffee Council, which meets biannually.

ICO represents 97% of the world coffee production and more than 80% of the world

consumption.

Aamir Khan chosen for U.S. award for ‘Satyamev Jayate’

September 23, 2013

Bollywood actor Aamir Khan has been chosen for a U.S. award for his

television show ‘Satyamev Jayate’ along with renowned American director Kathryn Bigelow and

the International Center on Nonviolent Conflict (ICNC). They will be awarded at the inaugural

awards by the America Abroad Media (AAM) in Washington DC. As per AAM, their work

exemplifies the power of media to inform, educate and empower citizens about the critical social

and public policy issues of our time.

Impasse over RBI’s 80:20 gold import scheme ends

September 24, 2013

The government cleared the confusion that was going between the Customs Department and gold

importers regarding the RBI’s 80:20 scheme which was introduced in July 2013.

What is 80:20 scheme of RBI?

Under this scheme, the importers are directed to export back 20% of the total gold imports. It

prohibits further imports if this 20% norm is not met by importers. The step was aimed at

curbing rising gold import which led to high Current Account Deficit.

Why there was a deadlock over 80:20 scheme of RBI?

The RBI 80:20 norm left many confused, leading to imports being held up at customs. It was

wrongly interpreted that an importer could not export more than 20%. Whereas, the case was

otherwise as it means that at least 20% is give for exports and one can export more than 20% of

total imports. Due to this confusion the customs officials had stopped stocks from entering the

country. With this clarification, gold imports are likely to resume.

Russia offers India to joint venture in defence

manufacturing

September 24, 2013

Russia proposed to build manufacturing units in India to undertake co-production of defence

equipment and also agreed to set up two major projects in a joint venture for manufacturing civil

choppers and aircraft.

Both nations agreed on collaboration to jointly develop and manufacture civilian aircraft and

helicopters especially for emergency relief and medical purposes. These aircrafts could be used

not only for domestic use but also to export to third country exports. There is also a joint project

under consideration that envisages for manufacturing in Indian factories different modifications

of light helicopters Ka-226T for medical, rescue and other purposes. Russia has also made a new

proposal involving IL-112V.

India demanded market access for Indian pharmaceutical products and asked for regulatory

simplification for supply of Indian generic medicines to Russia.

India and Russia have designed a framework for tracking key priority projects at the Ministerial

level. The sectors covered under this joint understanding include automobile, industrial and road-

building machinery, chemical and petrochemical industry, civil aircraft construction, fertilizers,

pharmaceuticals, energy, diamonds, IT, automobiles, and agro and processed foods.

Union Cabinet approves draft policy for early childhood

care and education

September 24, 2013

Union Cabinet approved the draft policy of the National Early Childhood Care and Education

(NECCE) which envisages for establishing guidelines for the standardisation of teaching and

learning aids, trained manpower, sanitation and hygiene norms etc. in play schools and day care

centres.

How would National Early Childhood Care and Education (NECCE) benefit?

The new National Early Childhood Care and Education (NECCE) policy will benefit

children in playschools and crèches as it provides for establishing a national council to

establish guidelines for the standardisation of teaching and learning aids, trained manpower,

sanitation and hygiene norms etc. in these institutions. It will lead to better regulation and

monitoring the quality of care and education provided to children at play schools and crèches

across the country. The move is expected to directly benefit 158.7 million children who are

under the age of 6. The new policy provides for setting standards for the care givers and also set

a curriculum framework. It also stipulates the minimum qualification required to be teachers at

such centres, which will now have to be registered with the Government under this policy. The

policy would be implemented through National and state ECCE Councils but the Union Ministry

of Women and Child Development will have the authority to make necessary amendments in it.

CCEA nod to establish Information Technology Investment

Region (ITIR) in Hyderabad

September 23, 2013

The Cabinet Committee on Economic Affairs (CCEA) has given nod to the set up

of Information Technology Investment Region (ITIR) near Hyderabad, Andhra Pradesh.

Information Technology Investment Region (ITIR):

The project dedicated Information Technology and Electronic Hardware manufacturing will be

spanned over 50000 acres and is projected to attract investment to the tune of Rs. 2.19 lakh crore

over 25 years. It is expected to generate direct employment of 14.8 lakh and indirect employment

of 55.9 lakh.

The feasibility of the project would be studied by the Union Ministry of Road Transport &

Highways, Union Ministry of Urban Development and Union Ministry of Railways.

Government of India has also proposed up-gradation of three key roads and extension of the

Metro Rail from Falaknuma to Shamshabad International airport at total cost of Rs. 3275 crore.

The implementation of ITIR will be carried out in two phases. The Phase I will from 2013 to

2018 and Phase II will be from 2018 to 2038.

The CCEA had approved a Policy Resolution to set up Information Technology investment

Regions (ITIRs) in different States and UTs in the country, to promote investment in IT or ITES

and Electronic Manufacturing sector.

As per this policy, the State Government would play the main role in creating the ITIRs. The

infrastructure would be set up or upgraded through Public-Private Partnerships (PPP) to the

extent possible.

