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t seems that this UPA Govt. is breaking all its record on the corruption front, by every passing day it is coming up with a new kind of scam and breaking its own record. In one sentence we can say this govt. is redefining corruption in golden letters. The Comptroller and Auditor General of India (CAG) said in a report submitted to Parliament that an estimated financial gain of Rs 1.86 trillion was made by private allottees that were given coal blocks by the ministry of coal. The report said the ministry of coal should urgently go forward with competitive bidding for captive coal blocks mining. From 2004 to 2009, 85 coal blocks were allocated to 137 private companies, according to the coal ministry data, and several of them are under the scanner, officials have said. More than 80 percent of the allottees have not yet started producing coal from their respective blocks. This led to a bizarre scenario where on the one hand, the government acted with unprecedented haste in allocating these blocks, and on the other, it did precious little to ensure that the allottees started producing coal from their respective mines and used it for the designated end use like producing power, steel, cement, etc. The government has now set up a committee to identify how many operators have deliberately defaulted in starting the coal http://upscportal.com

production work and how many got stuck on account of bona fide delays in land acquisition, forest and environmental clearance or approval of mining plan. The biggest rationale of the government behind captive coal block allocation was to enhance domestic coal production capacity. The countrys top auditor has put corruption squarely back on the national agenda, potentially compounding the political problems facing the Congress-led United Progressive Alliance (UPA) government. In three separate reports, quantifying the notional loss to the exchequer at Rs.3.03 trillion, the Comptroller and Auditor General of India (CAG) has, for the first time, directly cast aspersions on the role of the Prime Ministers Office (PMO) for its failure to check what it claims to be violations in awarding coal mining contracts. The issue of allocation of natural resources has been at the centre of the debate on corruption. From the Supreme Court to the Comptroller and Auditor General (CAG) to anti-corruption crusaders

like Team Anna, all have slammed the UPA for allocating precious natural resources like 2G spectrum, minerals and land to private hands at a fraction of their market price. It was the CAG that had first exposed how the telecom policy was manipulated to favour select companies at the cost of public interest. A new CAG report, this time on coal block allocation, has put the spotlight on Prime Minister Manmohan Singh for alleged corrupt policy-making, causing a revenue loss of several thousands of crores of rupees. Politically, the coal allocation scam has far greater implications for the UPA than the 2G swindle. During the five years of UPA-1, Manmohan Singh was also the coal minister for about three and a half years. The junior minister in the coal ministry was always a Congressman. Yet the PM failed to introduce the policy of competitive bidding for captive coal block allocations, despite having given an in-principle 3

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs approval to it within the first six months of his tenure as prime minister. Time Line of Coal Block Scam 16 July 2004: Coal Secretary Parakh placed a comprehensive proposal on competitive bidding before Dasari Narayana Rao highlighting, among other things, the fact that the existing system would lead to windfall gains to allottees. (PV Narasimha Raos government had first instituted the screening committee system. The successive United Front and NDA regimes had continued with this policy. In all, 39 captive blocks were allocated to private players until the UPA took over). 24 July 2004: In the wake of an arrest warrant issued by a local court in a two-decade old massacre case, Soren resigned from the Cabinet and the prime minister assumed charge of the coal ministry. 28 July 2004: In a note to Parakh, Dasari Rao sought various clarifications like what would be the likely opposition from the industry, particularly, the power sector; and the impact on price of power and obligations of the government. 30 July 2004: Parakh gave the necessary clarifications. He explained that as only a few companies could be allocated captive blocks while the rest would continue to either purchase it from Coal India Limited or buy imported coal, the former would stand to make a windfall gain. 20 August 2004: T h e P M directed the coal secretary to prepare a draft note on competitive bidding so that the Cabinet could deliberate upon it and take a decision. 11 September 2004: T h e PMO forwarded a note detailing 4 certain alleged disadvantages of auction. The coal secretary replied that the arguments lacked merit. Parakh also brought to the PMs notice that the screening committee was facing different kinds of pulls and pressures for allocation to some select companies and recommended that all future allocation be done through competitive bidding. 4 October 2004: Dasari Rao wrote to Parakh that the competitive bidding policy should not be pursued any further. The rationale given by Rao for scrapping the proposed auction route was that the Coal Mines (Nationalisation) Amendment Bill, 2000, envisaging competitive bidding for allocation of blocks for merchant mining, was pending in the Rajya Sabha due to stiff opposition from trade unions and the Left. But what Rao didnt put on the file was that the Lefts opposition to the proposed amendment was to the entry of private players in merchant coal mining per se, and not to competitive bidding as such. But by mixing the two issues, which were entirely different in nature, Rao tried to nix the proposed policy of auction. 14 October 2004: Instead of putting its foot down on a crucial policy issue, the PMO asked Parakh to respond to the issues flagged by Rao. 1 November 2004: The PMO decided that all the applications received till 28 June 2004 would be processed as per the existing policy and the Coal Mines Act would be amended through a Bill in the coming Parliament session to bring into effect the policy of auction for all future coal block allocation. The PMO asked Parakh to amend the draft Cabinet note accordingly. In the meantime, Shibu Soren, after spending a few months in jail, was released on bail. 27 November 2004: S o r e n was re-inducted in the Cabinet and took over the charge of coal ministry from the PM. 23 December 2004: Parakh placed the revised Cabinet note before Rao for approval. 28 January 2005: But now, Soren and Rao joined forces to give the auction policy a quiet burial. Soren wrote on the file that he was in complete agreement with Rao that the proposed auction policy did not need to be proceeded any further. At the time, JMM was not only an important Congress ally at the Centre, the two parties were preparing to oust the BJP government in Jharkhand in the coming Assembly elections in the state. 2 March 2005: The then Jharkhand Governor Syed Sibtey Razi, in a controversial move, instead of inviting the NDA to form the government, which clearly had the support of more legislators in the Assembly (the BJP-Janata Dal (U) combine had 36 members in the Assembly, and the Congress-JMM only 26) asked Soren to form the next government. The BJP called Razis decision the rape and murder of democracy. Soren resigned from the Union Cabinet to become Jharkhand chief minister. The PM once again took the charge of the coal ministry. 7 March 2005: With the change of guard at the coal ministry, Parakh once again tried to revive the auction policy. He sent a note to the PM stating that decisions on all applications received till 28 June 2004 would be taken by the end of March 2005 and if the auction policy was not put in place quickly enough, pressures would once again mount on the government to continue with the existing procedure. Parakh wrote such a scenario might not be http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs desirable in the interests of bringing about total transparency in allocation of coal blocks. 16 March 2005: The PMO asked Parakh to update the draft Cabinet note and send it back urgently. 24 March 2005: The PMO approved the draft note after which it was circulated to different ministries like power and steel for their comments. The views of state governments were also sought. 21 June 2005: P a r a k h placed the draft Cabinet note incorporating the views of various state governments and comments of other ministries before Rao for approval of the prime minister. 4 July 2005: Rao wrote to the PM that the power utilities were reluctant to participate in competitive bidding due to cost implications and that the auction policy needed to be considered in greater detail. But what he didnt elaborate was that there were also many Central government ministries, departments and state governments that were in favour of auction. The Planning Commission, Ministry of Mines, Department of Expenditure under the Ministry of Finance and the Ministry of Steel were in favour of competitive bidding. 25 July 2005: The PMO decided that to effectuate the auction procedure, the Coal Mines (Nationalisation) Act would need to be amended. In a scandalous move, it instructed the coal ministry to continue with the existing system since the amendment was likely to take some time. As a result, 24 coal blocks with reserves of 3,754 million tonnes, were allocated in 2005. 12 January 2006: When the amended draft Cabinet note (proposing auction policy via amendment in the Coal Act) was http://upscportal.com again placed before Rao, the minister stated that there was no immediacy in the matter and that the note be resubmitted at an appropriate time keeping in view the issues involved. But while Rao tried to put the policy change on the backburner, the correspondence between the PMO and the coal ministry reveals that the PM kept pressing for the submission of the Cabinet note. On the other hand, the JMM chief, who had to resign within nine days of taking over as Jharkhand chief minister as he had failed to prove his governments majority in the state Assembly, had again started lobbying for the job of coal minister. 29 January 2006: Soren was once again handed over the coal ministry. 7 April 2006: In a meeting held in the PMO, it was decided that the system of competitive bidding would be made applicable to all minerals including coal via an amendment in the Mines and Minerals (Development and Regulation) Act, 1957. 27 April 2006: Rao wrote on the file that the issue to amend the MMDR Act should be revisited as it involved withdrawing the current powers of the state governments and had the potential to become a controversial issue. The same day, Soren seconded Raos opinion and wrote that the views expressed by the minister of state were appropriate and the ministry of coal should refrain from making suggestions, which had implications for federal polity. 17 October 2008: Because of constant obstruction by Soren and Rao, it took another two years before a Bill to amend the MMDR Act, 1957, was tabled in Parliament on 17 October 2008. In the meantime, 53 coal blocks with 17,792 million tonnes of reserve were allocated in 2006, 52 blocks with 11,862 million tonnes of reserve in 2007, 24 coal blocks with 3,550 million tonnes of reserve in 2008 and 16 coal blocks with 6,893 million tonnes of reserve in 2009 were allocated without competitive bidding. August 2010: The MMDR Amendment Act, 2010 was passed by both the Houses of Parliament in August 2010. However, till date, not a single coal block has been given through auction. The CAGs office has estimated that 90 percent of the reserves will be extracted on a commercial basis. It has multiplied the aggregate recoverable reserves of different grades with the present prices being offered by Coal India. Coal Indias prices are lower than global rates and the difference between them can go up to 70 percent on the basis of quality of coal. If the calculation of benefit is done based on the prevalent prices of the time when the blocks were allotted, it will come to 6.3 lakh crore rupees.
Coal blocks allocated between 2005-2009 Year 2005 2006 2007 2008 2009 Coal Blocks Allocated 24 53 52 24 16 Coal Reserves (million tonnes) 3,754 17,792 11,862 3,550 6,893

In its report on captive coal block allocation, the auditor said that delays in the competitive bidding process may have resulted in financial gains to the tune of Rs.1.86 trillion for private coal block allottees. Following are some of the major organizations involved in the scam and are supposed to have benefited from the scandal: NTPC Limited Essar Group Jindal Steel and Power 5

