RBI ups key rates by 50bps 27 july The Reserve Bank of India has decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 8% from 7.5% with immediate effect. The reverse repo rate, determined with a spread of 100 basis points below the repo rate, automatically adjusts to 7% with immediate effect. The cash reserve ratio (CRR) of scheduled banks has been retained at 6% of their net demand and time liabilities (NDTL). It is expected that these policy actions will: * Reinforce the cumulative impact of past actions on demand; * Maintain the credibility of the commitment of monetary policy to controlling inflation, thereby keeping medium-term inflation expectations anchored; and * Reinforce the point that in the absence of complementary policy responses on bothdemand and supply sides, stronger monetary policy actions are required. Current Affairs: May 2011 NATIONAL AFFAIRS RBI paves way for financial holding company The Reserve Bank of India (RBI) has paved the way for a holding company structure for financial entities. But it was done with an important caveat—the apex bank has sought to be the sole regulator of financial holding companies (FHCs), irrespective of a bank’s presence in the holding company. In addition, it has called for a separate regulatory framework and a new Act for regulation of FHCs. A working group headed by RBI Deputy Governor Shyamala Gopinath has recommended that the FHC model can be extended to all large financial groups, irrespective of whether they have a bank or not. RBI feels that the implicit mandate of the central banks to ensure financial stability and monitor systemic risks makes it imperative to vest the responsibility of regulating FHCs with RBI. A holding company structure would ring-fence a bank or any other financial entity from the downside risks of its subsidiaries. It has been suggested that a separate unit within RBI should undertake the function of FHC regulation, with staff drawn from both RBI as well as other regulators. Till the time a new law is enacted and existing regulations are amended, the panel wants the FHCs to be registered with RBI as non-banking financial companies, while financial conglomerates having a bank within the group will need to convert to the FHC model in a time bound manner. In cases the business conglomerates do not want to convert to FHCs, the panel wants such entities to confine to only banking activities. For all other banking groups, conversion to the FHC model may be optional till the enactment of the FHC Act.However, all new banks and insurance companies, as and when licensed, will be mandatory to operate under the FHC framework. In case the holding company wishes to function as an anchor for capital support for all its subsidiaries, the panel proposes either to have the holding company listed with the subsidiaries unlisted or some of subsidiaries listed along with the holding company. Since the transition to the FHC model would involve de-merger of various bank subsidiaries and transfer of ownership from bank to the holding company, the panel has suggested suitable amendments to various taxation provisions to make the transition tax and stamp duty neutral. In addition, the working group proposes exemption of dividend distribution tax for dividends paid by subsidiaries to the FHC if the dividends are used by the FHC for investment in other subsidiaries. State Elections, 2011 The results of Assembly elections declared on May 13, 2011 signaled a vote for change and a vote against corruption and poor governance. The spectacular rout of the Left in West Bengal and of the DMK in Tamil Nadu, however, overshadowed an equally spectacular vote for continuity in Assam. Four of the five governments seeking renewed mandate in the States were tossed out by the electorate, with only the Congress government in Assam returning to power for the third consecutive term. And barring a photo-finish in Kerala, where the Congress-led United Democratic Front barely secured a majority, the voters dished out clear and decisive mandates in West Bengal, Tamil Nadu, Assam and Puducherry. West Bengal: The Mamata juggernaut steamrolled the Left Front in West Bengal, dislodging the longest communist government in a democratic country after 34 long years. With her call for ‘Poribartan’ (change), Mamata (56) swept everything before her, ensuring the victory of even political greenhorns like Anup Ghoshal (singer), Bratya Basu (playwright) , Amit Mitra (economist and FICCI secretary general), Upen Biswas (former Joint Director of the CBI), Debashree Roy and Chiranjeet (cine stars), Sultan Singh and Rachpal Singh (retired IPS officers) and even Manish Gupta, a retired IAS officer and Chief Secretary, who defeated Chief Minister Buddhadeb Bhattacharjee. Buddhadeb Bhattacharjee became the first Chief Minister since 1967 to lose his seat in the Assembly. Other CPM stalwarts who lost included industry minister Nirupam Sen, who spearheaded the land acquisition for Tata Nano at Singur, Housing minister Gautam Deb, IT minister Debesh Das and urban development minister Ashok Bhattacharya. The TMC-Congress combine won 225 of the 294 Assembly seats, up from 52 in the last Assembly. The CPM+ could manage only 63 seats against 229 in the out-going Assembly. Tamil Nadu: The J. Jayalalithaa-led AIADMK front struck the DMK-Congress combine like a tsunami and won a landslide victory in Tamil Nadu Assembly elections, sweeping everything on its way, including the freebies, cash-for-votes and caste politics. The AIADMK, which contested 160 seats in the 234-member Assembly, won 151 seats. As the Jaya juggernaut rolled throughout Tamil Nadu, most of the DMK ministers, including Deputy Chief Minister M.K. Stalin, bit the dust, while Chief Minister M. Karunanidhi was elected to the Assembly for the 12th time from his native town of Tiruvarur. The DMK government’s free colour TVs, Re 1 a kg rice, medical insurance, marriage assistance and other populist schemes failed to bring it back. The ruling DMK, which won 96 seats last time, was routed this time, winning only 23 seats in the 234-member Assembly. AIADMK’s ally and actor Vijaykanth’s DMDK came out with flying colours, winning 28 of the 41 seats it contested. The other allies of the AIADMK, the CPM, which contested 12 seats, won 10 and the CPI, which fielded candidates in 10 constituencies, emerged successful in eight. The Congress was decimated, winning only five of the 63 constituencies it contested. Kerala: In a photo finish, the Congress-led United Democratic Front (UDF) unseated the CPM-led Left Democratic Front (LDF), winning 72 seats in the 140-member Assembly, the thinnest majority margin in the last four decades. The UDF, which had won 16 of the 20 Lok Sabha seats two years ago and over 50 per cent local bodies in the civic body polls held six months ago, had hoped to sweep the election by cashing in on the disenchantment of the people against the incumbent government. The UDF, however, lost the political momentum after Chief Minister V.S. Achuthanandan raked up old scandals involving several senior UDF leaders. The scandals put the UDF on the defensive. Instead of focusing on the failures of the government, the Opposition tried to attack the Chief Minister and his family members. However, the campaign did not click in the face of massive corruption scams emanating from the UPA dispensation. The determined effort made by the BJP to prove its strength in the State also affected the UDF to a great extent. Though the BJP was not been able to achieve its objective of opening its account in the Assembly, the party considerably improved its vote share in several seats. This affected the UDF all the more. Political observers feel that the victory of the UDF by a slender margin will plunge the State into political uncertainty. They believe that the Congress, which has won only 38 seats, may not be able to withstand the political pressures from small parties, especially those with one or two seats in the Assembly. Assam: It was a hat trick for the Congress in Assam and that too in the form of a landslide victory, thanks to leadership of Tarun Gogoi who has become the Chief Minister for the third consecutive term at the age of 75. The Congress government’s policy to take the party closer to the common people, especially those from rural areas and from the lower income bracket, apparently paid rich dividends to the party in the election though the opposition parties had sounded skeptical about those schemes, terming those as “sops only meant for Congress members”. Some of these included laptops to all students who have passed Class X Board exams in the first division, bicycles for girl students, cash incentives against every girl child born in government hospitals, cash incentives to pregnant women, working capital to unmarried women and young widows, free thread to BPL weavers, mosquito nets and blankets to BPL families and umbrellas to students from BPL families. Moreover, massive improvement in healthcare system in the State during the last 10 years, successful implementation of mobile health clinics to take health care to far flung areas and introduction of emergency healthcare scheme were instrumental in endearing the Congress to the common man. The Gogoi government’s achievement in tackling insurgency in the State by bringing in many insurgents groups to the negotiation table, coupled with firm initiatives in improving infrastructure development in the State during the last 10 years also paid dividends for the party.The AGP and the BJP failed to make any impact in the election because the entire Opposition failed to forge an alliance to present a viable alternative before the people. To make matters worse for the Opposition, the regional AGP was dogged by internal squabbles. The regional party instead of giving chances to young leaders preferred to field old horses, who had already been rejected by the people in the 2001 and 2006 elections. Congress has won 76 Assembly seats in the 126-member Assam Assembly. AGP got 10 and BJP only 4. Independents and others together got 36 seats. Puducherry: Making a spectacular electoral debut, the All India NR Congress in alliance with AIADMK secured a two-third majority in the 30-member Puducherry Assembly, ending the DMK-supported Congress rule. Former chief