The Central Government will provide the necessary viability gap funding for external physical

infrastructure through existing schemes. The Department of Electronics and Information

Technology (DeitY) is the nodal Department of the Government of India to process proposals

relating to setting up of ITIRs.

Union Government launches Seekho Aur Kamao (Learn and

Earn) Progrmme

September 26, 2013

Union Ministry of Minority Affairs, Government of India launched Seekho Aur Kamao (Learn

and While) Scheme for Skill Development of Minorities.

What are the key objectives of the scheme Learn and Earn?

The main objectives of this scheme are:

Reduce the unemployment rate of minorities during 12th

Plan period (2012-17).

Conserve and update traditional skills of minorities and establish their linkages with the

market.

Improve employability of existing workers, school dropouts etc. and ensure their

placement.

Generate means of better livelihood for marginalized minorities and bring them in the

mainstream.

Facilitate minorities to avail opportunities in the growing market.

Develop potential human resource for the nation.

What will be the areas of focus under Learn and Earn scheme?

The focus areas of this scheme are:

Placement oriented training programme for modern trades.

Skills Training Programme for Traditional Trades.

Training programme will also include soft skills training, basic Information and

Technology (I.T) and English training.

Project implementing agencies to ensure 75% employment and out of that 50% in

organized sector.

Mechanism for placement and post placement support.

100% assistance by Ministry of Minority Affairs, Government of India.

Who will be benefitted from ‘Learn and Earn’ scheme?

The scheme will be implemented for the benefit of the 5 notified minority communities under

National Commission for Minorities Act 1992(Muslims, Christians, Sikhs, Buddhists and

Parsis). However, in the States/UTs where some other minority communities notified by

respective State/UT Governments exist, they may also be considered for the programme but they

will not occupy more than 5% of the total seats.

BlackBerry to be bought by Prem Watsa-led Fairfax group

for $4.7 billion

September 26, 2013

Canadian firm Fairfax signed a letter of intent with Ontario based

Blackberry making an offer to acquire the pioneering mobile maker.

BlackBerry was once a leader in mobile tech but has been squeezed by rivals Android and

Apple, which coincidentally announced record sales of its latest iPhone.

Fairfax Financial Holdings Limited is headed by billionaire Prem Watsa. The firm is already

BlackBerry’s largest shareholder with approximately 10% of its shares.

About Prem Watsa:

Prem Watsa is the founder, chairman, and chief executive of Fairfax Financial Holdings, based

in Toronto, Ontario. He was born in Hyderabad, India. He has been called the “Canadian Warren

Buffett” by some during successful periods of investing. He is a CFA charterholder, an alumnus

of the Hyderabad Public School, Begumpet,a graduate of the Indian Institute of Technology with

a degree in Chemical Engineering and a holder of an MBA from the Richard Ivey School of

Business of the University of Western Ontario.

Earthquake forms methane spewing island off Gwadar in

Pakistan

September 25, 2013

A powerful earthquake (7.7 ) that hit the Makran zone caused a methane and mud spewing island

to form off the coast of Gwadar in Balochistan province of Pakistan.

How did earthquake (7.7 ) that hit the Makran zone happen?

The sea from Gwadar to Ormara had a huge stock of frozen methane gas below the sea bed.

When there was a seismic movement the gas deposits, which expand creating high pressure,

pushed up a land mass creating which appears in the form of island. The land mass is 50 metres

long, 20 to 30 metres wide and rises 10 metres above the water about two km off the coast of

Gwadar. The “island” is composed of soft sediment, mostly mud, sand and rock fragments. This

phenomenon was also observed in 1999 and in 2010 near Ormara, off the Hingol river where it

enters the sea.

‘The Good Road’ is India’s entry for Oscar

September 24, 2013

The selection panel appointed Film Federation of

India (FFI) has chosen filmmaker Gyan Correa’s Gujarati film “The Good Road” as India’s

entry for the best foreign film category at the Academy Awards 2013. It is the first Gujarati film

to have achieved this feat.

Earlier this year, “The Good Road” had won the National Award for Best Feature Film

(Gujarati).

The movie was selected among some very strong contenders including “ The Lunchbox”,

“Bhaag Milkha Bhaag”, “ English Vinglish”, “ Vishwaroopam”, Malayalam film “Celluloid” and

Bengali film “Shabdo”.

Moody’s lowers SBI’s debt and local currency rating to junk

September 26, 2013

Global rating firm, Moody’s Investors Service, has downgraded State Bank of India’s senior

unsecured debt and local currency deposit ratings to Baa3 or lowest investment grade rating

from Baa2 and altered the outlook on SBI’s financial strength rating to negative from stable as

the economic slowdown impacts bank’s credit quality.

Why did Moody’s downgrade SBI’s rating?

As per rating agency, the combination of mounting pressure on credit fundamentals and the

ongoing dependence on the fiscally constrained Indian government to maintain Capital

Adequacy Ratio (CAR) are key players behind the rating downgrade at a level no higher than the

sovereign.

Three members of National Ganga River Basin Authority

resign

September 26, 2013

Three expert members- Rajendra Singh, Ravi Chopra and Rashid Siddiqui resigned from the

National Ganga River Basin Authority (NGRBA) which was set up with the objective of

protecting the Ganga from pollution and overuse. The members were disquieted over the fact

that the National Ganga River Basin Authority has not met since April 2012, especially in the

wake of continued government indifference on101st day of professor GD Agrawal’s fast for

Ganga.

