Aug'11-Current affair_upscportal.pdf

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs

Drive to Detect FakeDriving Licenses

The national register and national transport portal waslaunched which will make detection of fake drivinglicenses and tracking stolen vehicles easier. It will

provide information to the transport department, po-lice department and automobile dealers.The nationalregistry is a central pool of all driving licenses (DLs)and vehicles registered in India. It could be accessed

for a quick verification by all states and road trans-port offices. This could be used to prosecute errantdrivers.This system will be completely IT based

which will also leave no room for officials to makeany mistake.

Gorkhaland TerritorialAdministration

A tripartite agreement was signed between the Cen-tre, West Bengal government and the GorkhaJanmukti Morcha(GJM) at Pintail village nearSiliguri paving the way for the setting up of theGorkhaland Territorial Administration( GTA), anelected body for the Darjeeling hills. The new set-up

will have 50 members; 45 of them will be electedand the rest nominated. A Bill for this will be movedin the state assembly and it will be sent to the Presi-dent for assent. Elections to the new body would beheld within six months.

Ban on Non-Iodised SaltUnconstitutional

The Supreme Court of India held in its recent judg-ment that the prohibition imposed by the centre onnon-iodised salt for human consumption is unconsti-tutional. The court however said that the ban will

continue for six months.A bench of Supreme Court

including Justice B Sudershan Reddy (since retired)

Act was intended to ban the use of adulterated

misbranded products. Therefore, this rule couldbe invoked to ban sale of non-iodised salt. The costated that if the government wanted to ban niodised salt it should have come out with differlegislation.The Supreme Court gave the above ruin response to the writ petition filed by the Acadeof Nutrition Improvement challenging the ban

non-iodised salt.The government had made the csumption of only iodised salt mandatory on the bthat deficiency of iodine caused a lot of disorders

dwarfism, squint eye, lower IQ and mental retartion.

HRD Ministry TookOver NCTE

The HRD (Human Resource Development) minisuperseded the National Council for Teacher Edution through a gazette notification. All member

the NCTE were asked to vacate their office. Nowpowers and duties would now be carried out by ocials appointed by the HRD ministry.The HRD mistry took this step because it found the large scirregularities in the grant of recognition to teactraining institutes.

Special Investigation TeamOn Black Money By SC

The Supreme Court of India appointed SIT (SpeInvestigation Team), a committee of two of itstired judges to follow the trail of black money stas

in foreign banks. It also asked the govt. to rev names of those who have accounts in foreign baand against whom inquiries have been started. comprised Justice Jeevan Reddy and Justice MB ShThe committee set up by the Union government wbe part of the judicial panel. It will include ecomists who have been asked by the governme

to make a strategy to trace and bring b

NATIONAL ISSUES


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ment authorities were told to cooperate with the SIT.The panel has been given power to travel to othercountries and to gather information from governmentagencies.The step taken by the Supreme Court is asnub to the government which has set up its own com-mittee to find black money and bring it back to In-dia.

Work on 2 Units ofAtomic Power Station

Inaugurated in Rajasthan

Construction work on two more units of 700 MWeach at the Rajasthan Atomic Power Station (RAPS)was inaugurated by Atomic Energy CommissionChairman Srikumar Banerjee. Exploratory works un-veiled uranium deposits at another site, Tummalapalle

spread over 35 km. At present, the country is esti-mated to have a total reserve of about 175000 tonnesof uranium. The findings are deemed as a majordevelopment. Nuclear power is considered to be ab-solutely essential to meet the growing energy needsof the country. If the economy has to grow by 9 percent per annum, 10 per cent growth in electricity pro-duction will be required.The two new nuclear unitsat Rawatbhata being constructed at an estimated costof Rs. 12000 crore and scheduled to be ready in fiveyears are on the lines of the two 700 MW reactorsunder construction at Kakrapar in Gujarat.The reac-tors were designed by the Nuclear Power Corpora-tion of India Limited by scaling up the 540 MW re-actors operating at Tarapur in Maharashtra since2005.The reactors are known to have advanced safetyfeatures, including passive safety systems that workon natural principles such as gravity, and natural con-vection and do not need operator intervention or mo-tive power to ensure reactor safety under any state ofoperations. There are two independent and diverse

systems to shut down the reactor, a passive decay heatremoval system to ensure cooling of the reactor coreeven in case of total loss of power and steel-lined con-tainment to contain the entire radioactivity withinthe reactor building even in a severe accident sce-nario.

National SocialSecurity Fund (NSSF)

The Union Cabinet of India gave its approval for set

ers in the unorganized sector. The fund will beministered by the National Social Security Board. fund was announced during the budget 2010-11the Union Finance minister Pranav Mukherjee. Ministry of Labour & Employment will be the noMinistry for the operation of the Fund. Accordinan estimate done by the National Sample Sur

Organisation total unemployment in both organiand unorganized sector is 45.9 crore workers. Outhem, 43.3 crore workers belong to unorganisectorThere is an absence of social security protion for unorganised workers in India despite the they form the most significant part of total workin the country.

India is 10thLargest Exporter of Service

According to a latest World Trade organisat(WTO) report India achieved tenth rank in exporservices worldwide and emerged as the 20th biggmerchandise exporter in 2010. India stood 12th 22nd position globally in services and goods exporespectively in 2009. In value terms India exporservices and merchandise worth $110 billion and $billion, respectively in 2010. India's goods expwent up by 31 per cent in 2010, helping the coun

to expand its market share to 1.4 per cent fromper cent in 2009.Engineering and petroleum expcontribute about 40% of Indias total exports.Thecrease in export was attributed to increasing demfor Indian goods in new markets like Latin Ameand Africa. According to apex exporters body Feration of Indian Export Organisations (FIEO), diversification of India's exports basket also helin increasing the shipments.India's services expshare in the world exports increased to 3 per cen

2010 from 2.6 per cent in 2009.The report ranChina first in terms of merchandise exports followby the U.S. and Germany. In services export, the Uis on the top slot followed by Germany and the U

Renuka Dam ProjectHeld Up By NGT Orders

The national green tribunal ordered Himachal PradPower Corporation Ltd (HPPCL) to stop all constrtion work related to the Renuka Dam project The d


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Project is one of the largest projects in the backwarddistrict of Sirmour in Himachal Pradesh. The stategovernments of Himachal Pradesh, Delhi, Haryana,Uttar Pradesh and Rajasthan signed a Memorandumof Understanding on 12 May, 1994 for the utilizationand allocation of the waters of the Upper Yamuna .As a part of this agreement, a storage dam was to be

constructed across Giri river, a tributary of theYamuna, at Renukaji in Sirmour district of HimachalPradesh. Forest clearance to the project was cancelledby the ministry of environment and forests in Octo-ber, 2010. The assessment report mentions that about308 families will be displaced and about 37 villages

will be impacted because of the Renuka Dam project.

20 PercentRise in Tiger Population

India registered a 20 per cent increase in tiger popu-

lation in 2010, according to a report- Status of tigers,co-predators and prey in India-2010 .The report statedthat the estimated population of 1, 706 individual ti-gers represents a 20 per cent increase from the lastsurvey in 2006, which estimated a number of 1,411tigers. The assessment of tigers included 17 Stateswith tiger population. The assessment of tigers is done

once every four years and is a collaborative initiative

between the National Tiger Conservation Authority,the Wildlife Institute of India, tiger States and out-side expertise.The increase in the numbers happenedbecause of the fact that tiger populations inUttarakhand, Tamil Nadu, Maharashtra and

Karnataka have shown an increase in theirdensity.However, the report warned that tigers arestill in danger due to an overall 12.6 per cent loss ofhabitat. It could result into a lack of dispersal andconsequent loss of genetic exchange between popula-

tions, and an increase in human-tiger conflict.

Campaign AgainstDiabetes and Hypertension

Union Health Minister Ghulam Nabi Azad launcheda campaign against diabetes and hypertension in slumsof Delhi on 19 July 2011. The mass screening

programme will cover slum clusters in Delhi to de-tect people affected with diabetes and hypertension.

The ministry decided to screen around five crore

ducted for all pregnant women irrespective of thage and for all people who are above the age oyears.

GovernmentsLokpal Bill, 2011

The Union Cabinet of India approved the propfor the enactment of a new legislation in the formthe Lokpal Bill, 2011. The Bill provides for thetablishment of the institution of Lokpal to inquire allegations of corruption against certain public fu

tionaries and for matters connected therewith orcidental thereto. The Lokpal will consist of a Chperson and 8 members. Half of the members shal

judicial members. The Chairperson would be frthe judiciary and only a serving or retired Chief J

tice of India or a Judge of the Supreme Court wobe eligible for being appointed as Chairperson. It

have its own Investigation Wing and ProsecutWing with such officers and staff as are necessarcarry out its functions.