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Adani Group Bhushan Power & Steel Ltd Arcelor Mittal Jayaswal Neco Lanco Group Aditya Birla Group Tata Steel Hindalco Monnet Ispat NALCO The CAG report mentions that the processes for allotting the coal mines were not totally transparent. It does not say, though, that government favored any company willingly. It is being estimated that the companies gained because the coal was virtually provided for free. The draft report of the CAGs office states that if the mines had been provided for a certain fee it would have ensured some benefits for the tax payers as well. The North Arkhapal coal block had been given to Strategic Energy Technology Systems, which is a joint venture between Sasol, a South African organization, and Tata Sons. The Ramchandi Promotional Block had been allocated to Jindal Steel & Power. Both the above mentioned blocks had reserves of 1,500 million tons each and they were allotted on February 27, 2009. This was the final working day prior to the model code of conduct that was implemented on March 2, 2009 before the elections. The two organizations beat 16 leading organizations such as Reliance Industries, Lanco Infratech, Indian Oil Corp, JSW Energy, and GMR Group. These blocks were used for pilot projects where coal was converted to oil. The government has defended its coal policy by arguing that revenue maximisation was never its objective; it wanted to support industrial growth by ensuring the availability of coal to key sectors like power, steel and cement and also to keep their prices low. The coal policy was perfectly alright. Coal blocks were given to power projects and manufacturers of other end products like steel and cement, says Minister of State, PMO, V Narayanasamy. If we had auctioned coal, the prices of power, cement, steel, etc, would have gone up and hurt the consumer. But a closer scrutiny lays bare the hollowness of these arguments. In the case of the allottees who have actually begun production, there is little evidence to suggest that they have passed on the low coal production cost to the consumers. Dozens of power projects were given captive coal mines. Most of them have not entered into power purchase agreements (PPA) with state governments. A few plants that have become operational, are operating as Independent Power Producers (IPPs) selling power at a lucrative rate of Rs 10 to Rs 12 per unit in the short term market, thus making stupendous profits. The report of the Ashok Chawla Committee on Allocation of Natural Resources has remarked that actual prices based on recent competitive bids for power show that bids received for power plants running on imported coal are actually priced quite competitively relative to their domestic counterparts. Conclusively we can say that the day the Comptroller and AuditorGeneral of India submitted its report on coal block allocations declaring the loss of a staggering Rs 1.86 lakh crore to the exchequer, common people of this country was sure enough that this time the Prime Minister would not let his colleagues defend him. Rather hoped that he himself would come forward and have the courage to explain what had gone wrong with the coal allocations. But by maintaining silence, the Prime Minister has disappointed the whole country once again. This Government did all that it could to prevent Anna Hazare and Baba Ramdev from raising their voices against corruption. But remember, a person does not become corrupt just by offering and accepting bribes. He become equally corrupt if he keeps mum about the corrupt activities that happen under his watch. So, one can only hope that the UPA Govt. take a stern action by cancelling all the allocation in the controversial period and all who are behind it should be served with exemplary punishment, that no another scam like this can happen again. Aman Srivastava

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NAM Summit: Is India & Iran Coming Closer Amid the 16th Non-Aligned Movement (NAM) conference, the biggest gathering of international dignitaries in the Islamic Republics 33-year history, northern Tehran has become a ghost town. The 16th NAM (Non-Aligned Movement) summit was held at Tehran, Iran on 30-31 August 2012.The theme of the summit was Lasting Peace through Joint Global Governance. At the Tehran Summit , the Chairmanship of NAM was passed on from Egypt to Iran in accordance with the NAMs practice of regional rotation. The NAM meeting in Tehran was held in three phases: preparatory senior officials meeting on 26-27 August, ministerial level meeting on 28-29 August, and the summit on 30-31 August. Heads of the government from over 100 countries participated in the Tehran Summit to discuss the http://upscportal.com

new global challenges. At the end of the summit, the outcome documents were adopted which put emphasis on peace. Participants called for fundamental changes in global governance and collective management of the world as the precondition of establishing peace, and all of them expressed the call for avoiding conflicts in the world. Venezuela was selected the host for the 17th NAM Summit in 2015 and two nations, namely Azerbaijan Republic and Fiji, were accepted as the new members of the organization.The NAM was founded in the former Yugoslavia in 1961. It represents almost two-thirds of the UN members and about 55 percent of the world population. India expressed support for popular aspirations for a democratic order in Syria while cautioning against external intervention. India urged NAM to take a clear stand on Syria. Iran condemned the Wests policy of

intimidation against other nations and sought NAMs support to end tough West-sponsored sanctions against it over its nuclear programme, as officials from 120 countries, including India, gathered here for the 16th NAM summit. We believe that adopting worn-out policies based on intimidation and humiliation is not only unjust and unjustifiable but also weakens international cooperation for the materialisation of the goals and objectives of the UN charter, Iranian Foreign Minister Ali Akbar Salehi said. Iran is facing a series of tough UN and Western economic and financial sanctions crippling its oil and gas industry over its nuclear programme, which it calls peaceful. However, West accuses Iran of attempting to develop nuclear weapons. The officials from 120 NAM member states met to work on the agenda of the heads-of-state summit to be held later. Prime Minister Manmohan Singh attended the 7

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Summit, which was preceded by crucial bilateral talks with Irans supreme leader Ayatollah Sayyed Ali Khamenei and Iranian President Mahmoud Ahmadinejad. Also on the sidelines of the meeting, India, Iran and Afghanistan hold a strategic trilateral meet in which key issues, including regional security and economic situation and best utilisation of Chabahar Port, a significant commercial venture, were discussed. India, Iran and Afghanistan hold talks on giving India greater access to landlocked Afghanistan, a move that could ease Irans isolation in the region. The three countries will meet Sunday to discuss how best to use the southeastern Iranian port of Chahbahar and develop road and rail links from there to Afghanistan, Foreign Secretary Ranjan Mathai told reporters. As troops from the North Atlantic Treaty Organization prepare to withdraw from Afghanistan in 2014, India fears the possibility that the country would fall into the hands of a Taliban-led regime, endangering many of Indias interests. India has been one of the largest contributors of development aid to Afghanistan. Over the past decade, it has spent more than $2 billion to help build infrastructure, including roads, power projects and hospitals. For India the shortest and most economical route for sending supplies to Afghanistan would be by road through Pakistan, but its decades long rival has denied New Delhi road access to Kabul, making the route through Iran all the more significant. Iran also hopes to develop an industrial zone near Chahbahar and wants to attract foreign investment to set up industries there, Mr. Mathai said. The talks came days ahead of a nonaligned summit meeting hosted by Iran in which leaders of some 120 8 countries were expected to participate. Indian Prime Minister Manmohan Singh, who will be in Tehran to attend the summit, is to meet with Iranian supreme leader Ayatollah Ali Khamenei. Venezuela Venezuela was one of the 120 countries from three continents Latin America, Africa, Asia - sending delegates to the 16th summit meeting of the Non-Aligned Movement (NAM) in Iran, which took place from the 28th to the 31st of August 2012. The organization was founded in Belgrade in 1961. The founding fathers were the Big Five: Abdel Gamal Nasser of Egypt, Ahmad Sukarno of Indonesia, Kwame Nkrumah of Ghana, Jawaharlal Nehru of India and Josip Broz Tito of Yugoslavia. Fidel Castro, another illustrious member, stated in a speech in 1979 that NAM supports the national independence, sovereignty, territorial integrity and security of nonaligned countries in their struggle against colonialism, imperialism, racism and all forms of aggression, domination or occupation by foreign states. The five principles of NAM are: mutual respect for each others territorial integrity and sovereignty; mutual non-aggression; mutual non-interference in domestic affairs; equality and mutual benefit and peaceful coexistence. These ideals are upheld by all NAM members, including Iran, which has assumed the presidency from 2012 to 2014. Venezuela will be next in line, from 2015 to 2017. The presidency rotates among all NAM member states every three years. Socialist Venezuela, with President Chvez at the helm, certainly belongs to these new powers playing a significant and worthy role in the world. The Bolivarian Revolution introduced participatory democracy in Venezuela, basic grassroots democracy with equality for all strata of society. Why should only a few selfchosen elites rule a country or the whole world? This seems to be anachronistic in the new millenium which calls for an egalitarian world order. Hopefully, by 2015, some of the existing problems today will be solved in a peaceful and humanitarian way. IndiaIran relations Relations between India and Iran date back to the Neolithic period. The existence of several empires spanning both Persia and northern India ensured the constant migration of people between the two regions and the spread and evolution of the Indo-Iranian language groups. As a consequence, the people of Northern India and Iran share significant cultural, linguistic and ethnic characteristics. India and Iran have friendly relations in many areas, despite India not welcoming the 1979 Revolution. There are significant trade ties, particularly in crude oil imports into India and diesel exports to Iran. Iran frequently objected to Pakistans attempts to draft anti-India resolutions at international organizations such as the OIC and the Human Rights Commission. India welcomed Irans inclusion as an observer state in the SAARC regional organization. There is a small Indian community in Iran. There is a Sikh Temple (Gurdwara) located in Tehran, as well as small Hindu temples in Bandar Abbas and Zahidan. They were built in the 19th century by http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Indian soldiers in the British Army. There are also small communities in India who trace their ancestry to Iran. A growing number of Iranian students are enrolled at universities in India, most notably in Pune and Bangalore. The growing Iranian film industry looks to Indias Bollywood for technical assistance and inspiration. The clerical government in Tehran sees itself as a leader of Shiites worldwide including India. Indian Shiites enjoy state support such as a recognised national holiday for Muharram. Lucknow continues to be a major centre of Shiite culture and Persian study in the subcontinent. During much of the Cold War period, relations between the Republic of India and the erstwhile Imperial State of Iran suffered due to different political interestsnonaligned India fostered strong military links with the Soviet Union while Iran enjoyed close ties with the United States. Following the 1979 revolution, relations between Iran and India strengthened momentarily. However, Irans continued support for Pakistan (an arch-rival of India) and Indias close relations with Iraq during the IranIraq War impeded further development of IndoIranian ties. Relations between the two countries warmed in the 1990s when India collaborated with Iran to support the Afghan Northern Alliance against the Taliban. In the 1990s, India and Iran supported the Northern Alliance in Afghanistan against the Taliban regime. They continue to collaborate in supporting the broad-based antiTaliban government led by Hamid Karzai and backed by the United States. Economic relations Irans trade with India crossed US$13 billion in 2007, an 80% http://upscportal.com increase in trade volume within a year. Via third party countries like UAE this figure touches $30 billion. Oil and gas In 200809, Iranian oil accounted for nearly 16.5% of Indias crude oil imports. Indian oil imports from Iran increased by 9.5% in 2008 09 due to which Iran emerged as Indias second largest oil supplier. About 40% of the refined oil consumed by Iran is imported from India. In June 2009, Indian oil companies announced their plan to invest US$5 billion in developing an Iranian gas field in the Persian Gulf. In September 2009, the Mehr news agency reported a Pakistani diplomat as saying India definitely quitted the IPI (India-Pakistan-Iran) gas pipeline deal, in favor of IndoUS civilian nuclear agreement for energy security. Iranian officials however said India is yet to make an official declaration. In 2010, U.S. officials warned New Delhi that Indian companies using the Asian Clearing Union for financial transactions with Iran run the risk of violating a recent US law that bans international firms from doing business with Iranian banks and Tehrans oil and gas sector, and that Indian companies dealing with Iran in this manner may be barred from the U.S. The United states criticizes the ACU of being insufficiently transparent in its financial dealings with Iran and suspects that much of their assets are funneled to blacklisted repressive organizations in Iran such as the Army of the Guardians of the Islamic Revolution. The United States Department of the Treasury also believes that Iran uses the ACU to bypass the US banking system. On 27 November 2010, the Indian government, through the Reserve Bank of India, instructed the countrys lenders to stop processing current-account transactions with Iran using the Asian Clearing Union, and that further deals should be settled without ACU involvement. RBI also declared that they will not facilitate payments for Iranian crude imports as global pressure on Tehran grows over its nuclear programme. This move by the Indian government will make clear to Indian companies that working through the ACU doesnt necessarily mean an Iranian counterpart has an international seal of approval. As of December 2010, neither Iran nor the ACU have responded to this development. India objected to further American sanctions on Iran in 2010. An Indian foreign policy strategist, Rajiv Sikri, dismissed the idea that a nuclear armed Iran was a threat to India, and said that India would continue to invest in Iran and do business. Indias nuclear vote with Iran India, despite close relations and convergence of interests with Iran, voted against Iran in the International Atomic Energy Agency in 2005, which took Iran by surprise. A welcoming prospect Ali Larijani was reported as saying: India was our friend. Stephen Rademaker also acknowledged that Indias votes against Iran at the International Atomic Energy Agency were coerced: The best illustration of this is the two votes India cast against Iran at the IAEA. I am the first person to admit that the votes were coerced. The USA considers support from India which is on 35-member board of Governors at the International Atomic Energy Agency crucial in getting a sizeable majority for its proposal to refer the matter to 9