minister N. Rangasamy led the AINRC he formed on the eve of the polls to power with the party winning 15 seats and its ally AIADMK five. The Congress ended with a tally of seven and DMK two. DMK rebel VMC Shivakumar won the Neravi TR Pattinam segment. It was a sweet revenge for Rangasamy who floated his own outfit after resigning from the Congress about two years after he was removed as Chief Minister in the face of revolt against his leadership. SC quashes Speaker’s decision to disqualify Karnataka MLAs On May 13, 2011, the Supreme Court of India set aside Karnataka Speaker K.G. Bopaiah’s decision to disqualify 16 MLAs, including 11 rebel BJP and five Independent MLAs, ahead of the no confidence motion in 201 that had ensured survival of the Yeddyurappa government. A Bench, comprising Justices Altamas Kabir and Cyriac Joseph, ruled out that the Speaker had failed to observe the basic constitutional values and principles of natural justice, while disqualifying the MLAs under the Anti-Defection Act. The MLAs were disqualified as it was apprehended that they would support the no-trust motion against the government during the voting. The 16 MLAs had withdrawn their support to the government on October 6, 2010 and were suspended on October 11. In their appeal, the MLAs had contended that their disqualification had raised substantial questions of constitutional and administrative laws of public importance having serious implications for the democratic representative government and involving an interpretation of the provisions of the Tenth Schedule and the rules made there under. The legislators had submitted that they had made a categorical statement in their replies to the show-cause notice issued by the Speaker before their suspension that they had no intention at all to leave BJP or the membership of its legislature party and that their letter to the Governor was aimed at "cleansing the image of the party by getting rid of Yeddyurappa as Chief Minister." According to the petition, democratic dissent, without any intention of leaving the party but in the hope of saving its image and reputation by getting rid of a "corrupt" Chief Minister, cannot be regarded as voluntarily giving up the party membership as such. It was submitted that they were disqualified before the voting actually took place in the Assembly apprehending that they would vote against the Chief Minister on the specious ground that they had voluntarily given up BJP membership. The SC also held that the Independents had not “sacrificed their independent identity” by extending support to Yeddyurappa or by joining the Council of Ministers. Rising food prices and poverty line For a country that has been reeling under the impact of higher food prices, here are some chilling numbers. Food prices single-handedly seem to have considerable power to reverse our progress as an economy. The price rise in food staples between June and December 2010 could have pushed as many as 10 million more Indians into poverty. In its recent report “Estimating the short-run poverty impacts of the 2010-11 surge in food prices”, the World Bank estimates that the price increases in the second half of 2010 have increased the poverty head count in India by 0.8 percentage points. We infer the increase in the number of poor from their data measure on total population (1.19 billion) and the poverty rate used for their analysis (43.8%). Typically, given that poor households spend a majority of their income on food, rising food prices hit them the hardest. Sugar, rice and wheat price increases have also resulted in a rise in the poverty headcount in India. And this is despite the fact that price hikes in India are nowhere near global levels. However rising import prices of food will compound the inflation situation further. The prices of sugar, rice and wheat globally have increased between 20-75%, but in India price increases for all three are at sub-10% levels. This is an alarming wake-up call for a country that has not seen abatement in food price increases even now. Food inflation jumped to a two-month high of 9% in terms of annual growth recently. Seems like anti-poverty schemes also increase the levels of poverty when they push prices up. The key number to look for is how much they reduce poverty and how much they increase it through wage-price inflation. Panel recommends FDI in retail On May 27, 2011, the Inter-Ministerial Group (IMG) suggested two major steps to control inflation including opening up multi-brand retail to foreign companies and changes in agriculture marketing laws to bridge the margin between farm gate prices and retail price. The IMG warned that though it was important to allow the entry of FDI into this sector in a properly regulated fashion and there is a need to guard against the risk of these new corporations becoming monopolistic and charging high prices. “We are taking a clear position on FDI in multi-brand retail. Of course, it is a recommendation, not policy,” chief economic advisor and IMG chairman Kaushik Basu said. The debate on opening up the retail sector has been going on for a while now but is being strongly opposed by the domestic lobby that says that large MNC retail formats like Walmart coming in will wipe out the neighbourhood kiryana stores, which are huge in numbers and form an important constituency. The IMG said that the APMC Act ought to be amended so as to enable farmers to bring their products to retail outlets and also allow retailers to directly purchase from the farmers, without facing blockades by incumbent traders. The APMC system has abetted monopolistic behaviour and reduced the choices available to small farmers. The well-intentioned APMC law helped cartelisation and collusion amongst incumbent traders, the group said. The group IMG recommended that the government consider this at the earliest. Its logic is that India’s retail sector continues to be primitive and there is evidence that there are large losses that occur as products pass through the supply chain from farm to the retail customer. This will get new technology and expand organised retail and provide remunerative prices for farmers and fair prices for consumers especially during the peak marketing season. Once large corporations begin to source their products from Indian outlets it is very likely that they will gradually take these products to sell in their outlets in other countries, opening up exports. The IMG said that correcting the margin between the price that farmers get and price that consumers pay is not going to solve the problem of inflation for all times to come but it can have a sharp desirable effect in the short run of bringing down food inflation. Visit of President of Uzbekistan On May 18, 2011, during the visit of Mr Islam Karimov, President of Uzbekistan, India and Uzbekistan entered into a long-term and strategic partnership based on equality and mutual understanding and concluded as many as 34 agreements in diverse fields, including pharmaceuticals and hydrocarbons. The two countries also agreed to cooperate closely in stabilising the situation in Afghanistan and condemned terrorism in all its forms and manifestations. Uzbekistan reaffirmed its support for India’s candidature for a permanent seat on the UN Security Council. The two sides also resolved to expand their cooperation within the framework of the Shanghai Cooperation Organisation (SCO). India is currently an observer at the SCO and is keen to become a member of the six-nation Central Asian organisation. Great importance is being attached to the establishment of the strategic partnership which envisages active cooperation in a wide spectrum on areas, including political, counter-terrorism, economic, education, health, human resource development, energy, science and technology, tourism and culture. Prime Minister Manmohan Singh’s Afghanistan visit Prime Minister Manmohan Singh visited Afghanistan on May 12, 2011, on a two-day trip to reassure the Hamid Karzai government of New Delhi’s commitment to help stabilise the situation there. In a statement on the eve of his departure, the PM asserted that India could not remain unaffected by developments in Afghanistan, emphasizing that New Delhi took a long-term view of its partnership with the embattled country. “The quest of the Afghan people for peace, stability and reconciliation needs the full support of all countries in the region and the international community,” he said. The PM held wide-ranging discussions with the Afghan leadership on ways to advance India’s partnership to a new level in the coming years. “We will also exchange views on developments in the region and our common fight against the scourge of terrorism.” The visit took place three days after Manmohan Singh discussed with US President Barack Obama on phone the situation in the region in the aftermath of the killing of the Al-Qaida chief deep inside Pakistan. The visit was initially scheduled to take place in the first week of May but the American side had apparently advised New Delhi to postpone it without disclosing anything about the impending action by US forces in Abbottabad (Pakistan) in which bin Laden was killed. India has become a key ally of the Afghan government since the fall of the Taliban regime, spending more than $ 1.3 billion in Afghanistan to help build highways, hospitals and the electricity grid. It is now the sixth largest contributor to Afghanistan’s reconstruction programme. During the visit Prime Minister Manmohan Singh announced a fresh aid package of $500 million for Afghanistan with focus on social sector, agriculture, capacity building and infrastructure projects. Second Africa-India Summit On May 24-25, 2011, Prime Minister Manmohan Singh attended the second Africa-India Forum Summit in Addis Ababa, Ethiopia. A ministerial meeting, in which Anand Sharma, Minister for Commerce & Industry, led the Indian side, preceded it. Addressing the meet, Prime Minister Manmohan Singh made a strong call to African countries to work collectively with India to combat the scourge of terrorism. "Apart from bilateral cooperation, India and Africa can and should work together on regional and international issues," he said at the retreat attended by leaders from 15 African countries. Mr Singh also highlighted the need to chart