The All Party Meeting on Lok Pal bill agreed tGovernment should bring before the monsoon sion of Parliament a strong and effective Lokpal

following the established procedures.The Lokpal s

inquire into allegations of corruption made in respof Prime Minister, after he has demitted officMinister of the Union; a Member of Parliament; Group 'A' officer or equivalent; Chairperson or mber or officer equivalent to Group 'A' in any bo

Board/ corporation/ authority/ company/ socitrust/ autonomous body established by an Act of Pliament or wholly or partly financed or controlledthe Central Government; any director, manager, retary or other officer of a society or association

persons or trust wholly or partly financed or aidedthe Government or in receipt of any donations fr

the public and whose annual income exceeds samount as the Central Government may by notiftion specify.

However, the organisations created for religious pposes and receiving public donations would be oside the purview of Lokpal.The Lokpal shall not

quire sanction or approval under Section 197 ofCode of Criminal Procedure, 1973 or Section 19

thePreventionofCorruptionAct 1988 in caseswh


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introduced in 2005 during the UPA-one regime andis part of the Common Minimum Programme.

36% Indians SufferedFrom MDE

World Health Organization-sponsored study on Ma-jor Depressive Episode (MDE) published in the BMCMedicine journal revealed that Indians are among theworlds most depressed. 9% of people in India re-ported having an extended period of depression withintheir lifetime, nearly 36% suffered from what is calledMajor Depressive Episode (MDE). According to thestudy, the average lifetime and 12-month prevalence

estimates of MDE were 14.6% and 5.5% in the 10high-income and 11.1% and 5.9% in the eight low tomiddle-income countries. The average age of onset

ascertained retrospectively was 25.7 in the high-in-come and 24 in low to middle income countries. Thefemale: male ratio was about 2:1.Lowest prevalenceof MDE was in China (12%).

The average age of depression in India is 31.9 yearscompared to 18.8 years in China, and 22.7 years inthe US. Increased stress, lonely lives and the fallingapart of the social support systems like joint familieswas cited as a major cause of growing depression

among Indians.The study based on interviews of morethan 89000 people in 18 different countries by 20 dif-ferent researchers stated that depression affects nearly121 million people worldwide. It is the second con-tributor to shorter lifespan for individuals in the 15-44 age group.The percentage of respondents, who hadlifetime MDE was higher in high-income (28.1%) than

in low to middle-income (19.8%) countries. When itcame to lifetime prevalence rates of depression,France (21%) and the US (19.2%) reported the high-

est rates of depression. Women, according to the studyare twice as likely to suffer depression as men andthe loss of a partner, whether from death or divorce,was a main factor, the study reveals.

What is MDE?MDE is characterized by sadness, loss of interest orpleasure, feelings of guilt or low self-worth, disturbedsleep or appetite, low energy and poor concentration,besides feeling depressed. This is the feeling of tre-

mendous helplessness, and worthlessness. Planned

suicide is the highest among those suffering from

142 CroreFor 6 DD Channels

The Information & Broadcasting (I&B) ministryJuly 2011 approved Prasar Bharatis proposal to comission and produce new content for DD- Urdu

gional language satellite channels like DD-OrDD-India, DD-Bharati, DD-News and DArchives.The decision was taken considering growing popularity of regional language channels DD-Urdu. DD-Urdu was targeted at south Asneighborhood and Indian diaspora in West Asia, rope, America and Central Asia. Sources said DUrdu is being run with repeat Urdu programmes

quired in 2007-08.The government decided to invRs 142 crore to revamp content for six Doordarschannels, including DD-Urdu. The new projec

expected to revitalize the channels by introducing nprogramming.DD-India, the state broadcasters innational channel, suffered the worst neglect overyears. The I&B ministry is therefore working w

the ministry of external affairs to coordinate wmulti-system operators, who can receive DD-Insignal in the concerned country.

Water Allocation is Not

A Matter of Judicial ReviewThe Supreme Court of India on 25 July 2011 stateits ruling that water allocated by a state for a pticular region is not a matter of judicial reviewSupreme Court bench including Justice MarkanKatju and Justice CK Prasad gave the ruling.The be

gave the ruling while dismissing a plea for a dirtion for allocation of adequate water in Kachchh trict in Gujarat. The Kachchh Jal Sankat Nivara

filed the petition asking for release of water fromSardar Sarovar Dam by the State government todistrict.The Bench pointed out that all these decisirequired delicate balancing and consideration of co

plex social and economical issues which could nobrought under judicial scrutiny.

Challenge to UniformSyllabus

Tamil Nadu state government filed a leave petit


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across Tamil Nadu.In its order on 18 July 2011, theMadras High Court struck down Section 3 of theUniform System of School Education (AmendmentAct 2010) as unconstitutional. This was passed by theState government seeking to defer the implementa-

tion of Samacheer Kalvi which was introduced by theprevious Tamil Nadu government for the Academic

year 2011-12.

Comprehensive SurveyOn Sex Workers' Number

The Supreme Court of India on 19 July 2011 directedthe Centre, States and Union Territories to carry outa comprehensive survey to determine the number ofsex workers in India who are agreeable for rehabili-tation. A bench including Justice Markandeya Katju

and Justice Gyan Sudha Mishra in an order also di-rected the Centre and States to file affidavits withintwo weeks on suggestions and recommendations forimproving the lot of sex workers. The Supreme Courtconstituted a panel comprising senior advocates andNGOs to assist the court in monitoring the rehabili-tation work for sex workers.The apex court passed

the direction while dealing with a petition relatingto the plight of sex workers, in which the bench hadappointed senior counsel Jayant Bhushan as an am-

icus curiae.

MPLADs Incresed to5 Crore Rupees

The Union Cabinet of India in its meeting on 7 July2011 decided to increase the development funds al-located to Members of Parliament under Local AreaDevelopment (MPLAD) Scheme from the existing 2

crore to 5 crore rupees from the financial year 2011-12. The meeting was chaired by the Prime MinisterManmohan Singh. The enhanced total expenditure willamount to 3950 crore rupees an increase of 2370 crorerupees from the earlier 1580 crore per annum.Thecabinet also approved annual administrative expensesof 2 percent of the annual outlay under MPLAD

scheme to be given to the states and districts so thatthe scheme could be monitored and implementedproperly.The MPLAD scheme was launched in 1993-

94 The project funded include creation of infrastrucid d i bli h l h d i ki

India AcceptedInternational Norms to

Limit Ship Pollution

India on 21 July 2011 accepted international no

for the prevention of air pollution emanating frships. The norms were proposed under a 1997 procol of the International Maritime organisation. T1997 protocol set limits on sulphur oxide and ni

gen oxide emissions and prohibits emissions of ozdepleting fumes.International Maritime Organisais an agency of the United Nations which has bformed to promote maritime safety. It was formestablished by an international conference in Genin 1948. The 1997 protocol includes Annex

titled Regulations for the Prevention of Air Pollufrom Ships. Annex VI came into force in the year 20


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INTERNATIONAL ISSUES

Hina Rabbani Khar is PaksNew Foreign Minister

Hina Rabbani Khar was appointed as Pakistans newforeign minister. Khar ,34, is the youngest ministerto accept the post. This came as a big surprise for thepeople. Khar was elected twice to the national assem-bly during Musharrafs reign in 2002 and duringBenazirs stint in the year 2008. She never went pub-

lic to win campaign. Since she belongs to a political

family it is said that for any years the seat was withheld by her father Ghulam Noor Rabbani Khar andshe gives her winning credit to her political father.Rabbabi offers hope to a number of women in Paki-stan not in terms of their lifestyle but in terms of theirway to choose their lives. We have in the past few

years the evolvement of women in Pakistan. The listincludes the likes of Fatima Jinnah to Benazir Bhutto,Asma Jahangir, Sherry Rehman and now Hina RabbaniKhar. Now women are rejecting the roles that many

men try to cast them in. Since her appointment as the

foreign minister of Pakistan Khar has been continu-ously criticised because to is too young to handle for-

eign affairs of Pakistan and that she holds a degree inhospitality management and she even has a degree ineconomics. But with a country with young popula-tion Khar seems to be making place for herself.

9.2 PercentUnemployment in USA

The United States Bureau of Labour Statistics (BLS)revealed that the unemployment in US increased to9.2 percent for the month of June and over 14 millionpeople were jobless.This reflects the recent slowdown

of economic growth. The sectors which showed theincrease in unemployment are- health care and manu-facturing, leisure and hospitality and manufacturing.USA Suspended Military Aid to PakistanUSA announced that it withheld the 800 million dol-

lars aid to the Pakistans military This action taken

nalist Saleem Shahzad who wrote about infiltrat

of the military by extremists. US suspension ofcould be a result of this killing.