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs the Security Council for positive punitive action against Iran. Greg Schulte, US ambassador to the IAEA, said Indias voice will carry particular weight...I hope India joins us in making clear our collective concerns about Irans nuclear program. Schulte did not deny that the IndoUS nuclear deal was conditional to India supporting the US on the Iran issue. Appraising of the situation visa-vis Iran, a senior U.S. official told the New York Times that The Indians are emerging from their nonaligned status and becoming a global power, and they have to begin to think about their responsibilities. They have to make a basic choice. The Bush administration, however, recognized Indias close relations with Iran and has tempered its position, stating that India can go ahead with a pipeline deal involving Iran and Pakistan. Our beef with Iran is not the pipeline. Infrastructure A highway between Zaranj and Delaram (Zaranj-Delaram Highway) is being built with financial support from India. The Chabahar port has also been jointly financed by Iran and India. Even though the two countries share some common strategic interests, India and Iran differ significantly on key foreign policy issues. India has expressed strong opposition against Irans nuclear program and while both the nations continue to oppose the Taliban, India supports the presence of NATO forces in Afghanistan unlike Iran. Despite the decline in strategic and military links, the two nations continue to maintain strong cultural and economic ties. Lucknow in Uttar Pradesh, India, continues to be a major center of Shiite culture and Persian study in South Asia. Iran is the second largest supplier of crude oil to India, supplying more than 425,000 barrels of oil per day, and consequently India is one of the largest foreign investors in Irans oil and gas industry. In 2011, the $12 billion annual oil trade between India and Iran was halted due to extensive economic sanctions against Iran, forcing the Indian oil ministry to pay off the debt through a banking system via Turkey. Indias closer cooperation with Iran will likely irritate the U.S., which has been pushing the international community to punish Iran over its nuclear program. India has come under increasing pressure from Washington over its ties with Iran, but New Delhi needs Iranian crude-oil supplies to power economic growth. Iran supplies about 12% of Indias energy needs. Indias talks with Iran will explore ways to expand trade to improve the heavily skewed balance of trade between the two countries. Trade between the two in the past year totaled about $16 billion, of which Indian oil imports from Iran accounted for $13.5 billion. India would accept sanctions imposed by the United Nations, but would not heed those imposed by others, referring to harsher sanctions maintained by the U.S. and Europe. India has been cutting its oil imports from Iran, buying more from Iraq and Kuwait. But with nearly 70% of its oil consumption supplied by imports, rapid shifts are difficult. Md. Israr

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Democracy is a form of government where people surrender some of their rights to a small elite body who are elected by people to rule over themselves. This elite body or the public representatives make law for the betterment of people. Once elected the public representatives remain all powerful till the end of the term by constitutional provision or otherwise because the constitution does not provide call back power to the people. The assumed principle is that these public representatives should make laws for the benefit of the people. The loophole in our administration is that it is not very transparent and popular participation is bare minimum. The prescribed methods of control on government have been largely unsuccessful. So in such a situation a vacuum is created in governance i.e. who shall see the validity of a law. http://upscportal.com

The judiciary as such and by principle cannot act unless an aggrieved party does not knock its door. Hence this vacuum is substantial. As per the theory of Power vacuum filling some organ has to extend its influence and it is only natural for judiciary to extend its influence in the sphere. Many argue that it is against the principle of democracy. May be it is true. But there is a widening gap between the principle of democracy and the essence of democracy. Sometimes the hegemonic growth of the form and procedure of democracy become so vast that they make the spirit of democracy in danger. Now it is important to decide what is more important the procedure and principles of democracy like the legislative supremacy or the spirit of democracy i.e. welfare of people. The principle and procedure may be a means to an end but the end is

always the spirit of democracy. So if means are abridged to attain the ends then democracy will be more successful than anything else. Judiciary under the veil of activism serves as a watch dog for preserving this basic spirit of democracy. Meaning Judicial activism, like many catchwords, has acquired so many different meanings as to obscure more than it reveals. But at the same time it cannot be discarded as an intellectual void for the vagueness of the definition of the word for at the heart it speaks about the survival of law. Abandonment of this word not being a viable option, clarification needed as to what judicial activism is. Judicial activism is different from the judicial review or other process of jurisdiction in the sense that under the gamut of judicial review the judiciary can extend its influence to 11

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs the spheres of executive and the legislative. Judicial activism simply means a pro-active judiciary which does no limit itself to the interpretation of law only but also sees if the law affects people adversely. The great contribution of judicial activism in India has been to provide a safety valve and a hope that justice is not beyond reach. Our Constitution & Judiciary When Indias founding fathers wrote the Constitution, they created three arms Parliament, Executive and the Judiciary of the state that together were to be the keepers of the ideals of the nation as enshrined in the Constitution. Over the past several months, however, the Parliament has become dysfunctional, the Executive has abdicated its duties and the Judiciary is cracking the whip. Many think that it is cracking the whip a bit too much. I dont think so. An active judiciary is one that takes its task of defending the fundamental rights of the people and their liberties against the onslaught of the state, earnestly. As far as judges are concerned, it is a matter of mindset. One judge could say that policy formulation is the job of the Executive and Judiciary does not need to intervene while another could believe that even in policy formulation, the Judiciary would need to step in to guard fundamental rights. The occasion for this often arises when the Executive fails to discharge its statutory, constitutional obligations. As a result of this failure, the fundamental rights of the people are violated. The Indian judiciary has been constitutionally vested with the power of review to keep the Executive and Legislature within constitutional boundaries. The 12 Judiciary can strike down any law that is beyond Parliaments legislative competence or is violative of the Constitution. Similarly, it can strike down any Executive action, if there is any patent illegality or arbitrariness to it. A Supreme Court judgment becomes the law of the land. While Articles 13, 21, 32, 226 and 227 encompass this power, Article 142 hands a unique, extraordinary power to our Supreme Court to do complete justice in any matter before it. This power has often been wielded unpredictably. It granted a divorce to a Hindu couple on the ground of irretrievable breakdown of marriage, even though no such ground exists under the Hindu Marriage Act. To understand the concept of the judicial activism two theories have been expounded. The first theory Power vacuum filling theory says if in a system there is a vacuum because of the lack of any particular organ or the inaction of it, then other organs extend their influence to the vacuum created. Nature does not allow the vacuum to remain as such. In the government in certain areas vacuum is created due to the lack of interest in executive or legislative or simply due to the inaction and indifference in their part. This vacuum is filled by a dynamic judiciary. This is called the judicial activism. The other theory of social want says that people want something which is neither provided by the executive or the legislative. So judiciary took it upon itself to provide the wants of the people. So it became proactive and this proactiveness is called as judicial activism. The doctrine of separation of powers is embedded in our constitutional scheme. Explaining the need for separation of powers, Montesquieu wrote: There is no liberty where judicial power is not separated from both legislative and executive power. If judicial and legislative powers are not separated, power over the life and liberty of citizens would be arbitrary, because the judge would also be a legislator. If it were not separated from executive power, the judge would have the strength of an oppressor History Ruler of England Stuart King James I on November 13, 1608, entered the royal courts and claimed that he could take any case he chose, remove it from the courts, and decide it in his royal person. Chief Justice Coke answered that he could not do so but the case ought to be determined and adjudged in a court of justice according to the law and custom of England. The King was greatly offended and replied: This means that I shall be under law which is treason to affirm. Coke replied: the King should not be under man but should be under God and law. Chief Justice Cokes reply was an affirmation of the judicial power while upholding the rule of law against arbitrary decisions of the sovereign. This was judicial activism at its finest. In 1801, Chief Justice John Marshall highlighted and reaffirmed the power of the American Supreme Court to invalidate Congressional statutes in the celebrated case o f Marbury v. Madison. He avoided a direct conflict with the administration while highlighting and reaffirming the judicial review power to invalidate an Act of Congress. Chief Justice Earl Warren of the U.S. was one of the great activist judges who have profoundly influenced the Indian Supreme Court. By his decisions he legitimised affirmative action by the courts and removed racial discrimination in schools by http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs desegregation, reapportioned obsolete electoral districts, and enhanced the rights of poor accused and defendants. Indian context When one talks about the judicial activism in India the following Supreme Court judgments come to mind. 1 . Golaknath Vs. the state of Punjab In a land mark judgment Supreme Court made it clear that no constitutional amendments can be made on the part III of the constitution and there by fundamental rights cannot be abridged by the legislature. By this pronouncement the Supreme Court has retraced its own judgment in Shankari Prasad case and Sajjan Singh vs. state of Rajasthan case that the fundamental rights can be amended. To remove the difficulties in the process the government in the 24<sup>th amendment amended article 368 empowering the legislature the power to amend the constitution. 2 . Keshavananda Bharti Vs. the state of Kerala In this landmark judgment Supreme Court first kicked the Hornets nest in the name of the basic structure of constitution. In this case the Golaknath case was over ruled and parliament regained the power of amending but Supreme Court explicitly said that the legislature by virtue of the amending power cannot change the basic structure of the constitution. But what constitutes the basic structure http://upscportal.com was not specified. To remove the constitutional hurdles in an amendment the government inserted clause 4 and 5 in the article 368 which mentions that limited power of amendment is a basic structure of constitution. 3 . Minnerva Mills vs. the union of India and other states In this case the supreme court over ruled that amending power is a basic structure of constitution. By this time the legislative and the judiciary in India were at loggerheads. 4 . Sunil Batra vs. Delhi government In this case Supreme Court reinterpreted the writ of Habeas corpus as not only producing a person in the court but also preventing a person jailed from the inhuman treatment in the prison. 5 . M. C. Meheta vs. the sate of Tamil Nadu In this case Supreme Court not only pronounced that deployment of children in hazardous factories is unlawful but also provided various guidelines for the children welfare. Very recently the Union government has filed a review petition in the Supreme Court against its order in Ram Jethmalanis case by which it created a Special Investigation Team (SIT) to probe the black money. It is for the first time that the court has taken over investigation by appointing a former judge of the Supreme Court as the chairman of the SIT and another former judge of the same court as the vice-chairman. The Union government had appointed a high level committee comprising revenue secretary; deputy governor, RBI; Directors, IB, CBI, (financial intelligence unit) and ED; chairman, CBDT and DGs, Narcotics Control Bureau and Revenue Intelligence. The Supreme Court added three more members to it-two former judges and Director, RAW-and rechristened it as SIT. Even now the investigation will be done by the police, but what is unprecedented is that the SIT will report to a former judge. Under the Cr. Pc., the court cannot take over investigation though it can appoint any one to investigate impartially to its satisfaction. In another case, Nandini Sundar- vs- Chhattisgarh, the apex court declared the appointment of special police officers (SPO) under the policy of arming of a civilian vigilante group, the Salwa Judum. In both these cases, the court has lambasted the neo-liberal economic policy of the government and held it responsible for the growth of black money and invidious inequality which has led to the menace of Naxalism. Both judgments are replete with condemnation of the states amoral economic policies in florid language. The question is: Are judges competent to do it? Chief Justice of India S. H. Kapadia, while delivering the Motilal Setalvad Memorial Lecture, diagnosed the disease properly and cautioned his colleagues against breaching the doctrine of separation of powers: We do not have the competence to make policy choices and run the administrationUnder the doctrine of separation of powers, each of the above organs must stay within the powers allocated by the constitution. Justice Kapadia rightly raised the issue of accountability. If one examines all the above cases it is pretty clear that judicial activism is against the legislative 13

