september 2013 current affairs

SEPTEMBER 2013CURRENT AFFAIRS

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Rajan Committees new methodology to replace special category status for devolution of funds to States September 29th, 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, WestBengal, 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 29th, 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 Operators 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 Tradeplaceowned by Arun Bhatia (21%).


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Headquarters: Chennai CEO: Mittu Chandilya, CEO Finance Ministry approves 5,500 cr as SBA to pay fertiliser subsidy

September 29th, 2013 Finance Ministry has approved for Rs 5,500 crore against Rs 12,000 crore sought by the Department of Fertilisers under a Special BankingArrangement (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 29th, 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. Peace Mission 2013: Joint military drill of Russia and China September 29th, 2013

In a latest development in the defence field, Russiaand 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 29th, 2013 New Zealands Department of Conservation (DOC) project yielded positive result as Rock Wrens, one of the oldest as well as the most distinctsongbird 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 Zealands 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 29th, 2013 A team of researchers led by Professor Ajit Lalvanifrom 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?


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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 29th, 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 bodys main energy source. Hypoglycemia is not a disease in itself; it is a sign of a health problem. Sapien Biosciences: Indias first commercial Bio-Bank September 29th, 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


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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 29th, 2013 In the wake of Indias 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 Ministrys proposal on shale gas exploration and exploitation September 29th, 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 29th, 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 DefenceResearch and Development Organization (DRDO). CCEA approves auction methodology for Coal Block Auction

September 29th, 2013 Cabinet Committee on Economic Affairs (CCEA) has given approval to the policy for auction


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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, theinternational 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 29th, 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


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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 27th, 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 internationalissues 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 27th, 2013

In a bid to speedily recover Non-Performing Assets (NPA), the IDBI Bankhas 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 dont perform (means dont 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


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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 Mayaram panel submits report on NSEL crisis

September 27th, 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 nationwide

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


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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 27th, 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 Indias 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 27th, 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 27th, 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 fighters families. World Tourism Day observed across the globe

September 27th, 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.


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Aadhaar card optional, not mandatory: Government September 26th, 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 MaharashtraGovernment 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 26th, 2013 A Chinese court in east Chinas 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 Partys 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 Bos 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 26th, 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


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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 ofIndia. 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. Moodys lowers SBIs debt and local currency rating to junk September 26th, 2013 Global rating firm, Moodys Investors Service, has downgraded State Bank of Indias senior unsecured debt and local currency deposit ratings to Baa3 or lowest investment grade rating from Baa2 and altered the outlook on SBIs financial strength rating to negative from stable as the economic slowdown impacts banks credit quality. Why did Moodys downgrade SBIs 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 26th, 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 professorGD Agrawals fast for Ganga. Key points about the National Ganga River Basin Authority (NGRBA)

Established: February 20, 2009 under Section 3(3) of the EnvironmentProtection 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 countrys 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


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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 26th, 2013 With the aim to contain the dwindling population of Parsis in India, theJiyo 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 26th, 2013 The Grameen Bank, the Nobel Peace Prize winning microcredit organization of Bangladesh,

will be brought under the control of countrys 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 BankingCompanies 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. Union Government launches Seekho Aur Kamao (Learn and Earn) Progrmme September 26th, 2013

Union Ministry of Minority Affairs, Government of India launched Seekho Aur Kamao


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(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 26th, 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 BlackBerrys 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 25th, 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?


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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 Indias entry for Oscar September 24th, 2013

The selection panel appointed Film Federation of India (FFI) has chosen filmmaker Gyan Correas Gujarati film The Good Road as Indias entry for the best foreign film category at the AcademyAwards 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 Impasse over RBIs 80:20 gold import scheme ends September 24th, 2013 The government cleared the confusion that was going between the Customs Department and gold importers regarding the RBIs 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 24th, 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


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construction, fertilizers, pharmaceuticals, energy, diamonds, IT, automobiles, and agro and processed foods. Union Cabinet approves draft policy for early childhood care and education

September 24th, 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 crches 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 crches across the country. The move is expected to directly

benefit 158.7 million children who areunder 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 23rd, 2013

