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 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.

Current Affairs 27th December 2013

Michiaki Takahasi: Developer of chickenpox vaccine passed away

Dr. Michiaki Takahashi (85),  a Japanese virologist, who developed a vaccine for the chicken pox virus passed away. Dr. Takahashi developed his vaccine by growing live but weakened versions of the virus in animal and human cells. The disease was not sourced by the vaccine, but the vaccine encouraged immune system to create antibodies. Thus, it fools the immune system into thinking that it has seen this disease before.

About Chicken Pox

• Caused by the Varicella-Zoster Virus (VZV) which is a form of herpes.
• Highly contagious disease that is spread via contact with infected person.
• Symptoms: rashes in the body, fever, loss of appetite, headache and tiredness.
• It’s most common in kids under age 12, but anyone can get chickenpox.

Chickenpox is caused by the varicella-zoster virus, a form of herpes. If a person contracts the virus, has an active infection and then recovers, the virus is not actually gone from the body. It can hide in nerve cells for years or decades, then emerge again to cause shingles, a painful condition that causes a skin rash and occurs mostly in adults.

Defense Ministry clears procurement proposals worth over Rs 16000 cr

The Defense Ministry cleared procurement proposals worth over Rs.16, 000 crore including that of Israeli Barak missiles. The Ministry had put on hold procurement of Barak-I missiles because of a CBI probe in the case since 2006. The Defense Acquisition Council (DAC) headed by Defense minister AK Antony approved the proposal. The proposal is for

Acquiring two deep submarine rescue vessels for the Navy while approving the indigenous construction of the 16 anti-submarine warfare shallow water craft at the cost of Rs.13,000 crore.

262 Barak-I missiles worth Rs.880 crore, which are expected to be put on the aircraft carrier INS Virat and picked out air defense system for the new aircraft carrier INS Vikramaditya.

Aquiring 41 indigenously-built Advanced Light Helicopter Dhruvs, for the Army.

In the Rs.300 crore procurement, one of the choppers would be provided to the Navy.

Current affairs 25th December 2013

CCEA allowed RIL Higher Gas Prices in Lieu of Bank Guarantee

The Cabinet Committee on Economic Affairs (CCEA) allowed Reliance Industries Ltd (RIL) to sell natural gas at the revised doubled price from April, 2014 provided the firm gave a bank guarantee.

The contractor would be allowed to sell D1 and D3 (fields) gas at revised prices from April 1, 2014. The sale would be permitted on the basis of a bank guarantee by RIL in favor of the government.

The bank guarantee (around $9 billion )will be encashed if it is proved that the company stored gas or deliberately put down production at the main Dhirubhai-1 and 3 (D1 and D3) fields in the eastern offshore KG-D6 block.

Note: The new gas pricing formula will be applicable to all producers and all forms of gas including Coal-Bed Methane (CBM) and shale gas.

Govt allowed CIL to pump gas from CBM mines

The Cabinet Committee on Economic Affairs (CCEA) allowed state-owned Coal India Ltd (CIL) to pump methane gas trapped in coal beds of its existing mines. This move will open a new revenue stream for the world’s largest coal miner and help unlock several mines that have remained out of bounds because of the presence of the explosive gas that make mining unsafe.

Presently, rules and regulations prohibit mining firms from extracting Coal Bed Methane (CBM) during mining as the policy does not allow for simultaneous extraction of methane (CBM) and coal. Only those companies that successfully bid for mines with CBM are allowed to explore and produce such gas. The government auctioned 33 CBM blocks since 2001.

CIL holds at least 20% of the estimated 60 billion tones of coal resources in India. It has many coal mines in eight States that are estimated to have CBM reserves of 3.5-4 trillion cubic feet.

Cabinet approved FTA in trade and services with ASEAN

The Cabinet approved a Free Trade Agreement (FTA) in trade and services with the Association of Southeast Asian Nations (ASEAN).

Objective: To promote the movement of Indian professionals in the 10-nation ASEAN. The Agreement on Investment would protect, promote and increase foreign investment flows into the country and also removes and barriers.

Note: The Comprehensive Economic Cooperation (CECA) between India and ASEAN was signed in 2003. The Cabinet approved the Agreement on Trade Goods under the CECA with the ASEAN in July 2009.

First Ministerial Level Talk held for BCIM Trade Corridor

India, China, Bangladesh and Myanmar held the first ever official-level discussions on the ambitious BCIM economic corridor to link India and China with Bangladesh and Myanmar.

The economic advantages of the BCIM trade corridor are:-

Approach to numerous markets in Southeast Asia,

Improvement of transportation infrastructure and

Creation of industrial zones 

Currently, the four nations raised an ambitious proposal that included developing multi-modal transport, such as road, rail, waterways and airways, joint power projects, telecommunication networks, etc. As a first step, they will identify realistic and achievable infrastructure projects to boost physical connectivity.

