Current affair 7th Jan 2014

PARAM Yuva II: India’s no.1 and ranked 44th among most power efficient supercomputer in the world

As per Green500 List announced at the Supercomputing Conference (SC 2013) in Denver, Colorado, in the US, India’s PARAM Yuva II supercomputer built by the Centre for Development of Advanced Computing (C-DAC), has been ranked no.1 in India, 9th in the Asia Pacific Region and 44th in the world among the most power efficient computer systems.

Why does ‘Green 500’ rank computer systems according to their power efficiency?

Generally, supercomputers eat up a lot of power and produce much heat that requires sophisticated cooling facilities to ensure proper functioning. This renders the Total Cost of Ownership (TCO) of operating supercomputer to increase. In a bid to draw attention towards development of energy efficient supercomputers, Green500 ranks computer systems in the world according to compute performance per watt, thus providing a world ranking based on energy efficiency.

India’s power network integrated into one grid with joining of Southern region

India’s power network has been integrated into one grid as South India has been linked with the national electricity grid. This completes the consolidation of the entire country into one network for distributing electricity to consumers. The integration was attained through the commissioning of the Raichur-Solapur 765 kilovolt (kV) single-circuit transmission line by state-owned Power Grid Corp. of India Ltd. With this, the Indian power system has become one of the largest operating synchronous grids in the world with about 232 GW (gigawatts) of installed power generation capacity. India has achieved its ‘ONE NATION’-'ONE GRID’-'ONE FREQUENCY’ objective.

How would linking the southern-region with the national grid help?

There is a problem of power shortage in the southern states of India. Power-starved states like Tamil Nadu, Andhra Pradesh and Karnataka were waiting for the line to be interconnected to enable them to transmit power purchased from surplus states in the north and eastern regions. As per the Central Electricity Authority (CEA), India’s highest power sector planning body, Puducherry, Karnataka and Kerala had a peak power shortage of 8.1%, 5.8% and 5.5% respectively in August 2013. However, with the linking of this region with the national grid this problem can be tackled more efficiently as the surplus power from East and West grids could be diverted to power-deficient south. Besides, it will also improve transmission and facilitate better management of demand, ensuring the stability of the electricity grid.

Where are the major grids in India?

There are five regional grids in the country:

1.     Northern

2.     Southern

3.     Eastern

4.     North-eastern

5.     Western

“One Nation-One Grid-One Frequency”:

The Indian Power system for planning and operational purposes is divided into above mentioned 5 regional grids. The integration of regional grids, and thereby establishment of National Grid, was ideated in early 90s. The integration of regional grids which started with asynchronous HVDC back-to-back inter-regional links facilitating limited exchange of regulated power was subsequently advanced to high capacity synchronous links between the regions.

The early inter-regional links were planned for exchange of operational surpluses amongst the regions. However, later on when the planning philosophy had graduated from Regional self-sufficiency to National basis, the Inter-regional links were planned associated with the generation projects that had beneficiaries across the regional boundaries.

By the end of XI plan the country has total inter-regional transmission capacity of about 28,000 MW which is likely to boost to about 65000 MW at the end of XII plan.

How would National Grid help?

The National Grid which enables synchronization of all regional grids will help in optimal utilization of scarce natural resources by transfer of Power from Resource centric regions to Load centric regions. Besides, this shall pave way for setting up a vibrant Electricity market facilitating trading of power across regions. One Nation One Grid shall synchronously connect all the regional grids and there will be one national frequency.

Furthermore, the integrated national grid will also help towards interconnecting countries of the South Asian Association for Regional Cooperation (SAARC) that consists of India, Pakistan, Nepal, Bhutan, Bangladesh, Sri Lanka, Afghanistan and the Maldives. The SAARC grid ideates meeting electricity requirement in the region. India already has power grid links with Bhutan, Nepal and Bangladesh, and plans to develop power transmission links with Myanmar and Sri Lanka.

How did the evolution of National Grid take place?

The chronological sequence of events that took place towards the evolution of National Grid is as follows:

Grid management on regional basis started in 60s.

Initially, State grids were inter-connected to form regional grid and India was demarcated into 5 regions namely Northern, Eastern, Western, North Eastern and Southern region.

In October 1991 North Eastern and Eastern grids were connected.

In March 2003 WR and ER-NER were interconnected .

August 2006 North and East grids were interconnected thereby 4 regional grids Northern, Eastern, Western and North Eastern grids are synchronously connected forming central grid operating at one frequency.

On December 31, 2013, Southern Region was connected to Central Grid in Synchronous mode with the commissioning of 765kV Raichur-Solapur Transmission line thereby achieving ‘ONE NATION’-'ONE GRID’-'ONE FREQUENCY’.

‘Mother of PIL’: Pushpa Kapila Hingorani passed away

Pushpa Kapila Hingorani (86), a lawyer who is known by the title ‘Mother of PIL’ for being the first women to file a Public Interest Litigation (PIL) on behalf of voiceless under-trial prisoners in Bihar around more than three decades ago, has passed away.

What were the key contributions of Kapila Hingorani?

During her 60-year long career as a lawer, Kapila Hingorani fought more than 100 cases in the Supreme Court voicing concern through PILs for the poor, downtrodden and help-less people before the judiciary. She took the initiative of filing a PIL in 1979 to fight a lawsuit regarding the condition of the prisoners detained in the Bihar jail, whose cases were pending in the court. The main thing about this petition was that it was not filed by any single prisoner, rather it was filed by various prisoners of the Bihar jail. The case was admitted in the Supreme Court before the bench headed by Justice P. N. Bhagwati. This petition was filed by the name of the prisoner, Husnara Khatoon, hence the petition came to be known as Husnara Khatoon Vs State of Bihar. In this suit, the Supreme Court upheld that the prisoners should get benefit of free legal aid and fast hearing. Because of this case 40,000 prisoners, whose suits were pending in the court, were released from the jail. Thereafter many cases like this were registered in the apex court.

Public Interest Litigation (PIL):

A PIL means litigation for the protection of the public interest.

Understanding the Right to Constitutional Remedies:

Article 32 of the Constitution of India is known as “Right to Constitutional Remedies”. Article 32 (1) says that “The right to move the Supreme Court by appropriate proceedings for the enforcement of the rights conferred by this Part is guaranteed”.

Why PIL?

In ordinary cases the aggrieved person/ party has the right to seek redress under Article 32. Prior 1980s only the aggrieved party could approach the courts for justice. The Indian legal system which was more or less with colonial nature saw the state of deprivation of civil and political rights particularly during the emergency era. After the emergency got ended in 1977, the 2 judges of the Supreme Court Justice V. R. Krishna Iyer and P. N. Bhagwati recognized the possibility of providing access to justice to the poor and to reach out to the people. Hence Public Interest Litigation was devised an innovative way wherein a person or a civil society group could approach the supreme court seeking legal remedies in cases where public interest is at stake. Justice V. R. Krishna Iyer and Justice P. N. Bhagwati were the first judges to accept PIL. In S. P. Gupta v. Union of India, 1981 case, Justice P. N. Bhagwati articulated the concept of PIL.

Hussainara Khatoon v. State of Bihar was the first such PIL case filed by advocate Kapila Hingorani and focused on the inhuman conditions of the prisons. The case led to release of more than 40, 000 under trial prisoners.

Concept of PIL:

In S. P. Gupta v. Union of India, 1981 case, Justice P. N. Bhagwati provisioned that if an injury is caused to a person or class of person or a legal right of the person/class of person is violated, and such person or class of person by reasons of poverty, helplessness or disability or social/economical disadvantageous position cannot approach the court, then a member of the public can maintain an application for an appropriate direction / order/ writ in the High Court under article 226 and in case any breach of the fundamental rights the person or class of person can seek judicial redress in Supreme court under article 32.