Key points about the National Ganga River Basin Authority (NGRBA)

Established: February 20, 2009 under Section 3(3) of the Environment Protection Act, 1986, which also

declared Ganges as the “National River” of India.

Authority: Financing, planning, implementing, monitoring and coordinating authority for

the Ganges River, functioning under the Ministry of Environment of India.

Mission: Protect the drainage basin which feeds water into the Ganges by protecting it from

pollution or overuse.

Ex-Officio Chairman: Prime Minister

Other members: Union Ministers concerned and the Chief Ministers of states through which

Ganga flows, viz., Uttarakhand, Uttar Pradesh, Bihar, Jharkhand and West Bengal, among

others.

Who is G.D. Agarwal?

G.D. Agarwal alias Swami Gyan Swaroopanand (80) is a noted environmentalist and former

Indian Institute of Technology (IIT) professor. He has served as a secretary of the Central

Pollution Control Board, the country’s premier anti-pollution body, and helped put together

environmental legislation in India. He has been on a fast- unto-death for over 101 days now to

save the Ganga River and is determined to continue his fast albeit he is physically worn out. He

is notable for his successful fast in 2009 to stop the damming of the Bhagirathi River.

His major concern is the inadequate and ineffectual operation of the NGRBA. He is also against

on-going construction of dams/barrages/tunnels on Ganga which would completely destroy the

natural flow regimes and quality of the river water, inability of the regulatory agencies in

checking discharge of urban and industrial wastes into the Ganga and complete lack of

sensitivity of the government on these environmental issues.

Established: February 20, 2009 under Section 3(3) of the Environment Protection Act, 1986,

which also declared Ganges as the “National River” of India.

Govt of India launches Jiyo Parsi scheme

September 26, 2013

With the aim to contain the dwindling population of Parsis in India, the Jiyo Parsi scheme has

been launched by the Ministry of Minority Affairs, Government of India.

What is Jiyo Parsi scheme?

Jiyo parsi scheme has the objective of reversing the declining trend of Parsi population by

adopting scientific protocol and structured interventions, stabilize the Parsi population and

increase the population of Parsis in India.

Key features of the Jiyo Parsi scheme:

100% financed by Ministry of Minority Affairs, Government of India.

Medical interventions under Standard Medical protocols in select hospitals/clincs.

Confidentiality of the patients to be given utmost importance.

Who will be the target group under Jiyo Parsi scheme?

The scheme is designed only for Parsi community. It will be available for Parsi married couples of child bearing age

who seek assistance and adults/young men/women/adolescent boys/girls for diagnosis of diseases.

Grameen Bank (Bangladesh) to be brought under Central

Bank jurisdiction in Bangladesh

September 26, 2013

The Grameen Bank, the Nobel Peace Prize winning microcredit organization of

Bangladesh, will be brought under the control of country’s central bank to give the authorities

more powers over the organization.

The decision by the government follows the recommendations of government-sponsored

Grameen Bank Commission, which suggested bringing the bank under the regulatory control of

either the Bangladesh Bank or the Microcredit Regulatory Authority to better monitor its

activities.

Currently, the Grameen bank is being run by Grameen Bank Ordinance 1983 and it does not

directly fall under the jurisdiction of the Banking Companies Act.

In 2011, the central bank of Bangladesh, the Bangladesh Bank, removed Nobel Laureate Dr.

Muhammad Yunus as the Managing Director of Grameen Bank citing age limit.

About Grameen Bank:

The Grameen Bank is a Nobel Peace Prize-winning microfinance organization and community

development bank founded inBangladesh. It makes small loans (known as microcredit or

“grameencredit’) to the impoverished without requiring collateral. Grameen Bank originated in

1976, in the work of Professor Muhammad Yunus, Professor at University of Chittagong, who

launched a research project to study how to design a credit delivery system to provide banking

services to the rural poor. In 2006, the bank and its founder, Muhammad Yunus, were jointly

awarded the Nobel Peace Prize.

World Tourism Day observed across the globe

September 27, 2013

World Tourism Day was observed on September 27, 2013 across the globe to raise awareness

about the importance of tourism.

Theme for 2013: “Tourism and Water: Protecting our Common Future”

The theme has been chosen highlight the role of tourism in water access and brings into focus the

actions currently being taken by the tourism sector in order to contribute to a more sustainable

water future.

Aadhaar card optional, not mandatory: Government

September 26, 2013

Informing the Supreme Court, the Centre stated that securing Aadhaar cards is optional and not

mandatory.

What is voluntary/mandatory issue with the Aadhaar cards?

A number of pleas have been made in the apex court against decisions of some States to make

Aadhaar cards mandatory for a range of activities including salary, Provident Fund disbursals

and marriage and property registrations. However, the Centre maintains that Aadhaar Cards are

voluntary and not compulsory. Despite the fact that the Aadhaar card is “voluntary” in nature, an

order has been issued by the Registrar of the Bombay High Court in pursuance of an order of the

Maharashtra Government that it would be necessary for disbursal of salary of judges and staff

also.