Asia-Europe (ASEM)Meeting

A two-day meeting of foreign ministers of the nation Asia-Europe (ASEM) held in Godollo, Hgary. This was the 10th ASEM Foreign Minist

Meeting. The summit was chaired by CatherAshton, the foreign policy chief of the European Un(EU) while Hungarian Foreign Minister JaMartonyi took over the chair on 5 July 2011. H

gary is the current holder of the EU's rotatpresidency.Asian and European foreign minister5 July 2011 reached an agreement to cooperate cloin dealing with the non-traditional security chlenges. The meeting focused on increasing intertional collaboration in dealing with a cluster of ntraditional security threats ranging from terrorism

piracy to food and energy security, climate chandisaster relief and management, illegal migration infectious diseases.Next Asia-Europe (ASEM) mwill be held in India in 2013, while an ASEM sumit will be held in Vientiane, Laos in 2012.

Salient Featuresof ASEM Meet

The meeting held discussions on regional andternational issues of common interest, includingvelopments in Europe, Asia, Middle-East and the Aworld.

A separate plenary session was devoted to gloissues such as UN Reforms, sustainable developm

environment protection, non-proliferation and dimament, G-8, G-20 etc.

ASEM meet further exchanged views on, mat


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Indias Response: At the ASEM Foreign Ministers'Meeting in Godollo on 5 July 2011, India announced

that it would host the meeting of ASEM forum in 2013.India also announced its decision to hike its financialcontribution, a 20 percent increase to the inter-re-gional forum, ASEM.

What is ASEM ?ASEM represents over half of the global populationand accounts for more than half of the globalGDP.ASEM was set up in 1996.It held its first sum-mit meeting at Bangkok.It is a forum of 46 Asian andEuropean countries. 27 countries are from the EU and19 countries are from Asia India has been participat-ing in ASEM meetings since 2007.ASEM also com-

prises two international organisations, i.e. the 10-na-tion Association of Southeast Asian Nations (ASEAN)and the European Union, for expanding political and

security, economic and socio-cultural cooperation.Outside of the government-level meetings, ASEMalso brings together, in individual fora, lawmakers,businesses and civil society groups.In the key achieve-

ments of ASEM, the Trans-Eurasia Information Net-work (TEIN) a ground-breaking research and educa-tion network connecting researchers in both conti-nents are included.

South Sudan is Independent

The United Nations-African Union peacekeepingforce in Darfur welcomed the agreement signed on

14 July 2011, between the Sudanese Government andthe rebel Liberation and Justice Movement (LJM). Theagreement was based on the Doha Document for Peaceof the Security Council of the UN. The General As-sembly of the United Nations admitted the Republicof South Sudan as the 193rd member of the UnitedNations on 14 July 2011. It welcomed independent

South Sudan to the community of nations.

The protocol agreement was signed in the Qatari capi-tal, Doha. The agreement was a commitment on thepart of the Sudanese Government and the LJM to thedraft document that was required to form the basis of

a permanent ceasefire and a comprehensive peaceagreement to end the fighting that began in 2003. Anestimated 300,000 people were killed since conflicterupted in Darfur in 2003.After the UN General As-

sembly adopted a resolution to acclaim the indepen

State on June 28 2006 after it gained its independefrom Serbia.

Resolutions And Recommendations:

The Republic of South Sudan accepted the obltions contained in the Charter of the United Natiand solemnly undertook to fulfill them.

Any recommendations for admission must recthe affirmative votes of nine of the Councils 15 mbers, provided that none of its five permanent mebers i.e. China, France, Russia, United Kingdom

United States voted against the application.

The Un Security Council decided on 11 July 20to close the six-year-old UN Mission in Sud(UNMIS), which was set up to assist the partieimplementing the CPA, and called on the SecretaGeneral of the UN to complete the withdrawal oits uniformed and civilian personnel, except thneeded for its liquidation, by 31 August 2011.

In an unanimously adopted resolution, the Couemphasized the need for an orderly withdrawaUNMIS following the termination of its mandatpave the way for the new UN Mission in the Replic of South Sudan (UNMISS).

The Council also looked forward to transfer propriate staff and supplies, including the logisnecessary for achieving the new scope of functionbe performed from UNMIS to the new Mission to the UN Interim Security Force for Ab

(UNISFA).

The agreement signed between the north and the soSudan in June 2010, held that their respective fowhich clashed repeatedly in the disputed regionto withdraw from Abyei. UN Interim Security Fo

for Abyei (UNISFA) was given the initial taskmonitoring the complete withdrawal of forces frall of Abyei.

World Hepatitis Day

The first official World Health Organizatisupported World Hepatitis Day being coordinatepartnership with the World Hepatitis Alliance observed on 28 July 2011. The theme for the Wo

Hepatitis Day was This is hepatitis The slogan


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bal awareness of hepatitis B and hepatitis C and en-courage prevention, diagnosis and treatment. WorldHepatitis Day serves to provide an opportunity torecognise viral hepatitis as a major global health prob-lem in order to advance prevention and control.The World Hepatitis Alliance and the WHO

jointly agreed that the core global objectives

of the World Hepatitis Day campaign are to: Raise awareness and understanding of hepatitisamong the general public

Secure continual support for World Hepatitis Day Generate a sense of urgency amongst all stakehold-ers to prioritise action

2011 Declared

World Veterinary Year

FDAs Center for Veterinary Medicine together withother national and international veterinary groupsdeclared 2011 as the World Veterinary Year. 2011marks the 250th anniversary of the founding of theworlds first veterinary school in Lyon, France. WorldVeterinary Year, or Vet2011 is to celebrate the richhistory of the veterinary profession and the veteri-narians around the world who continue to protect

human and animal health.The worlds first veterinaryschool was founded in Lyon, France, in 1761. TheAlfort veterinary school was next to come up nearParis in 1764. Both the schools were founded at theinitiative of French veterinarian Claude Bourgelat.Thus the year 2011 marks the 250th world anniver-sary of veterinary education. By setting up the worldsfirst veterinary training institutions, Bourgelat alsocreated the veterinary profession itself. Thus, 2011also marks the 250th world anniversary of the veteri-

nary profession.Bourgelat was also the first scientistwho dared to suggest that studying animal biologyand pathology would help to improve understandingof human biology and pathology. 2011 also marks the250th anniversary of the concept of comparativebiopathology.

World InvestmentReport 2011

The World Investment Report 2011 was released by

The country that saw the maximum FDI inflow2010 was the United States at $228 billion. Chstood at 2nd position with inflows totalling $106 lion in 2010, and Brazil stood at 5th position winflows at $48 billion.According to UNCTAD, eign direct investment inflows worldwide climbeper cent to about USD 1.24 trillion in 2010 compa

to 2009. FDI to South Asia declined to USD 32 lion in 2010.

The report stated that half of the top 20 host ecomies for FDI in 2010 were developing and transiteconomies. UNCTAD report projected foreignrect investments worldwide to return to pre-crlevels this year, with inflows expected to be up$1.6 trillion.Cross border non-equity modes (NEincluding contract manufacturing, servioutsourcing, contract farming were found to be

creasingly shaping the global value chains.

Missile DefenceShield for Russia

Russia made an announcement on 22 July 2011 thbuilt a missile defence shield which covers two-thof the country. The new system is designed to pvide protection against missile attacks on Mosc

and central Russia. Most of the industry is locatethis area. The missile defence system features S-and S-400 long-range anti-missiles.The systemlikely to become operational by 1 December 201

Truong Tan Sang isVietnams 9th President

Vietnams lawmaking National Assembly appoinTruong Tan Sang as the communist countrys npresident on 25 July 2011 following Vietnams 1National Assembly election. Sang, an arch rivaPrime Minister Nguyen Tan Dung is the ninth prdent f the country, the first being revered foundfather Ho Chi Minh. Sang succeeded Nguyen MTriet, who served one term.Sang had been the rulCommunist Party's de facto number two since 20He had mounted an aggressive challenge for the prminister's job before the party's January congrwhich determined top leadership posts. Sang, a

tive of southern Vietnam and a student militant


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facto No. 2 in charge of the Communist Party, run-ning the day-to-day affairs.Sang was imprisoned from

1971-73 by the U.S.-backed South Vietnamese gov-ernment when he served as a communist fighter forthe north during the Vietnam War. It ended in 1975when the north seized control of the former southerncapital, Saigon, reunifying the country.

Ban on Wearing Veilsin Public in Italy

An Italian parliamentary commission approved a draftlaw banning women from wearing veils that covertheir faces in public.The draft passed by the constitu-

tional affairs commission prohibits women fromwearing a burqa, naqib or any other garb that coversthe face.Italy is the latest European country to approve

a law against the burqa. Belgium and France have al-ready banned the wearing of burqa in public.This re-cent step banning veil has ignited heated debate aboutmulticulturism in Europe. Its related to issues of re-

ligious freedom, secular traditions, female equalityand fears of terrorism.