Please note that Article 226 is Power of High Courts to issue certain writs.

Can PIL be filed for personal gains?

In Ashok Kumar Pandey v. State of West Bengal case it was maintained that one can approach the court to wipe out violation of fundamental rights and genuine infraction of statutory provisions, but not for personal gain or private profit or political motive or any oblique consideration.

Remedial nature of PIL:

The PIL has remedial nature and indirectly incorporates the principles enshrined in the part IV (Fundamental Duties) of the Constitution of India into part III (Fundamental Rights) of the Constitution.

National Legal Services Authority (NALSA)

In 1979, the apex court for the first time talked of the necessity of free legal aid to poor persons to make the justice system mount a meaningful protection of their rights. Eight years after the judgment of Hussainara Khatoon Vs State of Bihar case, the National Legal Services Authority (NALSA) was constituted under the Legal Services Authorities Act, 1987 to provide free Legal Services to weaker sections of the society and to organize Lok Adalats for amicable settlement of disputes.

Current affair 6th Jan 2014

Assam will follow “Chaibagaan time”

The state of Assam decided to follow the ‘chaibagaan’ time instead of the Indian Standard Time (IST). The bagaan time will be helpful to save energy, reduce power consumption and increase productivity. IST is calculated on the basis of solar time in Allahabad in the northern-central state of Uttar Pradesh. States located to the west of this longitude have more daylight hours as compared to those in the east. Assam lies in the extreme east of the country and borders Bangladesh and Bhutan. This means that the sun sets as early as 16:31 (4:31 p.m.) IST in November and December. 

Clocks in India are 5:30 hours ahead of Coordinated Universal Time (UTC), making the country one of the few territories with a half-hour UTC offset. If the time zone change is implemented, Assam will be 6:30 hours ahead of UTC.

Note:The chaibagaan time or bagaan time – Introduced by British people over 150 years ago, was set one hour ahead of the Indian Standard Time (IST) for tea estates, collieries and oil industry of Assam. This Baggan time is more suitable for tea plantations.

CCEA clears the Central Sector Scheme, ILDP for 12th plan

The Cabinet Committee on Economic Affairs (CCEA) approved the central sector scheme, Indian Leather Development Programme (ILDP) for overall development of the leather sector during the 12th Plan (2012-17).

Under this scheme, the six sub-schemes are also proposed with an outlay of Rs.990.36 crore.

These are – Integrated Development of Leather Sector (IDLS), Human Resource Development (HRD), Support to Artisan (STA), leather technology innovation and environmental issues, mega leather cluster and establishment of institutional institutes.

Implementation of the ILDP would provide trained manpower to the industry and assistance to overcome the constraints of infrastructure in the industry.

Moclic software – can predict weather

Researchers from the National Autonomous University of Mexico (UNAM) designed the software Monitoring Climate Change (Moclic) by which anyone is able to determine their community, state or country’s weather activity for the days and months ahead.

Characteristics of Monitoring Climate Change (Moclic) software

It is possible to organize, store and operate geo-referenced data from climate elements.

Can calculate bio and agro-climatic indicators, such as humidity, aridity, rain erosion and rainfall concentration.

The new software feeds on data from weather stations of any state or country, with which what happens in a small ranch regarding temperature, can be known more accurately. Presently, the software we are using till date uses global information.

Allows an agronomist to obtain annual rainfall records and relate them to the crops production figures for explanation of a possible event.

The software is very simple and can be used by decision making characters, as governors, breeders, physicians, farmers, students or anyone whose repercussions could have economic politic or social effects.

Current afffairs 5th Jan 2014

New Zealand’s Corey Anderson smashes quickest ODI century

January 5, 2014     No comments

New Zealand’s cricket player Corey Anderson created a record by hitting the fastest century in One-Day International (ODI), reaching 100 in just 36 balls against the West Indies. Prior to Anderson, Pakistan’s Shahid Afridi had this record who took 37 deliveries to hit century against Sri Lanka in 1996.

In his unbeaten 131, Anderson hit 14 sixes, the third highest number of sixes in an ODI innings. India’s Rohit Sharma smashed 16 sixes against Australia two months ago and Australia’s Shane Watson hit 15 against Bangladesh in 2011.

FDI in high speed trains expected soon

The Government is expected to permit Foreign Direct Investment (FDI) in high speed trains and other projects including development of rail lines between project sites and existing network. The Department of Industrial Policy and Promotion (DIPP) has proposed 100% FDI through automatic route along with the proposal to de-license and de-reserve few areas of the cash-deficient railway sector. However, FDI will not be permitted in train operations and safety. At present, (FDI) in the railways sector is completely forbidden except mass rapid transport systems.

What are the key points in the proposal for allowing FDI in Indian Railways?

As per the proposal, government should:

Allow 100% FDI through automatic route

De-license and de-reserve few areas

Allow FDI in railways sub-urban corridor, high speed train systems and dedicated freight line projects implemented in PPP mode.

Expand the definition of ‘infrastructure’ by including railway line and railway sidings.

Allow foreign companies to control 100% stake in the Special Purpose Vehicle (SPV) that will build and maintain rail lines linking ports, mines and industrial centers with the existing rail network.

Why do we need FDI in Railways?

Indian Railways are facing a cash problem. This requirement of cash can be met to a great extent by allowing FDI in the sector.  When foreign firms would be allowed to control SPVs that will construct rail lines linking ports, mines and industrial centers with the existing rail network it would facilitate smooth movement of raw materials from mines to ports. Industrial development and exports have been suffering due to poor infrastructure which hinders output and increases the cost of production. Railways can play a significant role in providing a reliable transport facility needed for industrial growth.

RBI to review banks’ single, group borrowing exposure limit norms

Considering the serious risks from ever enlarging pool of corporate stressed loans – bad loans and restructured advances, the Reserve Bank of India is likely to revise its extant single and group borrower limits. RBI’s Financial Stability report (FSR) released in December 2013 has suggested review of current limits to improve stability of the banking sector. As per existing norms, a bank can take single borrower exposure upto 25% of bank total capital and upto 55% for group exposure.

If we compare India’s existing exposure norms with global norms, we find India to be on the higher side. As per the proposal made by the Basel committee in March 2013, threshold defining large exposure should be set at 5% of banks eligible capital. The large exposure limit may be pegged at 25% of common equity tier I (as against the currently used total capital). As per World Bank’s financial sector assessment program of India in 2011-12, the large group exposure limit (upto 50%) in India is considerably higher than 25% norm which is healthy international practice.

According to RBI’s impact study, the contagion losses are significant and could exceed the direct loses caused by failed group. The failure of large corporate group could result in a total loss of over 60% of the banking system’s capital. The performance of the corporate sector in the present economic condition has been a matter of concern. The defaults by corporate or business makes two impact on a bank:

Direct loss in tune with exposure

Loss on account of the effect of contagion.

The share of corporate loans is quite big in gross Non-Performing Assets (NPA). Besides, pool of restructured advances, which is preponderantly corporate loans, has also grown considerably.

CPI rose by 2 points in November 2013

The Consumer Price Index for Industrial Workers or CPI-IW increased slightly by 2 points to 11.47% and pegged at 243 in November 2013 compared to 11.06% in October and 9.55% in the same month last year on account of higher prices of food items.