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs hegemony but the question may arise is it against democracy? Legislative is a democratic body. It gains the authority from the people. On the other hand judiciary has no popular mandate backing it. It is an independent authority. So by principle judiciary ratifying the legislature is against the principle of democracy. But arriving any such conclusion is not an easy task. There are many a loopholes in such straight forward criticism. Suppose the legislature makes the law which affects the liberty of people and which is a gross violation of human rights. In this case does the judiciary remain silent and follow the rule of law principle even if the law is inhumane? This is a question which has far reaching significance. There is no absolute solution for this. To analyze this one needs to reinterpret the word democracy itself. In America, judges are chosen on ideological grounds by the presidents who are grilled by the Senate live on television. Thus, people know the ideological commitments of the person going to be appointed judge of the Supreme Court. Still, they tenaciously stick to the constitution. While in India, judges are apolitical and they have to interpret laws strictly within the mandate of the constitution. In the black money order, the court has clearly overstepped on the ground of protecting the fundamental right to equality (Article 14) and the right to life and personal liberty (Article 21). Laws hands are long and some kind of amorphous connection can always be established with these rights to justify judicial intervention. Judicial activism earned a human face in India by liberalising access to justice and giving relief to disadvantaged groups and the havenots under the leadership of Justices V.R. Krishna Iyer and P.N. Bhagwati. The courts on several occasions have issued directions in public interest litigation (PIL) covering a wide spectrum such as road safety, pollution, illegal structures in VIP zones, monkey menace, dog menace, unpaid dues by former and serving legislators, nursery admissions, and admissions in institutions of higher learning. There is no doubt that sometimes these orders are triggered by righteous indignation and emotional responses. The common citizens have discovered that the administration has become so apathetic and non-performing and corruption and criminality so widespread that they have no recourse except to move the courts through PIL, enlarging the field for judicial intervention. If a citizens child is attacked by a stray dog or cattle roam the streets or hospitals suffer from monkey menace and nothing is done, should not the court intervene? Sandeep Dogra

IAS

PCS

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Prohibition of Child Marriage Act 2006 The Government of India enacted the Prohibition of Child Marriage Act (PCMA) 2006, which will have under its ambit all the States and Union Territories of India except the State of Jammu & Kashmir. The Act also applies to all citizens of India without and beyond India. Under the PCMA 2006, every child marriage is voidable at the option of the contracting party who was a child at the time of the marriage, within two years of the child attaining majority. PCMA 2006 replaced Child Marriage Restraint Act (CMRA) of 1929. PCMA was notified in the Gazette of India on 11 January, 2007 and has been enforced 1 November, 2007. Naresh Chandra Committee Naresh Chandra Committee, a 14-member task force on national security, submitted its report to the government on 8 August 2012. The committee was set up by the Union government on 21 June 2012 to suggest ways to revamp of defence management in the country. Naresh Chandra, a former bureaucrat, headed the committee which members included former military officers, intelligence chiefs, diplomats and strategic analysts. Air Chief Marshal (retired) S. Krishnaswamy, General (retired) VR Raghavan, the former Department of http://upscportal.com Atomic Energy chief Anil Kakodkar, Admiral (retired) Arun Prakash, the former R&AW head KC Verma, the former Union Home Secretary V.K. Duggal, G Parthasarathy, former diplomat, and senior journalist Manoj Joshi were the other members in the committee. The main objective behind the constitution of the committee was to contemporarise the Kargil Review Committees recommendations, which was tabled in the Parliament on 23 February 2000. Besides, the task force was also asked to examine the state of countrys border management and restructuring system. Kargil Review Committee The Kargil Review Committee (KRC), headed by the late K. Subrahmanyam, had submitted its report a decade back. The recommendations made by the committee had paved the way for the setting up of a Group of Ministers which had suggested massive reforms in the countrys security management system. The KRC is 15