UNSC CodemnedThe Syrian Government

The UN Security Council condemned the Syrian gov-ernment for a deadly crackdown on protesters. Thecouncil statement condemned the widespread viola-tions of human rights and the use of force against ci-vilians by the Syrian authorities.This comes as theSyrian army attack Hama, a centre of the opposition

protest, with reports of much loss of life.Dozens ofpeople are believed to have been killed in the actionagainst Hama, with residents saying that and army

tanks have now entered into Assi Square, in the cen-tre of the city of 800,000 people.

Euro Zone Summit

17-nation Euro Zone Summit was held in Brussels,

capital of Belgium with the objective of finalizing asecond rescue package for debt plagued Greece andcalm the financial markets of Europe. The participat-ing nations agreed on Marshall Plan for Europe to

revive the financial markets of Europe

Besides, the nations agreed on sopoints,which is as follows:-

The summit agreed to pour another 159 billionros into Greece to stop debt contagion across EuroTo ease Greece's debt repayments on its loans, summit agreed to extend them from 7.5 years totween 15 and 30 years in some cases, and at a rat

3.5 percent, down from 4.5 percent.

The Eurozone leaders welcomed the measures dertaken by the Greek government to stabilize pufinances and reform the economy as well as the npackage of measures including privatization recenadopted by the Greek Parliament.

The Eurozone leaders agreed to support a nprogramme for Greece. This programme will besigned notably through lower interest rates andtended maturities, to decisively improve the dsustainability and refinancing profile of Greece.

It was decided to lengthen the maturity of futEFSF loans to Greece to the maximum extent psible from the current 7.5 years to a minimum oyears and up to 30 years with a grace period ofyears.

All euro area Member States will adhere strito the agreed fiscal targets, improve competitivenand address macro-economic imbalances. Public dcits in all countries except those under a programwill be brought below 3 percent by 2013 at the

est.

The summit made a commitment to introducethe end of 2012 national fiscal frameworks as foseen in the fiscal frameworks directive.

Muammar Gadhafis

Regime Declared Illigetimat

The Libya Contact Group in its fourth meeting hin Istanbul, Turkey declared Libyan leader MuamGadhafis regime no longer legitimate. This willtentially free up cash that the rebels fighting Libforces urgently need. In addition to the USA, the

nation Contact Group on Libya includes memberNATO, the EU and the Arab League. The Group formally recognized the main opposit

N ti l T iti l C il(NTC)


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New Visa CategoryIn Britain

Britain announced a new visa category to facilitate the immigration for exceptionally talented people fr

India and other non-EU countries in the fields of humanities, engineering, arts and science.The new T1(exceptional talent) category will open on 9 August 2011 and it will have 1000 places in the first yea

operation.There will be 500 places available between the 9 August and 30 November and a further places available from the December 1 to March 31, 2012. The immigration category will be overseen by fcompetent bodies. These competent bodies will advise the UK border agency to make sure that the migraare the best and brightest in their field.

Famine in Two Regionsof Southern Somalia

On 20 July 2011 the United Nations declared a famine, occurring in the Bakool and Lower Shabelle regiof southern Somalia. The UN formally declared a famine in five districts in Southern Somalia. It also

pealed for 300 million US dollars by August and September 2011, to bolster its response in the affected aof Somalia.Parts of southern Somalia suffered from the worst famine in a generation, affecting over million people. More than 166,000 desperate Somalis are estimated to have fled their country to neighbourKenya or Ethiopia.The UN estimated that humanitarian agencies needed 1.6 billion US dollars for Somalone. Tens of thousands of people died across the region, most of them were children.The last time simconditions took place in Somalia in 1992, when hundreds of thousands of Somalis starved to death.Al-Shaban al-Qaeda-affiliated group which controlled large swathes of south and central Somalia, had imposed a

on foreign aid agencies in its territories in 2009. However, later it had allowed limited access. An estima10 million people are affected in East Africa by the worst drought in more than half a century.

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ECONOMY ISSUES

RBIs 3rdFinancial Stability Report

The Reserve Bank of India (RBI) released its third Fi-nancial Stability Report. The report reflected RBI'scontinuing endeavour to communicate its assessmentof the incipient risks to financial sector stability. TheFinancial Stability Report is published twice a yearunder the guidance of the interim Financial PolicyCommittee. The report includes Committee's assess-

ment of the outlook for the stability and resilience ofthe financial sector at the time of preparation of theReport, and the policy actions it advises to reduce andmitigate risks to stability.

FSR main findings are as follows:-

1. The banking sector in India by far the most domi-nant portion of the Indian financial sector continuesto be stable and2. The domestic financial markets have remainedstress free recently. However, a few caveats are in

order.

India FellTo 14th From 8th in FDI

The World Investment Report 2011 was released byUNCTAD. According to the report, Indias positionamong the top 20 FDI recipients fell to 14th position,from 8th in 2009 at a time when other countries in

Asia were setting new records in foreign direct in-vestment (FDI) inflows. Indias FDI inflow went downto $25 billion in 2010 from $36 billion in 2009, ac-cording to a UN report.However, according to Fi-nance Minister Pranab Mukherjee, FDI inflows roseto more than $7.9 billion during April-June quarterof 2011, which was almost twice the amount receivedduring the year-ago period. During the last 10 years,India received total foreign direct investment of $176billion, while Indian companies have invested $76

billion outside India saw FDI inflows of USD 19 42

the tune of USD 106 billion in 2010. China stoo

2nd position with inflows totalling $106 billion2010, and Brazil stood at 5th position with inflow$48 billion.The country that saw the maximum inflow in 2010 was the United States at $228 bill

Essar Agreement WithJurong Aromatics

Essar Projects Ltd (EPL) announced that secured

engineering, procurement and construction (Econtract worth $320 million from Jurong AromaCorp. (JAC) of Singapore. The contract forms para USD 2.4-billion grassroot aromatics complexJurong Island, Singapore, being executed by JAC. scope of EPLs contract includes constructing stortankages, jetties with loading and unloading arpipeline systems as well as the utilities for the encomplex. The project is to be executed by a subiary company of EPL in Singapore.The Jurong prohas participation from global petrochemical play

like Glencore, SK Engineering, Sanhai and Vinmand involves the development of a condensate spter and aromatics facility. The JAC project involthe development of a condensate splitter and aromics facility in Singapores Jurong Island.

Standard CharteredBank Appoinyed as Custodia

The Central Board of Trustees (CBT) of the Emplees' Provident Fund Organisation (EPFO) approthe appointment of Standard Chartered Bank ascustodian of securities of the EPFO. The Central Boof Trustees (CBT) is the apex body of the EmployProvident Fund Organisation. At the 196th meetof the CBT, it also approved the appointmenMumbai-based Chandbhoy and Jassoobhoy as Exnal Concurrent Auditor to audit the investmentthe EPFO funds.A total of five crore employees ca

under the EPFO The total fund size was Rs 3 50 l


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SEBI OkayedAll-Important Takeover Code

The Securities and Exchange Board of India (SEBI)board okayed the all-important Takeover Code ac-cepting the recommendations of the Takeover Regu-lations Advisory Committee (TRAC).According to theTakeover Code passed by SEBI, mandatory open of-

fer size was raised to 26% from 20% and the triggerpoint for buyout was made to stand at 25% as against15% in the past. With the passing of the TakeoverCode, companies will now need to make mandatoryopen offer for further 26% stake from public share-holders after buying 25% in takeovers.SEBI however,abolished non-compete fees to be paid by acquirers

in takeover deals.

Highlights of Takeover Code:Mandatory open offer size was raised to 26% from20% and the trigger point for buyout was made tostand at 25%.

Merchant banks to disclose track record to IPO in-vestors

IPO forms to be made shorter and simpler.

Non-compete fees to be paid by acquirers in take-

over deals abolished.

Public shareholders were required to be given anexit opportunity when promoters of target company

sell out their stake to acquirers.

SEBI did not accept the recommendation of TRACto provide delisting pursuant to an offer and propor-tionate acceptance.

Sebi board decided that the existing definition ofcontrol of offers would be retained as it is.

The SEBI board approved uniform KYC norms forall stock market transactions.

FSDC ReviewedEconomic Situation

The Financial Stability and Development Council

(FSDC) headed by finance minister Pranab Mukherjee

man, RBI governor, PFRDA chairman, and finasecretary and chief economic advisor. The finanregulators were of the opinion that high inflation wnot be conducive to short-term growthThe relati

ship between inflation and growth was treated cause of concern. Although the group felt that in lterm, Indias growth prospects are bright but in

short term it seemed crucial to tackle inflation.Wthe economy is expected to grow between 8 andper cent in 2011-12, the persistently high inflatand subsequent interest rate hikes by the RBI curta

India Incs expansion plans and led to fears of a psible slowdown. Rising fiscal deficit along with crent 8% repo rate announced by the RBI was adeemed as a potential threat to the economy.