On one month percentage change, it rose by 0.83% between October and November compared with 0.46% between the same two months in 2012.  Food inflation was estimated at 16.175 against 15.02% of the previous month and 10.85% during the same month of year 2012. As per official data, inflation in food items was the largest contributor to the upward movement of the current index contributing 2.23% points to the total change.

Among food commodities the main contributors to the rise in index were rice, wheat, wheat atta, milk, pure ghee, garlic, potato, tomato, other vegetable items and Tea readymade. However, the rise in index was moderated to some extent by groundnut oil, fresh fish, poultry, onion, ginger, electric charges, medicine (allopathic), petrol putting downward force on the index. At centre level, Bokaro registered the highest surge of 11 points followed by Giridih, Kodarma, and Angul—Talcher (9 points each), Munger—Jamalpur (8 points) and Rourkela, Sholapur and Raniganj (7 points each).

On the other hand, Surat reported a fall of 6 points followed by Amritsar, Bhavnagar and Vadodara (4 points each), Coonoor and Nagpur (2 points each) and Ahmedabad centre one point. At national level, the indices of 40 centres are above the all India Index and other 38 centres’ indices are below national average.

What is CPI-IW (Consumer Price Index for Industrial Workers)?

The CPI-IW or Consumer Price Index for Industrial Workers is an economic indicator used by the government in India to gauge inflation for a particular segment of the consumer market. To do this, it sets up a baseline for the purchasing power of industrial workers at a particular point in time and comparing what the same amount of money can purchase in following years. If purchasing power falls, inflation has rendered the prices of consumer goods to increase. The percentage rise in prices over the baseline is considered the country’s rate of inflation.

Estimating CPI is part of the economic policy of most countries. Developed nations such as the US and the UK, track CPI for the whole population. Developing nations, like India, find it less useful to track the purchasing habits of the entire population as a whole, because there is great extent of inequality in the standard of living between urban and rural workers. To track CPI, India classifies its population into four classes, these are: 

Urban non-manual employees

Agricultural Laborer

Rural Laborer

Industrial Worker

Google ties up with Election Commission for voters’ registration

The Election Commission of India (EC) has tied-up with US-based internet heavyweight, Google, to assist it manage online voter registration and facilitation services ahead of the India’s General Election 2014. Google will provide EC its resources, including its search engine, to facilitate voters to check their enrolment status online and locate their polling station, complete with directions using Google Maps.  In this exercise, Google will put its global network and resources at the EC’s disposal until June 2014 to help it manage online registration of new voters and enable the enrolled ones to check the address at which they are registered, and get directions to the polling station. With the new rolls with reference to January 1, 2014, slated to be out by January 6, 2014, the voters’ queries on the Commission website are expected to be managed by Google for the next 6 months.

How much would Google charge for these services?

Zero. Google will not charge the EC for these services, estimated to cost $50,000 (over Rs 30 lakh), and fund the same from its Corporate Social Responsibility (CSR) budget.

How would Google’s services to EC help voters?

The EC intends to use Google’s technological expertise to manage online enrolment of voters and help voters search their name in electoral rolls along with the polling station. If any voter wants to know about his enrolment and poll station, he will only have to type his/her name/EPIC no and address on the Google Search engine, which will quickly generate results matching the voters’ name with his assembly/Lok Sabha constituency, and pinpointing the location of his polling station. Besides, Google Maps will show exact directions to the voter on how to reach the right polling station on the polling day.

EC is also considering the option of using the global network and servers of Google for airing of results for the 2014 general election expected to be held in May 2014. In the recently held Assembly Polls in the five states also, EC had joined hands with US-based IT company Akamai for putting out results.

Current affairs 3rd Jan 2014

FII inflow in Indian equities reaches Rs 1.13 lakh crore

The Foreign Institutional Investors (FIIs) are figured to have made a net inflow of over Rs. 1.13 lakh crore in the Indian equity market in 2013. At gross level, FIIs purchased stocks worth Rs 7.96 lakh crore in 2013 and sold equities to the tune of Rs 6.84 lakh crore; translating into a net inflow of Rs 1,13,136 crore.

Nevertheless, overseas investors pulled out Rs 50,847 crore from the bond market in 2013. This takes the overall investment by FIIs into the debt and equity market together to Rs 62,288 crore. Despite their unpredictable ‘hot money’ investment, these overseas entities are amongst the most important drivers of Indian stock markets.

As per the experts, FIIs are looking forward to a stable government that can move reforms process faster, irrespective of which political party comes to power at the Centre next year. Likewise, a strong performance by BJP in the recent assembly elections has promoted the chances of a stable government at the Centre.

RBI: Banks to continue accepting scribbled notes

The Reserve Bank of India (RBI) stated that banks will continue to accept currency notes with anything written on them and it has not issued any such instructions regarding discontinuity of scribed notes.

Nevertheless, the central bank reiterated that writing or scribbling on banknotes works against its ‘clean note policy’ and sought co-operation from public, institutions and others in keeping the banknotes clean by not writing anything on them.

Note: This announcement came on the wake of rumours that RBI issued a notification that from January 1, 2014, banks will not accept bank notes with scribbling. 

Finance Minister called financial sector regulators to implement FSLRC proposals

The Union finance minister, P Chidambaram stated the regulators must implement proposals of the Finance Sector Legislative Reforms Commission (FSLRC).

The FSLRC report contains 12 key proposals and these do not require legislative changes. It also included a draft Indian Financial Code that is expected to replace the current financial sector legislations but is unlikely to be tabled in Parliament soon.

About FSLRC report                                                                                                     

The financial sector regulators will take serious action with high penalties on violators and time bound investigations that would act as deterrents and improve consumer protection.

The proposals that called for penalties discourage the future violations as a multiple of the illegitimate gain of violations.

Regulators should also put in place internal manuals on conducting investigations. The investigating officer would be kept different from the officer who would decide the penalty for the crime.

Note: The Financial Stability and Development Council on October 2013 decided to finalize an action plan for implementation of all FSLRC principles on regulatory governance, transparency and improved operational efficiency that do not require legislative action.

Pakistan appoints a female judge to Sharia Court for the first time

Ms Ashraf Jehan (56) appointed as the first female judge of Shariah Court (Pakistan), which hears cases under the Islamic legislation. Ms Jehan was earlier serving as an additional judge at the high court in Sindh.

Note: The Shariah Court was established in 1980 during the rule of military dictator Ziaul Haq as part of his policy towards Islamisation of Pakistan’s institutions. It examines the country’s laws to check them for conformity with Islamic injunctions and hears appeals under religious legislation known as the “Hudood Laws”, which run parallel to the penal code.

PETA’s Person of the Year: Dr Shashi Tharoor

The Union Minister of State for Human Resource Development, Dr. Shashi Tharoor named as the Person of the Year by the animal rights body PETA (People for the Ethical Treatment of Animals) – India for taking steps to advance animal protection. Mr. Tharoor recommended the National Council for Teacher Education (NCERT) to ban the use of animals, viz. for dissection, etc, in training teachers.

By his initiative, in 2012, the Ministry of Environment and Forests issued a directive instructing all the institutes or establishments associated with teaching of medical, pharmacy and other courses in life sciences to follow UGC guidelines for discontinuation of dissection and animal experimentation in universities and colleges and introduce use of alternatives to animal experimentation.

 About People for the Ethical Treatment of Animals (PETA) - India

Based in Mumbai, launched in January 2000.

Operates under the simple principle that animals are not ours to eat, wear, experiment on or use for entertainment.

Focuses primarily on the areas in which the greatest numbers of animals suffer the most: in the food and leather industries, laboratories and the entertainment industry.

