updates- uai's study material on current affairs 2013

5/20/2018 Updates- UAI's Study Material on Current Affairs 2013

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UPDATES UAIs STUDY MATERIAL 2013

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Contents updates 2013

I. NATIONAL CURRENT AFFAIRS

1. Electoral Reforms (Update)---3

2. RTI Act (Update)---6

3. Judiciary (Update)---7

4. Crimes Against Women (Update)---8

5. National Integration Council (NIC)---9

II. INDIAN ECONOMY

1. Land Acquisition Bill (Update)---12

2. National Food Security Bill (Update)---13

3. The Fall of Rupee & CAD (Update)---15

4. Companies Bill 2012---17

5. Nuclear Liability Act---19

III. WORLD ECONOMY

1. G-20---24

IV. DEFENCE

1. INS Arihant - Nuclear Submarine---32

2. INS Vikrant---37

3. Sinking of INS Sindhurakshak---38

4. Agni-V ICBM---40

5. US Electronic Surveillance (Update)---43

V. FOREIGN POLICY

1. Indo-Pak Relations (Update)---45

2. Indo-US Relations (Update)---53

3. Indo-Russian Relations (Update)---55


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4. India-China Relations (Update)---59

VI. INTERNATIONAL CURRENT EVENTS

Indias Neighbours

1. Sri Lanka (Update)---64

Asia

2. Syria (Update)---66

3. Iran (Update)---71

VII. INTERNATIONAL ORGANISATIONS

1. BRICS (Update)---75

VIII. SCIENCE & TECHNOLOGY

1. G-SAT-7---76

2. Voyager Space Probe---78

IX. ENVIRONMENT

1. Phailin Cyclone---79

X. SPORTS

1. Olympics (Update)---82

2. Cricket (Update)---84

IX. PERSONALITIES---85


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i. national current affairs

1. ELECTORAL REFORMS (UPDATE)

I. Supreme Court Gave Voters the Right to Reject All Candidates

(September 27, 2013):

On September 27, 2013, the Supreme Court held that a voter could exercise theoption of negative voting and reject all candidates unworthy of being elected.

The voter could press the None of the Above (NOTA) button on the electronicvoting machine.

The Supreme Court, while allowing a petition filed by the Peoples Union for CivilLiberties, said that for democracy to survive, it was essential that the best

available men should be chosen. This could be best achieved through men ofhigh moral and ethical values who win the elections on a positive vote.

The NOTA option would indeed compel political parties to nominate soundcandidates, according to the Supreme Court.

The Chief Justice of India P. Sathasivam said that giving right to a voter not to votefor any candidate while protecting his right of secrecy was important.Such anoption gave the voter the right to express his disapproval of the kind of candidates beingput up by the parties.

The Supreme Court directed the Election Commission (EC) to provide thenecessary provision in ballot papers/EVMs and the NOTA button.

The Supreme Court directed the EC to implement its order in a phased manner orat a time with the assistance of the Government of India. It also directed theGovernment of India to provide necessary help for implementation of the abovedirection.

The Supreme Court directed the EC to undertake awareness programmes toeducate the masses.

II. Significance of NOTA Option:

In the existing electoral system, a dissatisfied voter does not turn up for voting and thisprovides an opportunity for unscrupulous elements to impersonate him/her. But if theoption of None Of The Above candidates option is provided, even reluctantvoters could turn up at the booth and press the NOTA button in the electronicvoting machine, according to the Supreme Court.

The provision for negative voting would send clear signals to political partiesand their candidates as to what the electorate thought about them, according to

the Chief Justice P. Sathasivam.


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The Supreme Court pointed out that countries like France, Belgium, Brazil, Greece,Ukraine, Chile, Bangladesh, the US, Finland, Sweden, Columbia and Spain hadprovided for neutral/protest/negative voting.

If introducing the NOTA button can increase participation of democracy then, in

the Courts view, nothing should stop the same.

Non-participation in the elections would cause frustration and disinterest, whichwas not a healthy sign of a growing democracy like India, according to theSupreme Court.

The fundamental right under Article 19(1) (a) of the Constitution read with thestatutory right under Section 79(d) of the Representation of the People Act wouldbe violated unreasonably if the right not to vote effectively was denied andsecrecy breached.

The right to vote as well as the right not to vote was statutorily recognised underSection 79(d) of the Representation of the People Act and Rules 41(2) and (3) and49-O of the Election Conduct Rules respectively.

The Election Commission (EC) welcomed the Supreme Court order directing it toadd None Of the Above (NOTA) button in the EVM (Electronic Voting Machine).The button would give voters the option of not voting for any candidate. The secrecy ofvoters who prefer that choice would be protected, according to the EC.

Earlier voters opting for the NOTA optionRule 49 (O)did not enjoy secrecy asthey had to record it by filling up a form in front of the poll officials/electionagents.

III. Conclusion:

Analysts point out thatif a very large percentage of voters go for the NOTA optionthen it could affect the legitimacy of the election process.

Concerns have also been expressed that the right to reject could be misused forpolitical rivalry and in insurgency-hit areas it could be manipulated to sabotagethe democratic process.

Analysts suggest thatthe Election Commission could fix a limit beyond which thepercentage of NOTA votes would lead to re-polling.

SUMMARY

I. Supreme Court Gave Voters the Right to Reject All Candidates (September 27, 2013):

On September 27, 2013, the Supreme Court held that a voter could exercise the option ofnegative voting and reject all candidates unworthy of being elected.

The voter could press the None of the Above (NOTA) button on the electronic voting machine.

For democracy to survive, it was essential that the best available men should be chosen. Thiscould be best achieved through men of high moral and ethical values who win the elections on apositive vote.


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The NOTA option would indeed compel political parties to nominate sound candidates

Giving right to a voter not to vote for any candidate while protecting his right of secrecy wasimportant.

The Supreme Court directed the Election Commission (EC) to provide the necessary provision inballot papers/EVMs and the NOTA button.

The Supreme Court direct the EC to implement its order in a phased manner or at a time with theassistance of the Government of India

The Supreme Court directed the EC to undertake awareness programmes to educate the masses.

II. Significance of NOTA Option:

If theoption of None Of The Above candidates option is provided, even reluctant voters couldturn up at the booth and press the NOTA button in the electronic voting machine

The provision for negative voting would send clear signals to political parties and their

candidates as to what the electorate thought about them

France, Belgium, Brazil, Greece, Ukraine, Chile, Bangladesh, the US, Finland, Sweden, Columbiaand Spain had provided for neutral/protest/negative voting.

If introducing the NOTA button can increase participation of democracy then, in the Courts view,nothing should stop the same.

Non-participation in the elections would cause frustration and disinterest, which was not ahealthy sign of a growing democracy like India

The fundamental right under Article 19(1) (a) of the Constitution read with the statutory rightunder Section 79(d) of the Representation of the People Act would be violated unreasonably if

the right not to vote effectively was denied and secrecy breached.

The right to vote as well as the right not to vote was statutorily recognised under Section 79(d) ofthe Representation of the People Act and Rules 41(2) and (3) and 49-O of the Election ConductRules respectively.

The Election Commission (EC) welcomed the Supreme Court order directing it to add None Ofthe Above (NOTA) button in the EVM (Electronic Voting Machine).The secrecy of voters whoprefer that choice would be protected, according to the EC.

Earlier voters opting for the NOTA option Rule 49 (O) did not enjoy secrecy as they had torecord it by filling up a form in front of the poll officials/election agents.

III. Conclusion:

If a very large percentage of voters go for the NOTA option then it could affect the legitimacy ofthe election process.

Concerns have also been expressed that the right to reject could be misused for political rivalryand in insurgency-hit areas it could be manipulated to sabotage the democratic process.

The Election Commission could fix a limit beyond which the percentage of NOTA votes wouldlead to re-polling.


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I.2. RTI act (update)

I. The Right to Information (Amendment) Bill 2013 Introduced in the LokSabha (August 12, 2013):

On August 12, 2013, the UPA Government introduced the Right to Information(Amendment) Bill 2013 in the Lok Sabha.

The Bill proposed an amendment to Section 2 of the RTI Act which states thatany association or body of individuals registered or recognised as political partyunder the Representation of the People Act, 1951, would not be considered apublic authority.

The Bill also included a new Section 31in the principal Act which stated that theamendment would apply not withstanding anything contained in any judgement,

decree or order of any court or commission, and would prevail over any otherlaw for the time being in force.

The Bill would override the June 3, 2013, order of the Central InformationCommission that held six political parties the Congress, BJP, BSP, NCP, CPIand CPMas public authorities under Section 2 (b) of the transparency law.

All political parties were unanimous in their support for the amendment of theRTI Act.