As per petitioners, the Aadhaar scheme is complete infraction of Fundamental Rights under

Articles 14 (right to equality) and 21 (right to life and liberty). Recently, the Maharashtra

Government made Aadhaar mandatory for purposes such as registration of marriages and others.

However, the Centre holds that the consent of an individual is indispensable for Aadhaar and it

has been launched to promote inclusion and benefits of the marginalised sections of society that

has no formal identity proof.

Do not issue Aadhaar cards to illegal immigrants

The Government has been asked by the apex court not to issue the cards to illegal immigrants

and not set them as a pre-condition for availing welfare schemes.

Life imprisonment to China Communist Party Leader Bo

Xilai

September 26, 2013

A Chinese court in east China’s Shandong province sentenced top China Communist Party

leader Bo Xilai to life imprisonment uphelding the charges of bribery, embezzlement and abuse

of power against him. The court also stripped Bo of all political rights and ordered the

confiscation of his property.

Who is Bo Xilai and what is his case?

Bo Xilai is a former Chinese politician. He hit to the fame through his

tenures as the mayor of Dalian province and later governor of Liaoning. He also served as

Minister of Commerce. Between 2007 and 2012 he served as a member of the Central Politburo

and secretary of the Communist Party’s Chongqing branch.

His political career overturned following the Wang Lijun incident, in which his top lieutenant

and police chief sought asylum at the American consulate in Chengdu and revealed details of

Bo’s alleged involvement in a homicide plot. Following this incident, Bo was removed as the

chief of the Chongqing city in 2013 and sacked from the ruling party following allegations of

bribery, embezzlement and abuse of power against him. He was also accused of receiving 20

million Yuan (3.5 Million US Dollars) as bribes and owning a luxury villa in France.

Investment through P-Notes hits 3-month high of $26 billion

September 26, 2013

As per share market regulator SEBI, investments into Indian shares through participatory notes

(P-Notes), hit a three-month high of Rs 1.65 lakh crore (about $26 billion) in August 2013.

What are Participatory Notes?

Participatory Notes or P-notes are derivative instruments, used by Foreign Institutional

Investors (FIIs) who are NOT registered with SEBI. The major characteristics of P-notes are:

1. They are derivative instruments

2. They are used by Foreign Institutional Investors (FIIs) who are NOT registered with

SEBI.

3. They are used on Indian shares, but at a location outside of India.

This means that the FIIs who are not registered with SEBI but wish to take exposure in the Indian

securities markets can use P-notes. P-Notes, mostly used by overseas HNIs (High Networth

Individuals), hedge funds and other foreign institutions, allow them to invest in Indian markets

through registered Foreign Institutional Investors (FIIs), while saving on time and costs

associated with direct registrations. Brokers buy or sell securities on behalf of their clients on

their proprietary account and issue such notes in favor of such foreign investors.

Mayaram panel submits report on NSEL crisis

September 27, 2013

A high-level committee, chaired by Economic Affairs Secretary Arvind Mayaram, submitted to

Finance Minister its report on the alleged irregularities at the National Spot Exchange Ltd

(NSEL). The panel has found “minor systemic” problem and the report details long term

measures to deal with such irregularities.

What is the National Spot Exchange Limited (NSEL)?

National Spot Exchange Limited (NSEL) is a Commodities exchange in India, and is a joint

venture of Financial Technologies (India) Ltd. (FTIL) and National Agricultural Cooperative

Marketing Federation of India (NAFED). The exchange launched its live trading operations in

different commodities on October 15, 2008. It began trading in pre-certified cotton bales for

Mumbai delivery and imported gold and silver bars for Ahmedabad delivery immediately, and

has since added a number of commodities.

The mission of the exchange is to develop a common Indian market by setting up a nation-wide

electronic spot market and providing state of art trading, delivery, and settlement facilities in

various commodities.

What is the issue of NSEL?

The NSEL is going through a financial crisis in settling dues worth Rs 5,600 crore. All the

operations of the NSEL are completely shut since August 5, 2013. The exchange blamed the

government for the structural changes it instructed for creating market disequilibriumwhereas

other experts believe NSEL was required to be deliver commodity physically instead the

exchange facilitated use of electronic warehouse receipts, enabling investors to avail of the

arbitrage, without taking physical possession of goods. The loopholes in contracts and

insufficient underlying stocks to cover liabilities led to financial crisis.

Why did the government constitute Mayaram Committee?

The Committee was set up to look into the issue of NSEL failure and recommend measures to

fill the gaps in the oversight of spot exchanges. The main issue was whether NSEL violated the

Government exemption for one-day forward trading and also the ban on all short sales.

Virat Kohli appointed as brand ambassador of BSF

September 27, 2013

The Border Security Force has appointed Indian cricketer Virat Kohli as its

brand ambassador. It is important to note that any central force in India has appointed its brand

ambassador. BSF is the second largest paramilitary force of India that guards two crucial Indian

borders with Pakistan and Bangladesh.

Virat Kohli has been roped in for strengthen the appeal of 2.5 lakh personnel strong BSF.