new pathways of engagement, take stock of the global economic and political situation and review the progress the two sides have made in their cooperation in the last three years. Singh noted that the current international economic and political situation was far from easy, particularly for developing countries and spoke about "new challenges" confronting the world in meeting the requirements of food and energy security. Manmohan Singh announced a mammoth $5 billion credit line to Africa for various development projects, reflecting India’s growing ties with the resource-rich continent. He also declared an additional $700 million package to establish new institutions and training programmes across the continent. Major sops offered during the Summit meeting were: • $5 billion line of credit for 3 years • Additional $700 million for new institutions, training programmes • $300 million for Ethio-Djibouti rail line • India-Africa virtual university with 10,000 new scholarships • India-Africa business council • $2 million for African Union mission in Somalia • Increased access of African airlines to India in next 3 years • India-Africa food processing and textiles clusters • More than 22,000 scholarships to African students • An India-Africa centre for medium-range weather forecasting, university for life and earth sciences, institute of agriculture and rural development • Soil, water and tissue-testing laboratories, regional farm science centres, seed production-cum-demonstration centres, material testing laboratories for highways • Institutes for English language training, information technology, entrepreneurship development and vocational training • Rural technology parks, food testing laboratories, food processing business incubation centres and centres on geo-informatics applications and rural development. The eight-page Addis Ababa Declaration adopted at the end of the two-day Africa-India Forum Summit said the African members of the UN Security Council and India affirm their commitment to coordinate closely during India's tenure as non-permanent member of the Council. “In this context, we underscore the imperative of urgent and comprehensive reform of the UN system. We share the view that the UN should function in a transparent, efficient and effective manner and that the composition of its central organs must reflect contemporary realities.” “The expansion of the UN Security Council, in permanent and non-permanent categories of membership, with increased participation of developing countries in both categories, is central to the process of reform and for enhancing the credibility of the United Nations,” the declaration read. The joint declaration also expressed support for an International Convention prohibiting the development, production, stockpiling and use of nuclear weapons, leading to their destruction. It called for negotiating specific steps to reduce and finally eliminate nuclear weapons, leading to a world free from all weapons of mass destruction as envisaged in the Rajiv Gandhi Action Plan of 1988. The first India-Africa Forum Summit in New Delhi in April 2008 produced a ‘Framework of Cooperation’. However, bureaucratic procedures in the African Union and in India slowed down the momentum. It took the two sides two years to finalize the joint ‘Plan of Action,’ overshooting the deadline by a year. But thereafter, more concerted efforts have been evident. Throughout 2010, New Delhi played host to Presidents and Prime Ministers from Africa. India’s Vice-President as well as key ministers also travelled to several African capitals. With Africa’s rise no longer in doubt, India is concentrating on building partnerships at bilateral, regional and continental levels and not seeking a role in internal affairs of African States or intra-African conflicts. It reacted cautiously during the recent troubles in Tunisia, Egypt, Libya and the Ivory Coast. Africa is host to 90% of world’s Cobalt, 50% of Gold, 98% of Chromium, 64% of Manganese & 34% of Uranium. Trade between India and Africa crossed US $ 46 billion in 2010 and is expected to reach US $ 70 billion by 2015. Indian private sector entrepreneurs have already made investments in excess of US $ 25 billion in a wide range of sectors from telecom, automobiles, IT, pharmaceuticals and agriculture. Bharti’s $ 8.5 billion acquisition of Zain in Africa is one of the largest outbound investments by India. According to a FICCI study, Africa is on the brink of an economic take off. At present India’s OFDI is the 9th largest source of FDI into Africa. Among the Indian groups that have substantial presence in Africa include Bharti Airtel, Karuturi Global, the world’s largest producer of cut-roses, Tata Africa Holdings also has a strong presence in over 10 African countries with investments exceeding US$ 100 million. Essar has steel, oil and gas and telecom assets across Africa. The other players include M&M, Larsen & Toubro (L&T) and Shapoorji Pallonji. Visit of German Chancellor Angela Merkel On a 24-hour visit to New Delhi on May 31, 2011, German Chancellor Angela Merkel tried to hard sell the Eurofighter Typhoon jets to India as she discussed a whole range of issues with Prime Minister Manmohan Singh, including the situation in Afghanistan and Pakistan in the wake of the killing of Osama bin Laden. Four accords were signed during her visit to expand cooperation in the fields of education, research and nuclear physics between India and Germany. The meeting between the two leaders also marked the launching of the first inter-governmental consultations between the countries on the entire gamut of bilateral relations—from security, defence policy, trade, vocational training, education and research to infrastructure and sustainable energy and environment technologies. Chancellor Merkel also received the prestigious Jawaharlal Nehru Award for International understanding for 2009. “I accept this award not only as an honour to the Chancellor, but especially as a tribute to the achievements of my fellow citizens in fulfilling the values of friendship and international understanding that the award recognises,” said Merkel. She also formally launched the ‘Year of Germany in India’ with Lok Sabha Speaker Meira Kumar. The leaders of the two countries agreed to boost trade between the two countries to 20 billion Euros by 2020 from the present volume of 15 billion Euros. The meeting came a day after Germany announced it would phase out all its 17 nuclear plants by 2022. Merkel agreed to help India in areas related to nuclear safety and pledged support for the development of renewable energy. Chancellor Merkel was also appreciative of the role being played by India in the reconstruction programme under way in Afghanistan. She said a military solution was not an option in Afghanistan. Ultimately, Afghanistan would have to develop its own independent security architecture. Indo-Pak defence talks In the month of May 2011, India and Pakistan began their first attempt in three years to demilitarize the Siachen glacier, the world's highest battlefield in the Himalayan region, that has claimed the lives of hundreds of soldiers. Here are some main facts about the Siachen glacier region: • Siachen is in the northern part of Kashmir. Muslim-majority Kashmir is at the heart of hostility between India and Pakistan and was the cause of two of their three wars (the third was over the founding of Bangladesh). • Indian and Pakistani forces, estimated to number between 10,000 and 20,000 troops combined, have faced off against each other in mountains above the Siachen glacier in the Karakoram range since 1984. • The no-man's-land of Siachen is 20,000 feet (6,000 metres) above sea level. Military experts say the inhospitable climate and avalanche-prone terrain have claimed more lives than gunfire. • The strategic importance of the glacier is debatable, military experts say. Until 1984, neither side had troops there. • Both countries agree on a need to demilitarize the glacier, but neither side wants to take the first step. • India controls the heights and is loath to withdraw for fear Pakistan might walk in. India says it is unwilling to bring its forces down until Pakistan officially authenticates the positions they hold. • Pakistan has said it is willing to do so on the condition that it is not a final endorsement of India's claim over the glacier, a source of melt water for Pakistan's rivers. Prime Minister Manmohan Singh’s Tanzania visit On May 27, 2011, during the three-day visit of Prime Minister Manmohan Singh to Tanzania, India announced a new line of credit of $180 million for Tanzania and signed a pact on avoidance of double taxation as the two countries agreed to intensify cooperation to combat terrorism and piracy and work closely for comprehensive UN reforms. Prime Minister Manmohan Singh said after wide-ranging discussions with Tanzanian President Jakaya Kikwete that the new line of credit will be for water supply projects in country's capital Dar-e- Salaam. Addressing a joint press conference with Kikwete, Prime Minister voiced concern over the two major problems of terrorism and piracy both countries faced and said they have decided to intensify consultations and coordination to combat such threats. Kikwete felt that threats from piracy had never abated in the region and said it was agreed that there should be stronger collaboration through intelligence-sharing and other mechanisms. On the issue of UN reforms, Kikwete reaffirmed Tanzania's support for India's candidature for permanent membership. 2-G Scam: Kanimozhi lands in jail On May 20, 2011, the CBI Special court hearing into the 2G Spectrum allocation scam dismissed the bail application of DMK MP Kanimozhi. She was arrested and sent to Tihar jail. Denying her bail, the judge said there was a possibility of witnesses being influenced considering the "magnitude" of the crime. 