The Bill when passed by the Parliament would be applicable with retrospective

effect from June 3, 2013, to negate the Central Information Commission order.

The Central Government pointed out that there were already provisions in theRepresentation of People Act and the Income Tax Act, which deal with financialaspects of the political parties and their candidates.


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i.3. judiciary (UPDATE)

I. Rajya Sabha Passed the Constitution (120th Amendment) Bill, 2013 toCreate a Judicial Appointments Commission (September 5, 2013):

On September 5, 2013, the Rajya Sabha passed the Constitution (120thAmendment) Bill, 2013 to create a Judicial Appointments Commission (JAC)which would replace the collegium system of appointing judges to higher courts.

The Bill envisaged setting up of the JAC, to be decided by Parliament, that wouldrecommend appointment and transfer of Supreme Court and High Court judges.

Presently, the Collegium consisting of five top judges of the Supreme Court,headed by the Chief Justice of India, decides the appointment of judges to highercourts.

Law Minister Kapil Sibal said that appointment of judges is the role of the executiveand not the judiciary. By the amendment the executive was not trying to interferewith the judicial processes. It was trying to have a transparent system ofappointment and participate with the judiciary to have best judges for a betterfuture.

The main Billthe Judicial Appointments Commission Bill, 2013, which definedthe establishment of the proposed bodywas sent to the Standing Committee ofthe Parliament.

By the time the Standing Committee returned the main Bill, the Centre wouldseek ratification of all States on the Constitution Amendment, according to theLaw Minister.


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i.4. Crimes Against Women

(UPDATE)

I. Four Accused in the Delhi Gang-Rape Awarded Death Sentence, the

Juvenile sent to a Correctional Home for Three Years:

On August 31, 2013, the Juvenile Justice Board held that the juvenile accused inthe Delhi gang-rape was guilty and sent him to a correctional home for threeyears.

The juvenile was found guilty of rape and murder and the Juvenile Justice Boardawarded him the maximum punishment provided in the Juvenile Justice (Careand Protection of Children) Act.

On September 10, 2013, a fast track court held the four accused in the Delhigang-rape guilty of a criminal conspiracy to gang-rape murder and commitunnatural sex on the 23-year-old physiotherapy student on December 16, 2013.

On September 13, 2013, the fast track court awarded death penalty to fourconvicts in the December 16, 2012 Delhi gang-rape.

The court held that the case fits into the rarest of rare category. It was stressedthat the court cannot turn a blind eye to sending a strong message to theperpetrators of such crimes.

II. Conclusion:

The fast track court that awarded death penalty to the four convicts of the Delhigang-rape said that the criminal justice system must instil confidence in the mindsof people, especially women. The crime of such nature against a helplesswoman, per se, required exemplary punishment.

Amnesty International India said that far-reaching procedural and institutionalreform, and not death penalty, was what was needed to tackle the endemicproblem of violence against women in the country.

United Nations Women, a UN organisation dedicated to gender equality andempowerment of women, asked the Government of India to adopt acomprehensive approach to end violence against women.

While the UN does not support capital punishment, perpetrators of crimesagainst women must be brought to justice, according to the representative of theUN Women.

Evidence across the world suggests that higher conviction rates serve asdeterrents to violence. The UN Women called upon the Government of India to do

everything in its power to ensure speedy justice for survivors of violence, especiallythose from marginalised communities.


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i.5. NATIONAL INTEGRATION COUNCIL

1. February 2005 - NIC Constituted After a Gap of 12 Years: In February 2005, the UPAGovernment Constituted the National Integration Council (NIC) after a gap of 12 years. Thelast meeting of the NIC was held in 1992.

2. 103-Member Body: The NIC is a 103-member body functioning under the Chairmanship ofthe Prime Minister. It will have 11 Cabinet Ministers, all Chief Ministers, former PrimeMinisters, leaders of prominent parties, regional party leaders, chairpersons of all six NationalCommissions on minorities, SC/STs, women and human rights, 10 representatives of theindustrial sector, 36 public figures, 10 women representatives and 17 media-persons.

3. NIC a Forum for Initiative and Interaction on Issues of National Concern: The NIC willfunction as a forum for effective initiative and interaction on issues of national concern, reviewissues relating to national integration and make recommendations thereon.

4. Need to Address the Challenge of Regionalism and Communalism:

Potential Sources of Discord: The Prime Minister Manmohan Singh identifiedcommunalism, casteism, regionalism and lingual chauvinism as potential sources ofdiscord as referred to by the former Prime Minister Jawaharlal Nehru in the 1961 NICmeeting.

Adequate Space for Regional and Sub-Regional Identities: The Prime MinisterManmohan Singh underscored the need to address the challenges of regionalism andcommunalism by stressing that there was adequate space in the polity and society forregional and sub-regional identities and cultures.

Ensuring that Local Identities become Part of India's Diverse Mosaic: Dr. Singhpointed out that technological advances in communication and information technologyand the media made it possible for the small communities and local cultures to preserveand promote their unique identities. He stressed that there was a need to ensure thatthese local identities become part of India's diverse mosaic in a harmonious way ratherthan become the cause of divisiveness and exclusion.

Regional Economic Imbalances Need to be Addressed: The Prime Ministeridentified regional economic imbalance as one of the causes of discord. He advised the

Chief Ministers of less developed States to learn from the experience of the moredeveloped ones to find new pathways to progress.

Improvement in the Livelihood of the Rural Poor an Important Element ofNational Integration: Dr. Singh emphasised that the State Governments must invest inhealth, education, infrastructure and governance, and transform rural economy. Animprovement in the lives and livelihood of the rural poor was an important element ofnational integration.

Grievances Could be Addressed Democratically through Dialogue: The overtchallenges like communalism, extremism, separatism, insurgency and violence could

be addressed democratically and through dialogue, according to the Prime Minister.Every political group, which claimed to represent the interests of any section, mustdemonstrate its popularity through the institutions of democracy.


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Reinforcing Commitment to Pluralism and Inclusiveness: Dr. Singh stressed onthe need to inculcate the spirit of liberalism in the people. He emphasised that theeducation system, the media and popular culture must reinforce India's commitment topluralism and inclusiveness.

All Three Pillars of the Constitution Need to Renew Commitment to the FoundingPrinciples of the Republic:The Prime Minister stressed that the legislature, judiciaryand the executive must at all times be cognisant of the need to renew India'scommitment to the founding principles of the republic and the guiding principles of theConstitution.

Model Bill to Curb Communal Violence being Finalised: The Government said thatit was finalising a model Bill to curb communal violence that would be circulated to thepublic for getting their suggestions.

5. Sixteenth NIC Meeting (New Delhi, September 23, 2013):

The 16thNIC meeting held in New Delhi on September 23, 2013 was focused onthe rising communal tensions.

Prime Minister Manmohan Singh told political parties not to derive mileage fromsectarian violence.

The State government should lose no time to control communal violence sternly.The local administration should prevent a small issue from snowballing into ahuge controversy.The State should use all means at its disposal to punish those guiltyof fanning communal violence and ensure a speedy crackdown on such elementsirrespective of their political affiliations or influence, according to Dr. Singh.

The Prime Minister said that social media gave people freedom to express theiropinions and thoughts. But people should not be allowed to misuse this mediumto create communal tension and spread hatred.

Dr. Singh cited the recent communal violence in Muzaffarnagar in UP andstressed that the States should act fast and transparently to avoid smallincidents leading to communal riots.

The Prime Minister pointed to the circulation of fake videos that worsened theMuzaffarnagar riots and also recalled the mass exodus of people of thenorth-east from some southern and western cities due to uploading of fakemessages on social media in 2012.

A majority of the Chief Ministers attending the NIC meeting agreed with the PrimeMinisters concern at misuse of the social media and urged the Centre to devicea mechanism to deal with this new phenomenon.

Some Chief Ministers demanded stricter cyberlaws to deal withmischief-mongers.


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SUMMARY1. NIC Constituted After a Gap of 12 Years

2. 103-Member Body

3. NIC a Forum for Initiative and Interaction on Issues of National Concern

4. Need to Address the Challenge of Regionalism and Communalism:

Potential Sources of Discord

Adequate Space for Regional and Sub-Regional Identities

Ensuring that Local Identities become Part of India's Diverse Mosaic

Regional Economic Imbalances Need to be Addressed

Improvement in the Livelihood of the Rural Poor an Important Element of National Integration

Grievances Could be Addressed Democratically through Dialogue

Reinforcing Commitment to Pluralism and Inclusiveness

All Three Pillars of the Constitution Need to Renew Commitment to the Founding Principles ofthe Republic

Model Bill to Curb Communal Violence being Finalised

5. Sixteenth NIC Meeting (New Delhi, September 23, 2013):

The 16th

NIC meeting held in New Delhi on September 23, 2013 was focused on the risingcommunal tensions.