About the Border Security Force (BSF)

Established on December 1, 1965, the Border Security Force (BSF) is a border patrol force of the

Government of India. BSF come under the flank of the Paramilitary Forces of India (PMF) and

its main role is to guard India’s international borders during peacetime as well as prevent

transnational crime. The BSF is under the administrative control of the Ministry of Home

Affairs. Besides ensuring the border security, BSF also has the responsibility of conducting the

anti-Naxal operations in India as well as playing roles in upkeep of the internal security.

Indian Navy and Royal Omani Navy conduct Exercise:

“Naseem Al Bahr”

September 27, 2013

Naseem Al Bahr- the 9th

edition of biennial naval exercise between

Indian Navy and Royal Omani Navy kicked off in Oman.

In Indian fleet participating in the drill were Indian Naval Ship(INS) Mysore (guided missile

destroyer), INS Tarkash , INS Tabar (stealth frigates) and INS Aditya (fleet tanker).

On the side of Royal Omani Navy, ships participating were Royal Navy of Oman Vessels

(RNOV) missile and gun vessels, RONV Al Muazzar, RONV Al Mussandam, RONV Al Naja

and a Landing ship RNOV Temsah, along with Royal Air Force of Oman aircraft F-16, Hawks

and Jaguars amongst others.

Freedom Fighter Ranjit Singh passed away

September 27, 2013

Veteran freedom fighter Captain Ranjit Singh (97) passed away. He was a close associate of

Netaji Subhas Chandra Bose.

About Ranjit Singh

He served the Indian National Army under the leadership of Subhash Chandra Bose.

Became working president of All India Freedom Fighter Organisation.

After retirement, he worked for the welfare of freedom fighter’s families.

CCEA approves auction methodology for Coal Block

Auction

September 29, 2013

Cabinet Committee on Economic Affairs (CCEA) has given

approval to the policy for auction by competitive bidding of the coal blocks which aims to ensure

greater transparency and will pave the way for the government to auction explored blocks.

The policy provides for:

Auctioning the fully explored coal blocks providing for upfront and production-linked payments

and benchmarking of coal sale prices.

Expediting the auction by exploration of regionally explored blocks through up gradation of

geological data to a reasonable level of certainty.

Production linked payment on rupee per tonne basis, plus a basic upfront payment of 10% of the

intrinsic value of the coal block.

The intrinsic value of coal block will be estimated on the basis of Net Present Value (NPV) of

the block arrived at through Discounted Cash Flow (DCF) method. To benchmark the selling

price of coal, the international FoB (freight-on-board) price from the public indices like

Argus/Platts will be used by adjusting it by 15% to provide for inland transport cost which would

give the mine mouth price.

To avoid short-term volatility, the average sale price will be calculated by taking prices of the

past five years. For the regulated power sector, a 90% discount will be provided on the intrinsic

value. This will help to rationalise power tariffs.

Agreement between Ministry and the bidder to perform agreed minimum work programmes at

all stages.

There would be development stage obligations in terms of milestones to be achieved such as

getting mining lease, obtaining environment/forest clearances etc.

The bidder will have to give performance guarantee during the developmental stage. The

successful bidder will get 2 years for exploration (for regionally upgraded blocks) and 5 years for

development of coal blocks.

Relinquishment of the block without penalty provided, the bidder has carried out minimum work

programme stipulated in the agreement.

The details of the coal blocks will be reviewed by the Ministry of Environment and Forest and

communicate its findings before the blocks are put to auction. However, final approval will be

subject to the statutory clearances under the law.

CCEA takes steps for operationalisation of IDFs

September 29, 2013

The Cabinet Committee on Economic Affairs (CCEA) has taken the following steps to promote

the operationalisation of Infrastructure Debt Funds (IDFs).

The annual Guarantee Fee payable to the Concession Authority has been capped at 0.05%

per annum, of outstanding debt financed by the IDF NBFCs (Non Banking Financial

Companies) for the first 3 years of operation of the IDF NBFC.

IDFs will be given the status of Public Financial Institutions (PFI). Infrastructure Debt

Funds are allowed to file Shelf Prospectus under Section 60 A of the Companies Act,

1956 and access to provisions of the SARFAESI Act, including to the adjudicatory

process through Debt Recovery Tribunals.

Post-successful COD PPP (Commercial Operation Declaration) projects shall now be

eligible for investment by Insurance Companies, Provident Funds (PFs), EPFO, Mutual

Funds (MFs), etc.

What are Infrastructure Debt Funds (IDF)?

As per Reserve Bank of India, IDFs are investment vehicles which can be sponsored by

commercial banks and NBFCs in India in which domestic/offshore institutional investors,

specially insurance and pension funds can invest through units and bonds issued by the IDFs.

IDFs would essentially act as vehicles for refinancing existing debt of infrastructure companies,

thereby creating fresh space for banks to lend to fresh infrastructure projects.

IDF-NBFCs would take over loans extended to infrastructure projects which are created through

the Public Private Partnership (PPP) route and have successfully completed 1 year of commercial

production. Such take-over of loans from banks would be covered by a Tripartite Agreement

between the IDF, Concessionaire and the Project Authority for ensuring a compulsory buyout

with termination payment in the event of default in repayment by the Concessionaire.