Over the next six months, each country will come up with a joint study report proposing concrete projects and financing modalities, before the next meeting of the four nations in June 2014, hosted by Bangladesh.

The  linking of all four countries by road has strengthen the belief that this corridor would subsequently open up the whole of the northeastern region of India to Southeast Asia and China and turn it into a significant channel of trade.

BCIM Trade Corridor 

The Bangladesh-China-India-Myanmar (BCIM) economic corridor is a test case for cooperation between India and China in regional development as well as addressing common challenges. It aims to connect Kolkata with China’s Kunming city with a highway running through Bangladesh and Myanmar.

Current affairs 24th December 2013

First human artificial heart transplant executed in France

An artificial heart that can give patients up to five years of extra life has been successfully implanted for the first time, at Georges Pompidou Hospital in Paris, France. The equipment designed to overcome the worldwide shortage of transplant donors was produce by French Biomedical firm Carmat, a start-up funded by the Dutch-based European Aeronautic Defense and Space Company (EADS).

About Artificial Heart

Powered by external, wearable Lithium-ion batteries.

Inside the heart, surfaces that come into contact with human blood are made partly from bovine tissue instead of synthetic materials such as plastic that can cause blood clots.

Uses a range of “biomaterials”, including bovine tissue, to reduce the likelihood of the body rejecting it.

Weighs about 900g (around 2 lb) – nearly three times more than an average healthy human heart. It is expected to cost 140,000 to 180,000 euros in Europe.

It mimics heart muscle contractions and contains sensors that adapt the blood flow to the patient’s moves.

Intended to replace a real heart for as many as five   years, unlike previous artificial hearts that were created mainly for temporary use.

Ms. Usha Sangwan: The first woman managing director of LIC

The Government of India appointed Ms Usha Sangwan as the first woman managing director of Life Insurance Corporation of India (LIC) and Vijay Kumar Sharma as an MD and chief executive officer of LIC Housing Finance. With these appointments, LIC is set to function at its full strength of four MDs. These are S B Mainak, Sushobhan Sarkar, Usha Sangwan and V K Sharma.

As per the norms, LIC can have four MDs, and a chairman, as part of its top management.

About Life Insurance Corporation of India (LIC)

Indian state-owned insurance group and Investment Company.

Headquarters: Mumbai.

Founded: 1 September 1956.

Current Chairman: SK Roy

Offers a variety of insurance products to its customers such as insurance plans, pension plans, unit-linked plans, special plans and group schemes.

India-Venezuela: Signed Cultural Exchange Programme

India and Venezuela signed a programme on cultural exchanges in the fields of publication, film and media, image and space arts, stage and music arts. The programme will last for three years and will be renewed automatically thereafter.

Excerpts of the Programme of Cultural Exchange

To promote the exchange of bilingual publications (traditional and contemporary stories).

To make an issue of the magazine ‘’Actualidades” (a CELARG publication) on the Republic of India or on Indian writers.

On a reciprocal basis, participation of India in the Venezuela’s International Book Fair.

To encourage the participation of Venezuelan and Indian poets and writers in the literature festivals organized by both countries.

To encourage the participation of India in the Venezuela’s World Festival of Poetry.

To boost the exchange of knowledge with specialists in the field of drawing techniques with natural pigments, specialists in dying with natural inks, as well as the use of enzymes.

Participation of a Venezuelan theatre company in the New Delhi’s Festival to diffuse the Venezuelan theatre in the Republic of India.

Encourage the acquisition of Distribution Rights of Indian film works by the film distributor Amazonia Films.

Encourage the institutional links between the Autonomous National Center of Film Making of the BolivarianRepublic of Venezuela and the Institute of Cinema and Television of the Republic of India.

Participation of one dancer or couple of dancers from India at the International Dance Festivals Solos y Duetos (Solos & Duets).

Canara Bank got license to open a branch in New York

To expand its global presence, the Canara Bank received a license from the US regulators to open a branch in New York. As stated by the Chairman and Managing Director of Canara Bank, R. K. Dubey, the Board of Governors of the US Federal Reserve approved the proposal of the bank to open a branch in New York. This is the first time that an Indian bank has secured an approval of the US regulators.

About Canara Bank

An Indian state-owned bank.

Headquarters: Bangalore, Karnataka.

Founded: 1906

Operates in four segments: treasury operations, retail banking operations, wholesale banking operations and other banking operations.

SEBI sets out deposit norms for members in debt segment

The Securities and Exchange Board of India (SEBI) sets out minimum deposit requirements for members in the debt segment of the stock exchanges.

As per the circular issued by SEBI –

As per the norms for stock brokers and proprietary trading members, the base minimum capital requirements will be applicable for the debt segment as well.

As per the profile of the members, the base minimum deposit requirements range from Rs 10 lakh to Rs 50 lakh for members of stock exchanges having nation-wide trading terminals.