Prime Minister Manmohan Singh told political parties not to derive mileage from sectarianviolence.

The State government should lose no time to control communal violence sternly. The localadministration should prevent a small issue from snowballing into a huge controversy

The Prime Minister said that social media gave people freedom to express their opinions andthoughts. But people should not be allowed to misuse this medium to create communal tensionand spread hatred.

Dr. Singh cited the recent communal violence in Muzaffarnagar in UP and stressed that the Statesshould act fast and transparently to avoid small incidents leading to communal riots.

The Prime Minister pointed to the circulation of fake videos that worsened the Muzaffarnagarriots and also recalled the mass exodus of people of the north-east from some southern andwestern cities due to uploading of fake messages on social media in 2012.

A majority of the Chief Ministers attending the NIC meeting agreed with the Prime Ministersconcern at misuse of the social media and urged the Centre to device a mechanism to deal withthis new phenomenon.

Some Chief Ministers demanded stricter cyberlaws to deal with mischief-mongers.


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II. INDIAN ECONOMY

1. Land acquisition Bill (UPDATE)

I. Land Acquisition, Rehabilitation and Resettlement Bill, 2013 Passed by

the Rajya Sabha (September 4, 2013):

On September 4, 2013, the Land Acquisition, Rehabilitation and Resettlement Bill, 2013was passed by the Rajya Sabha.

All four government amendments were accepted, necessitating that the Bill be revertedto Lok Sabha for its consideration. The Lok Sabha had passed the Bill on August 29,2013.

Rural Development Minister Jairam Ramesh moved four amendments, requiring that

the Bill be sent back to the Lok Sabha for the approval of the amendments.

According to the Amendments, the law would not apply to irrigation projects whereenvironmental impact assessment was required under the provision of any other lawalready in force.

For land acquisition initiated under the Land Acquisition Act, 1984, which the presentBill sought to replace, only the compensation part would be determined as provided inthe proposed law. The amendment drops the proposals on rehabilitation andresettlement.

In case an award had been made, the provisions of compensation under the new lawwould be applicable with respect to only those beneficiaries in whose account themoney had not been deposited.

The Bill sought to make consent of gram panchayats mandatory for acquisition of landto be made at four times the market rate, besides outlining provisions for rehabilitationand resettlement.


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II.2. Food Security Bill (UPDATE)

I. National Food Security Bill, 2013, Passed by the Parliament (September2, 2013):

1. Lok Sabha Passed the National Food Security Bill, 2013 (August 26, 2013):

On August 26, 2013, the Lok Sabha passed the National Food Security Bill, 2013which seeks to provide subsidised food grains to 67 per cent of the population(75% rural and 50% urban) of the country.

The government had promulgated an Ordinance in July 2013 which had to bereplaced by the Bill in the monsoon session of the Parliament to make it a law.

The Congress President Sonia Gandhi said that the Bill was a big message

about Indias capability to take responsibility for the food security of all itscitizens.

The National Food Security Bill was a fulfilment of the Congress partys promiseto wipe out hunger and malnutrition, according to Ms. Gandhi.

2. Rajya Sabha Approved the National Food Security Bill, 2013 (September 2, 2013):

On September 2, 2013, the Rajya Sabha approved by voice vote the NationalFood Security Bill, 2013.

The Bill was passed after the government assured the members of the UpperHouse that it had no intention of tinkering with the federal structure ofgovernance through the legislation.

The Rajya Sabha members were informed by the government that the current grainallocation to the States under the Targeted Public Distribution System even ifover and above their entitlement under the new law would be maintained atAbove the Poverty Line prices.

II. Sharing the Cost of the Food Security Programme between the Centre

and the States:

After the passage of the National Food Security Bill by the Parliament, the issuethat came up was sharing the cost of the Food Security programme between theCentre and the States.

The Centre convened a meeting of the State Food Ministers on September 23-24,2013, to discuss the issue.

After insistence from political parties, the Centre had agreed to bring anamendment to the Bill on holding consultations with the States on the rules to beframed by it, instead of just issuing directions.


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As the Bill provides, the Centre was consulting the State governments beforeframing the rules, schemes and guidelines, according to the Union Food MinisterK.V. Thomas.

The Centre would also discuss modernisation of the targeted Public Distribution

System with the State Ministers, according to Mr. Thomas.

The meeting convened by the Centre would discuss the contentious issues ofratio of cost-sharing between the Centre and the States for transportation offoodgrains from Food Corporation of India godowns to fair price shops.

The Centre was looking at the demand of the States about sharing 50 per cent ofthe transportation cost.

The Centre would also attempt to evolve consensus on the amount, time andmanner of payment of food security allowance to beneficiaries and introduction

of cash transfer, food coupons or other schemes for the targeted beneficiaries.

The Centre has to frame and notify the norms and how it would provide funds tothe States in case of short supply of foodgrains from the Central pool.

By law, it was now the obligation of the Centre to procure, provide and distributeto each State and Union Territory its entitlement of foodgrains to cover allbeneficiaries.


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ii.3. Fall OF Rupee & CAD (update)

I. RBI Announced the Third Set of Measures to Stabilise the Rupee (August14, 2013):

On August 14, 2013, the RBI announced the third set of measures to stabilise theIndian rupee.

The RBI clamped capital controls to check demand for the US dollar.

The RBI clamped down on capital outflows with tighter investment andremittance limits abroad for companies and individuals.

The RBI restricted the limit for overseas investment through automatic by anIndian company from 400 per cent to 100 per cent of the companys net worth.

II. Government Banned Import of Gold Coins and Medallions to Manage theCurrent Account Deficit:

In order to bring down the Current Account Deficit (CAD) to $70 billion, or around3.7 per cent of the GDP, the Government announced measures to curb the importof gold, silver and a few non-essential items and oil.

Tariffs were increased for gold and silver.

The Government banned the import of gold coins and medallions.

The Government expects to save $4 billion from the gold imports bill and $1.5

billion for petroleum.

III. Rupee Falls further as Stock Markets Crashed:

On August 16, 2013, the stock markets crashed and the rupee plunged to anall-time low amid fears that the Government may switch to a capital-controlregime to curb foreign exchange volatility and reduce the Current AccountDeficit (CAD).

On August 19, 2013, the rupee witnessed the biggest single day fall to reach 63 aUS dollar.

As the rupee depreciated the Foreign Institutional Investors (FIIs) rushed to sellstocks to repatriate US dollars.

The sell-off by the FIIs was mainly due to the fear that the Government wouldcome out with fresh measures to check the outflow of dollars from India,according to analysts.

IV. RBI Announced Fresh Measures to Stabilise the Rupee:

On August 20, 2013, the Reserve Bank of India (RBI) announced fresh measuresto curb the volatility of the Indian rupee and also to address the liquidity

concerns.


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The RBI eased the Statutory Liquidity Ratio (SLR) to provide more funds tobanks for lending.

The RBI also announced that it would buy bonds worth Rs.8,000 crore on August23, 2013.

V. Conclusion:

The Indian rupee depreciated by 12-13 per cent in the current fiscal and theinability to arrest the fall of the rupee was extremely worrying, according toeconomists.

RBIs measures to push up the interest rates and drain liquidity to checkspeculation of rupee backed by some administrative measures had limitedsuccess, according to analysts.

The Union Finance Minister promised to contain the Current Account Deficit(CAD) to within $70 billion or 3.7 per cent of the GDP this year.

To achieve this target the Government announced a number of measures toboost dollar supply as well as to moderate its demand.

The Government raised the import duties on gold, silver and platinum.

The Government wants to reduce the import bill of petroleum products throughdemand compression and by persuading bulk consumers to moderate their

demand.

The measures to boost the dollar supply include easing of norms for the ExternalCommercial Borrowings (ECBs), trade finance from abroad, and freeing ofinterest rates on Non-Resident external accounts. Select public sector financecompanies were asked to raise quasi-sovereign bonds to the extent of $4 billion.

The RBI also announced a series of measures to rein in the capital outflows byindividuals and companies.

Analysts point out that the outflow of capital form emerging markets on speculation

that the US Federal Reserve could end its easy money policy hurt the currency ofnearly every developing country.

Finance Secretary told the media that the Government was not looking at takingfurther steps to tackle the fall of the rupee, but would wait to see the impact of itsmeasures.


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ii.4. COMPANIES BILL 2012

I. Rajya Sabha Ratified the Companies Bill 2012 (August 8, 2013):

1. Companies Bill 2012 Replaced the Companies Act, 1956:

On August 8, 2013, the Rajya Sabha ratified the Companies Bill 2012, passed bythe Lok Sabha in December 2012.

The Companies Bill 2012 replaced the 57-year-old Companies Act, 1956.