What legal forms can IDF be set up as and who will be the regulators?

Infrastructure Debt Funds (IDFs), can be set up either as a Trust or as a Company. A trust based

IDF would normally be a Mutual Fund (MF), regulated by SEBI, while a company based IDF

would normally be a NBFC regulated by the Reserve Bank.

Do the NBFCs/IFCs need prior permission from Reserve Bank for sponsoring IDFs?

Yes NBFCs and NBFC-IFCs need to take prior approval from the Reserve Bank for sponsoring

IDFs.

How do IDF- NBFCs and IDF-MFs (Mutual Funds) raise resources?

IDF-NBFCs will raise resources through issue of either Rupee or Dollar denominated bonds of

minimum 5 year maturity. IDF-MFs will raise resources through issue of units of MFs.

What does “sponsorship” mean?

“Sponsorship” means equity participation by the NBFC between 30 to 49% of the IDF.

Who can invest in the bonds of IDF-NBFCs and Units of IDF-MFs?

Domestic/offshore institutional investors, especially insurance and pension funds can invest

through units and bonds issued by the IDFs.

John W. Ashe is the President of UNGA for its 68th session

September 27, 2013

The United Nations General Assembly elected by acclamation Ambassador

John W. Ashe of Antigua and Barbuda as President of its upcoming 68th session.

Made up of all the 193 Member States of the United Nations, the General Assembly provides a

forum for multilateral discussion of the full spectrum of international issues covered by the UN

Charter. It meets in regular session intensively from September to December each year, and

thereafter as required.

IDBI Bank launches ‘Own Your NPA’ campaign

September 27, 2013

In a bid to speedily recover Non-Performing Assets (NPA), the IDBI Bank has launched a

campaign named ‘Own Your NPA’.

What is ‘Own Your NPA’ campaign?

It is a NPA recovery drive launched by the IDBI Bank through which it has tasked its managers

— at the zonal, regional and branch levels — to focus their on making recoveries from the top

20 bad loan accounts in their jurisdiction. As part of the campaign, each zonal, regional and

branch manager will personally go and meet the customers. The bank has identified 1522 cases,

involving an aggregate principal outstanding of Rs 5,805 crore which is approximately 73% of

its total NPAs of Rs 7,959 crore as on June-end 2013.

What is Non-Performing Assets (NPA)?

In simple words, the assets of the Banks which don’t perform (means don’t bring any return) are

called Non Performing Assets. In more general sense they are “bad Loans”.

Any asset, including a leased asset, becomes non performing when it ceases to generate

income for the bank.

However, there is a prescribed definition by the RBI which defines the NPAs as:

Terms Loans on which interest and / or installment of principal remain overdue for a

particular quarter for a period of more than 90 days from the end of that particular

quarter.

The Bills those remain overdue for a period of More than 90 Days from the end of a

quarter.

Any amount to be received remains overdue for a period of more than 90 days.

The Cash Credit account remains out of order for a period of more than 90 days. Out of

order means over the sanctioned limit.

Note: This period of 90 Days for the above categories was 180 days prior to 2004.

So 90 Days is the thumb rule in the deciding the NPAs. However, there is an exception to this.

Go through the following case:

A farmer has taken a loan for a paddy crop in the beginning of the Rabi Season and has

not made a repayment. In which of the following situations, if Installment or interest is not

paid for this loan, it would become a NPA (Non Performing Asset)?

1. 90 Days from the due date

2. 90 Days from the end of the Rabi Season

3. 1 crop season from the due date

4. 2 crop seasons from the due date

The answer of the above question is (4) i.e. 2 crop seasons from the due date. Please note the

following:

For short duration crop agriculture loans such as paddy, Jowar, Bajra etc. if the loan

(installment / interest) is NOT paid for 2 crop seasons (means Kharif, and next Rabi in

the above question), it would be termed as a NPA.

For long duration crops, the above would be 1 Crop season from the due date.

Sapien Biosciences: India’s first commercial Bio-Bank

September 29, 2013

Apollo Hospitals and health science firm Saarum Innovations have entered into a joint venture

(JV) to set up the first commercial bio bank of India named as Sapien Biosciences. The joint

venture envisages creation of a sophisticated bio bank as well as a personalised medicine

company.

Sapien Biosciences consists of collections of high quality and systematically archived human

samples which can be used for new clinical and research and development applications.

What is a Bio-bank?

A biobank is a type of biorepository that stores biological samples (usually human) for use in

research. This storehouse maintains various kinds of bio-specimens which include purified

DNA, plasma, saliva and blood. These samples are catalogued according to genetic as well as

other kinds of traits like ethnicity, blood type, gender and age. These specimens and specimen

related biological data are accessed by researchers of various organisations and firms for their

research studies.

About Sapien Biosciences

First commercial bio bank of India JV of Apollo Hospitals and Saarum Innovations

It will leverage the pathological and diagnostic data for developing state-of-the-art

diagnostics as well as provide world class genetic risk assessment.

It will facilitate cell-related research assistance to various Pharmaceutical companies.

It will also provide the personalized treatment to patients, which will include detection of the

genetic disposition of patients for early diagnosis of diseases.