For Clearing Members (CM) and Self Clearing Members (SCM) the deposit shall be Rs 10 lakh. No exposure shall be granted against such deposit requirement of the CM/SCM.

No deposit will required from members seeking registration in the debt segment if they are already members of another segment on the stock exchange.

No deposits would be applicable in case, the clearing members ‘clears and settles trades only on gross basis for both securities and funds, and where no settlement guarantee is provided by the clearing corporation.

CCEA approved Rs 6,600 cr interest-free loans for sugar mills

The Cabinet Committee on Economic Affairs (CCEA) approved Rs 6,600 Crore interest-free loans to cash-starved sugar mills in order to make payments to cane farmers. The interest subvention will be 12%, which will be borne by the Sugar Development Fund.

The loans provided by banks to sugar mills are solely for making payments to sugarcane farmers, including arrears. The loans are equivalent to the excise duty paid by the mills in the past three years. Mills will have to repay the loans in five years and can avail of a moratorium on repayment for the first two years.

The PM-constituted panel headed by Agriculture Minister Sharad Pawar recommended for interest- free loans, to help millers to clear dues and make timely payment in the current crushing season 2013-14 to cane growers.

Currently, sugar industry is facing a financial crisis due to higher cost of production and decline in the prices of sugar.  This has led to Rs. 3400 crore cane arrears from 2012-13 during the marketing year that ended in September 2013. Thus, owing to liquidity crunch, the sugar mills demanded interest-free loans for working capital requirement, hike in import duty, and export subsidies among others. This financial package will allow millers to pay money they owe to the farmers.

Current affairs 22 December 2013

Western Ghats: Nod for farming activities by Ministry of Environment & Forests

The Environment Ministry, following the ‘in principle’ acceptance of the Kasturirangan panel report, issued a fresh order on easing norms on activities related to plantations and agriculture in Ecologically Sensitive Areas (ESA).

The Ministry elucidated that the recommendations made by the Kasturirangan panel, neither put any fresh restrictions on land use in the ESA nor do they in any way impact the continued occupation of land in possession of the local people and affect their day to day activities or normal livelihood.

The new order cleared that the boundary of the ESA and the regulatory regime — an emotive issue in some of the affected states — would be finalized after the draft notification for the same is placed in the public domain and comments on it from all stakeholders including state governments are received. 

What are the recommendations made by the Kasturirangan panel?

The key suggestions made by the K. Kasturirangan panel:

Promotion of Ecotourism; economically empower the local population, Incentives green growth in the Western Ghats, etc.

Ban on mining, quarrying, sand mining, thermal power plants, building and construction projects on areas that are 20,000 sq m or more, township and area development projects with an area of 50ha and above and red category of industries in ESA.

Defined 37% of the Western Ghats landscape as ecologically sensitive.

Russia frees former oil tycoon Mikhail Khodorkovsky

Mikhail Khodorkovsky, an oil tycoon and political opponent of Vladimir Putin, released from prison after being pardoned by the Russian President. He left for Germany where his mother is being treated for cancer He spent ten years in jail for tax fraud, embezzlements and money laundering.

President Putin signed a decree pardoning his former political opponent on humanitarian grounds.

Who is Mikhail Khodorkovsky?

He is a Russian businessman, an oligarch, a philanthropist, a public figure and an author. He was once Russia’s richest man as head of oil giant Yukos, spent 10 years in custody for tax evasion and theft after funding opposition parties.

RBI: Inflation linked bonds for sale from December 23, 2013

The Reserve Bank of India (RBI) will issue Inflation Indexed National Savings Securities Cumulative (IINSS-C) bonds (or inflation linked bonds) for retail investors by opening the subscription on December 23, 2013 and close it on December 31, 2013.

Objective: The move will help to protect retail investors from price rise.

The IINSS-C bonds will offer investors a return i.e. 1.5% more than inflation based on the consumer price index. Interest will be compounded half yearly, enhancing effective yield on investments.

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.

Kirobo: World’s first robot astronaut

Kirobo, the world’s first robot astronaut talks about Christmas in its first chat with the Japanese commander of the International Space Station.

About the world’s first robot astronaut Kirobo

Kirobo is Japan’s first humanoid robot astronaut, developed by Tomotaka Takahashi, to accompany Koichi Wakata, the first Japanese commander of the International Space Station.

Objective: To see how well robots and humans can interact.

A pint-sized android equipped with artificial intelligence and capable of learning how to respond appropriately to humans.

Created jointly by advertising firm Dentsu, the University of Tokyo, robot developer Robo Garage and Toyota.

The robot’s capabilities include voice and speech recognition, natural language processing, speech synthesis and telecommunications, as well as facial recognition and video recording. Kirobo is specially designed to navigate zero-gravity environments and will assist Commander Wakata in various experiments.