43-year-old Kanimozhi is daughter of former Chief Minister of Tamil Nadu Karunanidhi's second wife Rajathi. The judge also rejected the bail plea of Sharad Kumar, MD and CEO of Kalaignar TV Private Ltd, who along with Kanimozhi, faces the charge of conspiracy and bribery in accepting Rs.200 crore from DB Realty ordering their arrest “forthwith”. Kanimozhi and Kumar, both of whom are 20 per cent stake holders in Chennai-based Kalaignar TV have been charge sheeted by the CBI of having received Rs. 214 crore in “illegal gratifications” from Dynamix Balwa (DB) Realty, a company promoted by Shahid Usman Balwa and Vinod Goenka, one of the beneficiaries of 2G Spectrum allocation. As per CBI, DB Group’s Swan Telecom was ineligible for a 2G Spectrum licence and Rs. 214 crore was paid to Kalaignar TV in lieu of the licence granted by the then Telecom Minister A. Raja, who is also a DMK member and close to Kanimozhi. India ratifies UN protocol against human trafficking India has ratified the United Nations Convention against Transnational Organized Crime and its three protocols, including one to combat trafficking in persons. The Convention remains, by far, the most potent international instrument in the fight against trans-national organised crime. Currently, human trafficking is the third largest organised crime in the world after the narcotics trade and illicit arms trading. Together, these crimes generate annual revenue of $ 9.5 billion, with the share of human trafficking gradually rising. For India, the development is significant considering it took 12 years to ratify the Convention, which is supplemented by protocols to combat human trafficking; migrant smuggling and illicit trafficking in firearms. The fact that India has ratified the ‘Protocol to Prevent, Suppress and Punish Trafficking in Persons, especially Women and Children’ means the country would now have to evolve a comprehensive anti-trafficking legislation that conforms to international standards and provisions. Right now, the laws are unclear. It would also have to find ways to train law enforcers who continue to book trafficked women under the provisions of Immoral Traffic Prevention Act, rather than booking them under provisions of the law which would see them as “victims” and not “offenders”. The National Human Rights Commission says only 6.6 per cent of the country’s law enforcers have any kind of training in trafficking issues. Most rescued victims currently have little access to rehabilitation and care, which means even after being freed, they run the risk of getting back to brothels. A woman caught under the ITPA for example is required to pay a fine to walk free. Because she has no money, her brothel owner walks in again promising to rescue her from jail provided she agrees to return to sex work. INTERNATIONAL AFFAIRS Germany to abandon all N-power Germany, Europe’s biggest economy, will shut down all its nuclear power plants by 2022, a decision that would make it the first major industrialised power to go nuclear-free in the aftermath of the atomic disaster in Japan. Germany’s coalition government announced the decision after seven hours of negotiations that stretched into the small hours at Chancellor Angela Merkel’s office. “We want the electricity of the future to be safe, reliable and economically viable,” Merkel said. Merkel pushed through measures in 2010 to extend lifespan of the country’s 17 reactors, with the last one scheduled to go offline in 2036, but she reversed her pro-nuclear stance after the earthquake and tsunami crippled the Fukushima Daichi plant on March 11, 2011, triggering nuclear meltdowns. Germany’s energy supply chain “needs a new architecture,” necessitating huge efforts in boosting renewable energies, efficiency gains and overhauling the electricity grid, Merkel said. To make up for the loss of nuclear energy, the German government will begin to switch to renewable energy and increase investments in energy research. G-8 Summit The 37th G-8 summit was held on May 26-27, 2011 in the commune of Deauville in France. The G-8 is comprised of the eight main industrialised countries: Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States. The Middle East and North Africa, nuclear safety and economic recovery topped the agenda of G-8 leaders. G-8 countries and multilateral development banks pledged $20bn in backing for democratic reform, with the EU offering new. The G8 also endorsed the EU's call for worldwide stress tests on nuclear power plants as part of a review of international safety standards. The G-8 partners shared the EU's resolve to strengthen the multilateral system and liberalise free trade in line with the World Trade Organisation's 2001 Doha mandate, which calls for a fair global trade deal. On the impetus of the President of the French Republic, the members of the G-8 have committed, within the framework of the "Deauville Partnership", to helping the Arab countries in their transition to free and democratic societies. Tunisia and Egypt are the first countries to commit to this transition and to join the "Deauville Partnership". The multilateral development banks are prepared to raise more than USD 20 billion, of which EUR 3.5 billion will come from the EIB, to benefit Egypt and Tunisia by 2013. Osama bin Laden killed by US forces inside Pakistan On May 2, 2011, Osama bin Laden, the leader of Al-Qaida and the most recognisable face of global terrorism, was killed in a US military operation at a heavily fortified compound, around 60 km north of Islamabad. The operation was wrapped up in 40 minutes and the US team left with Laden’s body. Three adult males—two Qaida couriers and a son of Laden—and one woman were killed in the operation. Laden's body was buried at sea. US President Obama said. “On nights like this one, we can say to those families who have lost loved ones to Al-Qaida’s terror: Justice has been done”. Laden’s death came almost 10 years after Al-Qaida’s deadliest act of terrorism — attacks on the World Trade Centre’s twin towers in New York City and the Pentagon — killed nearly 3,000 persons. The small team of commandos found Laden living in a plush mansion on a secured compound in the suburb of Islamabad and not in a cave along the rugged and lawless Pakistan-Afghanistan border region, where Pakistani officials said he was hiding. Senior US officials said the Obama Administration did not inform Pakistani authorities of the mission. Only a handful US officials were aware of the plan. The US official added that since 9/11 the US had made it clear to Pakistan that it would pursue Laden wherever he might be. “Pakistan has long understood that we are war with Al-Qaida. The US had a legal and moral obligation to act on the information it had,” he said. Senior US officials said they traced Laden by monitoring an Al-Qaida courier they believed was a trusted confidant of the terrorist leader. Over the years, the CIA gathered leads on bin Laden’s inner circle, including his personal couriers. Business News The Adani group’s Mundra Port and Special Economic Zone has announced acquisition of Abbot Point Port in Australia for Rs 9,000 crore. Apple has overtaken Google as the world’s most valuable brand, ending the four-year reign by the Internet search leader. Microsoft has decided to buy Skype of $8.5 billion in cash, a move that will bolster the software major’s presence in the highly competitive Internet market. iGate has announced the completion of acquisition of Patni Computer Systems, one of the biggest acquisitions in the Indian IT industry. Glenmark Pharmaceuticals SA, a subsidiary of Glenmark Pharmaceuticals Limited, has out licensed its novel monoclonal antibody, GBR 500, to French drug-maker Sanofi for as much as $613 million. Under the agreement, Glenmark will receive an upfront payment of $50 million, which will be used to repay debt. The Union Cabinet has cleared the sale of loss-making Scooters India, the first strategic sale of a state-owned company in eight years. Bharti-Airtel has tied up with mobile software maker Comviva to manage its “value-added” services across 16 African nations where it has presence. Italian luxury sports car-maker Ferrari has made its official debut in India with the opening of its first dealership in India in New Delhi. Star India and Zee group have decided to come together to form an alliance to distribute television content. Schneider Electric has decided to buy 74 per cent stake in Luminous Power Technologies for Rs 1,400 crore, a move that will help the French major strengthen its access to the retail market in India for electrical goods. DO YOU KNOW The operation by US Special forces that killed Osama bin Laden in Pakistan was code-named “Operation Geronimo”. Thanks to the efforts by India, the world has recognised mental disorders as one of the non-communicable diseases (NCDs) that continue to be leading causes of premature deaths across the world. The recognition was granted at the first Global Ministerial Conference held at Moscow—in the run-up to the first UN Summit on NCDs to be held in September 2011. The move will go a long way in de-stigmatising mental disorders simply by bringing them on the global discussion agenda. India’s premier sports institution, the Netaji Subhash National Institute of Sports, Patiala, celebrates its golden jubilee in 2011 The Indian Naval Marine force, called the “Marcos”, is modelled on the US Navy Seals in the training pattern, working style and secrecy. US Navy Seals had conducted the operation against Osama bin Laden in Pakistan. A five-day UN Summit with 48 leaders of the world’s Least Developed Countries attending was held in Istanbul, Turkey in May 2011, to discuss a new 10-year aid plan to help lift nations out of poverty. LDC countries are defined as those with per capita income of less than $745, and include 33 African countries, 14 from Asia, and Haiti. International Nurses Day is observed on May 12. India is ranked 143rd globally in Internet speed, with an average connectivity speed of 0.8 Mbps. South Korea tops the list with an average speed of 13 Mbps. In broadband connectivity, India ranks 129th. The average Internet speed in the world has been recorded at 1.9 Mbps. The French government has conferred its highest civilian award ‘Knight of the National Order of the Legion of Honour’ to Indian businessmen Rahul Bajaj, Chairman of Bajaj Auto, and Baba Kalyani, MD of Bharat Forge Ltd. “Vijayee Bhave” was the Indian Army’s first full-scale exercise to transform itself into a force aided by high-end technology that will ramp up the speed and accuracy of its striking capabilities. Indian Army had last conducted a transformation exercise in 2000, but with a limited scope. Hindustan