The new legislation needs the Presidents assent to make it law.

2. Highlights of the Companies Bill 2012:

Companies are required to spend at least 2% of their average profits in the lastthree years towards Corporate Social Responsibility (CSR) activities.

Only companies having profits of 5 crore rupees or more in the last three yearshave to make the CSR spend.

In case companies are unable to comply with the CSR rules, they need to giveexplanations. Otherwise, they would be penalised.

The companies have the freedom to choose areas of work for CSR.

Mandatory for companies that one-third of their board comprises of independentdirectors.

At least one of the board members has to be a woman.

Mandates payment of two years salary to employees in companies which windup operations.

Corporates must disclose the difference in salaries of the directors and that ofthe average employee.

Provisions for faster winding up of firms.

Provides for class action suit, a key weapon for individual shareholders to takecollective action against errant companies.

An auditor can serve up to 20 companies.

Auditors have to be changed every five years to avoid collusion with themanagement.

Ensures setting up of special courts for speedy trial and stronger steps fortransparent corporate governance practices and curb corporate misdoings.


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3. Significance of the Company Bill 2012:

The focus of the Companies Bill 2012 was to enhance transparency and ensurefewer regulations, self-reporting and disclosures besides creating the necessaryenvironment for growth in the present global structure, according to the CorporateAffairs Minister Sachin Pilot

The objective was also to help small one-person companies to access facilitiesand credit, besides ensuring one minimum woman director in certain prescribedclass of companies, according to the Minister.

The effort was also to ensure these companies to give employment to allsections of society, according Mr. Pilot.

The new Bill had introduced numerous changes and concepts which shouldsimplify regulations and bring greater clarity and transparency in managing

businesses, according to the FICCI President Naina Lal Kidwai.


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II.5. CIVIL LIABILITY FOR NUCLEAR

DAMAGE aCT

I. Civil Liability for Nuclear Damage Act, 2010:

The Civil Liability for Nuclear Damage Act 2010, proposes to channel all legalliability stemming from a nuclear accident in India to the nuclear power plantoperator concerned.

The liability of the nuclear power plant operator, whether public or private, iscapped at Rs. 1,500 crore.

For any damages in excess of the liability of the operator, the Bill makes theGovernment liable up to a further level of 300 million Special Drawing Rights(SDRs),approximately Rs.21,000 crore.

The Civil Liability for Nuclear Damage Act, 2010 would enable India to accede tothe to the International Atomic Energy Agencys (IAEA) Convention onSupplementary Compensation for Nuclear Damage (CSC).

After India accedes CSC, Indian victims of a nuclear accident could draw uponan international fund to the maximum amount of another 300 million SDRs.

II. Necessity of the Civil Liability for Nuclear Damage Bill:

The Passage of the Civil Liability for Nuclear Damage Bill was critical for theoperationalisation of the Indo-US Civil Nuclear Cooperation Initiative.

The Act enables India to accede to the Convention on SupplementaryCompensation for Nuclear Damage (CSC), without which the US companieswould not be able to sell nuclear equipment to India.

The Civil Liability for Nuclear Damage Bill, 2010, would help put a liability regimein place in India.From the existing 436 nuclear power plants in the world, only thenuclear power plants in India (18) and Pakistan (2) are not covered by any liability,according to the spokesperson for the Congress Party Manish Tewari.

The Act had been under consideration for very long as the Public LiabilityInsurance Act of 1991 (enacted after the Bhopal gas tragedy) was not applicableto nuclear accidents, according to the then Minister of State in the Prime MinistersOffice Prithviraj Chavan.

Currently there was no law to provide compensation to the victims of a nuclearincident, according to Mr. Chavan.

The Civil Liability for Nuclear Damage Bill would provide for promptcompensation to the victims of a nuclear incident, according to Mr. Chavan.


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III. Parliament Adopted the Civil Liability for Nuclear Damage Bill, 2010:

1. August 25, 2010 - Lok Sabha Unanimously Passed the Bill after 18 AmendmentsMoved by the Government:

On August 25, 2010, the Lok Sabha passed the Civil Liability for Nuclear Damage Bill,

2010 by voice vote after the House adopted 18 amendments moved by theGovernment.

The United Progressive Alliance (UPA) Government managed to get the support of theOpposition parties for the passage of the Bill after it dropped the contentious provisionof intent as a precondition for holding suppliers liable for a nuclear accident caused bydefective equipment.

2. August 30, 2010 - Rajya Sabha Approved the Bill by Voice Vote: On August 30, 2010,the Rajya Sabha approved the Civil Liability for Nuclear Damage Bill by voice vote.

3. Highlights of the Bill:

Nuclear operators to be strictly liable for damages resulting from an accident buttheir liability would be capped at Rs.1,500 crore,unless a higher amount is notifiedby the Government.

Beyond this cap, the Government assumes responsibility for damages.

Bill specifies maximum liability of 300 million Special Drawing Rights (SDRs),approximately Rs.21,000 crore.

Increased the time period for filing claims in case of personal injury from 10 to 20years.

Claims for damages must be disposed of within three months of application.

Victims can approach the High Court and the Supreme Court for review ofcompensation amounts.

Provisions for setting up a nuclear damage claims panel.

IV. Significance of the Passage of the Civil Liability for Nuclear DamageBill, 2010:

The Passage of the Civil Liability for Nuclear Damage Bill, 2010, marked thecompletion of a journey to end the nuclear apartheid against India , according toPrime Minister Manmohan Singh.

The legislation would enable India to widen the option of nuclear power byentering into nuclear commerce with other countries.

Indias three-phase nuclear research programme would not be compromisedbecause of the Civil Liability for Nuclear Damage , according to the Minister of Statein the Prime Ministers Office Prithviraj Chavan.


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The Bill Would Enable India to Move in the Direction of Increasing its NuclearPower Generation by Actively Participating in International Markets: India isplanning to increase the nuclear power generation from the present 4,120, MWe to60,000 MWe by 2030, which requires Indias active participation in internationalmarkets and compliance with international rules and regulations. The Civil Liability forNuclear Damage Bill is a step in this direction, according to analysts.

V. The US Objections to the Civil Liability for Nuclear Damage Act:

The US objected to Sections 17(b) and 46 of the Civil Liability for NuclearDamage Act which open the door for legal action against nuclear suppliers if anaccident was caused by faulty or defective equipment.

The US felt that these provisions violated the International Atomic EnergyAgencys (IAEA) Convention on Supplementary Compensation for NuclearDamage (CSC).

US companies like GE and Westinghouse insist that they would not be able tosupply nuclear equipment to India unless they were fully insulated in the event ofan accident.

The Indian Government informed the US that the Act, as passed by theParliament was final and that no changes in any of its provisions were possible.

VI. India Signed the IAEAs Convention on Supplementary Compensationfor Nuclear Damage (CSC) (Vienna, Austria, August 27, 2010):

On August 27, 2010, India signed the International Atomic Energy Agencys(IAEA) Convention on Supplementary Compensation for Nuclear Damage (CSC) in Vienna, Austria.

The CSC provides a framework for channelling liability and providing speedycompensation in the event of a nuclear accident.

The IAEA is the depository of the CSC, which has been signed by 14 countriesand ratified by four, including the US.

The CSC would enter into force only when at least five countries with a minimumof 4,00,000 units of installed nuclear capacity ratify the treaty.

The CSC does not provide any forum for signatories to challenge each othersnational laws.

Article XVI of the CSC allows for arbitration as well as adjudication by theInternational Court of Justice, in the event of a dispute.

The US entered a reservation while ratifying the CSC in 2008 declaring that itdoes not consider itself bound by these dispute settlement procedures.

India is likely to make a similar declaration when it ratifies the CSC. That would

leave the Supreme Court of India as the only forum competent to ruleon the CivilLiability for Nuclear Damages Act, 2010 with Indias international obligations stemmingfrom its accession to the CSC.


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By signing the CSC, India delivered the last of its commitments stemming fromthe 2005 India-US Civil Nuclear Agreement.

With the US Administration issuing the requisite Part 810 licensingcertifications, the stage is set for the Nuclear Power Corporation of India Ltd.(NPCIL) to begin commercial negotiations with US companiesGeneral Electric

(GE) and Westinghouse for supply of two 1,000-MWe nuclear reactors.

SUMMARY

I. Civil Liability for Nuclear Damage Act, 2010:

The Civil Liability for Nuclear Damage Act, 2010, proposes to channel all legal liability stemmingfrom a nuclear accident in India to the nuclear power plant operator concerned.

The liability of the nuclear power plant operator, whether public or private, is capped at Rs. 1,500crore.

For any damages in excess of the liability of the operator, the Bill makes the Government liableup to a further level of 300 million Special Drawing Rights (SDRs),approximately Rs.21,000 crore.