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs considered to be the first major attempt at revamping the countrys security after Independence. Death Sentence of Ajmal Amir Kasab Upheld Supreme Court of India on 29 August 2012 upheld the death sentence of Mumbai terror attack convict Ajmal Amir Kasab. Upholding the death sentence of Kasab the Supreme Court bench of Justice Aftab Alam and Justice CK Prasad held that waging war against the country was the primary and foremost offence committed by the Pakistani terrorist. Kasab along with nine other Pakistani terrorists had executed the countrys one of the deadliest terror attack on 26 November 2008. They had travelled from Karachi by sea and had gone on a shooting spree at various city landmarks including Taj palace hotel, in which 166 people were killed. While Kasab was captured alive, the other eight terrorists in his group were killed by security forces during the counterterror operations. The Apex Courts order came after hearing to a petition filed by Kasab against the Bombay High Courts decision to uphold his death sentence awarded by a special court. Since no advocate was ready to take the case, Raju Ramchandran, senior Supreme Court lawyer, was appointed the Amicus Curiea by the court. Kasab was awarded the death sentence by a special anti-terror court on 6 May 2010 on charges of criminal conspiracy, waging war against the nation and various other provisions of the Indian Penal Code and the antiterror law, Unlawful Activities (Prevention) Act. Later on 21 February 2011, the Bombay High Court had upheld the special courts verdict on 19 different charges under the IPC, the Arms Act, the Explosives 16 Act, the Explosive Substances Act, the Foreigners Act, the Passport Act and the Railway Act. With the Supreme Court dismissed his mercy petition, Kasab can move to the President of India seeking mercy. President of India holds the authority to pardon a death convict. As the Supreme Court confirmed his death sentence, became the 309th prisoner on death row in India. If executed, he will be the 52nd person to be hanged after India got independence. Rs. 14,000 crore fixed as base price for 2G spectrum The Union Cabinet on Friday fixed a reserve (minimum) price of Rs. 14,000 crore for 5 MHz of panIndia 2G spectrum in the 1800-MHz GSM band for auctioning spectrum to be vacated by companies whose 122 licences were cancelled by the Supreme Court on February 2, 2012. The reserve price for 5 MHz of CDMA spectrum has been put at Rs. 18,200 crore, 1.3 times the price of GSM spectrum. Only two slots of 5 MHz each will be put on the block, though spectrum will be available for bidding in multiple blocks of 1.25 MHz. Taking a bold political decision, the government shaved $750 million, or roughly Rs. 4,100 crore, off the roughly Rs 18,000-crore reserve price recommended by the Telecom Regulatory Authority of India (TRAI). Winners in the auction are required to make an upfront payment of just one-third of the total bid amount for GSM spectrum and one-fourth for CDMA spectrum, with the rest to be paid after a two-year moratorium in 10 equal, annual instalments. The government has retained the present slabs for spectrum usage charge, which ranges from 2 to 8 per cent, depending on the quantum of spectrum held by the operator. Ultimatum to Social Networking Site Twitter The DEIT (Department of Electronics and Information Technology) on 21 August 2012 issued an ultimatum to social networking site Twitter to block nearly 30 of its WebPages, which continue to host morphed and inflammatory content or face punitive action. The government served the ultimatum on Twitter as it failed to comply with the government order to block 28 web-pages on its site. Government had already ordered blocking of 310 webpages, which showed morphed and inflammatory contents which allegedly incited Muslims in India against people of the Northeastern region resulting in to the mass exodus of the latter from places in Tamil Nadu, Karnataka, Karnataka and Maharashtra. Guidelines for Media Reporting on Children The Delhi High Court approved the guidelines for media reporting on children which stipulates various curbs including that the identity of kids be not revealed under any circumstances while covering stories of sexual offences, elopement and drug abuse. A committee, appointed by the court in February 2012, had submitted the guidelines before a bench of Acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw. The Committee set the guidelines that the media shall ensure that a childs identity is not revealed in any manner, including but not limited to, disclosure of personal information, photographs, school or locality and information of the family including their residential or official address. http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Move to declare SIMI as an Unlawful Organisation A special tribunal in its decision pronounced approved the Ministry of Home Affairs (MHA) move to declare Students Islamic Movement of India (SIMI) as an unlawful association. The tribunal headed by sitting Delhi High Court Judge Justice VK Shali submitted its report to the Union Home Ministry. The tribunal was constituted to decide whether there was sufficient cause for declaring the association unlawful. The Union Home Ministry on 3 February 2012 had extended the ban on SIMI for another two years. SIMI was first designated as an unlawful association on 27 September 2001, given its alleged involvement in the numerous terrorist incidents in the country. The organization also believed to have a close rapport with dreaded terrorist organization like Lashker-e-Taiba. SIMI was founded by Mohammad Ahmadullah Siddiqi on 25 April 1977, in Aligadh, Uttar Pradesh. The organization was banned under the provisions of the Unlawful Activities (Prevention) Act, 1967. SIMI appealed against the ban in various courts including Special Unlawful Activities (Prevention) Act tribunals, but it was not given any respite. Though a special tribunal in August 2008 had lifted the ban on SIMI, but the ban was soon restored by the then Chief Justice of India KG Balakrishnan, on 6 August, 2008. Maharashtra recorded the Maximum Number of Deaths due to SAEs during Drug Trials According to data disclosed by the Drug Controller-General of India, during the period (January 2008January 2012), India recorded 2061 http://upscportal.com Gujarat, Punjab and Haryana. The overall kharif sowing is lower by 56.03 lakh hectares compared to the normal area, with a shortfall in the cultivation of rice, coarse cereals and pulses largely in Karnataka, Rajasthan and Gujarat. Apart from this, an interim assistance of Rs. Thirty eight crore for supply of drinking water would be given to Karnataka, Maharashtra and drug trial-related deaths. Maharashtra recorded the maximum number of 268 deaths due to SAEs (Serious Adverse Events) during drug trials while Madhya Pradesh recorded the least number of such deaths. It is followed by Andhra Pradesh-153, Delhi/National Capital Region -97, Gujarat -87 and Karnataka -78. The number of deaths in Maharashtra was over 10 times that of Madhya Pradesh. 1900 Crore Rupees Allocated to Rain Deficient States The union government announced a financial assistance of 1900 crore under various schemes for the rain deficient states. It also extended a diesel subsidy of fifty percent to farmers to save the standing crops through groundwater irrigation which would be shared between the centre and the states. The decisions were taken at the meeting of the Empowered Group of Ministers (EGoM). The meeting was chaired by Agriculture Minsiter, Sharad Pawar. Amongst the states facing the problems are Parts of Karnataka, Maharashtra, Rajasthan, Rajasthan. 32 People convicted in Naroda Patiya Riot Case A special court convicted 32 people, including former Gujarat Minister Maya Kodnani and Bajrang Dal leader Babu Bajrangi in the 2002 Naroda Patiya riots case. The communal riot in Naroda Patiya in Gujarat had claimed the lives of 97 people from the minority community. Kodnani, a three-time BJP MLA from Naroda area and Bajrangi were held guilty under sections 120 (B) (criminal conspiracy), 302 (murder) and 307 (attempt to murder) of IPC in the post-Godhra riots case. The court acquitted 29 other accused in the same case as it didnt find any solid evidence against them. The court will award the punishment to all the convicts on 31 August 2012. The trial in the case began in August 2009 and charges were framed against 62 accused. The massacre in the Naroda Patiya area had taken place a day after the Godhra train burning incident of 27 February 2002. On February 28, 2002 when a bandh call was given by the Vishwa 17

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs construction of around 2,00,000 apartments in various projects in the Noida Extension area of Greater Noida. NCR planning board comes under the ministry of urban development, Government of India. The board was constituted in 1985. Ban on Mining Activities in Karnataka to continue Hindu Parishad (VHP), a large crowd gathered in the Naroda Patiya area and attacked people belonging to minority community that resulted in the death of 97 people while 33 others were injured in the violence. Greater Noida Master Plan 2021 approved The NCR (National Capital Region) Planning Board on 24 August The Supreme Court of India ruled that it would not allow resumption of mining activities of iron ore in Karnataka unless there is a statutory compliance and full implementation of reclamation and rehabilitation measures. A special forest bench comprised of Justice Aftab Alam, K.S. Radhakrishnan and Swatanter Kumar accepted all recommendations of August 16 report of the apex court-appointed cooperate in the implementation of the suggestions. The Supreme Court was hearing to a petition filed by an NGO Samaj Parivartana Samudaya. against the illegal mining and encroachment of forest areas in the state. Senior advocate Prashant Bhushan appeared for NGO. An alleged 35 lakh metric tons of iron ore have been illegally exported by private firms in Karnataka. Accepting the recommendations of CEC, the Supreme Court on 13 April 2012 had suspended new mining leases in Bellary, Tumkur and Chitradurga districts of Karnataka unless rehabilitation plans for the existing leases were executed. Better Healthcare for Bhopal Gas Tragedy Victims ordered In an order passed, the Supreme Court of India directed the government to make all the medical records of Bhopal Gas victims computerised and issue health booklets and smart cards to each victim. The courts directive came as it seek to ensure better healthcare and proper implementation of relief and rehabilitation programme for thousands of victims of worlds worst industrial disaster. The Apex Court Bench of Chief Justice SH Kapadia and Justices AK Patnaik and Swatanter Kumar passed the order on a petition filed by the Bhopal Gas Peedith Mahila Udyog Sanghathan. An Empowered Monitoring Committee will be set up to carry out the courts order. The committee will undertake the tasks such as making medical surveillance operational, computerisation of medical information, publication of health booklets, etc. It will also ensure that health booklets and smart cards are provided to each victim irrespective of where such victim is being treated. http://upscportal.com

2012 approved the controversial Greater Noida Master Plan 2021. This will allow builders to restart 18

Central Empowered Committee (CEC). The Apex Court directed the authorities in Karnataka to fully

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Central Academy for Police Training in Bhopal The Union Government approved the setting up of Central convening a meeting of the Cauvery River Authority, headed by the Prime Minister. When senior counsel C.S. Vaidyanathan, appearing for Tamil Nadu, insisted on a direction to was not entrusted to any senior law officer. Tamil Nadu received only 3.604 tmcft as on August 8 in the Mettur reservoir, against the stipulated quantum of 64.706 tmcft and even on an application of the distress-sharing formula, Tamil Nadu ought to have received at least 28.978 tmcft at Mettur. New Free Drug Policy In a policy aimed at benefitting countrys 120 crore population, the Union Government of India on 4 July 2012 unveiled the 5.4 billion dollar free drug policy. Under the new policy, every citizen of the country will be provided free medicines in

Academy for Police Training (CAPT) in Bhopal at a cost of 492 crore rupees. The government also approved the creation of one post of Director, CAPT in the rank of Inspector General of Police. A total of 492 crore rupees has been allocated by the government under the 12th Plan for the CAPT. The proposed academy will also train trainers for police officials directly recruited by the states through their public service commission. The Madhya Pradesh government will provide about 400 acres of land in Bhopal for setting up the academy. Supreme Court flays Centres apathy to Cauvery issue The Supreme Court, while expressing displeasure at the lack of sensitivity on the part of the Centre on the Cauvery issue, has directed it to respond to Tamil Nadus plea for http://upscportal.com

Karnataka to release water, a Bench of Justices D.K. Jain and Madan B. Lokur said it would pass orders after getting the responses of the Centre and that State, due in 10 days. Further hearing is posted to September 3. In a brief order, the Bench said: Before we pass orders on applications filed by Tamil Nadu, we would require the Union of India to place before us its response to the application, particularly to a personal request made by the Chief Minister [Jayalalithaa] to Prime Minister Manmohan Singh in her letters [for convening the CRA]. Despite the orders of this court on February 8, 2003, only one CRA meeting took place on February 10, 2003 but no decision was taken on water sharing on the basis of the distress formula (evolved by the Cauvery Monitoring Committee), the Bench noted. It also pointed out that though a copy of Tamil Nadus application was served on the Centre (on July 21), this case

all public health centres spreaded across the country. As the Ministry of Health and Family Welfare kept branded drugs out of this policy, the patients will be given only generic drugs. The policy which will remain effective over the next five years will provide a much needed support to nearly 40 percent people of the country, which spends 1.25 dollar or less a day on health. The new free drug policy marks the first of its kind endeavour by the government of India to address the grim health services condition in the country. India spends about 1.2 percent of its annual GDP on health, making it a country with least spending on public health services. The country also has a high infant mortality rate as 66 of per 1000 children die before the age of 5, compared with 19 in China and 19