Unilever Limited (HUL), India’s largest FMCG company, has announced the launch of India Water Body, an initiative aimed to drive water security for India by 2030 through public-private partnership (PPP). The India Water Body will be conducting a nation-wide study to assess the demand-supply gap for water in India. This initiative builds on the Sustainable Living Plan launched by Unilever in November 2010. The Health Ministry has approved a new scheme for easy access to sanitary napkins as part of the menstrual hygiene promotion programme for adolescent girls aged 10 to 19 years in villages. This scheme aims to spread hygiene awareness among girls. The girls will henceforth get a pack of six sanitary napkins under the National Rural Health Mission’s brand called “Freedays”. A pack of six napkins will cost Rs 6 (Re 1 per piece), and will be distributed by Accredited Social Health Activists (ASHAs). In the first phase, the scheme will cover 25 per cent of the target population—1.5 crore girls aged 10 to 19 years in 152 districts of 20 States. On May 20, 2011, Prime Minister Manmohan Singh dedicated the world-class, six million-tonnes per annum Bina Refinery to the nation. The refinery at Bina, Madhya Pradesh, has been set up by Bharat Oman Refineries Ltd, a joint venture promoted by Bharat Petroleum Corporation Ltd with 26 per cent equity participation by Oman Oil Company and about one per cent by the Madhya Pradesh government. India, along with 14 other nations, has been elected to the UN Human Rights Council, which is based in Geneva. Non-paper is an off-the-record or unofficial presentation of (government) policy. In diplomatic parlance, a “non-paper” is used when a government is conveying a point to other government/s or State actors while keeping nothing on record. Bangalore has become the first city of India to be selected for Street View on Google Maps. Street View is a popular feature in Google Maps which allows users to explore and navigate neighbourhoods with the help of panoramic street level images. Singer Shaan has been signed by the Union Ministry of Health to be its anti-tobacco ambassador. The V.K. Shunglu committee was appointed to give recommendations for improving the financial position of power distribution utilities. Its major recommendation is to sack all non-performing power regulators. On June 4, 2011, India hosted its maiden pavilion at the Venice Biennale, the world’s oldest and most prestigious art fair held in Venice every two years. The Madhya Pradesh government, under Chief Minister Shivraj Singh Chauhan, has formed India’s first agriculture cabinet. It held its first meeting on June 18, 2011. From June 1, 2011, for the first time in India’s history, maternity treatment has been made “free of cost” in all government facilities, to ensure improvements in India’s institutional delivery rate and benefits at the level of maternal and infant health. Henceforth, every pregnant women entering a government facility for delivery will be entitled to free service—whether it is blood, consumables, drugs or diagnostics. India’s first sports gallery on Science of Sports has been set up at the Pushpa Gujral Science City in Kapurthala, Punjab. World No-Tobacco Day is observed on May 31. Current General Knowledge: May 2011 AWARDS Jawaharlal Nehru Award for International Understanding German Chancellor Angela Merkel has been chosen for the award for her “enormous efforts for sustainable and equitable development.” Man Booker International Award Philip Roth, the most decorated living American novelist, has won the prestigious Man Booker International Prize, beating off competition from 12 other contenders, including India-born Canadian writer Rohinton Mistry. Roth, 78, won the biennial $97,500 award for a body of work stretching over more than half a century. He is the fourth recipient of the award. The prize is awarded for an achievement in fiction on the world stage. It is presented once every two years to a living author for a body of work published either originally in English or widely available in translation in the English language as opposed to the annual Man Booker Prize for Fiction, which is awarded for a single book. The prize was first presented in 2005. Roth is best known for his 1969 novel “Portnoy’s Complaint”, and for his late-1990s trilogy comprising the Pulitzer Prize-winning “American Pastoral” (1997), “I Married a Communist” (1998), and “The Human Stain” (2000). He won the National Book Award at age of 26 for his first book, “Goodbye”. National Film Awards, 58th BEST FEATURE FILM:Adaminte Makan Abu (Malayalam). Directed by Salim Ahamed. INDIRA GANDHI AWARD FOR BEST DEBUT FILM OF A DIRECTOR:Baboo Band Baaja (Marathi), Directed by Rajesh Pinjani. BEST POPULAR FILM PROVIDING WHOLESOME ENTERTAINMENT: Dabangg (Hindi). Directed by Abhinav Singh Kashyap. NARGIS DUTT AWARD FOR BEST FEATURE FILM ON NATIONAL INTEGRATION:Moner Manush (Bengali), Directed by Goutam Ghose. BEST FILM ON SOCIAL ISSUES:Champions (Marathi), Directed by Ramesh More. BEST FILM ON ENVIRONMENT CONSERVATION / PRESERVATION:Bettada Jeeva (Kannada), Directed by P. Sheshadri. BEST CHILDREN'S FILM:Hejjegalu (Kannada), Directed by P.R. Ramadas Naidu. BEST DIRECTION: Vetrimaran for Aadukalam (Tamil). BEST ACTOR: Dhanush for Aadukalam (Tamil) and Salim Kumar for Adaminte Makan Abu (Malayalam). BEST ACTRESS: Mitalee Jagtap Varadkar for Baboo Band Baaja (Marathi) and Saranya Ponvannan for Thenmerkku Paruvakkatru (Tamil). BEST SUPPORTING ACTOR: J. Thambi Ramaiah for Mynaa (Tamil). BEST SUPPORTING ACTRESS: Sukumari for Namma Gramam (Tamil). BEST CHILD ARTIST: Harsh Mayar for I am Kalam (Hindi), Shantanu Ranganekar and Machindra Gadkar for Champions (Marathi) and Vivek Chabukswar for Baboo Band Baaja (Marathi). BEST MALE PLAYBACK SINGER: Suresh Wadkar for Mee Sindhutai Sapkal (Marathi). BEST FEMALE PLAYBACK SINGER: Rekha Bhardwaj for Ishqiya (Hindi). BEST CINEMATOGRAPHY: Madhu Ambat for Adaminte Makan Abu (Malayalam). BEST SCREENPLAY (Original): Vetrimaran for Aadukalam (Tamil). BEST SCREENPLAY (Adapted): Anant Mahadevan and Sanjay Pawar for Mee Sindhutai Sapkal (Marathi). BEST SCREENPLAY (Dialogues): Sanjay Pawar for Mee Sindhutai Sapkal (Marathi). BEST EDITING: T.E. Kishore for Aadukalam (Tamil). BEST COSTUME DESIGNER: Indrans Jayan for Namma Gramam (Tamil). BEST MUSIC DIRECTION (Songs): Vishal Bhardwaj for Ishqiya (Hindi). BEST MUSIC DIRECTION (Background Score): Issak Thomas Kottakapally for Adaminte Makan Abu (Malayalam). BEST LYRICS: Vairamuthu for Thenmerkku Paruvakkatru (Tamil). SPECIAL JURY AWARD:Mee Sindhutai Sapkal (Marathi). BEST SPECIAL EFFECTS: V Srinivas M. Mohan for Enthiran (Tamil). BEST CHOREOGRAPHY: Dinesh Kumar for Aadukalam (Tamil). BEST ASSAMESE FILM: Jetuka Patar Dare. BEST BENGALI FILM:Ami Aadu. BEST HINDI FILM:Do Dooni Char. BEST KANNADA FILM:Puttakkana Highway. BEST MALAYALAM FILM:Veettilekkulla Vazhi. BEST MARATHI FILM:Mala Aai Vhhaychay. BEST TAMIL FILM:Thenmerkku Paruvakkatru. BEST ENGLISH FILM:Memories in March. BEST NON-FEATURE FILM:Germ (Hindi). BEST DEBUT NON-FEATURE FILM OF A DIRECTOR: Pistulya (Marathi & Telugu). BEST BIOGRAPHICAL FILM:Nilamadhaba (English). BEST ARTS AND CULTURE FILM:Leaving Home (English & Hindi). BEST SCIENCE & TECHNOLOGY FILM: Heart to Heart (Manipuri & English). BEST PROMOTIONAL FILM:Ek Ropa Dhan (Hindi). BEST ENVIRONMENT FILM: Iron is Hot (English). BEST FILM ON SOCIAL ISSUES:Understanding Trafficking (Bengali, Hindi & English). BEST EDUCATIONAL FILM:Advaitham (Telugu). BEST FILM ON SPORTS:Boxing Ladies (Hindi). BEST INVESTIGATIVE FILM: A Pestering Journey (Malayalam, Punjabi, Hindi, English & Tulu). SPECIAL JURY AWARD:Kabira Khada Bazaar Mein (Hindi). SHORT FICTION FILM: Kal 15 August Dukan Band Rahegi (Hindi). BEST FILM ON FAMILY VALUES:Love in India (Bengali & English). BEST BOOK ON CINEMA: From Rajahs and Yogis to Gandhi and Beyond: Images of India in International Films of the Twentieth Century (English) By Vijaya Mulay. BEST FILM CRITIC: Joshy Joseph (English), N. Manu Chakravarthy (Kannada & English). DEFENCE T-90 tank makeover The Indian Army’s main battle tank, Russian-origin T-90, christened as ‘Bhishma’, is being upgraded under a modernisation project that will improve the lethality of the 46-tonne war machine, besides improving its rate of survival in a real battlefield environment. The Union government has finally okayed a project to include a new weapon system on board the existing tank that will enable the tank commander to fire a missile to neutralise mid-air an enemy anti-tank guided missile (ATGM) or a rocket-propelled grenade. Despite the steel armour and specialised armour protection kits, a hit by an ATGM usually leaves a tank paralysed and at times totally damaged. Now-a-days, rocket-propelled grenades are no less in threat. It can penetrate several inches of a tank’s steel-plated armour. The alternative is to increases the armour thickness that will add up to the weight of the tank making it sluggish. The best option is to have an active protection that tackles incoming threats at distance away from the tank, ensuring safety of the crew and also the tanks in the same squadron. Astra tested successfully On May 21, 2011, India conducted a successful ballistic flight test of indigenously developed Astra—Beyond-Visual-Range Air-to-Air Missile—from the Integrated Test Range at Chandipur. The missile is envisaged to intercept and destroy enemy aircraft at supersonic speeds in the head-on mode at a range of 80 km and in tail-chase mode at 20 km. Before the sophisticated anti-aircraft missile would be integrated with fighter aircraft like Su-30 MKI, MiG-29 and Light Combat Aircraft Tejas, it would undergo some rigorous and flawless tests both from ground and fighter jets. Astra, which uses solid propellant, can carry a conventional warhead of 15 kg. It is the smallest of the missiles developed by the DRDO in terms of size and weight. It is 3.8-metre long and has a diameter of 178 mm with an overall launch weight of 160 kg. The missile can be launched from different altitudes—it can cover 110 km when launched from an altitude of 15 km, 44 km when fired from an altitude of eight km and 21 km when the altitude is sea-level. EXPEDITIONS Indian couple becomes world’s youngest and India’s first to climb Everest On May 20, 