The Civil Liability for Nuclear Damage Bill, 2010 would enable India to accede to the to theInternational Atomic Energy Agencys (IAEA) Convention on Supplementary Compensation forNuclear Damage (CSC).

After India accedes CSC, Indian victims of a nuclear accident could draw upon an internationalfund to the maximum amount of another 300 million SDRs.

II. Necessity of the Civil Liability for Nuclear Damage Bill:

The Passage of the Civil Liability for Nuclear Damage Bill is critical for the operationalisation of

the Indo-US Civil Nuclear Cooperation Initiative. The Bill enables India to accede to the Convention on Supplementary Compensation for Nuclear

Damage (CSC), without which the US companies would not be able to sell nuclear equipment toIndia.

The Civil Liability for Nuclear Damage Bill, 2010, would help put a liability regime in place in India

The Bill had been under consideration for very long as the Public Liability Insurance Act of 1991(enacted after the Bhopal gas tragedy) was not applicable to nuclear accidents

Currently there was no law to provide compensation to the victims of a nuclear incident

The Civil Liability for Nuclear Damage Bill would provide for prompt compensation to the victimsof a nuclear incident

III. Parliament Adopted the Civil Liability for Nuclear Damage Bill, 2010:

August 25, 2010 - Lok Sabha Unanimously Passed the Bill after 18 Amendments Moved by theGovernment:

August 30, 2010 - Rajya Sabha Approved the Bill by Voice Vote

IV. Significance of the Passage of the Civil Liability for Nuclear Damage Bill, 2010:

The Passage of the Civil Liability for Nuclear Damage Bill, 2010, marked the completion of ajourney to end the nuclear apartheid against India.

The legislation would enable India to widen the option of nuclear power by entering into nuclearcommerce with other countries.


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Indias three-phase nuclear research programme would not be compromised because of the CivilLiability for Nuclear Damage Bill.

The Bill Would Enable India to Move in the Direction of Increasing its Nuclear Power Generationby Actively Participating in International Markets

V. The US Objections to the Civil Liability for Nuclear Damage Act:

The US objected to Sections 17(b) and 46 of the Civil Liability for Nuclear Damage Act which openthe door for legal action against nuclear suppliers if an accident was caused by faulty ordefective equipment.

The US felt that these provisions violated the International Atomic Energy Agencys (IAEA)Convention on Supplementary Compensation for Nuclear Damage (CSC).

US companies like GE and Westinghouse insist that they would not be able to supply nuclearequipment to India unless they were fully insulated in the event of an accident.

The Indian Government informed the US that the Act, as passed by the Parliament was final and

that no changes in any of its provisions were possible.

VI. India Signed the IAEAs Convention on Supplementary Compensation for Nuclear Damage(CSC) (Vienna, Austria, August 27, 2010):

On August 27, 2010, India signed the International Atomic Energy Agencys (IAEA) Conventionon Supplementary Compensation for Nuclear Damage (CSC)in Vienna, Austria.

The CSC provides a framework for channelling liability and providing speedy compensation inthe event of a nuclear accident.

The IAEA is the depository of the CSC, which has been signed by 14 countries and ratified byfour, including the US.

The CSC would enter into force only when at least five countries with a minimum of 4,00,000 unitsof installed nuclear capacity ratify the treaty.

The CSC does not provide any forum for signatories to challenge each others national laws.

Article XVI of the CSC allows for arbitration as well as adjudication by the International Court ofJustice, in the event of a dispute.

The US entered a reservation while ratifying the CSC in 2008 declaring that it does not consideritself bound by these dispute settlement procedures.

India is likely to make a similar declaration when it ratifies the CSC. That would leave theSupreme Court of India as the only forum competent to rule

By signing the CSC, India delivered the last of its commitments stemming from the 2005 India-USCivil Nuclear Agreement.

With the US Administration issuing the requisite Part 810 licensing certifications, the stage isset for the Nuclear Power Corporation of India Ltd. (NPCIL) to begin commercial negotiationswith US companies


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III. WORLD ECONOMY

1. G-20

I. Background:

1. G-20 - Formed in 1999, Accounts for 85 per cent of the global economy and two-thirds of the globalpopulation:The Group of 20 was formed on September25, 1999 in Washington DC when the Finance Ministersof G-7 felt the need to include emerging markets in discussions and reviews of policy issues to promoteinternational financial stability. The G-20 accounts for 85 per cent of the global economy and two-thirds of theglobal population.

2. Members of the G-20:The US, the EU, China, India, Japan, Germany, Britain, France, Italy, Canada, Russia,Brazil, Mexico, Argentina, Australia, Indonesia, Saudi Arabia, Turkey, South Korea and South Africa.

3. G-20 Summit (Washington, November 15, 2008):

First G-20 Meeting at the Summit Level:The G-20 Meeting in Washington on November 15, 2008 was

the first at the summit level - previous G-20 meetings were confined to Finance Ministers and central bankgovernors. Spain and Netherlands were also invited to the G-20 Summit in Washington.

Aim of the Summit - to Address the Current Financial Crisis and Lay Foundation for Reforms:Thethen US President George W. Bush said that the aim of the G-20 Summit was to address the currentfinancial crisis, and to lay the foundation for reforms that would help prevent a similar crisis in the future.

Washington Summit Declaration:

Agreement to restore confidence in the global financial system.

The common principles agreed included strengthening transparency and accountability;enhancing sound regulation; promoting integrity in financial markets; reinforcing internationalcooperation; and reforming international financial institutions.

College of Supervisors to be set up to monitor the worlds biggest financial institutions,including the US systems, with a list to be compiled by the end of March 2009. The proposal would add alevel of security to monitor excessive risk-taking by banks and financial firms.

4. G-20 - London Summit (April 02-03, 2009):

Summit Statement:

$1.1 Trillion Pledged to Multilateral Institutions to Boost Economic Growth: G-20 leaders pledgedadditional $1.1 trillion in resources for the International Monetary Fund (IMF) and other multilateral

institutions to boost global economic growth. This would be in addition to the fiscal stimulus packagesgiven by individual countries that would total $5 trillion by the end of 2010.

Agreement to Treble the Resources Available to the IMF to $750 Billion: The G-20 leaders agreed totreble the resources available to the IMF to $750 billion and support the allocation of new Special DrawingRights (SDRs) of $250 billion. The leaders also agreed to support at least $100 billion in lending bymultilateral development banks that would be available to all members and ensure $250 billion in tradefinance. The Summit agreed to allow the IMF to sell gold and provide concessional finance to the poorestcountries.

Agreement to Establish a New Financial Stability Board (FSB) with Representation from all G-20Members.

Agreement on a Set of Principles to Reform the Global Banking System: The G-20 leaders agreedfor the first time on a set of principles to reform the global banking system. The shadow banking systemwould be brought under the regulatory regime and new accounting stands would be formulated.


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Action against Tax Havens and Banking Secrecy through OECD Mechanism:In a move against taxhavens and banking secrecy, the G-20 Summit warned that it would deploy sanctions to protect publicfinances and financial system. It declared that the era of banking secrecy was over. It was noted that theOrganisation of Economic Cooperation and Development (OECD) had published a list of countriesassessed against the international standard for the exchange of information.

Agreement to Refrain from Protectionism:In view of the rising protectionism in different countries the

G-20 leaders reaffirmed the commitment made in the Washington Summit in November 2008 to refrainfrom raising new barriers to investment or trade in goods and services that were inconsistent with theWorld Trade Organisation (WTO) rules.

Call for a Balanced Conclusion of the Doha Round of WTO Trade Talks: The G-20 Summit called foran ambitious and balanced conclusion to the Doha development round of WTO trade talks that couldboost the world economy by at least $150 billion per year.

Pledge to Assist the Less Developed Countries to Meet the Millennium Development Goals: TheG-20 leaders pledged to assist the less developed countries to meet the Millennium Development Goalsand lay the foundation for a fair and sustainable world economy.

The Fiscal Stimulus Packages would be Directed to Ensure a Green, Low Carbon Recovery.

5. G-20 Summit (Toronto, Canada, June 27-28, 2010):

Summit Declaration:

Called for striking a balance between stimulus measures to sustain economic expansion andreducing fiscal deficit to tackle the problem of Government finances.

Resolved to continue with free international trade and refrain from protectionist measures.

Strengthening the Recovery was the Key:The Declaration stated that while growth was returning, therecovery was uneven and fragile, unemployment in many countries remained at unacceptable levels, andthe social impact of the crisis was still widely felt. Strengthening the recovery was the key.

To sustain recovery, there was need to follow through on delivering existing stimulus plans,while working to create conditions for robust private demand.