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs 21 in Brazil. If the report of Organisation for Economic Cooperation to be believed, only seven countries in the world have got their public health expenditure less than India in terms of GDP percentage. National Policy for Children 2012 The Ministry of Women and Child Development drafted t h e National Policy for Children 2012. The revised draft policy reaffirms the governments commitment towards children and addresses new challenges, seeking to realize the full potential of childrens rights throughout the country. It defines a child as a person below eighteen years of age, and acknowledges the inalienable and inherent rights of the child and aims to realize the full range of child rights for all children in the country. The draft has stated that every child has a right to be safeguarded against hunger, deprivation and malnutrition. According to the draft policy, the state is bound to secure the rights and entitlement of children in difficult circumstances such as migration, displacement, disasters and communal violence. The first National Policy on Children was formulated in 1974. The first policy of 1974 described children as a supremely important asset and made the state responsible for providing equal opportunities for growth and development of all children. The policy primarily focused on health and education of the children. 20 Proposal to make Rape a Gender-Neutral Offence The Union cabinet approved a proposal that seek to make rape a gender-neutral offence. With the cabinet giving its nod to the proposal, now, the word rape will be replaced with sexual assault. Under the current definition of rape (Section 375 of Indian Penal Code) a man is said to commit rape when he has sexual intercourse with a woman against her will. The amendment will expand the definition to cover male victims of sexual assault. The cabinet also approved a proposal which said the IPC will have a separate section (326-A) that would cover injury, hurt, burns and disfigurement of any body part of a person (male or female) by acid. The offence would draw a punishment of 10-year imprisonment and a penalty of 10 lakh rupees. The cabinet further decided to change the definition of a minor. At present some sections of the IPC and the Criminal Procedure Code consider those below 16 as minor. Following the amendment a person below 18 would be considered as minor. The age of consent has also been raised from existing 16 years to 18 years. However, it is proposed that the sexual intercourse by a man with own wife being under sixteen years of age will not be considered as sexual assault. Government to re-fix the Pay Scale of Army Officers The Supreme Court of India on 4 September 2012 directed the Union Government of India to re-fix the pay scale of army officers affected by the Fourth Pay Commission. It would now entail a payout of 1600 crore rupees to the exchequer. The Supreme Court also directed the government to pay interest at the rate of 6 per cent from 1January 2006, to all the officers, whether or not they have filed any petition before any of the High Courts or Benches of Armed Forces Tribunal. The bench directed that all pending petitions before any of the High Courts or Benches of Armed Forces Tribunal, by similarly-placed officers, will be governed by this order. A three-judge bench of justices- R M Lodha, T S Thakur and Anil R Dave, passed the order while dismissing an application filed by the Centre for recall and modification of 8 March 2010 order. Bimal Gurung sworn in as the Head of Gorkhaland Territorial Administration The Gorkhaland Territorial Administration (GTA), a semiautonomous body for trouble-torn Darjeeling hills in West Bengal, sworn in. The 50-member body was administered oath by West Bengal Governor MK Narayanan in presence of Home Minister Sushil Shinde, West Bengal Chief Minister Mamata Banerjee and Railway Minister Mukul Roy. Bimal Gurung, President of Gorkha Janmukti Morcha (GJM), will head the first elected body of the GTA. The 50-member body will consists of 45 elected candidates and 5 nominated candidates. The Gorkha Janmukti Morcha (GJM) had emerged victorious on all 45 seats in the Gorkha Territorial Administration (GTA) election. The party won 28 seats out of 45 uncontested while, the voting for remaining 17 GTA seats were held http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs on 29 July 2012 and results were declared on 2 August 2012. Gorkhaland Territorial Administration is the successor of Darjeeling Gorkha Hill Council which came into existence in 1988. Gorkhaland Territorial Administration was the result of three-year long agitation by Bimal Gurung led Gorkha Janmukti Morcha for separate Gorkhaland state. The agitation which kicked off in 2007 culminated with the formation of GTA in 2011. In 2011, when Mamta Banrjee led Trinmool Congress stormed to power in West Bengal, three sides viz. Union Government, West Bengal Government and GJM inked a tripartite agreement with respect to the formation of GTA. The West Bengal Legislative Assembly had passed a legislation for the formation of Gorkha Land on 2 September 2011. According to the legislation the GTA will have administrative, executive and financial powers but no legislative powers. Relaxation in Policies Related to Transfer of Government Land approved The Union Government of India approved relaxation in policies relating to transfer of government land. The objective of the policy is to speed up private-public partnership in the country and to fast-track pending infrastructure projects. The decision will ensure that infrastructure projects are not held up for procedural delays. A ban was imposed in 2011 on transfer of government-owned land to any entity except in cases where land was to be transferred from one government department to another.This ban however excluded the cases where the land was to be transferred from one government department to another. The policy has http://upscportal.com also been relaxed for all land transfers from ministries to statutory authorities or PSUs (Public Sector Units). Besides, the government allowed use and development of railway land by Rail Land Development Authority (RLDA), as per the provisions of Railways Amendment Act, 2005. SC notice to Centre, States on 55,000 missing children The Supreme Court on Thursday issued notice to the Centre and all the state governments on a PIL seeking its direction to them for tracing 55,000 missing children in the country. Agreeing to hear the public interest litigation (PIL), a bench headed by Justice Aftab Alam sought response from the Centre and States on the issue of the missing children. The order of the apex court came on a petition filed by an advocate, Sarwa Mitra. The State police machinery has failed to trace the missing children resulting in total extinction of life of these children. Further there is mutilation or amputation of arms, legs or pulling out of eyes or destruction of any other organ of the body of these children which lead them to spend miserable lives and compel them to engage in begging etc, Mitra said in his petition. The petitioner also submitted that, The State police has failed to investigate the cases of kidnapping and had failed to trace the missing children which is a total denial of right to life and liberty of these innocent children. Almost all the states have failed to solve the kidnapping of 55,000 children by organised gangs, Sarwa Mitra added in his petition. Complete Ban on Employment of Children The Union Government on 28 August 2012 cleared a proposal to put a complete ban on employment of children up to the age of 14 both in hazardous and non-hazardous work by amending an anti-child labour Act. The Union Cabinet, approved bringing amendment to the Child Labour (Prohibition and Regulation) Act, 1986, which has also penal provisions for non compliance.

As per the existing Act, children below 14 years of age are allowed to work in industries not considered to be hazardous. Children between 1418 years will also be defined as adolescents in the amended Act. The amendment will also fulfill the mandate of Right to Education to free and compulsory education for children in the age group of 6-15 years. It will also bring labour laws in the country in line with International Labour Organisation norms. The Union Cabinet also referred the Land Acquisition Bill, to a Group of Ministers (GoM). 21

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Ban on Import of Milk and Milk Products from China to continue The Food Safety and Standards Authority of India (FSSAI) recommended the extension of the ban till 23 June 2012 or until further orders, whichever is earlier. depiction of violence. The BCCC directed some channels that since these programmes were not suitable for telecast during general viewing hours, they should suitably modify the content and air such programmes during restricted viewing hours. The main concern was use of vulgar language by participants and the alleged obscene acts performed by them during the shows. BCCC is the non-news television industrys selfregulatory body. It was formed in July 2011. Union Cabinet approved the Launch of Satellite to study Mars The Union Cabinet on 3 August 2012 gave its consent to the launch of satellite to the Mars proposed in 2013. The Cabinet decision came following a meeting chaired by Prime Minister Manmohan Singh. The Department of Space had sent a proposal to the Union Cabinet, in which it had sought governments permission to launch a satellite to study Mars, also called Red Planet. The Indian Space Research Organisation (ISRO) is expected to launch a Mars Orbiter in November 2013 with a 25kg scientific payload. The Mars mission will be launched by ISROs advanced Polar Satellite Launch Vehicle (PSLV). The objective of the mission is to study the climate, geology, origin, evolution and sustainability of life on the planet. If the ISRO fails to launch the Mars Mission next year, other opportunites are available in 2016 and 2018. India has undertaken the massive space project with the help of United States, Russia, Europe, Japan and China. The mission is estimated to cost the government exchequer about 450 crore rupees. An initial allocation of 125 crore rupees was already made in the budget 2012-13. To Check Rumours, Bulk SMSs Banned Members of Parliament, cutting across party lines, on Friday sent out a strong and loud message to the northeast people that the whole country was for them and with them and that they need not have any apprehension about their safety. Like any other citizen, they have every right to study, work and reside in any part of India. Prime Minister Manmohan Singh intervened in both the Lok Sabha and the Rajya Sabha when the Houses took up for discussion, by suspending question hour, attacks on the northeast people and their exodus. He said the growing sense of insecurity among the northeast people was more reprehensible. Home Minister Sushil Kumar Shinde said he had directed intelligence personnel to trace the source of rumours and false information being spread against the northeast population through SMSs and websites such as YouTube and facebook. Union Home Secretary R.K. Singh said that to check rumours, bulk SMSs and MMSs have been banned for 15 days with immediate effect. No one would be allowed to send more than 5 SMSs at a time and more than 20 KB of data through mobile phones.During his intervention in the Lok Sabha, Dr. Singh, a Rajya Sabha member from http://upscportal.com

The notification for ban was issued by the Directorate General of Foreign Trade. The banned milk products include chocolate, chocolate products, candies, confectionery, food preparations with milk or milk solids as ingredient. The prohibition on import of milk and its products from China was imposed on 24 September, 2008 because the milk products imported from China contained melamine. Melamine is a banned substance injurious to health. BCCC asked TV Channels to be Extra-cautious while Showing Violence against Women The Broadcasting Content Complaints Council( BCCC) in its report submitted to the Information and Broadcasting Ministry, asked TV channels to be extra-cautious while showing violence against women. BCCC received almost half of the complaints related to obscene scenes during its first year of functioning. BCCC stated that during the period from 20th of June 2011 till the 2nd July 2012, out of the 717 specific complaints received, 47 per cent were on obscenity and nudity while 16 per cent were regarding 22