Responsible for the ending of animal experiments by the West Bengal Board of Secondary Education in 2008.

RBI eases gold dore import norms; allows refineries to import 15% of their annual requirements in first two months

In consultation with the Government of India, the Reserve Bank of India (RBI) partially eased restrictions on import of gold dore after taking into account representations from refiners. As per the new norms -

Refineries are allowed to import dore up to 15% of their gross average feasible quantity based on their license entitlement in the first two months for making this available to the exporters on First in First out (FIFO) basis. Following to this, the quantum of gold dore to be imported should be determined lot-wise on the basis of export performance.

Before the next import, not more than 80% should be allowed to be sold domestically.

The dore so imported shall be refined and shall be released based on FIFO basis following 20:80 principle.

The imports will be allowed only up to 5 times the quantum for which proof of export has been submitted.

Note: In August, the RBI had imposed curbs on gold imports and linked it with exports. Consequently, 20%  of every lot of gold imported had to be exclusively made available for exports and the balance for domestic use.

What is Gold Dore?

Gold doré (pronounced gold doh-rey) is a bar of semi-purified gold (e.g. bullion). After being mined, the first stage in the purification process of the gold ore produces a cast bar (gold dore) that is approximately 90% gold. The other 10% is mostly metals like silver and copper.

Current affairs 3rd Jan 2014

FII inflow in Indian equities reaches Rs 1.13 lakh crore

The Foreign Institutional Investors (FIIs) are figured to have made a net inflow of over Rs. 1.13 lakh crore in the Indian equity market in 2013. At gross level, FIIs purchased stocks worth Rs 7.96 lakh crore in 2013 and sold equities to the tune of Rs 6.84 lakh crore; translating into a net inflow of Rs 1,13,136 crore.

Nevertheless, overseas investors pulled out Rs 50,847 crore from the bond market in 2013. This takes the overall investment by FIIs into the debt and equity market together to Rs 62,288 crore. Despite their unpredictable ‘hot money’ investment, these overseas entities are amongst the most important drivers of Indian stock markets.

As per the experts, FIIs are looking forward to a stable government that can move reforms process faster, irrespective of which political party comes to power at the Centre next year. Likewise, a strong performance by BJP in the recent assembly elections has promoted the chances of a stable government at the Centre.

RBI: Banks to continue accepting scribbled notes

The Reserve Bank of India (RBI) stated that banks will continue to accept currency notes with anything written on them and it has not issued any such instructions regarding discontinuity of scribed notes.

Nevertheless, the central bank reiterated that writing or scribbling on banknotes works against its ‘clean note policy’ and sought co-operation from public, institutions and others in keeping the banknotes clean by not writing anything on them.

Note: This announcement came on the wake of rumours that RBI issued a notification that from January 1, 2014, banks will not accept bank notes with scribbling. 

Finance Minister called financial sector regulators to implement FSLRC proposals

The Union finance minister, P Chidambaram stated the regulators must implement proposals of the Finance Sector Legislative Reforms Commission (FSLRC).

The FSLRC report contains 12 key proposals and these do not require legislative changes. It also included a draft Indian Financial Code that is expected to replace the current financial sector legislations but is unlikely to be tabled in Parliament soon.

About FSLRC report                                                                                                     

The financial sector regulators will take serious action with high penalties on violators and time bound investigations that would act as deterrents and improve consumer protection.

The proposals that called for penalties discourage the future violations as a multiple of the illegitimate gain of violations.

Regulators should also put in place internal manuals on conducting investigations. The investigating officer would be kept different from the officer who would decide the penalty for the crime.

Note: The Financial Stability and Development Council on October 2013 decided to finalize an action plan for implementation of all FSLRC principles on regulatory governance, transparency and improved operational efficiency that do not require legislative action.

Pakistan appoints a female judge to Sharia Court for the first time

Ms Ashraf Jehan (56) appointed as the first female judge of Shariah Court (Pakistan), which hears cases under the Islamic legislation. Ms Jehan was earlier serving as an additional judge at the high court in Sindh.

Note: The Shariah Court was established in 1980 during the rule of military dictator Ziaul Haq as part of his policy towards Islamisation of Pakistan’s institutions. It examines the country’s laws to check them for conformity with Islamic injunctions and hears appeals under religious legislation known as the “Hudood Laws”, which run parallel to the penal code.

PETA’s Person of the Year: Dr Shashi Tharoor

The Union Minister of State for Human Resource Development, Dr. Shashi Tharoor named as the Person of the Year by the animal rights body PETA (People for the Ethical Treatment of Animals) – India for taking steps to advance animal protection. Mr. Tharoor recommended the National Council for Teacher Education (NCERT) to ban the use of animals, viz. for dissection, etc, in training teachers.

By his initiative, in 2012, the Ministry of Environment and Forests issued a directive instructing all the institutes or establishments associated with teaching of medical, pharmacy and other courses in life sciences to follow UGC guidelines for discontinuation of dissection and animal experimentation in universities and colleges and introduce use of alternatives to animal experimentation.

 About People for the Ethical Treatment of Animals (PETA) - India

Based in Mumbai, launched in January 2000.

Operates under the simple principle that animals are not ours to eat, wear, experiment on or use for entertainment.

Focuses primarily on the areas in which the greatest numbers of animals suffer the most: in the food and leather industries, laboratories and the entertainment industry.

Responsible for the ending of animal experiments by the West Bengal Board of Secondary Education in 2008.

RBI eases gold dore import norms; allows refineries to import 15% of their annual requirements in first two months

In consultation with the Government of India, the Reserve Bank of India (RBI) partially eased restrictions on import of gold dore after taking into account representations from refiners. As per the new norms -

Refineries are allowed to import dore up to 15% of their gross average feasible quantity based on their license entitlement in the first two months for making this available to the exporters on First in First out (FIFO) basis. Following to this, the quantum of gold dore to be imported should be determined lot-wise on the basis of export performance.

Before the next import, not more than 80% should be allowed to be sold domestically.

The dore so imported shall be refined and shall be released based on FIFO basis following 20:80 principle.

The imports will be allowed only up to 5 times the quantum for which proof of export has been submitted.

Note: In August, the RBI had imposed curbs on gold imports and linked it with exports. Consequently, 20%  of every lot of gold imported had to be exclusively made available for exports and the balance for domestic use.

What is Gold Dore?

Gold doré (pronounced gold doh-rey) is a bar of semi-purified gold (e.g. bullion). After being mined, the first stage in the purification process of the gold ore produces a cast bar (gold dore) that is approximately 90% gold. The other 10% is mostly metals like silver and copper.

Current affair 1st jan 2014

Scientists discovered Phosphorous in remnants of Supernova

Astronomers have, for the first time, discovered phosphorous — one of the vital elements for life — in the cosmic remains from a supernova explosion.

It has been found that phosphorus is 100 times more abundant in the leftovers of a supernova than elsewhere in the galaxy, affirming the hypothesis that massive exploding stars are the churning factories of the element.

While researches have calculated the abundance of essential life elements like carbon, nitrogen, oxygen and sulphur in supernovae remains, supernova remnant Cassiopeia A disclosed the first measurement of the relatively scarce phosphorus. The new observations of the object were made with a spectrograph positioned on a 5-meter telescope at Palomar Observatory at the California Institute of Technology.

What are Supernovae and Supernova remnant?

A supernova is a celestial event which happens when massive stars exhaust their nuclear fuel and explode in a spectacular fashion. Being extremely luminous, they briefly outshine an entire galaxy, before fading from view over several days.