Recent events highlighted the importance of sustainable public financesand the need for countriesto put in place credible, properly phased and growth-friendly plans to deliver fiscal sustainability,differentiated for and tailored to national circumstances.

Countries with serious fiscal challenges need to accelerate the pace of consolidation.

Advanced economies have committed to fiscal plans that would halve deficits by 2013 andstabilise or reduce government debt by 2016.

G-20 members renewed their commitment to refrain from raising or imposing barriers to

international trade and investment for a further three years till the end of 2013. This was in view ofthe global economic crisis leading to the biggest decline of trade in more than 70 years.

The next G-20 Summit would be held in Seoul, South Korea in November 2010.

Significance of the Summit:

The G-20 Summit managed to reach a consensus on two Important Issues of Coordinating FiscalPolicies and Framing Global Regulatory Rules for the Financial Sector: Analysts point out that thesignificance of the Toronto G-20 Summit lay in the fact that it managed to reach a consensus on twoimportant issues of coordinating fiscal policies and framing global regulatory rules for the financial sector.The Summit committed all countries to follow growth friendly fiscal consolidation plans, halving theirdeficits by 2013 and stabilising the ratio of debt to GDP by 2016. Nevertheless, there would be no

sanctions on countries not adhering to this guideline.

The public message for all countries was that while shoring up domestic demand in the shortrun, they should move towards fiscal consolidation, but at a pace to be decided by the country itself.


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The Summit Endorsed Prime Minister Manmohan Singhs Suggestion on Nurturing the GlobalRecovery Through Public Spending in the Advanced Countries: The Summit was significant forIndia as Prime Minister Manmohan Singhs suggestion that global recovery was still fragile and henceneeded to be nurtured through continued public spending in the advanced countries was endorsed by theG-20 members.

6. G-20 Summit (Seoul, South Korea, November 11-12, 2010):

A. Agenda of the Summit - Five Issues: The framework of balanced and sustainable growth Reform of the international financial institutions Financial regulatory reform Development and trade Financial safety net for developing countries

B. Highlights of the G-20 Communiqu:

Agreement to curb persistently large imbalances in saving and spending but deferred until nextyear tough decisions to identify and fix them . The goal was to facilitate timely identification of large

imbalances that require preventive and corrective actions to be taken.

Agreed to refrain from competitive devaluation and bring in exchange rate flexibility to ensurethat no country get undue advantage.

Ratified IMF Reforms: The G-20 leaders ratified changes in the governance of the IMF that wouldexpand representation of emerging-market countries, endorsed the expansion of IMF lendingprogrammes that could be used by countries facing a sudden liquidity crunch, and empowered the IMF tospearhead the process for fixing imbalances.

Endorsed new rules set by the Basel Committee on Banking Supervision and known as Basel III,which order banks to keep more capital for a rainy day.

Agreed to take a fresh approach to international development focused on promoting growth.They also agreed to make development a permanent part of the G-20 agenda.

Seoul Consensus - Commitments to engage developing countries as partners: The SeoulConsensus laid stress on commitments to engage developing countries as partners. A multi -year planfor funding, such as infrastructure, private-sector job creation and access to banking services. It was alsoagreed to support a free trade area in Africa.

C. Significance of the Summit:

The G-20 leaders agreed to avoid a competitive devaluation of their currencies and undertook toseek a more balanced growth.

The G-20 endorsed measures to reform the IMF which would give China, India and others agreater say in the world body. A more democratic IMF would have wider acceptability and wouldtherefore be better equipped to perform its role as a referee, according to analysts.

For the first time development was included in the G-20 Summit agendawith leaders committingthemselves to a multiyear action plan aimed at strengthening food security and bridging the gap betweenthe rich and poor nations.

India played a significant role by getting the G-20 to appoint a high powered panel for channellingglobal surpluses to finance infrastructure.

Analysts point out that the significant message from the Summit was that the countries would

continue to work together but would not be constrained by any rigid time frame.


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7. G-20 Summit (Cannes, France, November 3-4, 2011):

A. Agenda for the Summit: Reforming of the International Monetary System; providing support for the changes the global

economy is experiencing. Strengthening the Financial Reform Fighting Corruption and Cleaning up the business Environment

Ensuring Food Security in the most Vulnerable Nations

B. India Signed the Convention on Mutual Administrative Assistance in Tax Matters:

On November 4, 2011, India signed the Convention on Mutual Administrative Assistance in TaxMatters, developed by the Council of Europe and the Organisation for Economic Co-operationand Development (OECD).

The Convention has to be ratified by Indias Parliament to become law.

All members of the G-20 have now become signatories to the Convention.

The Convention provides for all forms of administrative cooperation between countries in the

assessment and collection of taxes, especially with the view to combat tax avoidance and evasion.The cooperation covers the exchange of information, including automatic exchanges, to the recovery offoreign tax claims.

C. G-20 Communiqu:

Asked tax havens to adopt prudential norms for sharing of tax information to check moneylaundering and funding of terror failing which it threatened action.

Warned of action against jurisdiction and entities that would not cooperate in ensuringtransparency in tax frauds.

Underlined the importance of comprehensive tax information exchange and encouraged work inthe Global Forum (OECD) to define the means to improve it.

Called upon nations to adhere to the international standards in the tax, prudential andAnti-Money Laundering/ Combating the Financing of Terrorism areas.

Welcomed the commitment made by all G-20 members to sign the Multilateral Convention MutualAdministrative Assistance in Tax Matters and strongly encouraged other jurisdictions to join theConvention.

G-20 made significant progress in implementing the Action Plan on combating corruption ,promoting market integrity and supporting a clean business environment.

Underlined the need for swift implementation of a strong international legislative framework, theadoption of national measures to prevent and combat corruption and foreign bribery , the

strengthening of international cooperation in fighting corruption and development of joint initiativesbetween the public and the private sector.

Consensus on measures to strengthen the international financial system.

D. Significance of the G-20 Summit:

The G-20 Communiqu endorsed Indias call for increased banking transparency and exchangeof information to combat tax fraud and evasion and other illicit flows , according to Prime MinisterManmohan Singh.

The rich and the emerging economies pledged to fight cross-border tax evasion under theagreement approved by the summit.

The Convention of global tax matters would help Governments collect tens of billions of dollarsin taxes on previous hidden income.


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The outcome of the G-20 summit at Cannes was positive and balanced, according to China. It waspointed out that the leaders of the worlds most influential economies who attended the summitexpressed their commitment to stabilising financial market and improving global economic governance.

8. Seventh G-20 Summit (Los Cabos, Mexico, June19-20, 2012):

A. Declaration Adopted by the Seventh G-20 Summit:

The G-20 leaders would work collectively to strengthen demand and restore confidence tosupport growth and financial stability in order to create jobs and opportunities.

Agreed on a coordinated Los Cabos Growth and Jobs Action Plan to achieve these goals.

Agreement among the leaders that policies in all countries must shift to strengthening growth.

The G-20 leaders look forward to the Euro Area working in partnership with the next GreekGovernment to ensure that they remain on the path to reform and sustainability within the Euroarea.

The G-20 would intensify efforts to create a more conducive environment for development,including supporting infrastructure investment.

Recognised the impact of the economic crisis on developing nations, particularly the low incomecountries.

B. Significance of the Seventh G-20 Summit for India:

Prime Minister Manmohan Singhs stand that growth and austerity have to be combined, wasreflected in the Summit Declarationwhich emphasised that the need for growth because, austerity,by itself, would not solve the debt problems of the Eurozone.

The Summit Declaration for the first time included investment in infrastructure in the developing

countries. India has been pressing for this since the last three Summits.

The Declaration called for ending mechanistic reliance on credit rating agencies, andencouraging transparency and competition amongst them. This was in line with Indias stand.

The Summit agreed that the IMF quota reform should be speeded up from 2013 . This wouldincrease the clout of the developing countries in the IMF.

The non-European members of the G-20 sent a strong message to Europe that it had to end thenationalistic bickering and better supervise the Eurozones financesthrough the European CentralBank (ECB), the IMF and the EU.

II. Eighth G-20 Summit (St. Petersburg, Russia, September 5-6, 2013):1. Prime Minister Manmohan Singhs Address to the Summit:

Called for efforts at restoring growth, which would be greatly helped if there wasa stable external environment. The G-20 had a major role to play in this context.

Called upon the G-20 leaders to send a clear signal of their collectivecommitment to work together for the revival of growth, which was the only way ofensuring a sustainable growth in quality jobs.

Recovery in the global economy could not be driven by the developed economiesalone. There was need to restore robust growth in the emerging marketcountries, which would contribute to global recovery.