2011m Sushma and Vikas Kaushik from Haryana became the world’s youngest couple, and India’s first, to climb Mount Everest. On May 21, yet another Indian woman, Flight Lieutenant Nivedita Chaudhary from the Indian Air Force, reached the world’s highest peak. Significantly, several other Indian women too, part of the eco-Himalayan expedition, managed to accomplish the daring feat in May 2011. Among them are two young women from the North-East and Premlata Agarwal from Jamshedpur (Jharkhand). Agarwal, a mother of two, is the oldest Indian woman and the first from the Marwari community to have climbed the peak. Flight Lieutenant Chaudhary from Rajasthan is presently posted at Agra. Sushma Kaushik is a policewoman posted at Panipat while her husband, Vikas, is a student of M.Sc. Another climber from Haryana to scale the peak was Corporal Raju Sindhu, who accompanied Chaudhary in the final push. PERSONS bin Laden, Osama Osama bin Laden, the leader of Al-Qaida and the most recognisable face of global terrorism, was killed in a US military operation in Abbotabad, near Islamabad, Pakistan, on May 2, 2011. Osama bin Mohammad bin Awad bin Laden was born in Riyadh, in 1957, and was one of more than 50 children of millionaire businessman. In 1976 he studied management and economics at university in Jeddah. From 1984, Osama was involved in Peshawar-based Services Office to support Arab volunteers arriving to fight Soviet forces. In 1986 he moved to Peshawar and began importing arms as also formed his own small brigade of volunteer fighters. In 1988 he established Al-Qaida (The Base) as a magnet for radical Muslims seeking a more fundamentalist brand of government in their home countries and joined in common hatred of the United States, Israel and US-allied Muslim governments. In 1991 bin Laden left Saudi Arabia and goes into exile, having opposed the kingdom’s alliance with the United States against Iraq. This was followed by his family expelling him in 1993 as shareholder in its businesses, which focus on construction. On April 9, 1994 Saudi Arabia, angered by Osama’s propaganda against its rulers, revoked his citizenship. In October 1996, US branded Osama as a prime suspect in two bombings in Saudi Arabia, which killed 24 US servicemen, and two Indians. On August 20, 1998, President Bill Clinton named Osama as America’s top enemy and accused him of being responsible for the Nairobi and Dar-e- Salaam bombings. Following the September 2001 terrorist attacks on twin towers and other places in USA, for which Al Qaida claimed responsibility, US President George W. Bush declared war against terror and issued orders to get Osama “Dead or Alive”. Browne, Air Chief Marshal N.A.K. An ace MiG-21 and Sukhoi-30 MKI fighter pilot, Air Chief Marshal Browne has been selected as the chief of Indian Air Force. Born in Allahabad on December 15, 1951, Air Chief Marshal Browne was commissioned into the Fighter stream of the Indian Air Force on June 24, 1972. With about 3100 hours of flying to his credit, he has a varied operational experience that includes flying Hunters, all variants of MiG-21s, Jaguars and SU-30s. An alumnus of National Defence Academy, Khadakwasla, Pune, he is a Fighter Combat Leader, who has also served as an instructor at the Tactics and Air Combat Development Establishment (TACDE), a premiere flying establishment of the IAF and the Tri-services Defence Services Staff College (DSSC), Wellington. A graduate of the Air Command and Staff College, Alabama, USA, he had trained with the Royal Air Force (RAF) in the United Kingdom, on Jaguar aircraft and went on to command a Jaguar Squadron subsequently. During his long and distinguished career spanning 38 years, he has held various operational and staff appointments that include Joint Director at Air War Strategy Cell at Air Headquarters, Chief Operations Officer and Air Officer Commanding of a SU-30 base, Air-I at New Delhi based Western Air Command (WAC) and Assistant Chief of the Air Staff (Intelligence) at Air Headquarters. He was also responsible for establishing the Indian Defence Wing in Tel Aviv, Israel, in April 1997, where he served as the Defence Attache till July 2000. PROJECTS ISRO builds India’s fastest super-computer The Indian Space Research Organisation (ISRO) has announced building of India’s fastest supercomputer with a peak performance of 220 teraflops (220 trillion floating-point operations per second). The new graphic processing unit (GPU)-based supercomputer named “SAGA-220” (Supercomputer for Aerospace with GPU Architecture-220 teraflops) is for use by space scientists for solving complex aerospace problems. ISRO chairman K. Radhakrishnan at the Vikram Sarabhai Space Centre (VSSC), Thiruvananthapuram, inaugurated the supercomputer. SAGA-220 has been fully designed and built at the VSSC using commercially available hardware, open source software components and in-house research. The system uses 400 NVIDIA Tesla 2070 GPUs and 400 Intel Quad Core Xeon CPUs supplied by the software major Wipro. With each GPU providing a performance of 500 gigaflops and each CPU 50 gigaflops, the theoretical peak performance of the system amounts to 220 teraflops. The GPU system offers significant advantage over the conventional CPU-based system in terms of cost, power and space requirements. The cost of the supercomputer is about Rs 14 crore. The system uses an environment friendly technology and consumes only 150 kW of power. The system can also be scaled up to petaflops (one petaflop is equivalent to 1,000 teraflops). The supercomputer is 1.5 times more powerful than India’s fastest computer now and three times faster than ISRO’s current supercomputing capability. For Wipro, its collaboration with ISRO for building the supercomputer will underscore the capability of its Supernova range of supercomputers, offered in a partnership with US-based Z Research Inc. The company is said to be aiming to build a capability of up to 500 teraflops for ISRO. Earlier, the fastest supercomputer in India, at 132.8 teraflops, was Eka, located at the Computational Research Laboratories Limited (CRL), a subsidiary of Tata Sons Limited, at Pune. RESEARCH Paper PCs Science fiction buffs have long dreamed of replacing books, magazines and even computers with a digital flexible display that can be rolled up and stuffed in a pocket or bag. According to some Canadian researchers, this dream may soon come true. Researchers at the Queens University Human Media Lab in Kingston, Ontario, have developed a prototype flexible computer and display that is completely bendable and comes with a built-in touch screen. This computer looks, feels and operates like a small sheet of interactive paper. Flexible multi-touch devices would offer a number of benefits; for example, they can be dropped and aggressively handled without the fear of cracked screens. Also, with flexible devices like a smart-phone or e-reader, people could carry a large screen in their pockets without the bulky weight of a device made of glass or metal. SPACE RESEARCH GSAT-8 successfully launched Giving a boost to its communication and TV broadcast services, India, on May 21, 2011, successfully launched its advanced GSAT-8 satellite on board Arianespace rocket from Kourou in French Guiana. The 3,100 kg GSAT-8 is primarily aimed at augmenting India’s direct-to-home TV broadcast services. It is equipped with 24 high-powered Ku Band transponders to augment India’s Ku-band relay capabilities—particularly DTH services. The total cost of the GSAT-8 project is about Rs 600 crore, including around Rs 250 crore for the spacecraft, more than Rs 300 crore for launch services by Arianespace and over Rs 30 crore towards insurance. After the successive failures, ISRO was desperately looking to augment transponder capacity to meet the growing demand. Currently, ISRO has 151 transponders providing a variety of services. GSAT-8 will augment the transponder capacity with the addition of 24 Ku band transponders taking it to a total of 175. GSAT-8 has a mission life of more than 12 years and would be co-located along with INSAT3-E. Besides the transponders, GSAT-8 is configured to carry a two-channel GPS Aided Geo Augmented Navigation (GAGAN) payload operating in L1 and L5 bands. The GAGAN payload provides the Satellite Based Augmentation System, through which the accuracy of the positioning information obtained from the GPS satellite is improved by a network of ground-based receivers and made available to the users in the country. Events; Appointments; Etc.: May 2011 APPOINTED; ELECTED; Etc. Jarbom Gamlin: He has been elected as the Chief Minister of Arunachal Pradesh, replacing Dorjee Khandu, who died in a copter crash. Mamata Banerjee: She has been elected as the Chief Minister of West Bengal J. Jayalalitha: She has been elected as the Chief Minister of Tamil Nadu. Tarun Gogoi: He has been re-elected as the Chief Minister of Assam. N. Rangasamy: He has been elected as the Chief Minister of Puducherry. Oommen Chandy: He has been elected as the Chief Minister of Kerala. He heads the Congress-led UDF government. Air Chief Marshal N.K. Browne: An ace fighter pilot, he has been appointed as the Chief of Indian Air Force. Rajiv Kumar: A well-known economist, he has been appointed as the Secretary-General of FICCI. Ajit Seth: A 1974 batch IAS officer, he has been appointed as the Union Cabinet Secretary. RESIGNED Dominique Strauss-Kahn: Head of International Monetary Fund (IMF), following charges of sexual assault slapped against him in USA. DISTINGUISHED VISITORS Angela Merkel: Chancellor of Germany. Islam Karimov: President of Uzbekistan. Ngozi Okonjo-Iweala: Managing Director of World Bank. G.L. Peiris: External Affairs Minister of Sri Lanka. Janet Napolitano: US Secretary of Homeland Security. DIED Dorjee Khandu: Chief Minister of Arunachal Pradesh. He is killed in a helicopter crash. He had become the Chief Minister of the State for the first time on April 9, 2007 and retained the post following the 2009 Assembly Elections which were won by the Congress. Mahendra Singh Tikait: Leader of the landed farmers who added solidity to the farmer lobby. He was 76. EVENTS MAY 2—Osama bin Laden, the leader of Al-Qaida and the most recognisable face of global terrorism, is killed in a US military operation in Abbotabad, near Islamabad, Pakistan. 