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Assam, said the northeast was a very sensitive region and whatever might have happened in Kokrajhar and other areas should not be used as an occasion to fan rumours. Communal harmony and unity and integrity were at stake and everyone should work to create an atmosphere to end rumourmongering. Raising the issue in the Lok Sabha, Leader of the Opposition Sushma Swaraj urged the government to set up helplines to assist the northeast people to air their grievances, and increase police patrolling to instil a sense of confidence among them. In the Rajya Sabha, Leader of the Opposition Arun Jaitley said a fear psychosis was being created among the northeast people and steps should be taken to end rumour-mongering. India Recorded 3.8 Percent Unemployment Rate in the Year 2010-11 According to the findings of unemployment survey conducted by the Labour Bureau of the Government of India, the country recorded 3.8 percent unemployment rate in the year 2010-11. The earlier figure (2009-10) was 9.4 percent. The survey was conducted in all 28 states and 7 Union Territories. The findings of the survey were released. As per the survey report the official unemployment rate of the country was 3.8 percent, with urban unemployment and rural unemployment stood at at 5.1 percent and 3.5 percent respectively. Women unemployment at 6.7 percent stood significantly ahead of men unemployment rate which stood at 2.8 percent. The report stated that of those with a livelihood, the majority were selfemployed or casual labour. While 48.6 per cent were self employed, 31 per cent were casual labour. http://upscportal.com On the basis of social stratum the rates of employment for the SC, ST, and OBC groups stood at 55.9 per cent, 59.7 per cent, and 53.3 per cent respectively, as compared to 48.5 per cent for the general category. The unemployment rate was found maximum in states such as Goa (16 percent), Kerala (9 percent) and West Bengal (7 percent), while Gujarat (1 Percent) had the lowest number of unemployment rate. Less developed states such as Bihar, Odisha and UP also recorded a moderate unemployment rate. The data was collected from a sample of 128298 households, while the size of the sample of previous survey was fourth of this size. Tamil Nadu allowed to carry out Small Maintenance Works on the Mullaperiyar Dam The Supreme Court of India allowed Tamil Nadu government to carry out repair and maintenance works on the Mullaperiyar dam. However, the court instructed that the repairing and maintenance work is to be carried out in the presence of the Superintending Engineer of Kerala and an independent member nominated by the Chairman of the Central Water Commission. A fivejudge Constitution Bench of Justices DK Jain, RM Lodha, Deepak Verma, CK Prasad and Anil R Dave gave the verdict after hearing an application filed by Tamil Nadu government for the courts permission to carry out certain maintenance works. Mullaperiyar Dam The Mullaperiyar Dam is constructed on the Periyar River in Kerala. The dam was constructed by the British government in 1895, to feed the water need of Tamil Nadu. The dam is located 2889 feet above mean sea level on the Cardamom Hills of the Western Ghats in Thekkadi, Idukki District in Kerala. The height of the dam is 176 feet while, its length is 1200 feet. The Periyar National Park is located around the dams reservoir. What is the issue? The past few years have witnessed a bitter disagreement between the Tamil Nadu and Kerala government over the safety of the

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs dam. Kerala has openly expressed its disagreement over the safety of the dam as it argues that dam is 117 years old and has well outlived the average life span of a dam that stretches out between 50 to 60 years. In the face of a disaster, it will be extremely difficult to prevent the loss caused by the breakage of dam. The rising concern over the safety of dam is mostly due to the insufficient safety maintenance and monitoring of the dam. The Kerala government argues that if the dam breaks, as it can in the event of a disaster like earth quake, it will cause a massive loss of lives and property. On the contrary, the Tamil Nadu government contends that if the dam cease to work it will create a severe water scarcity in five districts of the state, leading to a draught in the region. National Crime Record Bureau released the Crime Statistics for 2011 According to the latest crime statistics, released by National Crime Record Bureau (NCRB) - the statistical arm of Indian Police under ministry of home affairs (MHA) on 3 July 2012, rape with 24206 cases in 2011, emerged as the biggest crime in India in India. NCRB had started recording the cases of rape in 1971, while other cognizable offences have been recorded since 1953. Madhya Pradesh with 3406 rape got the maximum number of rape case registered in the country followed by West Bengal which recorded 2363 rape cases in year 2011. Uttar Pradesh and Rajasthan came next with 2042 and 1800 cases respectively. Kidnapping and abduction was the other major crime in the country followed by murder and riots. Crime like feticide also witnessed a rise as there were 132 cases of feticide reported in the country in 2011, while the number stood at 111 in year 2010. Madhya Pradesh with 38 feticide cases topped the list of state with maximum number of feticide cases. The state was followed by Chhattisgarh, Punjab, Rajasthan and Uttar Pradesh with 21, 15, 13 and 12 cases respectively. Number of farmers suicide also went up in 2011, as nearly 14027 farm suicide cases were reported in the entire year. Adding the total number of suicide cases reported in 2011, the total number of farm suicides since 1995 has touched 270940. Maharashtra, Karnataka, Andhra Pradesh, Chhattisgarh and Madhya Pradesh saw the maximum number of farmers taking their lives. Northeast people flee Bangalore Thousands of panic-stricken people of the northeast living here boarded trains, headed to Guwahati, following rumours of violence targeting them. This even after Karnataka Home Minister R. Ashok visited the Bangalore Central railway station and made repeated appeals to the thronging crowds to stay put in Bangalore, which has a substantial number of northeastern migrants, including students and working professionals, in the services and security sector. In view of an unprecedented demand for tickets late on Wednesday evening, the South-Western Railway decided to run two special trains, apart from the scheduled Bangalore-Guwahati Express, beyond 11 p.m.

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Objective Questions
5.

1. Consider the following statements about EGOMs (empowered group of minister) a. Mr. A.K. Antony will now chair the EGOMs on gas pricing & ultra mega power project. b. Mr. P. Chidambaran will now head the EGOM, on the Civil Aviation, Prasar Bharti. Which of the above statement is/ are correct? (a) Both 1 & 2 (b) Only 1 (c) Only 2 (d) Non of these 2. Who is headed the Panel to amend the Rivers Board Act to facilitate holistic development of water resources with a river has in a unit? (a) Justice T.S.D. Doabia (b) Justice P. Vaidyanathan (c) Justice K. Ganguli (d) Justice T.R. Ramchandran 3. Consider the following Statements. 1. The Government of India had reduced the duration of SAARC Visa exemption Striker (SVES) from one year to three months. 2. The Private Sector to bear the brunt of the discriminatory treatment of SVES as it has been expelled from some category in the newlyimplemented visa scheme. Which of the above statement are correct? (a) 1 Only (b) 2 Only (c) Both 1 and 2 (d) Neither 1 nor 2 4. Consider the following statements about Collegium system. 1. The centre is planning to revisit the 1993 Supreme Court Judgment providing for the Collegium system of Judicial appointment 2. Under the collegium system the executive has no say in appointments as the recommendations of the collegium of Judges are final & binding on the Government Which of the above statement are true? (a) Both 1 And 2 (b) Only 1

6.

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8. 9.

10.

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13. 14.

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(c) Only 2 (d) None of these Which authority has initiated & formulated the Guidelines for Eco tourism ? (a) P. M. O (b) National Tiger Conservation Authority (c) Environment & Forest Ministry (d) National Green Tribunal Indian Institute of Advance studies is situated in ? (a) Shimala (b) Solan (c) Palampur (d) Manali Currently who is the Secretary General of Lok Sabha ? (a) Subhas Kasyap (b) Meera Kumar (c) T. K. Visvanathan (d) T. Rangachari Right to Life is mention in article (a) Art. 21 (b) Art. 24 (c) Art. 29 (d) Art. 32 Hemavati, Harangi, Kabini are the reservoir of (a) Krishna (b) Cauveri (c) Narmada (d) Godavari Indian Institute of Soil Science is situated in (a) Bhopal (b) Ranchi (c) Jaipur (d) Lucknow Cauvery River Authority is headed by (a) Prime Minister (b) Water Resources Minister (c) Water Resources Secretary (d) Home Minister The Presidential reference moved by the Union Goverment to invoke the advisory Jurisdiction of the Supreme Court under (a) Article 143 (b) Article 124 (c) Article 149 (d) Article 182 ASHA is related to (a) MGNREGA (b) NRHM (c) JNNURM (d) RAY The National Ganga River Basin Authority is Currently headed by (a) G. K. Pillai (b) B. K. Chaturvedi (c) Kapil Sibbal (d) P. Chidambaram Rastriya Sanskrit Vidyapeeth (a Deemed University) is situated in (a) Chennai (b) Tirupati

(c) Lucknow (d) Haridwar 16. Sasan Ultra Mega Power Project is situated in (a) Maharastra (b) U.P. (c) M.P. (d) Karnataka 17. Who chaired the High level Commitee on the social, economic & educational status of the Muslim Community of India ? (a) Wazat Habibullah (b) Justice (Retd) Rajender Sachar (c) Justice (Retd) S.K. Ganguly (d) None of these 18. CAG of India Raise finger of 186,000 crore hole in exechequer to allocation of (a) Spectrum (b) KG Basin Block (c) Coal Blocks (d) License for Green field Airports 19. In which North-east State(India) you will found 90% Christian population in total population ? (a) Manipur (b) Meghalaya (c) Sikkim (d) Nagaland 20. Vishakha Judgement given by the bench of Supreme Court in 1997 is related to (a) Sexual harassment in the workplace (b) Reservation for women in the government jobs (c) Protection of Dalit women (d) None of these

Answers
1. 3. 5. 7. 9. 11. 13. 15. 17. 19. (a) (c) (b) (c) (b) (a) (b) (b) (b) (d) 2. 4. 6. 8. 10. 12. 14. 16. 18. 20. (a) (a) (a) (a) (a) (a) (b) (b) (c) (a)

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International
16th Non-Aligned Movement (NAM) Summit was held in Tehran The 16th NAM (Non-Aligned Movement) summit was held at Tehran, Iran on 30-31 August 2012.The theme of the summit w a s Lasting Peace through Joint Global Governance. At the Tehran Summit , the Chairmanship of NAM was passed on from Egypt to Iran in accordance with the NAMs practice of regional rotation.The NAM meeting in Tehran was held in three phases: preparatory senior officials meeting on 26-27 August, ministerial level meeting on 28-29 August, and the summit on 30-31 August. Heads of the government from over 100 countries participated in the Tehran Summit to discuss the new global challenges. At the end of the summit, the outcome documents were adopted which put emphasis on peace. Participants called for fundamental changes in global governance and collective management of the world as the precondition of establishing peace, and all of them expressed the call for avoiding conflicts in the world. Venezuela was selected the host for the 17th NAM Summit in 2015 and two nations, namely Azerbaijan Republic and Fiji, were accepted as the new members of the organization. The NAM was founded in the former Yugoslavia in 1961. It represents almost two-thirds of the UN members and about 55 percent of the world population. Indias stance at Tehran Summit India expressed support for popular aspirations for a democratic order in Syria while cautioning against external intervention. India urged NAM to take a clear stand on Syria.