Union Government sets up Committee for evaluation of

research and rankings

September 29, 2013

In the wake of India’s low performance in the rankings of higher educational institutions in

world, the Union Government of India formed a committee under the chairmanship of K. Vijay

Raghavan, Secretary of Department of Biotechnology for evaluation of research and rankings by

promoting healthy competition among institutions, departments and individual researchers.

What would the committee on evaluation of research and rankings do?

The committee will review the current funding of research and it will also devise a strategy for

selective approach in allocation of funds to academic institutions to encourage research. It will

also ensure that some of the institutions reach the global benchmarks in research.

CCEA approves Petroleum Ministry’s proposal on shale gas

exploration and exploitation

September 29, 2013

The proposal of the Ministry of Petroleum and Natural Gas on the policy on exploration and

exploitation of shale gas and oil by National Oil Companies (NOCs) on acreages under the

nomination regime has been approved by the Cabinet Committee on Economic Affairs.

How the policy on exploration/exploitation of shale gas by NOCs would help?

The policy will facilitate NOCs to perform exploration and exploitation of unconventional

hydro-carbon resources particularly shale gas and oil in their already awarded Petroleum

Exploration License and Petroleum Mining Lease (PEL/PML) acreages under the nomination

regime. The policy also stipulates the terms/conditions for guiding these activities.

Why the government is bringing a different policy for shale oil/gas?

The production requirements and profile for shale oil and gas is different from conventional gas

and oil. Therefore, there was a need of the policy in order to achieve early development of these

resources and to address issues evolving out of Exploration & Production activities in shale gas

and oil.

CCEA approves construction of Rajaswa Bhawan as the

National Tax Headquarters

September 29, 2013

The Cabinet Committee on Economic Affairs (CCEA approved the construction of the Rajaswa

Bhawan as the National Tax Headquarters at Kasturba Gandhi Marg, New Delhi at an estimated

cost of Rs 485.16 crore.

Objective: To decongest North Block and consolidate the establishment of Central Board of

Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC) at a common

platform. The need for a composite and larger platform for both these largest revenue collecting

boards of the Government of India was felt because of growth in revenue collection and also to

enhance the efficiency of tax administration. The construction of the building has been entrusted

with the Defence Research and Development Organization (DRDO).

Peace Mission 2013: Joint military drill of Russia and China

September 29, 2013

In a latest development in the defence field, Russia and China held a joint

anti-terrorism military exercise called Peace Mission 2013 in both the Shenyang military area

command of the PLA (Peoples Liberation Army) and the Chebarkulsky range.

1500 military personnel from both Russia and China will participate during the anti-terrorism

exercise. The exercise aims to enhance cooperation between China and Russia to maintain

regional stability. The exercise also symbolizes deepening partnership between Russia and

China.

“Rock Wrens” – a species makes comeback from extinction

through Conservation Project

September 29, 2013

New Zealand’s Department of Conservation (DOC) project yielded positive

result as Rock Wrens, one of the oldest as well as the most distinct songbird species retuned

from extinction. The relocation project of DOC involved relocation of 41 tiny alpine Rock

Wrens from around Fiordland in the far southwest of New Zealand’s South Island to Secretary

Island from 2008 to 2011. Now, the number of Rock Wrens has increased to 66.

It is the only true alpine bird in New Zealand and one of the most ancient bird species in the

world which evolved from a species present more than 80 million years ago. The Rock Wren and

the Rifleman are the only two wren species surviving today.

Indian-origin scientist discovers universal flu vaccine

September 29, 2013

A team of researchers led by Professor Ajit Lalvani from the National Heart

and Lung Institute at Imperial College London have discovered a new way of combating viral flu

infections. He has developed a roadmap to develop universal flu vaccine.

What is the approach to develop universal flu vaccine?

Scientists investigated why some people resist severe illnesses of influenza virus. They found

that the people who evade severe flu illnesses had more CD8 T cells in their blood at the start of

the pandemic. CD8T cells are a type of virus killing immune cell. They concluded that a

vaccine which can stimulate the body to produce more of these cells could be effective at

preventing flu viruses, including new strains that infect humans from birds and pigs.

How CD8T cells function differently than normal antibodies?

The specific quality of CD8T cells which renders it the potential to kill different strains of flu

viruses is that it attacks the core of the virus unlike normal antibodies which target the surface of

a virus. The flu virus rapidly changes its surface which makes older vaccine less effective.

However, CD8T cells attack the core of the virus which remains the same. So, even if the virus

changes its outer structure it would not affect the potential of CD8T cells to target them.

Dextrose Gel can help treat Hypoglycaemia in Premature

Babies

September 29, 2013

As per scientists from the University of Auckland, New Zealand the dose of sugar in the form of

gel can help prevent premature babies from the risk of brain damage due to Hypoglycaemia.

This is named as Dextrose gel treatment.

During this treatment, the sugar gel should be rubbed in the inside of cheeks and it has been

found as the effective and cheapest possible way. Around 10% of premature babies face the risk

of low blood sugar level, which eventually affects them. If left untreated, it can cause permanent

damage.

As per researchers, dextrose treatment this should become the first-line treatment. The cost of

Dextrose gel treatment is merely 1 Pound per baby and is also simple to administer in

comparison with the glucose through the drip.