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The policy of unconventional monetary expansion in advanced countries hadsome success but it had also spillover effects. When the policy was beingloosened, there was a surge in capital flows to emerging markets, which helped somecountries finance their current account deficits (CAD) while generating upward pressureon the currencies of their countries.

With markets now anticipating a reversal, a large outward flow of capital fromemerging markets was being witnessed. Since most emerging markets nowoperated with flexible exchange rates, they experienced varying degrees of currencydepreciation, posing problems in many cases.

The conventional view that capital volatility should not be a source of concern aslong as exchange rates were flexible was now being questioned. Suddenincreases in cross-border flows affect not only the exchange rate but also creditvolumes and asset prices.

This effectively amounted to saying that automatic adjustment of capital flowsand growth does not take place with a flexible currency all the time.

The Prime Minister questioned the orthodoxy of self-correcting market forces inthe current global conditions.

2. G-20 Leaders St. Petersburg Declaration:

The G-20 Leaders Declaration committed itself to cooperate to ensure that policiesimplemented to support domestic growth also support global growth andfinancial stability and to manage spillovers to other countries.

Shared Indias view on the need for orderly exit from the monetary stimulusundertaken in the context of the 2008 economic crisis.

Coordinated action by the G-20 has been critical to tackling the financial crisisand putting the world economy on a path of recovery.

Critical for G-20 countries to focus all their joint efforts on engineering a durableexit from the longest and most protracted crisis in modern history.

Most urgent need was to increase the momentum of the global recovery,

generate higher growth and better jobs while strengthening the foundations forlong term growth and avoiding policies that could cause the recovery to falter orpromote growth at other countries expense.

Monetary policy would continue to be directed towards domestic price stabilityand supporting the economic recovery according to the respective mandates ofcentral banks.

G-20 leaders recognised the support that had been provided to the globaleconomy in recent years from accommodative monetary policies, includingunconventional monetary policies.

G-20 would remain mindful of the risks and unintended negative side-effects ofextended periods of monetary easing.


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3. Significance of the Eight G-20 Summit:

The eighth G-20 Summit was significant in reinforcing the process of forginginstitutions for undertaking and monitoring governance of globalisation,according to analysts.

A number of new institutions and old ones with new mandates are being workedout to combat the menace of tax evasion and corruption by harmonisingfinancial accounting, improving regulation, producing financial inclusion,investment, growth and jobs, according to analysts.

Indias Secretary, Department of Economic Affairs Arvind Mayaram, expressedsatisfaction that the final G-20 declaration took care of Indias main concerns, whilestating that the central banks of the developed world had agreed to calibrate andcommunicate their monetary policies to the developing economies to minimisevolatility in capital flows and currencies.

Another significant achievement from Indias point of view was that it got theG-20 to state that all nations would work together to ensure that MNCs pay taxesin the countries where their profits arise, according to Mr. Mayaram.

III. Conclusion:

Time for the G-20 to evolve beyond the crisis management role and emerge as amajor forum for forging a consensus among developed and emergingeconomieson major issues including trade and climate change, according to analysts.

SUMMARY

I. Eighth G-20 Summit (St. Petersburg, Russia, September 5-6, 2013):

1. Prime Minister Manmohan Singhs Address to the Summit:

Called for efforts at restoring growth, which would be greatly helped if there was a stable externalenvironment. The G-20 had a major role to play in this context.

Called upon the G-20 leaders to send a clear signal of their collective commitment to worktogether for the revival of growth

There was need to restore robust growth in the emerging market countries, which wouldcontribute to global recovery.

The policy of unconventional monetary expansion in advanced countries had some success butit had also spillover effects

With markets now anticipating a reversal, a large outward flow of capital from emerging marketswas being witnessed

The conventional view that capital volatility should not be a source of concern as long asexchange rates were flexible was now being questioned

This effectively amounted to saying that automatic adjustment of capital flows and growth does

not take place with a flexible currency all the time.

The Prime Minister questioned the orthodoxy of self-correcting market forces in the currentglobal conditions.


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2. G-20 Leaders St. Petersburg Declaration:

Committed itself to cooperate to ensure that policies implemented to support domestic growthalso support global growth and financial stability and to manage spillovers to other countries.

Shared Indias view on the need for orderly exit from the monetary stimulus undertaken in thecontext of the 2008 economic crisis.

Coordinated action by the G-20 has been critical to tackling the financial crisis and putting theworld economy on a path of recovery.

Critical for G-20 countries to focus all their joint efforts on engineering a durable exit from thelongest and most protracted crisis in modern history.

Most urgent need was to increase the momentum of the global recovery, generate higher growthand better jobs while strengthening the foundations for long term growth and avoiding policiesthat could cause the recovery to falter or promote growth at other countries expense.

Monetary policy would continue to be directed towards domestic price stability and supporting

the economic recovery according to the respective mandates of central banks.

G-20 leaders recognised the support that had been provided to the global economy in recentyears from accommodative monetary policies, including unconventional monetary policies.

G-20 would remain mindful of the risks and unintended negative side-effects of extended periodsof monetary easing.

3. Significance of the Eight G-20 Summit:

The eighth G-20 Summit was significant in reinforcing the process of forging institutions forundertaking and monitoring governance of globalisation

A number of new institutions and old ones with new mandates are being worked out to combatthe menace of tax evasion and corruption by harmonising financial accounting, improvingregulation, producing financial inclusion, investment, growth and jobs

G-20 declaration took care of Indias main concerns, while stating that the central banks of thedeveloped world had agreed to calibrate and communicate their monetary policies to thedeveloping economies to minimise volatility in capital flows and currencies.

Another significant achievement from Indias point of view was that it got the G -20 to state that allnations would work together to ensure that MNCs pay taxes in the countries where their profitsarise

II. Conclusion:

Time for the G-20 to evolve beyond the crisis management role and emerge as a major forum forforging a consensus among developed and emerging economies


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iV. DEFENCE

1. INS ARIHANT -

NUCLEAR-POWERED SUBMARINE

I. Background:

1. Prime Minister Launched a Nuclear-Powered Submarine INS Arihant for Sea Trials:On July 26, 2009 Prime Minister Manmohan Singh launched indigenously builtnuclear-powered submarine INS Arihant for sea trials at the Naval Dockyard inVisakhapatnam, Andhra Pradesh.

2. Features of Indias Indigenous Nuclear-Powered Submarine - INS Arihant:

Arihant means destroyer of enemies

It is 110 metre long, 11 metre wide and 15 metre tall and can displace 6,000tonnes of water.

A miniaturised Pressurised Water Reactor (PWR) built by Bhabha AtomicResearch Centre (BARC) propels the nuclear-powered submarine.

The nuclear-powered submarine would be fitted with anti-ship missiles,torpedoes and sensors.

INS Arihant would be fitted with Indias indigenous K-15 ballistic missiles thatcould be launched from under water.The K-15, which are under production, can

carry both conventional and nuclear warheads having range of 700 km.

The nuclear-powered submarine will undergo various trials before it is formallycommissioned.

3. Nuclear-Powered Submarine built under the Advanced Technology Vessel (ATV)Programme:

The indigenous nuclear-powered submarine INS Arihant has been built under theAdvanced Technology Vessel (ATV) programme, with the strategiccooperation of Russia.

Vice-Admiral (retired) D.S.P. Verma is the Director-General of the ATVprogramme.

The ATV programme was cleared for implementation by the former PrimeMinister Indira Gandhi in 1984.

The ATV programme commenced from 1998 and is estimated to have costRs.30,000 crore.

The ATV programme saw a new era in cooperation among the DRDO, BARC, the

Navy, and public and private sectors, who synergised their efforts to achieve theimportant milestone.


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4. Significance of the Indigenous Nuclear-Powered Submarine INS Arihant:

India joined the select group of countries which possess the capability to build anuclear-powered submarine.Only the US, Russia, China, France and the U.K. havenuclear-powered submarines.

The construction of a submarine is a highly demanding task in itself, but for Indiato develop its first nuclear submarine was a special achievement, according to thePrime Minister. A nuclear-powered submarine is a much more complex platform thanany other vessel and India building one on its own was a great achievement, accordingto DRDO officials.

The nuclear-powered submarine completes the third-leg of nuclear triadenvisaged under Indias nuclear doctrine of having a second strike capability,according to the then Chief of Naval Staff Admiral Sureesh Mehta. India can now launchmissiles with nuclear warheads from the land, air and also from the sea.

The Indian Navy wanted to influence a wide area in the Indian Ocean and thenuclear submarine was the apex of that capability, according to Admiral Mehta.

The nuclear-powered submarine gives India the status of a country possessing ablue-water Navy because the submarine can travel far and wide.

The main advantage of a nuclear-powered submarine is that it can remain underwater for a long duration,whereas a diesel-fired submarine has to rise to the surfaceevery day for ejecting the carbon-dioxide produced by the diesel-generator.