During a short period of some weeks or months, a supernova can radiate as much energy as the Sun is expected to emit over its entire life span. Once it fades away, what remains is an expanding shell of gas and dust called a supernova remnant.

What is the scientific thought on the formation of essential life elements?

As per astronomers, these elements are formed in the stars and are dissipated throughout our galaxy when the star explodes, and they become part of other stars, planets and ultimately, humans.

Scientists are of the view that when a star with mass several times the mass of the Sun runs out of the hydrogen that it combusts to produce energy, the core of the star goes through a sequence of collapses, synthesising heavier elements with each collapse.

OIL signs pact with IRMA for studying the feasibility of Project ‘Kamdhenu’

PSU (Public Sector Unit) Oil India Ltd. has inked an agreement with Institute of Rural Management, Anand (IRMA) to conduct a feasibility study for the company for its plan to set up dairy production facility in Assam. The project which has been named ‘Kamdhenu’ aims to set up big milk production centre in Upper Assam.

Why OIL intends to enter dairy sector?

OIL wants to set up dairy production facility under its project ‘Kamdhenu’ as part of a Corporate Social Responsibility (CSR) initiative. The project would seek to boost milk production in Upper Assam by providing employment opportunity to the people of the state. In future, the project aims to enhance the production to supply milk and dairy products in the whole North-East region. The project derives inspiration from the ‘Amul’ model which has been very successful in Gujarat.

What is the role of IRMA in this project?

As per the agreement with Institute of Rural Management, Anand (IRMA) in Gujarat, the institute has the task of conducting feasibility study and prepare a Detailed Project Report (DPR) after the study in Dibrugarh and Tinsukia districts of Assam where Oil India Ltd (OIL) has significant presence. The DPR will help the company to devise a roadmap and a long-term broad vision plan for the project.

What is CSR?

As mentioned in the new Companies Act 2009, CSR or Corporate Social Responsibility is the obligation of the companies to spend 2% of their net profit in philanthropic activities every year.

The law was meant to be applicable for all companies with

a net worth of Rs 500 crore or more, or

a turnover of Rs 1,000 crore or more, or

a net profit of Rs 5 crore or more

Responding to the objections raised by corporate sector against this mandatory provision, the government has recently diluted it. Now, if a company is unable to do so, it will have to explain in its report as to why it could not fulfill its CSR obligations.

India’s e-commerce market rose 88% in 2013: Survey

As per the survey, India’s e-commerce market grew by 88% in 2013 to $16 billion. The increased internet penetration and availability of more payment options boosted the e-commerce industry in 2013. The survey was conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Highlights of the survey conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM)

Approximately 3,500 dealers and organized retailers participated from Delhi, Mumbai, Chennai, Bangalore, Ahmedabad and Kolkata. Mumbai topped the list of online shoppers followed by Delhi and Kolkata.

As per the age-wise analysis, 35% of online shoppers are aged between18-25 years, 55 % between 26-35 years, 8 % between 36-45 years, while only 2 % are in the age group of 45-60 years. In addition, 65 % of online shoppers are male while 35 % are female.

The online shopping arose at a rapid pace in 2013, owing to online discounts, high fuel prices and availability of abundant online options.

The products that are sold most are in the tech and fashion category, viz. mobile phones, I-pads, accessories, MP3 players, digital cameras, jwellery, etc.

Those who are unwilling to shop online quoted reasons viz. prefer research products and services online, find delivery cost too high, fear to share personal financial information online, lack of trust on whether products would be delivered in good condition , people have no credit or debit card facility, etc.

As per the rising online retail, the survey forecasts the country’s e-commerce market to reach $56 billion by 2023.

About the Associated Chambers of Commerce and Industry of India (ASSOCHAM)

Represents the interests of trade and commerce in India, and acts as an interface between industry, government and other relevant stakeholders on policy issues and initiatives.

Founded: 1920

Headquarters : New Delhi, India

President: Dr. Rana Kapoor

Aim: To promote both domestic and international trade, and reduce trade barriers while fostering conducive environment for the growth of trade and industry of India.

Mr. Pradeep Kumar: New MD (Corporate Banking) of SBI

The Country’s biggest lender, State Bank of India (SBI) appointed Mr. P.Pradeep Kumar as its Managing Director and group executive in charge of corporate banking. The seat was lying vacant as of Ms. Arundhati Bhattarcharya became the Chairman of SBI in October 2013.

Previously, Mr. Kumar was the deputy managing director and group executive of the corporate banking group of SBI, which looks after corporate accounts and project finance of the bank.  The other three managing directors are K Krishna Kumar (national banking), Hemant Contractor (global banking) and A Vishwanathan (subsidiaries and associates).

Note: The top management at SBI consists of a chairman, four managing directors, over a dozen deputy managing directors and about 35 chief general managers.

Delhi CM Arvind Kejriwal announces free water

Delhi Chief Minister Arvind Kejriwal delivered on the AAP’s promise of its poll manifesto by announcing 20 kilo litres of free water a month to all metered households. The decision was questioned by Congress, saying every citizen of Delhi must be provided 700 litres of free water per day.

However, there is a condition that those consuming above this limit will have to pay as per tariff, increased by 10%, effective Jan 1, 2014. The promise of 700 litres of free water to every Delhi household was made in the AAP poll manifesto. The cost of providing the free water would be borne by the Delhi Jal Board (DJB) for the first three months. Though AAP were to provide for 700 litres of water per day to every household but the DJB in its final calculations arrived at the figure of 667 litres per day or 20 kilo litres a month to be provided to those households with regular connections.

In another step, the AAP government, which had promised to go over the problems of auto-rickshaw drivers, new Transport Minister Saurabh Bharadwaj decided to issue 5,500 inter-state permits for them to commute within the National Capital Region.

amil Nadu government launches free CFL scheme

In a bid to promote power saving, Tamil Nadu government began the first phase of distributing free Compact Fluorescent Light (CFL) bulbs to over 14 lakh hut-dwellers in the state. The scheme is aimed at saving 40 mw of electricity.

The government will implement the scheme in phases. The first phase costing Rs 8.77 crore will cover 7 lakh domestic consumers. The Chief Minister also unveiled various sub-stations in the capacity of 230 kv, 110 kv and 33 kv, build in different parts of the state at an overall expense of Rs 509.88 crore.

Millionaire Tax” approved by the French constitutional council

The French Constitutional Council approved the government’s controversial “millionaire tax” proposal for companies to pay 75% tax on annual salaries exceeding €1 million  ($1.375 million USD), in line with President Francois Hollande’s drive to limit executive pay at a time of economic hardship. To reduce France’s budget deficit, the increase in tax raised discontent among the business leaders and the football clubs.

About Millionaire Tax

The super tax is one of the President Francois Hollande’s signature policies, to pull out France from its economic crisis.

The tax will include a 50% levy on the portion of wages exceeding €1 million paid in 2013 and 2014. It will be levied on companies, not the individual.

The tax, for earnings in 2013 and 2014, will hit around 470 companies and a dozen football clubs. It is expected to raise €210 million a year.

Including social contributions, the rate will effectively remain about 75%, though the tax will be capped at 5% of a company’s turnover

RBI extends deadline to issue inflation-indexed bonds

The Reserve Bank of India (RBI) extended the time for issuance of Inflation Indexed National Savings Securities Cumulative (IINSS-C) bonds (or inflation linked bonds) by three months to March 31, 2014, from December 31, 2013. The issuance can be closed earlier than March 31, 2014 with a prior notice.

Why RBI extended the deadline to issue inflation-indexed bonds?

The operational guidelines (internal to banks) for selling these certificates at the branch level are still in the works.