The Cabinet Committee on Economic Affairs (CCEA) has given nod to the set up of Information Technology Investment Region (ITIR) nearHyderabad, 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 ShamshabadInternational 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


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process proposals relating to setting up of ITIRs. Indian Team reserves berth Wrestling World Cup for the first time September 23rd, 2013

With India finishing 6th in the mens 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 23rd, 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 23rd, 2013 Jawaid Akhtar, the Chairman of Coffee Board of India, has been elected as the

Chairperson of the InternationalCoffee 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 ICOs 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 23rd, 2013

Fitch slashed Indias growth projection September 23rd, 2013 Global rating agency Fitch has scaled down its projections on Indias growth to 4.8% for the current fiscal from the earlier estimate of 5.7% made in June, 2013.

Why did Fitch scaled down Indias growth prospects? The following are the key reasons behind the cut in growth projections:


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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 23rd, 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 countrys economic parameters regardless of the actions that the U.S. took.

RBI slashes MSF rate to 9.50% September 23rd, 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 23rd, 2013 Scientists from the Personal Genomics Institute in Suwon, South Koreahave 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


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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. 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. Presidential assent to Rajiv Gandhi National Aviation University Bill, 2013 September 23rd, 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 22nd, 2013 Now banks will have freedom to open branches in tier-I cities (those with population over 1 lakh) without seeking RBIs 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 centres cant 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


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September 22nd, 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 22nd, 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.

Govt to set up worlds largest solar power plant in Rajasthan September 22nd, 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 worlds 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. Presidents assent to Prohibition of Employment as Manual Scavengers and Their Rehabilitation Bill, 2013 September 22nd, 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


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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 22nd, 2013 Indias 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 Indias 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 thebanking 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 22nd, 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 withAirAsia 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.

Govt gives nod to 10% hike in DA, to benefit 80 lakh employees, pensioners September 22nd, 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 fromJuly 1. The


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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 managements pay September 22nd, 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 boards 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 22nd, 2013 The US Financial Stability Oversight Councils (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 DoddFrank 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


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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 22nd, 2013 In a surprising move, the Reserve Bank of India Governor Raghuram Rajan, in his maiden mid-quarter monetary policy review, hiked theshort-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 RBIs 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. China launches its first direct bank September 22nd, 2013 China launched its first direct bank, a new mode of providing onlinebanking 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 21st, 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 21st, 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


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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 21st, 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. Indias 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. Microsoft Corp to buy back up to $40 billion of shares

September 21st, 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 companys poor performance on sales of its new Surface tablet. Microsoft is likely to buy Nokias phone business in this month and would license Nokias patents for 5.44 billion euros ($7.2 billion). RBI tightens norms for companies lending against gold September 21st, 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.


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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 21st, 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 Indias 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, someexemptions 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 21st, 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 Voyager 1 crosses Solar System, enters interstellar space September 21st, 2013


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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 20th, 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 20th, 2013 With an aim to nurture scientific temper among children, the Bihargovernment 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 governments decision to charge deregulated diesel prices to bulk oil buyersC September 20th, 2013 The governments 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)

countrys economy is suffering. The court conceded to the governments rationale for increasing prices of petroleum prices in a phased manner over the years. Governmet sanctions 158 Eklavya Model Residential Schools for ST students September 18th, 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


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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 leveleducation 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 worlds first self-healing polymer September 18th, 2013 The researchers, from the CIDETEC Centre for Electrochemical Technologies in San Sebastian, Spain have created the worlds 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 : Indias sovereign wealth fund September 18th, 2013 The Government of India is establishing a company India Overseas Investment Corporation (INOIC) under the Ministry of Financesimilar 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 Indias 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 governments 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


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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 marketoriented mechanism and avoid management of temporary surplus forex funds. The

formation of the company will follow amendments in guidelines so that state entities dont have to seek Public Investment Boards clearance if the quantum of overseas investment is within INOICs 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 businessthrough such funds. Naxalites using RTI as a weapon to target contractors September 18th, 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 Peoples 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. IITs agree to get accredited by NBA September 18th, 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 17th, 2013


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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 i

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