Repo Rate Hiked to 8%

The Reserve Bank of India (RBI) in a bid to tameflationary pressure hiked the short-term indicapolicy rate (repo rate) by 50 basis points from 7.5

cent to 8 per cent. The RBI Governor D. Subbaalso announced the first quarter review of MonetPolicy for 2011-12.The first quarter review of Metary Policy for 2011-12 revealed that headline whsale price index (WPI) inflation rate for the first quter of 2011-12 remained stubbornly close to dou

digits and inflationary pressures continued to be brobased.The decision to raise the rate by 50 basis poibeating the market expectation of 25 basis points taken to drive home the fact that in the absenccomplementary policy responses on demand and sply sides, stronger monetary policy actions required.With the hike in repo rate (the rate at wh

banks borrow from the central bank) the reverse rrate (the rate at which banks park their funds withRBI), with a spread of 100 basis points below the r

rate settled at 7 per cent. Similarly, the MargStanding Facility (MSF) rate, with a spread of basis points above the repo rate, stood recalibrate9 per cent.The hike by the central bank in rate

expected to put further pressure on consumers as leing rates of banks will be higher in the coming d

Duty Entitlement Pass Book(DEPB) Scheme

The Union government announced restoration of


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The announcement was made in the backdrop follow-ing a sharp fall in the domestic and international prices

of these commodities.Cotton yarn had been placedunder Open General Licence for exports from April2011. The DEPB scheme for exporters had thereforebeen made effective from 1 April 2011. The govern-ment had withdrawn the scheme on cotton and cot-

ton yarn in April 2010.The governments decision waswelcomed by Confederation of Indian Textiles Indus-try that felt the move would provide relief to the cot-ton yarn sector as it was making losses due to with-drawal of export incentives and had hugeinventories.Exports of cotton were dis-incentivisedby virtue of export tax, following a sharp rise in pricesin January 2011. The DEPB scheme has also been re-

stored with easing of export curbs.

What is DEPB?

DEPB Scheme incorporates the concept of the old PassBook but with simplified procedures and greater cov-erage and transparency in the matter of giving creditentitlements. The entitlement rate will be pre-deter-

mined so that the exporters at the time of exports cando their costing accordingly. Being a transparentscheme it does away with any discretion to the Li-censing Authority or Custom Authority and can beavailed on Pre-Export/Post-Export basis.

Anti-Dumping Duty OnImports of Gas

The Revenue Department announced its decision toimpose anti-dumping duty of up to USD 1.41 per kgon imports of a gas, used primarily for refrigeration

purpose with an objective to protect domestic play-ers from cheap Chinese and Japanese shipments. Theduty would range from between USD 0.69 per kg and

USD 1.41 per kg on imports of the gas from Japanand China.The restrictive duty on the import of1,1,1,2-Tetrafluoroethane or R-134a is to be imposedfor a period of five years.The imposition of duty was

recommended by Directorate General of Anti-Dump-ing and Allied Duties (DGAD)

Ashok Chawla Panels Report

A government panel, headed by former finance sec-

retary Ashok Chawla set up to recommend rules for

auctions.The final report merely stated that allotion of spectrum, the airwaves on which all comm

nication signals travel, should be done through a sable market-related process evolved by the telecodepartment and the telecoms regulator.Analystsof the opinion that Chawla's move to overturn draft recommendations amounts to toeing

telecoms department's line which already rejectedauction approach for awarding second generation (airwaves. The telecom department also added thatcommittee's recommendations will allow the gernment to choose the benchmark for pricairwaves.The exact quantum to be levied woulddetermined by the telecoms department in consutions with regulator TRAI.The panels draft had

added that if the road map for future release of sptrum through auctions were to be made availablwould temper bids in future auctions.

EPFO Appointed4 Mangers For

Pension Fund Corpus

The labour ministry-controlled Employees ProvidFund Organisation (EPFO) appointed four fund magers for its 3.5 trillion pension fund corpus. EPhowever dropped top performer ICICI PrudenAsset Management Co. Ltd from the list.The cenboard of trustees (CBT), the apex decision-makbody of the EPFO in its meeting in New Delhi,

cided to appoint State Bank of India (SBI), ReliaCapital, HSBC Asset Management and ICICI Secties Primary Dealership Ltd. The CBT after coneration approved four fund managers for managEPFO funds for a period of three years beginninSeptember 2011.

Oil Ministries ActionAgainst Cairn India

The oil ministry blocked Cairn Indias plans to beoil production from the Bhagyam oilfield whic

the second biggest find in the Rajasthan block. Cahad planned to put the Bhagyam oilfield into prodtion by October to take total output from the Rajastblock to 175,000 barrels per day.At the meetin

the panel that oversees operations of the block on


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late profit from the Rajasthan block after treating roy-alty as cost recoverable item.Cairn believed that roy-

alty, which is paid by state-owned Oil and NaturalGas Corp (ONGC), is a licensee obligation and hencenot cost recoverable from revenues. Cairns viewswere contested by the oil ministry which made costrecovery of royalty as a precondition for allowing

Cairn Energy to sell 40% stake in Cairn India toVedanta Resources.The ministry insisted that it willnot approve further programme on Bhagyam unlessCairn calculates profits to be divided among stake-holders and the government after adding royalty tothe cost.

CEIB a Nodal Agencyto Share Black Money

InformationThe committee set up to review the role and struc-ture of Central Economic Intelligence Bureau (CEIB)recommended that the CEIB maintain a national da-tabase of economic offences investigated by variousagencies at the Centre and in states. Maintenance of

national database by CIEB will ensure effective coor-dination among the various enforcement and regula-tory agencies. The four member committee to studythe role of CEIB was set up in March 2011 by theFinance Ministry and was headed by S. S. Khan, re-tired member, Central Board of Direct Taxes(CBDT).The Union government opined that in the

face of growing complexity and sophistication of eco-nomic offences better collaboration among variousagencies is required for combating tax evasion andother serious economic offences.The panel also rec-ommended a hub and spoke structure between theCEIB and enforcement agencies at the central and statelevels with the CEIB as the nodal agency for better

collection and dissemination of financial intelligence.

India Set For BumperFoodgrains Production

in the 2010-11

According to the fourth advance estimates releasedby the Agriculture Ministry, India is set for a bumer

foodgrains production in the 2010-11 crop year at

241 56 million tones which will be a record Wheat

to good monsoon, higher minimum support pricfarmers and focussed policy approach, particularl

enhance production of pulses and oilseeds.As perdata prepared by the Directorate of Economics Statistics, the record output was achieved despdrought in 90 districts in the eastern belt, excessrains in parts of Gujarat and Andhra Pradesh and y

low rust in some wheat-growing pockets.

Wheat Output was Estimateto be Higher by 5.13 Million

Tonnes in 2010-11

Rice output was estimated at 95.32 million tonneagainst 89.09 million tonnes harvested in 2009-1Pulses production enhanced by 3.43 million ton

with gram at 8.25 million tones, urad at 1.74 milltonnes and moong 1.82 million tonnes recording nificant increases.

Oilseeds production was estimated at 31.1 milltonnes against 24.8 million tonnes in the previcrop year with a record soyabean output of 12

million tonnes.

Coarse cereals output was recorded at 42.22 milltonnes as compared to 33.55 million tonnes produin 2009-10. A record output of 21.28 million tonof maize this year against 16.72 million tonnes pduced in 2009-10 contributed hugely to higher co

cereals out.

Cotton production surged to 33.43 million bales170 kg each) from 24.22 million bales. Sugarcoutput was up at 339.17 million tonnes against 29million tonnes in 2009-10.

Total foodgrains output for rabi and kharif in 2010 was 218.11 million tonnes. The highest prodtion in recent years was 234.47 million tonne2008-09.

The 12th Five Year Plan will contain all measure

accelerate the agriculture sector growth to meetture demands. The need for a broad-based, incluand sustainable second Green Revolution has thefore been highlighted by Prime Minister Manmo

Singh India needs two per cent per annum growt


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DoT Cleared NOFN ForBroadband Connectivity

The Central Department of Telecommunications(DoT) approved Rs 30000-crore National OpticalFibre Network (NOFN) for broadband connectivity

to 2500 Panchayats in India.The Telecom Commis-sion (DoT's decision-making arm) approved theproject that will be funded through the Universal Ser-vice Obligation [USO] Fund. The project will be com-

pleted by 2014-15 through a special purpose vehicle(SPV). The Universal Service Obligation Fund wascreated to fund those operators who go into the ruraland non-remunerative areas to offer telecom network.Private telecom companies contribute 5 per cent oftheir annual revenues towards this fund.NFON is ex-

pected to help the government implement its variouse-governance initiatives such as e-health, e-bankingand e-education, facilitating inclusive growth. 33 newmajor applications will be built using the open sourcecode. These applications will use NOFN to connectrural areas with educational institutions, health ser-vice and central government services.The broadband

project will initially be executed by Bharat SancharNigam Limited and other PSUs like RailTel.