Secondly, it will take time to create awareness among customers in relation to inflation linked bonds.

Inflation linked bonds

The limit for investment per applicant per annum: Rs 5,000 – Rs 5 lakh.

Eligibility for subscription: Individuals, Hindu Undivided Family, charitable institutions and universities.

The interest rate on these bonds would be linked to the Consumer Price Index (CPI).

The interest rate would comprise two parts — a fixed rate of 1.5% per annum and inflation rate based on CPI with a lag of three months. It would be compounded on the principal on half-yearly basis and paid at the time of maturity.

For senior citizens (65 years and above of age),  early repurchase will be allowed after one year from date of issue and other investors can redeem them after three years but with penalty of 50 per cent of the last coupon paid.

RBI will act as a central depository, as these securities will be issued in the form of Bonds Ledger Account (BLA) and held with RBI.

Distribution or sale of bonds would be through banks: SBI, nationalized banks and three private banks HDFC Bank, ICICI Bank and Axis Bank  and Stock Holding Corporation of India.

Note: Inflation linked bonds are launched as instruments that will protect savings from inflation, especially the savings of the poor and middle classes.

Lativa becomes the 18th state to join the Eurozone

The Baltic nation, Latvia joined the Euro Zone, with the expectation that the euro will lower its borrowing costs and encourage investors by eliminating currency risk. It became the 18th member of the European Union, which uses the Euro as its currency and the fourth smallest economy in the euro zone after Malta, Estonia and Cyprus.

The euro switchover ceremony took place at a site where Latvia’s crisis began – the former headquarters of the collapsed Parex bank, now headquarters of state-owned Citatele bank, which emerged from Parex’s ruins. The official conversion rate is 1 EUR = 0.702804 LVL.

About the Euro

Established by the provisions in the 1992 Maastricht Treaty.

Central bank: European Central Bank.

Official currency of the Eurozone.

The Eurozone is an economic and monetary union (EMU) of 18 European Union (EU) member states that have adopted the euro (€) as their common currency and sole legal tender.

Member states: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

Latvia joined the Eurozone on January 1, 2014.

Current affair 31st December 2013

Veteran actor Farooq Sheikh passed away

Noted veteran actor Farooq Sheikh (65) passed away in Dubai.

Farooq Sheikh:

Born: March 25, 1948

He started his career in acting in Bollywood in 1973 with the film Garm Hava and gained accolades for his roles in movies like Shatranj Ke Khiladi, Chashme Buddoor, Kissi Se Na Kehna, Noorie. He played the role of a father in Ranbir Kapoor starring film Yeh Jawaani Hai Deewani released this year (2013).

Last Film: Club 60 which released in December 2013

Guardian’ – Microsoft launched new app for women’s safety

The technology giant Microsoft launched a new application (app) ‘Guardian’ with safety features, exclusively for Windows phone users in India. It builds up this app, chiefly to protect women from incidents such as ‘Nirbhaya’.

About the app ‘Guardian’

Uses Microsoft Windows Azure cloud solution and the Bing Maps API and allow anyone we wish to track our movements. This can be done by switching on the “track me” feature.

Users will be able to place a call for help through an ‘SOS’ alert button and also connect to security agencies, police and hospitals easily via this app in times of crisis.

Helps women in distress by alerting their friends, families, as well as it is available as an integrated solution for Police or security agencies, which can monitor distress SOS calls and provide help through a portal.

The app allows us to add multiple buddies who will be alerted in emergency situations. It will let them opt out in case they’re not so willing to take our SOS call.

The SOS messages will continue to go out even if our phone is destroyed. The best bit is that the SOS button can also send emails and post to private Facebook groups. The application is capable of one touch video recording that may be used as evidence. 

Note: The app developed by a group of Microsoft India employees in India inside the Microsoft Garage. Microsoft Garage is a global employee innovation initiative that gives Microsoft employees an outlet to explore ideas in their free time.

PNB opens first hi-tech branch of Punjab in Kharar

Punjab National Bank (PNB) which is India’s second-largest bank opened its first hi-tech branch at Kharar, Punjab.

Salient features of the first hi-tech branch

The self-services system of the branch would provide all services to all the customers from 7am to 11pm daily.

This would be done through automated machines for cash deposit, cheque deposit, cash withdrawal and passbook updating machine.

To educate and aware the customers about the hi-tech systems and their usage, a special counter has been established at the bank branch.

In order to ensure foolproof security of its ATMs, the bank has adopted these securities measure, which are under e-surveillance system.

Cabinet approves constitutional status for JAC

The Union Cabinet approved constitutional status to a proposed Judicial Appointments Commission (JAC), for the appointment and transfer of judges to the higher judiciary. In other words, the cabinet approved a constitution amendment bill to make the appointment /transfer of judges more transparent. The status ensures that the composition of the commission cannot be altered through an ordinary legislation and it would require an amendment in the Constitution to do so.

Presently, the composition of the proposed panel is defined in the JAC Bill, 2013 which was introduced along with a separate constitutional amendment bill in Rajya Sabha during the monsoon session. There were demands that the composition as well as the functions of the proposed JAC must be mentioned in the Constitution as a precaution against future changes.

The JAC Bill defines the establishment of the proposed body to recommend appointment and transfer of judges of the Supreme Court and the high courts. Excerpts of the Judicial Appointments Commission (JAC) Bill, 2013 –

The new Article 124 A of the Constitution will define the composition of the JAC and Article 124 B will define its functions.

The JAC will be headed by the CJI and have five other members, including the Law Minister and two eminent persons.

To appoint the two eminent persons for the appointments commission would be done by the collegium that will include the Prime Minister of India, the Leader of Opposition and the Chief Justice of India.

Functions viz. recommending names for appointment as judges of the Supreme Court, Chief Justices of High Courts and judges of High Courts; recommending transfer of Chief Justices of High Courts and judges of High Courts, etc. 

Note: A parliamentary standing committee which examined the Judicial Appointments Commission (JAC) Bill, 2013 also made a similar recommendation.

Current affair 30th December 2013

China offers its Beidou Navigation System free of cost to neighbours

In a strategic move, China is ready to offer its neighbouring nations use of its indigenously developed Beidou Satellite Navigation System (BDS) free of charge. The offer has generated interest from a number of nations including Pakistan, Sri Lanka, Bangladesh and Thailand.

As per the Chinese government, the country wants to expand the use of the BDS, which already has 16 satellites operating for the Asia-Pacific and is being promoted as an alternative to the US’ Global Positioning System (GPS). China intends to offer BDS to nations in the Asia-Pacific region, and particularly in South and Southeast Asia, where the satellites can provide the highest accuracy.

Countries interested in Beidou Navigation System:

China has already reached agreement with Pakistan and Thailand on use of the Beidou network. It is in talks with Sri Lanka, for which it has already launched a satellite, and Bangladesh, over cooperation on satellite use. In early2014, Thailand will become the first country to set up a satellite station based on Beidou, with both nations signing a $ 319 million deal.

What is Beidou Satellite Navigation System (BDS)?

Beidou Satellite Navigation System (BDS) is a Chinese satellite navigation system. It consists of two separate satellite constellations:

Beidou-1: A limited test system that has been operating since 2000

Beidou-2 : A full-scale global navigation system which is also known as COMPASS and is currently under construction as of January 2013 . Beidou-2 will have 35 satellites in its network.

Objective of Beidou Satellite Navigation System (BDS):

Initially, when the BDS was launched in 2011, it was serving only the government and military. However, over the past year the navigation system is being widely used for civilian purposes domestically. In China, around 80% of passenger buses and trucks use the BDS.  Now China intends to expand its satellite navigation services to Asia-Pacific and to South and South-East Asia regions.