However, the treatment has to go through further research for implementation of the treatment.

What is Hypoglycemia?

A medical emergency condition in which body has abnormally low levels of blood sugar

(glucose) is called as hypoglycemia. Glucose is the body’s main energy source. Hypoglycemia

is not a disease in itself; it is a sign of a health problem.

Rajan Committee’s new methodology to replace ‘special

category’ status for devolution of funds to States

September 29, 2013

The panel set up by the government under the chairmanship of the then Chief Economic Advisor

Raghuram Rajan (now RBI governor) has suggested ending the ‘special category’ criteria for

providing additional assistance to poorer states.

Why did the government set up the Rajan Committee?

The Union Government set up Raghuram Rajan Committee amid demands for “special category”

status by Bihar and some other status to get additional financial assistance from the Centre. The

Committee was tasked to suggest methods for identifying backwardness of states using a variety

of criteria and also to recommend how the criteria may be reflected in future planning and

devolution of funds from the central government to the states.

What are the key recommendations of the Rajan Committee?

The Rajan Committee has made two key recommendations for devolution of funds to states.

They are:

a) A new methodology based on a ‘Multi Dimensional Index (MDI)’.

Depending on the scores of the 28 states on the MDI, they will be split into 3 categories:

1. Least developed

2. Less developed 3. Relatively developed

b) Each state should get a basic fixed allocation and an additional allocation depending on its

development needs and development performance.

As per the Committee, these two recommendations, along with the allocation methodology,

will effectively subsume what is now “Special Category” status.

According to the MDI scores:

Least Developed states: Odisha, Bihar, Madhya

Pradesh, Chhattisgarh, Jharkhand, Arunachal Pradesh, Assam, Meghalaya, Uttar Pradesh

and Rajasthan.

Less Developed states: Manipur, West Bengal, Nagaland, Andhra Pradesh, Jammu and

Kashmir, Mizoram, Gujarat, Tripura, Karnataka, Sikkim and Himachal Pradesh.

Relatively Developed states: Goa, Kerala, Tamil Nadu, Punjab, Maharashtra,

Uttrakhand and Haryana.

The Department of Economic Affairs will soon examine the report and take necessary action.

AirAsia India received NOC from aviation ministry

September 29, 2013

AirAsia India has announced that it has received a No Objection Certificate

(NOC) from the Ministry of Civil Aviation and would apply for Air Operating Permit to launch

its operations. The next step for the company is to apply to the Directorate General of Civil

Aviation (DGCA) for its Scheduled Operator’s Permit (SOP or the flying permit), which is

the final step before it can start its flight operations.

The DGCA grants the SOP after inspecting the preparations of a start-up airline to launch flights

by examining issues like availability of aircraft, manpower to operate flights as well as on the

ground, aircraft parking space at airports and engineering facilities.

The NOC would also enable AirAsia India to import the first of the three aircraft to Chennai,

which would be its headquarters.

About Air Asia India:

Joint venture between the Malaysian airline AirAsia ( 49% stake), the Tatas (30%) and the

Telstra Tradeplace owned by Arun Bhatia (21%).

Headquarters: Chennai

CEO: Mittu Chandilya, CEO

Finance Ministry approves 5,500 cr as SBA to pay fertiliser

subsidy

September 29, 2013

Finance Ministry has approved for Rs 5,500 crore against Rs 12,000 crore sought by the

Department of Fertilisers under a Special Banking Arrangement (SBA) to pay part of the

subsidy bill to the industry which is going through a liquidity crunch as the domestic urea

subsidy funds have been exhausted.

The department has the total requirement of about Rs 30,000 crore which the department might

seek under supplementary grant. Of this about Rs 12,000 crore is immediately required.

The government has slightly slashed the fertiliser subsidy to Rs 65,971.50 crore for the 2013-14

fiscal from the revised estimate of Rs 65,974 crore in 2012-13.

Of this, the government will provide Rs 15,544.44 crore for imported urea, Rs 21,000 crore for

indigenous (urea) fertilisers, and Rs 29,426.86 crore for decontrolled fertilisers (DAP, MOP and

complexes) for supplying the inputs to farmers at a subsidized rate.

Sarah Outen: First woman to row solo from Japan to Alaska

September 29, 2013

Sarah Outen (28), an adventurer from Britain who spent 150 days at sea to

become the first woman to row solo from Japan to Alaska. She started from Choshi, Japan and

sailed 3,750 miles (6,034 km) to reach Aleutian Island in Alaska. It is part of her plan for a

global trek by an ocean rowing shell, kayak and bike.

Nissan to recall vehicles globally for accelerator sensor

defect

September 29, 2013

Japanese multinational automaker Nissan Motor Corp will recall around

908,900 vehicles globally due to a flaw in an accelerator sensor that could cause the engine to

stall. The defective vehicles were manufactured in Japan between 2004 and 2013. In Japan,

Nissan is recalling certain Serena, X-Trail, Lafesta and Fuga model vehicles. The accelerator pedal’s

sensor could become unstable, potentially resulting in less-than-intended acceleration and in the worst case, a stalled

engine.