9—Supreme Court of India stays the High Court ruling on Ayodhya title suit. 9—Shantiniketan celebrates Rabindra Nath Tagore’s 150th birth anniversary. 13—India ratifies the UN Convention against Corruption as also the Convention against Transnational Organised Crime and its three protocols. 22—Terrorists attack a Pakistani military airbase in Karachi, triggering multiple blasts leading to killing of 14 people and destruction of a P-3C Orian surveillance airplane. 30—Dalai Lama retires as the political and administrative head of the Tibetan government-in-exile. MILESTONES Air Commodore Dr Uma Raju: She has become the second woman in the history of Indian Air Force to be promoted to the rank of Air Vice Marshal. The first woman was P. Bandhopadhaya, in 2002. S. Divyadarshini: 24-year-old Chennai-based law graduate, she has topped the Civil Services examination, 2010. George Atkinson: A 16-year-old boy from Britain, he has become the youngest person to climb Mount Everest. He was 16 years and 362 days when he reached the top of the world’s highest peak on May 26, 2011. Vikas and Sushma Kaushik: They have become the world’s youngest couple to climb Mount Everest. They belong to village Jalalpur in Panipat district of Haryana. SPORTS NEWS IN BRIEF: MAY 2011 BADMINTON Sudirman Cup, 2011 The 2011 Sudirman Cup was the twelfth tournament of the Sudirman Cup. It was held from May 22–29, 2011 in Qingdao, China. 32 teams competed and for the first time twelve teams competed in the elite group to battle for the title. China defeated Denmark 3–0 in the final to win the Cup for the fourth consecutive time and eight time overall. The Sudirman Cup is the World Team Badminton Championships, held every two years, and one of the most prestigious titles in the sport. The event was first held in the Bung Karno Stadium, Jakarta, Indonesia. The Cup is named after Dick Sudirman, a former Indonesian Badminton player and the founder of the Badminton Association of Indonesia (PBSI). BOXING Mary Kom strikes gold at Asia Cup Five-time world champion M.C. Mary Kom of India claimed her fist gold medal of the year, beating Asian champion Kim Myong-Sim of North Korea at the ASBC Asain Cup Women’s Boxing championship, held in Haikou, China. Earlier, Neetu (60kg), Kavita Goyal (75kg), Laxmi Padya (81kg) and Kavita Chahal (+81kg) earned bronze medals for their performances. Pavitra (featherweight) won a silver medal. CRICKET Indian Premier League 20-Twenty Championship Chennai Superkings defeated Royal Challengers, Bangalore by 58-runs to retain the title. The man of the match of the final was Murali Vijay, who scored 95 runs in 52 balls. The main highlights of IPL-4: • Chris Gayle, Bangalore, scored 608 runs in 12 matches to win the Orange Cap for the highest run-getter of the tournament. • Paul Valthaty (Punjab) scored highest runs in an innings, 120 not out off 62 balls. • Lasit Malinga (Mumbai) got 28 wickets in 16 matches to win the Purple Cap. He had one 5-wicket haul and his best figures were 5 for 13. • Kieron Pollard (Mumbai) took most catches—10 catches in 16 matches. • Jacques Kallis (Kolkata) took most catches in an innings—4 catches. • Kumar Sangakkara (Deccan Chargers) had to his credit most dismissals by a wicketkeeper (19 dismissals in 13 matches) • Ishant Sharma (Deccan Chargers)had the best bowling figures in any innings—5 for 12 in 3 overs against Kochi. • Kings XI Punjab scored highest team total—232 for 2 against Bangalore. Tendulkar is India’s player of the year Sachin Tendulkar has been given BCCI’s player of the year award for his outstanding performances in 2009 and 2010. FOOTBALL FA Cup Manchester City’s 35-year wait for a trophy ended when Yuva Toure’s unstoppable shot sealed a deserved 1-0 win over Stoke City in the FA Cup final. Premier League title Manchester United were crowned English champions for a record 19th time when Wayne Rooney’s penalty earned a 1-1 draw and the crucial point needed to win the title. Champions League, 2011 Barcelona confirmed their place in the pantheon of football’s greatest sides, outclassing Manchester United 3-1 at Wembley, London, to claim their second Champions League crown in last three years. I-League, 2011 Salgaocar Sports Club of Goa defeated JCT Phagwara 2-0 in the last round match to score 56 points and emerge winners of the 2011 league. Santosh Trophy, 2011 Bengal retained the trophy with a 2-1 win over Manipur. This was the 31st title win of the national championship by Bengal. Manipur was playing only in their second final after the title win in 2002. HOCKEY Azlan Shah Cup, 2011 World champions Australia clinched their sixth Azlan Shah Cup by beating Pakistan 1-0. The Indian campaign ended on a disappointing note a they finished sixth after going down 1-2 to South Korea in the classification match. Federation Cup Delhi men’s team lifted the title by defeating Punjab 2-1. Haryana women’s team defeated Punjab 4-1 to lift the women’s title. UNITED NATIONS CONVENTION AGAINST CORRUPTION Corruption is a complex social, political and economic phenomenon that affects all countries. Corruption undermines democratic institutions, slows economic development and contributes to governmental instability. Corruption attacks the foundation of democratic institutions by distorting electoral processes, perverting the rule of law and creating bureaucratic quagmires whose only reason for existing is the soliciting of bribes. Economic development is stunted because foreign direct investment is discouraged and small businesses within the country often find it impossible to overcome the "start-up costs" required because of corruption. In its resolution 55/61 of December 4, 2000, the UN General Assembly recognized that an effective international legal instrument against corruption, independent of the United Nations Convention against Transnational Organized Crime (resolution 55/25, annex I), was desirable and decided to establish an ad hoc committee for the negotiation of such an instrument in Vienna at the headquarters of the United Nations Office on Drugs and Crime. The Convention was adopted by the General Assembly by resolution 58/4 of October 31, 2003. In accordance with article 68 (1) of resolution 58/4, the United Nations Convention against Corruption entered into force on December 14, 2005. For each new State or regional economic integration organization becoming a party to the Convention, the Convention enters into force on the thirtieth day after the date of deposit by such State or organization of the relevant instrument. This convention, which came into force in 2005, has 140 countries on its list. India, ratified the convention on May 13, 2011. India had signed the convention in 2005 but the UPA government, particularly the department of personnel and training (DoPT), had steadfastly refused to ratify it. Over the years, MEA (which is the nodal ministry for international treaties), had been pushing the government to ratify the convention. The official reason was that India has not yet brought its domestic laws in line with the international convention. Acceding to the convention will make it easier for India to repatriate the billions of dollars in ill-gotten wealth that have been stashed overseas. Under the convention, asset recovery is a fundamental principle, Article 51 provides for the return of assets to countries of origin as a fundamental principle of this convention. The convention requires signatories to put in place certain preventive measures—like enhanced transparency in funding election campaigns and political parties—which certainly in India is at the root of a lot of government corruption. The convention criminalises not only basic corruption such as bribery and the embezzlement of public funds but also trading in influence and the concealment and laundering of the proceeds of corruption. According to UN literature, "offences committed in support of corruption, including money-laundering and obstructing justice, are also dealt with. Convention offences also deal with the problematic areas of private sector corruption." The United Nations Convention against Corruption (UNCAC) is the only legally binding universal anti-corruption instrument. The Convention's far-reaching approach and the mandatory character of many of its provisions make it a unique tool for developing a comprehensive response to a global problem. The UNCAC covers five main areas: prevention, criminalization and law enforcement measures, international cooperation, asset recovery, and technical assistance and information exchange. The UNCAC also covers many different forms of corruption, such as trading in influence, abuse of power, and various acts of corruption in the private sector. A further significant development was the inclusion of a specific chapter of the Convention dealing with the recovery of assets, a major concern for countries that pursue the assets of former leaders and other officials accused or found to have engaged in corruption. The rapidly growing number of States that have become parties to the Convention is further proof of its universal nature and reach. Prevention Corruption can be prosecuted after the fact, but first and foremost, it requires prevention. An entire chapter of the Convention is dedicated to prevention, with measures directed at both the public and private sectors. These include model preventive policies, such as the establishment of anti-corruption bodies and enhanced transparency in the financing of election campaigns and political parties. States must endeavour to ensure that their public services are subject to safeguards that promote efficiency, transparency and recruitment based on merit. Once recruited, public servants should be subject to codes of conduct, requirements for financial and other disclosures, and appropriate disciplinary measures. Transparency and accountability in matters of public finance must also be promoted, and specific requirements are established for the prevention of corruption, in the particularly critical areas of the public sector, such as the judiciary and public procurement. Preventing public corruption also requires an effort from all members of society at large. For these reasons, the Convention calls on countries to promote actively the involvement of non-governmental