US President signs budget bill into law to prevent government shutdown

US President Barack Obama has inked a two-party federal budget bill, preventing the risk of a government shutdown for two years in the country.

The legislation was passed by both the Senate and the House of Representatives after a prolonged stand-off between the Democrats and the Republicans. The bill had been drafted by a cross-party budget panel set up after October’s 16-day government shutdown.

The Defence Bill, among others, provides $527 billion in base defence spending and $80 billion for the war in Afghanistan, in addition to a crackdown on assault* in military and relaxes restrictions on transferring detainees from the federal prison at Guantanamo Bay.

Why did the US government shutdown happen?

The US Congress failed to pass the government budget due to disagreement between the Republicans, who have majority in the lower house – the House of Representatives – and the Democrats, who control the upper house, the Senate.

Since President Barack Obama’s election, the parties have never come to a resolution on a US budget that extends further than a few months. They’ve just negotiated around the margins and come up with short-term fixes.

Now, the Republicans are using budget deadlines to gain political leverage over contentious policies.

This time the issue was Mr. Obama’s healthcare reform programme- the Patient Protection and Affordable Care Act (Obamacare) which continues to be very controversial for a range of reasons. The Republican-controlled House of Representatives though approved budgets but eliminated funding of this programme or wanted it delayed by one year. The Senate rejected these demands. It led to a deadlock situation and no budget bill could be agreed by both houses, resulting into the shut down.

Arvind Kejriwal takes oath as Chief Minister of Delhi

The top-most leader of Aam Aadmi Party (AAP), Arvind Kejriwal, sworn-in as the new Chief Minister of Delhi. He was administered the oath by the Lieutenant Governor of the capital Najeeb Jung.

Along with Kejriwal, six others: Manish Sisodia, Girish Soni, Rakhi Birla, Satyendra Jain, Saurabh Bharadwaj and Somnath Bharti, took oath as ministers. The AAP has come to power after winning 28 seats out of 70 in the recently held assembly polls in Delhi. Although it didn’t have the majority, the Congress party extended its unconditional support to AAP for forming government. Now, Kejriwal government has the task to deliver on the promises they have made which include cutting down electricity tarriff and improve water supply to all parts of the national capital.

The new government has to prove majority in the assembly on January 2, 2014.

Arvind Kejriwal:

Born: August 16, 1968 in Siwani in Haryana

Education: Graduated in Mechanical Engineering from IIT Kharagpur

Worked for the Indian Revenue Service (IRS) as a Joint Commissioner in the Income Tax Department.

Instrumental in drafting a proposed Jan Lokpal Bill and his efforts to bring and implement the Right to Information (RTI) Act at grassroots level.

2012: Launched Aam Aadmi Party (AAP) which ousted the Shiela Dixit’s regime of Congress after winning 2013 Assembly polls.

In the assembly elections he defeated his rival Shiela Dixit by a huge margin of 25, 864 votes.

Became the second youngest Chief Minister of Delhi. Chaudhry Brahm Prakash was the youngest Chief Minsiter at 34 when he took over in 1952.

India, US sign $1billion contract for six “Super Hercules” aircrafts

India and the US have signed another mega defence deal worth $1.01 billion in which the US will supply six additional C-130J “Super Hercules” aircraft. The “letter of offer and acceptance” for the six new four-engine C-130Js, which will be delivered within 3 years, was inked under the US government’s “Foreign Military Sales” (FMS) programme. 

The Indian Air Force already has six C-130Js tactical airlift aircraft, which are based at the Hindon airbase on the outskirts of Delhi.  The upcoming six new C-130Js will be stationed at Panagarh in West Bengal.

India’s first Mountain Strike Force: XVII Corps

India’s new mountain strike corps which has been named XVII Corps will also have its headquarters in Panagarh. The XVII Corps with a total of over 80,000 soldiers, is being brought up by the Army in a project worth around Rs 90,000 crore. This new corps will fill operational voids along the 4,057-km Line of Actual Control (LAC) as well as add to the Indian Army’s ground offensive capabilities against China for the first time.

Factbox: C-130J ‘Super Hercules’

Manufactured by the United States.

World’s most advanced and tactical aircraft.

Primarily designed to support India’s special operations requirement.

Equipped with an Infrared Detection Set (IDS), the aircraft can perform precision low-level flying, airdrops and landing in blackout conditions.

Self-protection systems and other features are included to ensure aircraft survivability in hostile air defense environments. The aircraft also is equipped with air-to-air receiver refueling capability for extended range operations.

Ideally suited to India’s mission environment, which often involves operating out of austere, high-elevation airstrips in hot conditions.

Powered by four Rolls Royce AE2100 engines and Dowty six bladed props which provide the aircraft with tremendous power.

The aircraft has already demonstrated its responsiveness during the recent Uttarakhand flood disaster and 2012 Sikkim earthquake where it played a major role in relief operations.

The rugged aircraft demonstrated its agility when IAF landed it at the world’s highest airstrip in Daulat Beg Oldi, in J&K, the place where Indian and Chinese troops had a stand-off recently. The aircraft showed that it can even land at a small forward airbase on a semi-prepared runway.

Current affair 29th December 2013

Service Tax revenue grew over 300 times in past two decades

Finance Ministry is focusing on service tax revenue which has grown significantly by over 300 times in past about two decades.  As per official data, the finance ministry has earned revenue of about Rs 1.32 lakh crore in 2012-13 (provisional figures) compared to Rs 407 crore in 1994-95.

The ministry had set a target for 2012-13 to collect Rs 1,32,697 crore but the actual realization was Rs 1,32,518 crore.  The number of assessees have also increased by over 400 times since 1994-95.

Revenue from service tax has witnessed such a tremendous growth on account of surge in number of services being covered which led to increase in number of assessees under service taxation. During 2012-13, there were about 17.12 lakh registered assessees for the levy compared to only 3,943 in 1994-95 when service tax was brought in. The total number of taxable services has also increased from 3 in 1994 to 119 in 2012.

It is worth recalling that on July 1, 2012, the finance ministry had introduced the concept of taxation of service tax based on the ‘negative list’ which authorized government to tax almost all the services mentioned in Section 66D of the Finance Act.

Voluntary Compliance Encouragement Scheme (VCES)

The Finance Ministry is implementing VCES which allows a service tax defaulter to pay dues without any penalty or late payment charges.  Under VCES, an individual may make a declaration to the designated authority on or before December 31, 2013.

Why Voluntary Compliance Encouragement Scheme (VCES)?

It has come to the notice of the government that of the 17 lakh people who voluntarily registered themselves as service tax providers only 7 lakh actually paid service tax, the remaining 10 lakh did not. Though these people have charged the service tax from their customers but have not These non-payers are classified as no-filers or stop-filers. No-filers are those who have never filed service tax whereas stop- filers are those who have paid for a year or two but later stopped filing service tax. In order to make these evaders pay the due service tax the government has chosen VCES path rather than forcing them through punitive action.

The ministry has set an indirect tax collection target of Rs 5.65 lakh crore for 2013-14, through customs, excise and service tax. That figure is up from the Rs 4.73 lakh crore collected in the fiscal 2012-13.

Australian school introduces world’s first standing classroom to combat childhood obesity

As part of a novel experiment, Mont Albert Primary School in Australia has launched the world’s first standing classroom which aims to combat the menace of childhood obesity. In this experiment being conducted by  the researchers of Baker IDI Heart and Diabetes Institute, a grade six class at this school has been fitted with height-adjustable desks to allow the student to sit or stand.