Amendment to CustomsAct, 1962

The Indian Cabinet approved the amendment to Cus-toms Act, 1962 to help the exchequer safeguard itsrevenues. The cabinet decided to put forth the amend-ment bill in the 2011 winter session of theparliament.The amendment will permit specificallyrecognised customs officers to assess import duty. Therecognition to customs officials would be from ret-

rospective effect. The amendment bill will help thegovernment to recover customs duty worth severalthousands of crores, Soni added. Officers of the Di-rectorate of Revenue Intelligence (DRI) will alonehave issued notices involving customs duty to the tuneof over Rs 7500 crore. Also tax evaders will not get

benefited at the expense of exchequer on a mere tech-nical ground.

Chaturvedi CommitteesSuggestions

The committee set up by the Group of Minis(GoM) to examine the go and no-go system for

mining and chaired by Planning Commission M

ber B K Chaturvedi submitted its report. The cmittee recommended that all projects stranded duthe classification must be treated on their meritscleared sans restrictions if located at the fringethe forests.The committee asked the union envirment ministry to amend its directive mandating

velopers to compulsorily secure Stage-I clearancwell as facilitate green clearances in a time-bomanner. The committee highlighted that the sysof go and no go has no legal sanction.The commi

suggested that the ministries of coal and environmwork jointly and evolve a strategy to ensure that geine cases are cleared and also the interests of the tri

be protected.

1200 Crore into Air India

The Cabinet Committee on Economic Affairs (CCapproved equity infusion of Rs.1200 crore intocash-strapped national carrier Air India. Air India

so far received financial assistance amounting to2000 crore in the last two financial years while

cumulative loss and debt burden is around Rs 67crore.The equity induction would not only easecash flow situation of the company Air India whis passing through critical financial crunch. The cflow would also preclude borrowings from the mkets at high costs.The airline has a debt of Rs.4crore on an equity base of Rs.2145 crore.

Damodaran PanelsSuggestions

The report on Customer Service in Banks by a co

mittee chaired by M. Damodaran, former Chairmof the Securities and Exchange Board of India (SEwas released on 3 July 2011. The Reserve BanIndia panel recommended an increased deposit inance cover of Rs.5 lakh so as to encourage indivals to keep all their deposits in banks. The Damoda

panel mentioned that in case of sick banks a po


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The recommendations were made in 3broad categories:Home Loans: The panel recommended that banksshould not impose exorbitant penal rates towards fore-closure of home loans. A policy should be devised toensure that customers are not denied of opportunityto enhance their economic welfare by making choices

such as switching to other banks/financial entities toenjoy the benefits conferred by market competition.Measures to stop practices of discriminating betweennew and old customers with identical risk profiles onthe basis of interest rate offers were to be initiated.

Senior Citizens: There should be prioritised ser-

vice to senior citizens, physically handicapped per-sons by effective crowd/people management avail-able at all branches. The panel suggested introduc-tion of provision of the SMS alerts service about bal-ance in the account at periodic intervals and aboutdue dates for submission of important

documents. Automatic updation of the customers tothe senior citizen category based on the date of birthwould be introduced. Pensioner may be allowed tosubmit the annual life certificate at any of the (linked)branches and not necessarily at the home branch.

Rural Areas: According to the panel banks should

ensure proper currency exchange facilities and also

the quality of notes in circulation in rural areas.Branches should be made functioning at a time con-venient to the customers (agricultural labourers,workers and artisans).

Industrial Outlook Survey

The Reserve Bank of India launched its Industrial Out-

look Survey for the July-September 2011 period. TheIndustrial Outlook Survey provides for an insight into

the perception of non-financial public and private lim-ited companies that are engaged in manufacturingactivities about their performance and futureprospects.The responsibility for conducting the re-search on behalf of the central bank was bestowed on

Centre for Research Planning and Action (CERPA).The CERPA is to get in touch with several manufac-turing companies during the quarter July-Septemberfor seeking their valuable feedback so that it can beincluded in the survey. The survey is to cover non-

financial private and public limited companies with

loading the survey schedule from RBIs offiwebsite.

What is CERPA?CERPA was established in 1972 and conducts soscience research, provides consultancy on develmental issues, helps planners and policymakers

provides charitable services to the disadvantaged poor sections of the country.

Finance MinistriesSteps to Combat

Black Money Menace

The Finance Ministry under pressure to unearth blmoney modified the format for reporting suspici

transactions to help enforcement and regulatory agcies take prompt action to deal with the menace.new reporting formats such as Suspicious Trantion Reports (STRs), Cash Transaction Repo(CTRs), Counterfeit Currency Reports (CCRs) Non-Profit Organisation Transaction Reports (NT-- were introduced after the Financial Intellige

Unit (FIU) made operational its ambitious integence network project sanctioned in 2006.The elier prescribed multiple data files reporting formset to be replaced by a new XML file format. Thnew formats -account-based reporting, format transaction-based reporting format for filing STCTRs and NTRs and a separate reporting forma

file CCRs were introduced and notified to RBI , Sand IRDA and other relevant entities.The new nwork, called FINnet ( Financial Intelligence Netw)deployed to tackle the menace of black moneytechnology-based secure platform for bringinggether investigative and enforcement agencies to lect, analyse and disseminate valuable financial

formation for combating money laundering andlated crimes.The civil society in the recent pstepped up pressure on the government to uneablack money and introduced various measures to crdown on financial scams, frauds and large-scaleevasion.

PSBs to Boost Creditto Small Industry & Farmer


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from big industry moderates. Reserve Bank of Indiarevised the credit growth target to 18% from 19% in2011-12 after it raised the key rates by sharp 0. 5 per-centage points in its monetary policy review on 26July 2011. The RBI raised the repo rate for the elev-enth time since March 2010 to curb runaway infla-tion. Finance Minister, Pranab Mukherjee also raised

the issue of increased lending in the agriculturesector. Currently, the banking system only covers50% of the farmers in India. The government set atarget of Rs. 475000 crore bank credit for the farmsector in 2011-12. Banks that did not meet the targetsfor agriculture lending in the last three years wereasked to step up their loan portfolios.

SEBI ProposedRegulations For Alternative

Investment Funds

The Securities and Exchange Board of India (SEBI)proposed to create regulations for alternative invest-ment funds under the title SEBI (Alternative Invest-ment Fund) Regulations.These alternative investmentfund (AIF) raise capital from a number of highnetworth investors (HNIs) with an objective of in-vesting in accordance with a defined investment

policy for the benefit of those investors.The fundswhich would come under the proposed regulationinclude- Venture Capital Funds, PIPE Funds, PrivateEquity Fund, Debt Funds, Infrastructure Equity Fund,Real Estate Fund, SME Fund, Social Venture Funds,Strategy Fund.SEBI made it mandatory for all typesof private pools of capital or investment funds to seekregistration with SEBI. The funds could be formed ascompanies, trusts or body corporate including LLPstructure.

Growth Rate Projection to8.2 % For 2011-12 For India

The Prime Minister's Economic Advisory Council(PMEAC) scaled down its projection for the growthrate of the economy in 2011-12 to 8.2 per cent from8.5 per cent earlier. The estimates were made in thebackdrop of a grim economic scenario resulting fromuncertain global outlook and high domestic inflation

coupled with a subdued trend in investment and fac

mitted to Prime Minister Manmohan Singh month, the PMEAC had maintained that headlineflation would remain at 9 per cent or higher till tober 2011 and thereafter ease to 6.5 per cent byend of March 2012. The Council estimated the heline WPI inflation rate to continue to be at 9 per cor higher in the months of July-October 2011.T

country's agriculture output was projected to grow3 per cent in the current fiscal 2011-12 as againstper cent in 2010-11. The 2011 monsoon was projecto be in the range of 90 to 96 per cent of the LPeriod Average (LPA). As a result, the farm secoutput expected to grow at 3 per cent.

Uniform Licence Fee ForTelecom Operators

Telecom Commission, the apex decision-making bof the Department of Telecom in a meeting held pmitted imposition of a uniform licence fee of 8.5cent on all telecom operators.Operators currentlybetween 6 per cent and 10 per cent of their annrevenues as licence fee. Though the Telecom Regutory Authority of India had recommended bringdown the licence fee to a uniform 6 per cent, a paset up by the DoT pegged this at 8.5 per cent withobjective to protect Government income. T

Telecom Commission overruled the TRAI suggestiand ratified the views of the DoT committee wregard to pegging license fee at 8.5%.