and community-based organizations, as well as other elements of civil society, and to raise public awareness of corruption and what can be done about it. Article 5 of the Convention enjoins each State Party to establish and promote effective practices aimed at the prevention of corruption. Criminalization The Convention requires countries to establish criminal and other offences to cover a wide range of acts of corruption, if these are not already crimes under domestic law. In some cases, States are legally obliged to establish offences; in other cases, in order to take into account differences in domestic law, they are required to consider doing so. The Convention goes beyond previous instruments of this kind, criminalizing not only basic forms of corruption such as bribery and the embezzlement of public funds, but also trading in influence and the concealment and laundering of the proceeds of corruption. Offences committed in support of corruption, including money-laundering and obstructing justice, are also dealt with. Convention offences also deal with the problematic areas of private-sector corruption. International Cooperation Countries agreed to cooperate with one another in every aspect of the fight against corruption, including prevention, investigation, and the prosecution of offenders. Countries are bound by the Convention to render specific forms of mutual legal assistance in gathering and transferring evidence for use in court, to extradite offenders. Countries are also required to undertake measures that will support the tracing, freezing, seizure and confiscation of the proceeds of corruption. Asset Recovery In a major breakthrough, countries agreed on asset-recovery, which is stated explicitly as a fundamental principle of the Convention. This is a particularly important issue for many developing countries where high-level corruption has plundered the national wealth, and where resources are badly needed for reconstruction and the rehabilitation of societies under new governments. Reaching agreement on this chapter has involved intensive negotiations, as the needs of countries seeking the illicit assets had to be reconciled with the legal and procedural safeguards of the countries whose assistance is sought. Article 51 provides for the return of assets to countries of origin as a fundamental principle of this Convention. Article 43 obliges State parties to extend the widest possible cooperation to each other in the investigation and prosecution of offences defined in the Convention. With regard to asset recovery in particular, the article provides inter alia that "In matters of international cooperation, whenever dual criminality is considered a requirement, it shall be deemed fulfilled irrespective of whether the laws of the requested State Party place the offence within the same category of offence or denominate the offence by the same terminology as the requesting State Party, if the conduct underlying the offence for which assistance is sought is a criminal offence under the laws of both States Parties". Criminalization and law enforcement As per the convention, each State Party shall adopt such legislative and other measures as may be necessary to establish as a criminal offence, when committed intentionally, the promise, offering or giving to a foreign public official or an official of a public international organization, directly or indirectly, of an undue advantage, for the official himself or herself or another person or entity, in order that the official act or refrain from acting in the exercise of his or her official duties, in order to obtain or retain business or other undue advantage in relation to the conduct of international business. Bribery in the private sector: Each State Party shall consider adopting such legislative and other measures as may be necessary to establish as criminal offences, when committed intentionally in the course of economic, financial or commercial activities: (a) The promise, offering or giving, directly or indirectly, of an undue advantage to any person who directs or works, in any capacity, for a private sector entity, for the person himself or herself or for another person, in order that he or she, in breach of his or her duties, act or refrain from acting; (b) The solicitation or acceptance, directly or indirectly, of an undue advantage by any person who directs or works, in any capacity, for a private sector entity, for the person himself or herself or for another person, in order that he or she, in breach of his or her duties, act or refrain from acting. Protection of witnesses, experts and victims: The Convention also provides for appropriate measures in accordance with a State’s domestic legal system and within its means to provide effective protection from potential retaliation or intimidation for witnesses and experts who give testimony concerning offences established in accordance with this Convention and, as appropriate, for their relatives and other persons close to them. Each State Party also has to take appropriate measures to provide protection against any unjustified treatment for any person who reports in good faith and on reasonable grounds to the competent authorities any facts concerning offences established in accordance with this Convention. Current Affairs: March 2011
Events; Appointments; Etc.: March 2011
Sports News in Brief: March 2011
Current General Knowledge: March 2011 | |||||||||||
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IDBI to push RBI on 'White-label' ATMs |
IDBI Bank is planning to create a separate entity in partnership with private ATM service providers for running ‘White-label ATMs’ — not tied to any bank — in the country.
“We will soon approach RBI (Reserve Bank of India) with our plan,” R M Malla, chairman and managing director, told Business Standard.
Customers from any bank can deposit or withdraw money from ‘white-label ATMs’. Their banks then pay for the service. Also, such ATMs are invariably owned by a third-party, not a bank.At present, under RBI guidelines, ATMs can only belong to a particular bank. Transactions of customers from other banks are settled by paying Rs 14 as the charge per transaction by the bank in which the customer has his account. RBI has been reluctant to allow white-label (or no name) ATMs by non-banking entities. Malla said RBI felt only banks should own ATMs so that the flow of funds can be accounted for, regulated and monitored.
“However, with a new entity created jointly and handled by a bank, the situation would be different and RBI’s concerns can be taken care of. If globally this has happened with proper precautions, why should it not work in India with strict due diligence?” asked Malla.
Many services in the banking domain were common, he noted. Obviously, it was difficult for banks to create a common platform for these services. “There could be some entity, however, whose proper due diligence has been done and which specialises in this area. We want to be a major player in this,” he said.
IDBI has started working towards this goal. It has 1,400 self-managed ATMs across the country. “In the next 12 months, we have planned to raise the number to 2,500, with a strong focus on low-cost ATMs,” said Malla. The bank has decided to tie up with ATM service providers for this. Of the 1,100 ATMs to be added during this period, 500-750 ATMs will be outsourced.
“This will save us the cost of setting-up and running ATMs, as we will have to pay the service provider a specified amount per transaction. It will be the service providers’ responsibility to create the infrastructure and run the ATMs,” said Malla.
Adding: “We are evaluating proposals of various ATM service providers. We will set up ATMs with them. Then, at some point of time, we will partner with them for starting the white-label ATMs venture if RBI permits.”
MFIs need fixed regulations: Fitch |
The Reserve Bank of India (RBI) and the Andhra Pradesh government seeking to regulate the sector in the state can be seen as an example of multiple regulators vying for control. Such instances would only lead to harmful consequences, the report said
“The experience of cooperative banks in India suggests multiple regulators may not be as effective as a single, strong regulator. MFIs may also find it difficult to comply with different sets of guidelines. A common and consistent set of regulations would add stability to MFIs’ operations and enhance creditor comfort”, said Ananda Bhoumik, senior director (financial institutions), Fitch.
MFI loans in Andhra Pradesh were the worst hit in the country, owing to uncertainty over regulation of the industry in the state. Collection efficiencies dropped from 99 per cent in September 2010 to below 50 per cent in December 2010. Andhra Pradesh accounts for about 29 per cent of the total MFI loans in the country, and the deterioration in portfolio delinquency in the state resulted in many large MFIs seeking to restructure their own borrowings from banks, the report said. Rising delinquencies in Andhra Pradesh could also spill over to the adjacent states of Karnataka and Tamil Nadu, it added.RBI recommendations on interest rates and margin caps on lending, together with tighter loan-loss provisions and general provisioning norms, may lead to consolidation, since smaller players would be forced to re-examine their business models. Under the new guidelines, debt and equity funding may be constrained, since investors would reassess their risks. “From a creditor’s perspective, the lower pace of growth is good news. While lower margins would somewhat erode the defence against shocks to asset quality, the minimum core Tier 1 ratio of 15 per cent provides comfort,” Bhoumik said
RBI creates two more ED posts |
Among the eligible candidates P Vijay Bhaskar, regional director of Bangalore, is the most senior chief general manager, followed by B Mahapatra and G Padmanavan. A candidate requires three years of residual service to be eligible for the post of executive director. The retirement age for RBI employees is 60 years.
Of the seven RBI executive directors, V K Sharma is the most senior, followed by V S Das. G Gopalakrishna, HR Khan, D Mohanty, S Karuppasamy and R Gandhi are the other executive directors.
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