The researchers will monitor the standing students with an objective to know if being upright can improve their health, fitness, learning and memory. Pupils will also be fitted with devices to measure how long they spend sitting, with lesson plans revised to reduce the time students are idle.

Why this experiment?

As per scientists, prolonged sitting during the school hours poses health risk by contributing to obesity in students as during these hours children perform less physical activity. Earlier studies have shown students spent two-thirds of a school day sitting, and long hours of childhood sitting can contribute to the onset of such diseases such as Type 2 diabetes, cardiovascular disease and obesity.

In this experiment in which students are required to attend school hours standing they will  engage more muscles that are likely to be of great benefit for keeping the blood flowing throughout their body and reducing the level of fatigue. If researchers find this exercise beneficial for the cardiovascular health, learning and memory of the standing students compared to a traditional class, this pilot study would be expanded to a much larger trial to find if it can make an impact on lessons across Australia.

State civil services officers to face UPSC test for promotion to AIS

State civil services officers will have to face a Union Public Service Commission (UPSC) test and interview for their promotion to the three All India Services (AIS). The Ministry of Personnel recently changed the rules for promotion from state services. The move was opposed by some states including Tamil Nadu.

The selection to IAS, IPS and IFoS from states’ services will be made through a 1000 marks four-stage process including a written exam and interview.

The new norms are

A state civil services officer will have to face the written examination comprising two papers – on aptitude test; and general studies in addition to state-specific questions.

There will be a third written paper on essay, comprehension and precis type only for non-state civil services officers in addition to two papers.

Successful candidates will face an interview and their Annual Confidential Report (ACR) will be assessed by a board.

The final merit list will be based on the marks obtained in four components – written exam, length of service, assessment of ACR and interview.

No cap on the number of attempts.

The scheme might be reviewed after its implementation for 3 years. 

Note: So far, the selection of state services officers into the three All-India Services – Indian Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFoS) – was done on the basis of review of their seniority and ACRs.

SBI to act as lead bank for four newly-formed Meghalaya districts

The Reserve Bank of India (RBI) designated SBI to act as the lead bank in four newly constructed districts in Meghalaya. The central bank also assigned State Bank of India (SBI), the district working codes for the purpose of Basic Statistical Returns (BSR) reporting. The four new districts of Meghalaya are North Garo Hills, East Jaintia Hills, South West Khasi Hills and South West Garo Hills.

What is a Lead Bank Scheme (LBS)?

The RBI introduced ‘Lead Bank Scheme’ in 1969, based on the recommendations of the Gadgil Study Group.

The basic idea was to have an “area approach” for targeted and focused banking.

Under the Scheme, each district had been assigned to different banks (public and private) to act as a consortium leader to coordinate the efforts of banks in the district particularly in matters like branch expansion and credit planning.

The Lead Bank was to act as a consortium leader for coordinating the efforts of all credit institutions in each of the allotted districts for expansion of branch banking facilities and for meeting the credit needs of the rural economy.

Indians consume double the recommended salt intake: Study

As per a study, the intake of salt by Indians is nearly twice the amount recommended by the World Health Organisation (WHO). Indians consume about 3.7 grams of sodium, corresponding to about 9.3 grams of salt per day. The positive thing is that salt (or sodium) intake has decreased slightly in Indiabetween 1990 and 2010.

As per the research by the University of Cambridge and Harvard School of Public Health:

• The global average salt consumption in 2010 was around 10 grams per person per day, corresponding to 4 grams per day of sodium.
• In 181 of 187 nations studied, national intakes exceeded the WHO recommended intake of 2 grams per day of sodium (about 5 grams per day of salt).
• In 119 countries (88.3% of the world’s adult population), the national intake exceeded this recommended amount by more than 1 gram per day of sodium.
• There are also major regional variations around this global average. Highest intakes are found in regions lying along the old Silk Road – from East Asia, through Central Asia to Eastern Europe and the Middle East.

Is excess consumption of Common Salt (NaCl) harmful?

Yes.  Earlier sudies have found that high or low salt diets are both harmful. The risk of heart attacks, strokes, congestive heart failure, and death from heartdisease, increases considerably when people consume more than 7 grams or less than 3 grams of sodium a day. A recent study by the US based Centers for Disease Control and Prevention (CDC) had found that there is no benefit of reducing salt intake to below 2.3 g per day. The study could not find any consistent evidence to support a link between sodium intake and either a beneficial or adverse effect on health.

Deepika Kumari clinches 34th National Archery Championship

Ace archer Deepika Kumari created history by clinching her sixth consecutive title at the 34th National Archery Championships held at JRD Tata Stadium, Jamshedpur. With this achievement, Deepika now holds more individual titles at the national meet than Dola Banerjee, who won 5 national titles. However, the record of winning most individual titles is still held by Bengal archer Krishna Ghatak, with seven consecutive titles between 1975 and 1982.

Top Achievers at the National Meet:

Jharkhand (Gold-10, Silver-2, Bronze-5. Total: 17)

SSCB (Gold-3, Silver-3, Bronze-4. Total: 9)

Punjab (Gold-1, Silver-3, Bronze-4. Total: 8)

CCEA nod to continuation of National Scheme for Welfare of Fishermen during 12th Plan

The ‘National Scheme for Welfare of Fishermen’  will continue during the 12th Plan Period as the Cabinet Committee on Economic Affairs (CCEA) has approved for the same.

National Scheme for Welfare of Fishermen (NSWF):

Devised by: The Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture.

Objectives: Provision of basic amenities like drinking water and sanitation in fishing villages, better living standards for fishermen and their families. It also envisages social security for active fishermen and their dependants, and strives to ensure their economic security.

Key benefits to be provided under this scheme in 12th Plan Period:

Outlay: Rs 640 crore

Construction of additional 4,600 houses per year

Coverage of 3.5 lakh fishermen under saving-cum-relief every year

Additional coverage of 3 lakh fishermen under group accident insurance

Amount of assistance and compensation to fishermen for the cost of construction of a house has been enhanced from Rs 50,000 to Rs 75,000.

Cost of the construction of a tubewell has been increased to Rs 40,000 from Rs 30,000 for all states and Union territories, and Rs 45,000 from Rs 35,000 for North Eastern states.

Legal wing of CBI brought under agency director

In a bid to provide more autonomy to CBI, government has brought the agency’s directorate of prosecution or the legal wing, which used to report to Law Ministry, under the command of the CBI director, making his orders final in probes.

With this change, the agency director will not only oversee the promotions and postings but also write the Annual Confidential Reports (ACRs), as done earlier by law ministry.

What is the responsibility of Directorate of Prosecution (DoP) in CBI?

The DoP in CBI is responsible for conducting and supervising cases pending trial, appeal and revision in courts. It oversees and monitors the conduct of prosecution in courts and gives advice to CBI officers on all legal matters of general or specific importance and on issues coming up during probe or trial.

The DoP was the chief functionary of CBI’s prosecution wing and was vested with powers of direction and control over prosecuting officers. Those powers have now been transferred to the CBI director.

How would placing the legal wing of CBI under the command of CBI director change things?

It was observed that in a number of cases, the investigation by the CBI was overturned by the DoP; but under the new structure the CBI director will have the authority to take a final view on probes and, subsequently, the charge sheets.

The Lokpal Bill, which has been passed by both Houses of Parliament, also provides for the DoP chaired by the DoP to be placed under the CBI director. As per the Lokpal Bill, the DoP will be appointed in consultation with the Lokpal and CVC.