India's Exports RoseBy 46.45 Per cent in 2011

According to the figures released by the CommeMinistry on 1 August 2011 India's exports rose

46.45 per cent to $29.21 billion during June 20The increase in export was registered amid concethat the upward growth could be hit by the troubeconomic situation in the U.S. and the European zin the second-half. In May, exports had grown by 5per cent year-on-year to $25.9 billion.Owing tospectacular rise of export in June 2011, exports gby a hefty 45.7 per cent to $79 billion in the first quter of the current fiscal 2011-12. Sectors includpetroleum products, readymade garments, engin

ing or pharmaceuticals posted robust expansion


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Disclosure of Share Dealings is Mandatory

SEBI (Securities and Exchange Board of India) board decided to make it mandatory for all promoter entito disclose any considerable purchase or sale of shares by them. The decision was taken with an objectivrein in insider trading by promoters without investors' knowledge.Currently, directors and top executivelisted companies are required to make these disclosures. However following SEBIs decision in this rega

all the promoters and persons who are part of the promoter group of a listed company would also be requito disclose their share dealings.The promoters would be required to make initial disclosures relating to th

shareholding at the time of becoming promoter or part of promoter group.

Food Inflation Feclined To 7.33 %

Food inflation declined to a 20 months low of 7.33 per cent for the week ended 16 July 2011. The fall in finflation by 0.25 percent in comparison to the week ended 9 July 2011. The dip in food inflation was a reof cheaper pulses. For the week ended 9 July 2011 food inflation stood at 7.58 per cent.During the week en16 July 2011, prices of pulses fell by 8 per cent year-on-year. However, prices of other items went up. Onibecame more expensive by 22.66 per cent and fruits became 13.90 per cent dearer on an annual basis. Potabecame 10.55 per cent costlier, while milk was up 9.96 per cent. Vegetable prices were up 7.59 per cent y

on-year.

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INDIA & THE WORLD

Science and TechnologyCoordination Between

India & USA

India and the United States on 18 July 2011 agreed to

step up Science and Technology coordination in NewDelhi. The areas where the coordination will be in-tensified include energy, agriculture, healthcare, nu-trition and monsoon forecasting. This was agreed

upon during a meeting between Assistant to the USPresident for Science & Technology John P. Holdrenand Minister of State for Planning, Science & Tech-

nology and Earth Sciences Ashwani Kumar. The meet-ing was held in the context of the ongoing Indo-USStrategic Dialogue.The Meeting stressed upon theneed to work towards making agriculture resilientand for further research on forecasting various haz-ards like cyclones.

Advisory For GermansComing to Kashmir

Germany on 25 July 2011 revised an advisory thathad cautioned against trips to Kashmir. Germany thusbecame the first European nation since 1995 to allow

its citizens to visit Kashmir. Germany stated that thesituation in the Valley has calmed down consider-ably and that foreigners were not the direct target ofviolence. The decision was taken following a visit

made by German ambassador Thomas Matussek toKashmir. Kashmir used to be a favourite destination

for western tourists especially Germans before theoutbreak of militancy in 1990.

India & Mongolia

India and Mongolia signed three agreements whichincludes defence cooperation, media exchanges andcooperation between their planning commissions

during the visit of Indian President Prtibha Patil to

Education and Outsourcing Centre in Ulaanbaa

Besides, India will also upgrade and modernizeRajiv Gandhi Art and Production School and the ABihari Vajpayee Centre of Excellence in Informaand Communication Technology.This is the firstdian Presidential visit after a gap of 23 years; the

was by President R. Venkataraman.Mongolia is a llocked central Asian country. It is also describeland of the blue skies. India still awaits the womreservation bill while Mongolia has 25 percent ervation for women in its Parliament.

India - Lithuania

The Government of India signed an Agreement

Protocol for Avoidance of Double Taxation andPrevention of Fiscal Evasion with respect to Taon Income and on Capital (DTAA) with Governmof Lithuania in New Delhi. Lithuania is the first tic country with which DTAA has been signedIndia.The Agreement and the Protocol were sig

by Prakash Chandra, Chairman, Central Board ofrect Taxes, on behalf of the Government of IndiaPetras Simeliunas, Ambassador, Republic of Lithuto India, on behalf of the GovernmentLithuania. The Agreement further incorporates pvisions for effective exchange of information betwtax authorities of the two countries in line with lainternational standard, including exchange of ba

ing information and supplying of information wout recourse to domestic interest. Further, the Ag

ment provides for sharing of information to otagencies with the consent of supplying state.Agreement also has an article on assistance in coltion of taxes. This article also includes provision

taking measures of conservancy. The Agreemencorporates anti-abuse (limitation of benefits) prsions to ensure that the benefits of the Agreementavailed of by the genuine residents of the countries. The Agreement will provide tax stabto the residents of India and Lithuania and will fatate mutual economic cooperation between the

countries It will also stimulate the flow of inv


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India - Japan

India- Japan CEPA (Comprehensive Economic Part-nership Agreement) enters into force . This is Indias3rd Comprehensive Economic Partnership Agreement(after Singapore and South Korea) and Indias firstwith a developed country. The Agreement is mostcomprehensive of all the agreements concluded byIndia so far as it covers more than 90% of trade, avast gamut of services, investment, IPR, customs andother trade-related issues. Under the India- JapanCEPA only 17.4% of the tariff-lines have been offeredfor immediate reduction of tariff to zero % by India.Tariffs will be brought to zero in 10 years on 66.32%of tariff lines to give sufficient time to industry toadjust to the trade liberalization.The Japanese side hasput 87% of its tariff lines under immediate reduction

of tariff to zero. A large number of these items are ofIndias export interest e.g. seafood, agricultural prod-ucts such as mangoes, citrus fruits, spices, instant tea,most spirits such as rum, whiskies, vodka etc, textileproducts such as woven fabrics, yarns, synthetic yarn,readymade garments, petro chemical &chemicalsproducts, cement, jewellery, etc.The exclusion list ofJapan (where no tariff concessions are proposed)mainly consists of items such as rice, wheat, oil, milk,sugar, leather and leather products. The trade volume

of items in the Japanese exclusion list is only2.93%.Indias exclusion list contains 1538(13.62%)lines at the 8 digit level. Auto parts and agriculturaland other sensitive items have been kept out of theliberalization schedule.

Under India-Japan CEPA the Japanese governmentshall accord no less favourable treatment to the ap-plications of Indian companies than that it accords tothe like applications of its own persons for drug reg-

istration. This will greatly help Indian pharmaceuti-cal companies. Under India-Japan CEPA, Indian pro-fessionals will be able to provide their services andcontribute towards further development of Japans ITSector. Japanese side has also agreed to conclude So-cial Security Agreement within a specified period (3years). Contractual Service Suppliers (CSS), Indepen-dent Professionals (IPs) such as Accounting, R& DServices, Tourist Guide, Market Research; and Man-agement Consulting firms now can provide servicesin Japan.

take advantage of Indias huge and growing marand resources, especially its human resources. TAgreement which is comprehensive in nature wfurther strengthen India- Japan economic ties tobenefit of both countries immensely. CEPA provia win-win situation for both the countries. The InJapan CEPA was signed on 16th Feb, 2011 in Tok

The current bilateral trade between India and Jais a little over 12.6 billion US dollars and it is pected that it will touch 25 billion US dollars2014.

India & Pakistan

Indias foreign minister SM Krishna and his Pakiscounterpart Hina Rabbani Khar agreed to simptravel procedures and increase the frequency of

services for people of the divided Jammu and Kamir during the visit of latter to India. As per the agment, the number of trading days will be increfrom two to four a week and travel for both tourand religious purposes will be encouraged. Besithe nations agreed to respect the list of 21 productpermissible items for cross-LoC trade. In additiboth sides agreed to further specify permissitems.India and Pakistan also agreed to convene serate meetings of the expert groups on nuclear and cventional confidence building measures in Islamain September 2011. Both nations decided to recvene the meeting of the joint commission that widentify future areas of cooperation. The two natialso laid emphasis in setting time lines to ensure relar meetings at the administration levels to sort visa and trading permit problems.In regard to thesumption of dialogue between India and PakistaFebruary 2011, the Foreign Ministers of India Pakistan expressed their satisfaction on the holdof meetings, at appropriate levels, on the outstand

issues between the two countries.

India & European Union

India and the European Union finalised an intesettlement to make sure that Made in India consiments of generic medicines will not be detained wtransiting through Europe.India had moved the Wafter consignments of generic medicines shippeLatin America were seized by European customsthorities on charges of intellectual property rig


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would not only stop such detentions but also amendits regulation under which its member countries acted

like this. The settlement is interim as the EU parlia-ment is expected to take about 12-18 months to amendthe legislation.