By building the miniaturised reactor that propelled the nuclear-poweredsubmarine, BARC had demonstrated that India had indigenous Pressurised

Water Reactor (PWR) technology, according to the then Atomic Energy CommissionChairman Anil Kakodkar.

The launching of INS Arihant was an important milestone in the ATV programme.The PWR technology is very complex and BARC was able to compact the reactor andpack it in the cramped space of the hull of the submarine, according to Dr. Kakodkar.

For the first time India had built a PWR that used enriched uranium as fuel, andlight water as both coolant and moderator.The mastering of the PWR technologywas significant as the Light Water Reactors that India would be importing from Russia,France and the US were PWRs that used enriched uranium as fuel, and light water as

both coolant and moderator, according to Dr. Kakodkar.

5. Prime Minister Allays Fears of Any Aggressive Designs by India:

Prime Minister Manmohan Singh said that it was incumbent on India to take allnecessary steps to keep pace with global advances.

India does not have any aggressive designs, nor does it seek to threaten anyone,according to Dr. Singh.

India sought an external environment in the region and beyond that, conduciveto its peaceful development and the protection of its value systems, according to

the Prime Minister.


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It was also incumbent upon India to take all measures necessary to safeguardthe country and keep pace with technological advancements worldwide. Eternalvigilance was the price of liberty, according to Dr. Singh.

Special mention of the contribution of Russia in helping India achieve ahistorical milestone in the complex project being implemented under the

public-partnership model was made by both the Prime Minister Manmohan Singh andthe Defence Minister A.K. Antony.

II. Arihants Nuclear Reactor Achieved Criticality (August 10, 2013):

On August 10, 2013, Indias first indigenous nuclear submarine INS Arihantachieved criticality (self-sustained nuclear reaction, the first step towardsstable production of power).

INS Arihant is propelled by a Pressurised Water Reactor (PWR) which usesenriched uranium as fuel, and light water as both coolant and moderator. The

PWR generates about 80 MW of power.

The key challenge was to make the PWR compact to fit into the submarine andthe need for the reactor to be stable in the depth of the sea.

INS Arihant would be fitted with K-15 underwater fired missiles, which can reachtargets up to a distance of 700 km.The K-15 missiles which would carry nuclearwarheads are under production.

India is building three more nuclear-powered submarines at Visakhapatnam.

III. Significance of INS Arihants Nuclear Reactor Achieving Criticality:

India joined the exclusive club of countries that have built their own nuclearpowered submarinesthe US, Russia, the UK, France and China.

INS Arihants nuclear reactor achieving criticality is the first step towardsmaking Indias nuclear triad operational with the capability to fire deterrentnuclear missiles from the land, air and sea envisaged in Indias nuclear doctrine,according to analysts.

Prime Minister Manmohan Singh congratulated the scientists and the Navy on

their success in achieving the criticality for INS Arihants nuclear reactor.

It represents a giant stride in the progress of Indias indigenous technologicalcapabilities, according to Dr. Singh.

It was a testimony to the ability of Indias scientists, technologists and defencepersonnel to work together for mastering the complex technologies in theservice of the countrys security, according to the Prime Minister.

The achievement of criticality of the PWR aboard INS Arihant was ademonstration of very advanced technological capability in the challenging

areas of nuclear reactor design, manufacture and commissioning, according tothe Atomic Energy Commission (AEC) Chairman R.K. Sinha.


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The sea trials of INS Arihant would be conducted by the end of August 2013 tocarry out tests on board, including weapons firing.

SUMMARYI. Background:

1. 2009 - Prime Minister Launched a Nuclear-Powered Submarine INS Arihant for Sea Trials2. Features of Indias Indigenous Nuclear-Powered Submarine - INS Arihant:

Arihant means destroyer of enemies It is 110 metre long and 11 metre wide and can displace 6,000 tonnes of water. A miniaturised Pressurised Water Reactor (PWR) built by Bhabha Atomic Research Centre (BARC)

propels the nuclear-powered submarine. The nuclear-powered submarine would be fitted with anti-ship missiles, torpedoes and sensors. INS Arihant would be fitted with Indias indigenous K-15 ballistic missiles that could be launched from

under water The nuclear-powered submarine will undergo various trials before it is formally commissioned.

3. Nuclear-Powered Submarine built under the Advanced Technology Vessel (ATV) Programme:

The indigenous nuclear-powered submarine INS Arihant has been built under the Advanced TechnologyVessel (ATV) programme, with the strategic cooperation of Russia.

Vice-Admiral (retired) D.S.P. Verma is the Director-General of the ATV programme. The ATV programme was cleared for implementation by the former Prime Minister Indira Gandhi in 1984. The ATV programme commenced from 1998 and is estimated to have cost Rs.30,000 crore. The ATV programme saw a new era in cooperation among the DRDO, BARC, the Navy, and public and

private sectors4. Significance of the Indigenous Nuclear-Powered Submarine INS Arihant:

India joined the select group of countries which possess the capability to build a nuclear-poweredsubmarine

The construction of a submarine is a highly demanding task in itself, but for India to develop its firstnuclear submarine was a special achievement

The nuclear-powered submarine completes the third-leg of nuclear triad envisaged under Indias nucleardoctrine of having a second strike capability

The Indian Navy wanted to influence a wide area in the Indian Ocean and the nuclear submarine was theapex of that capability

The nuclear-powered submarine gives India the status of a country possessing a blue-water Navybecause the submarine can travel far and wide.

The main advantage of a nuclear-powered submarine is that it can remain under water for a long duration By building the miniaturised reactor that propelled the nuclear-powered submarine, BARC had

demonstrated that India had indigenous Pressurised Water Reactor (PWR) technology The launching of INS Arihant was an important milestone in the ATV programme First time India had built a PWR that used enriched uranium as fuel, and light water as both coolant and

moderator5. Prime Minister Allays Fears of Any Aggressive Designs by India:

Prime Minister Manmohan Singh said that it was incumbent on India to take all necessary steps to keep

pace with global advances. India does not have any aggressive designs, nor does it seek to threaten anyone India sought an external environment in the region and beyond that, conducive to its peaceful

development and the protection of its value systems It was also incumbent upon India to take all measures necessary to safeguard the country and keep pace

with technological advancements worldwide Special mention of the contribution of Russia in helping India achieve a historical milestone

II. Arihants Nuclear Reactor Achieved Criticality (August 10, 2013):

On August 10, 2013, Indias first indigenous nuclear submarine INS Arihant achieved criticality(self-sustained nuclear reaction, the first step towards stable production of power).

INS Arihant is propelled by a Pressurised Water Reactor (PWR) which uses enriched uranium asfuel, and light water as both coolant and moderator


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The key challenge was to make the PWR compact to fit into the submarine and the need for thereactor to be stable in the depth of the sea.

INS Arihant would be fitted with K-15 underwater fired missiles, which can reach targets up to adistance of 700 km

India is building three more nuclear-powered submarines at Visakhapatnam.

III. Significance of INS Airhants Nuclear Reactor Achieving Criticality:

India joined the exclusive club of countries that have built their own nuclear powered submarinesthe US, Russia, the UK, France and China.

INS Arihants nuclear reactor achieving criticality is the first step towards making Indias nucleartriad operational with the capability to fire deterrent nuclear missiles from the land, air and seaenvisaged in Indias nuclear doctrine, according to analysts.

Prime Minister Manmohan Singh congratulated the scientists and the Navy on their success inachieving the criticality for INS Arihants nuclear reactor.

It represents a giant stride in the progress of Indias indigenous technological capabilities

It was a testimony to the ability of Indias scientists, technologists and defence personnel to worktogether for mastering the complex technologies in the service of the countrys security

The achievement of criticality of the PWR aboard INS Arihant was a demonstration of veryadvanced technological capability in the challenging areas of nuclear reactor design,manufacture and commissioning

The sea trials of INS Arihant would be conducted by the end of August 2013 to carry out testson-board, including weapons firing.


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iV.2. INS VIKRANT

I. Indias First Indigenous Aircraft Carrier, INS Vikrant Launched (August12, 2013):

On August 12, 2013, Indias first indigenous aircraft carrier, INS Vikrant, waslaunched at Cochin Shipyard.

In 1961, the Indian Navy acquired its first aircraft carrier, INS Vikrant whichplayed a crucial role in the India-Pakistan war in 1971. It was decommissioned in1997.

The new INS Vikrant would undergo outfitting till 2016 and would go for basintrials and extensive sea trials before being commissioned in 2018.

The Indian Navy already possess INS Viraat, 28,000-tonne aircraft carrier.

Russias Admiral Gorshkov renamed Vikramaditya would join the Indian Navy bythe end of 2013.

II. Featur

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