India & South Korea

The President of India Pratibha Devisingh Patil vis-ited South Korea as a part of her two-nation tour whichalso includes Mongolia. The state visit of the Indian

President was aimed at accelerating Indias coopera-tion with South Korea.

During this visit, India and Korea signed thefollowing agreements:

1. Agreement between India and Korea for coopera-

tion in the peaceful uses of nuclear energy.2. MoU signed between the Ministry of External Af-fairs of India and the Ministry of Culture, sports andtourism of Korea on Media exchanges.3. Administrative Arrangement for Social Securityarrangeent.Besides these agreements, India and Korea discussed

the possibilities of cooperation in the peaceful usesof outer space. The two nations also discussed theexpansion of defence cooperation between our coun-tries In particular India and South Korea agreed toenhance cooperation and coordination in the East AsiaSummit Process as also on issues pertaining to theAsia Pacific. Both nations also examined ways of

working together in other international fora.Themovement of people between the two countries hadincreased considerably and today apparently a 100,000Koreans are visiting India every year, and about50,000 Indians are visiting Korea every year. The Re-public of Korea (South Korea) is an important part-ner of India in North East Asia.

India - US Strategic Dialogue

The Second annual meeting of the India-US strategicdialogue was held in New Delhi on 19 July 2011 tostrengthen the India-US global strategic partnership.The dialogue was held during the official visit of US

Secretary of State Hillary Clinton to India. The twonations issued a joint statement at the end of the dia-logue.

The main features of the statement are as fol

The two sides reaffirmed their commitment for csultation, coordination, and cooperation on Afghstan, and to work jointly in Afghanistan in capa

building, agriculture, and womens empowermexpanding on work already underway. Both sagreed to Afghan-led, Afghan-owned, and inclureconciliation.

The two sides intend to promote food securityAfrica through a triangular cooperation program wLiberia, Malawi, and Kenya.

The United States looks forward to a reformedSecurity Council that includes India as a permanmember.

India-USA reiterated their commitment to furtstrengthen counter-terrorism cooperation, includ

through intelligence sharing, information exchanoperational cooperation, and access to advancounter-terrorism technology and equipment.

India -USA reiterated that success in Afghanisand regional and global security requires eliminatof safe havens and infrastructure for terrorism violent extremism in Afghanistan and Pakistan.

The two sides reiterated their commitment on coprehensive sharing of information on the invest

tions and trials relating to the November 2Mumbai terror attack.

The United States welcomed Indias decisionchair a plenary of the Contact Group on Piracy offCoast of Somalia in 2012.

The two governments signed a Bilateral AviatSafety Agreement (BASA) on July 18.

The Womens Empowerment Dialogue is plan

for September 2011 in New Delhi. The United States created the Passport to India tiative to encourage an increase in the numbeAmerican students studying and interning in Ind

The Importance of Indo-USStrategic dialogue

The Strategic Dialogue provides an opportunity

take stock of the progress in bilateral relationsh


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ority sectors for India-US. The strategic dialoguemechanism has come to be regarded as one of the very

effective mechanisms to maintain the momentum ofdeepening and expanding global strategic partnershipbetween India and US. It was outlined by Prime Min-ister Manmohan Singh and US President Obama dur-ing Prime Ministers state visit to Washington in No-

vember, 2009.Note: The next meeting of the Indo-US Strategic Dia-logue is planned for Washington D.C. in 2012. Theinaugural Strategic Dialogue was held in June 2010.

China Agreed to IssueVisas to Karatekas

China agreed to issue visas to karatekas fromArunachal Pradesh, who will represent India in the

11th Asian Karate-do Championship. The champion-ship is scheduled to be held at Quanghou City inFujjian province from 20 July 2011 to 25 July 2011.The five-member team includes three karatekas- Tage

Sea (65kg junior boys), Rei Yadi( 53 kg junior girls)and Likha Lej(52 kg cadet boys).China had issuedstapled visas to Indian weightlifting Federations jointsecretary Abraham K Techi and a weightlifter fromArunachal Pradesh.China considers Arunachal Pradesha part of its territories and accuses India of illegally

occupying it. Therefore, it denies visa to any personfrom Arunachal Pradesh.

India & Sri Lanka

India and Sri Lanka on 12 July 2011 signed an agree-ment in Colombo according to which India is to helpSri Lanka in upgrading its vocational training cen-tres in the Nuwara-Eliya district. The agreement wassigned by the Sri Lankan minister Dallas

Alahapperuma and the Indian High Commissioner

Ashok K Kanth.As per the agreement, India is to pvide equipment and facilities worth 200 million

pees to Sri Lanka. Moreover, India will also provmore than 2.6 million rupees to develop vocatiotraining centres in Jaffna, Vayuniya, Batticaloa Trincomalee districts.

India and US Signed BilateraAviation Safety Agreement

The Bilateral Aviation Safety Agreement (BASA)

tween India and the USA was signed by Nasim ZaSecretary, Civil Aviation and J Randolph BabbAdministrator, Federal Aviation Administrat(FAA) in New Delhi.The signing took place in presence of Senior Officers from the Ministry, DGAAI from the Indian side and FAA and USTDA fr

the US side.

BASA will facilitate reciprocal airworthiness cefication of civil aeronautical products imported/ported between the two signatory authorities. Indstandards would be comparable to global standaand its aeronautical products would be accepted

the U.S. The nascent aircraft manufacturing induin India would be hugely benefitted and it would courage trade between the two nations. It would d

onstrate that India has the capability to develop Fcertifiable aircraft articles/appliances. It would bothe civil aeronautical products industry which weventually lead to self sufficiency in the sector. BA

would encourage indigenous aircraft and aeronacal products industry and the US acceptance ofdian products will help their global acceptancewould lessen the economic burden imposed on aviation industry and operators by redundant techcal inspections, evaluations and testing.Prior

this the USA has signed BASA with 24 countries

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Worlds FirstDouble Leg Transplant

Doctors in Spain performed on 15 July 2011 theworlds first double-leg transplant, giving two newlegs to a man whose legs were severed in anaccident.The man lost both of his legs above the kneein an accident and the attempts to fit him with artifi-cial limbs were not successful.Pedro Cavadas of LaFe hospital in Valencia performed the operation. Heis the first doctor in the world to successfully trans-plant a jaw and a new tongue while doing a face trans-plant.

BARC Established LargestNuclear Desalination Plant

The Human Development Index (HDI) is directly de-pendent on two main parameters: Per Capita Elec-

tricity Consumption and Female Literacy. Deliver-ing his keynote address on Energy Technologies,Energy Securities and Climate Change, Dr RChidambaram, Principal Scientific Adviser to Gov-ernment of India and DAE-Homi Bhabha Professor,Bhabha Atomic Research Centre, said, For India tobecome a developed country, the per capita electric-ity consumption has to increase manifold. Nuclearhas to play an important role in this increase as Indialooks for a low-carbon path for its electricity pro-

duction growth. India is aiming for an electricity ca-pacity of over a million MW by 2050. Expanded useof nuclear technologies offers immense potential tomeet important development needs. In fact, to satisfyenergy demands and to mitigate the threat of climatechange two of the 21st centurys greatest challenges there are major opportunities for expansion ofnuclear energy in those countries that choose to haveit. Dr Chidambaram said that there should not beany fear related to nuclear energy. Lessons will belearnt from the recent Fukushima accident and more

i i b i k i h

SCIENCE & TECH

Reactors (PHWR) which uses natural UO2 fuels SEU/MOX fuels, the second stage there are FBreeder Reactors(FBRs) which use MOX/MC/ mtallic fuel and the third stage uses thorium with TU233 closed cycle.

GSAT-12Reached Its Orbit

India's communication satellite GSAT-12, which put in orbit on 15 July 2011, reached its home circular geo-synchronous orbit at an altitude of 36,km on 18 July 2011. The Polar Satellite Launch hicle (PSLV-C17) of the Indian Space ReseaOrganisation (ISRO), which lifted off from the spstation at Sriharikota on 15 July 2011, put the 1,kg GSAT-12 in a sub geo-synchronous transfer o(sub-GTO) with an apogee of 21,020 km and a pgee of 284 km.GSAT-12 was launched to be usefutele-education, tele-medicine, disaster managem

support, telephone services along with 12 extenC-band transponders.

Challenges ofThe GSAT-12 operation

After GSAT-12 was put in a sub-GTO (sub geo-schronous transfer orbit), the liquid apogee mo(LAM) on board was fired once each day from J

16 to July 19 2011 to circularise the orbit at an

Documents

Aug'11-Current affair_upscportal.pdf