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs UN Millenium Development Goal 2012 Report United Nations Secretary General Ban Ki-moon released United Nations Millennium Development Goal 2012. The report noted that three important targets on poverty, slums and water have already been met three years ahead of 2015, the target year. On the front of poverty, the report stated that for the first time since poverty trends began to be monitored, both the number of people living in extreme poverty and the poverty rates have fallen in every developing region including subSaharan Africa, where rates are highest. Preliminary estimates indicate that in 2010, the share of people living on less than a 1.25 dollar a day dropped to less than half of its 1990 value. The target of providing clean drinking water to a substantial population of the world also saw a considerable achievement as the proportion of people using improved water sources rose from 76 per cent in 1990 to 89 per cent in 2010, which means more than two billion people across the world today have the access to sources of clean drinking water. In developing world the share of urban population living in slums came down to 33 per cent in 2000 from 39 per cent in 2000. The millennium development goal asserted that the developing countries have also marked considerable achievements in education as many more of the worlds children are enrolled in school at the primary level, especially since 2000. Girls have benefited the most. On the front of AIDS control, the developing countries have achieved tremendous fate as at the end of 2012 nearly 6.5 million people in the developing countries were http://upscportal.com receiving the antiretroviral therapy for HIV AIDS. What is UN Millenium Development Goal? The UN Millennium Development Goal Report presents the most comprehensive global assessment of progress to date, based on data provided by a large number of international organizations within and outside the United Nations system. The aggregate figures in the report provide an overview of regional progress under the eight goals and are a convenient way to track advances over time. The report is coordinated and published by the Statistics Division of the United Nations Department of Economic and Social Affairs. The Millennium Development Goal has its origin in the Millennium Declaration produced by the United Nations following the Millennium Summit in 2000. The Declaration asserts that every individual has the right to dignity, freedom, equality, a basic standard of living that includes freedom from hunger and violence, and encourages tolerance and solidarity. In order to achieve its target of providing every individual a basic standard of living along with freedom, equality, the member nations had adopted the Eight goals which has to be achieved by 2015. The eight areas which comprises the UN Millennium Development Goal are as follows: Goal 1 : Eradicate extreme poverty and hunger Goal 2 : Achieve universal primary education Goal 3 : Promote gender equality and empower women Goal 4 : Reduce child mortality Goal 5 : Improve maternal health Goal 6 : Combat HIV/AIDS, malaria and other diseases Goal 7 : Ensure environmental sustainability Goal 8: Develop a global partnership for development Ecuador Granted Wikileaks Founder Julian Assange Political Asylum The foreign ministry of Ecuador announced that Ecuador would be granting Wikileaks co-founder Julian Assange a political asylum on 16 August 2012. This decision will help Assange shield from being extradited from Britain to Sweden, where he is facing charges of rape and sexual molestation. Ecuador officially the Republic of Ecuador is a Representative democratic republic in South America, it is bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. In June 2012, Assange sought shelter in the Ecuadorian embassy in Britain after filing a petition seeking asylum from being extradited to Sweden. Assange claims that the accusations are a device of getting him to the US authorities so he could be indicted for divulging State secretes. Following this, Ecuador requested the British government to grant the embassy permission to fly Assange to Ecuador, but the British authorities have declined any such permission as of now. This decision

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs taken by the British government hasnt gone down well with Ecuador and both the nations have started a war of words on the social networking site called Twitter. Assange shot to fame in the year 2010 after he leaked a number of US diplomatic cables and videos regarding the war in Iraq and Afghanistan through Wikileaks. Following the incident, USA and other countries whose secrets were divulged jumped into considerable action. Assange and his team argue that the alleged sex crimes allegations and these accusations are untrue and falsely built up. Russia formally became a Member of the World Trade Organisation Russia formally became a member of the World Trade Organisation(WTO) on 22 August 2012 after 18 years of negotiations. Russia agreed to reduce import tariffs on goods, including food and cars and to relax controls on overseas companies entering its financial and telecom sectors. Russia will be the 156th member of the WTO. WTO requires that any country that seeks to benefit from it must apply the same trade rules to all member countries. Russia negotiated for membership for 18 years, beginning when the WTO was called the General Agreement on Tariffs and Trade. New Law Protecting the Prime Minister of Pakistan annulled Supreme Court of Pakistan on 3 August 2012 annulled the new law c a l l e d Contempt of Court Act 2012(COCA 2012) seeking to protect the Prime Minister from disqualification. A five-member bench of the Court headed by Chief Justice Iftikhar Chaudhry ruled that 28 the new law is unconstitutional and void with effect from the day it was enforced. The court found Section 2(a), Section 3, Section 4(4), Section 6(2&3), Section 8(1, 3 &5), Section 10(b), Section 11(3, 4 & 5), Section 12 and Section 13 of COCA 2012 as ultra vires the constitution of Pakistan. The Court also noted that under Article 204 read with Entry 55 of the Fourth Schedule to the constitution, the high courts and the Supreme Court have powers to punish any person who is found guilty of contempt of court, falling within the definition of contempt of court given in Clause (2) of Article 204 of the constitution of Pakistan. COCA 2012 was promulgated under Clause 3 of Article 204 of the constitution, which confers power on the legislature to make law to regulate the exercise of power by the Courts, and not to incorporate any substantive provision or defences as it has been done in the proviso. The court ruling said that powers of the courts were reduced by incorporating expression b y scandalising a judge in relation to his office whereas in Article 204(2) the word court has been used. The court further observed that incorporation of Article 248(1) in proviso (i) to Section 3 is tantamount to amending the constitution, which could not be done without following the procedure given in in articles 238 and 239 of the constitution. IAEA set up Special Task Force for Iran International Atomic Energy Agency (IAEA), the international agency for the monitoring of nuclear energy, on 29 August 2012 set up a special Task Force to handle inspections and other issues related to the Irans disputed nuclear programme. The Vienna based

agency is aiming at handling the sensitive Iran issue by deploying the experts and other resources under one unit. IAEA, which regularly inspects Irans nuclear sites, has voiced growing concern over the lrans nuclear program. Tehran, however, has argued that its nuclear programme is entirely peaceful and there is no any military dimension to it. Iran has been at the target of western nations for carrying out its nuclear plan. The western nations including US and European Union have been persuading Iran to stop its nuclear development programme to yield to vital result. Iran has been facing tough economic sanctions imposed by US and European Union. The Islamic state has dubbed the allegations made by US and its allies as ridiculous and maintained that the country has no military ambition behind its nuclear programme. SC of Pakistan granted 3 week Time to Prime Minister The Supreme Court of Pakistan on 27 August 2012 granted threeweek time to the Prime Minister Raja http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Parvez Ashraf in the show-cause notice for contempt of court regarding the implementation of National Reconciliation Ordinance (NRO). The Supreme Court, on 8 August 2012, issued a contempt notice to Prime Minister Ashraf for not implementing its order of writing a letter to the Swiss authorities to reopen a graft case against President Asif Ali Zardari. A five-judge special bench of Apex Court comprising Justice Asif Saeed Khan Khosa, Justice Ejaz Afzal Khan, Justice Ijaz Ahmed Chaudhry, Justice Gulzar Ahmed and Justice Muhammad Ather Saeed heard the case. If the Prime Minister fails to implement the Supreme courts order to write the letter to the Swiss authorities to reopen the graft case against President Asif Ali Zardari then he might also face the same fate like his predecessor Yusuf Raja Gilani. The apex court on 19 June 2012 had disqualified and ousted Yusuf Raza Gillani from holding the prime minister office in the contempt charge. Pakistans Kamra airbase breached Armed with heavy artillery and IEDs, terrorists breached Pakistan Air Forces Minhas Base in Kamra a two-hour drive from Islamabad in the early hours of Thursday. The attack was repulsed by early morning. All the nine terrorists involved in the assault were killed in the intensive gun battle that ensued on the sprawling base that is said to house a part of that countrys nuclear stockpile. The Tehreek-e-Taliban Pakistan (TTP) claimed responsibility for the attack to avenge the killing of alQaeda leader Osama bin Laden. Its spokesman told dawn.com that more than a dozen security personnel were killed and three JF-17 thunder aircraft http://upscportal.com destroyed. The PAF, however, maintained that only one soldier was killed, an officer injured and an aircraft damaged. Even after the gunfight was over, explosions could be heard from the airbase as security personnel detonated recovered IEDs in a controlled environment. The base in the North Punjab district of Attock is home to the Pakistan Aeronautical Complex where Mirage and the JF-17 thunder jets are assembled. It was attacked thrice in the past and a week ago The Express Tribune reported that TTP was planning an attack on the PAF base in Lahore and other facilities before Id to avenge the killing of their leader Ghaffar Qaiserani alias Saifullah in Dera Ghazi Khan. UNSC decided not to extend the UN Observers Mission in Syria The United Nations Security Council decided not to extend the mandate of UN Observers Mission in Syria. However, it has supported the idea of maintaining a political office in Damascus. The French Ambassador to the UN said in New York that the conditions to continue were not fulfilled. The mission will come to an end on 19 August 2012. and a significant reduction in the violence. UN stated neither condition had been met and Syria now risks a descent into a full-scale civil war. It virtually sealed the fate of UN Observer mission in Syria. Due to escalation in violence and risk to the lives of observers, the mission had to suspend its operations Mid way in June 2012. Organisation of Islamic Cooperation suspended Syrias Membership Organisation of Islamic Cooperation, the 57-member body of Islamic countries, suspended Syria from the organization. The decision to suspend Syria was taken despite Irans vociferous opposition, during the OIC summit meeting in the Saudi city of Mecca on 16 August 2012. The OIC move is aimed at pressurizing Syrian President embattled regime to cease violence against its own citizens. More than 20000 people have been killed so far in one of the bloodiest civil war in the history of Arab nations. In an statement issued at the end of the summit, OIC Secretary General Ekmeleddin Ihsanoglu said that the OIC decision is a strong message of Islamic Orgainsation to the troubletorn nation. The summit of the worlds largest Islamic bloc, which represents nearly 1.6 billion muslim population globally started on 14 August 2012 with the suspension proposal put

The UN Security council had set two conditions for extending the mission of the unarmed observers beyond 20 August 2012. These included a halt to the Syrian Governments use of heavy weapons http://www.civilservicesmentor.com 29

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs forward by a preparatory meeting of foreign ministers. Saudi King Abdullah presided over the meeting, attended by Iranian President Mahmoud Ahmadinejad whose country has openly criticised the push to suspend Syria. Earlier, Syria had faced suspension from Arab League in 2011 for supporting violence following the massive uprising against the current regime. Syrian President Bashar-alAssad had however termed the move as a plot of western countries against Syria. Organisation of Islamic Cooperation (OIC) Oragnisation of Islamic Cooperation, which was earlier known as Organisation of Islamic Conference came into existence on 25 September 1969. The 57-member body is headquartered Jeddah, Saudi Arabia. The bloc claims to be the representative of nearly 1.6 billion muslim population across the world. Arabic, English and French are the official language of the organization. Despite the fact that India represents about 10 percent of muslim population in the world, it has not been given the membership of the organization. Prime Minister of Pakistan summoned In a step towards contempt hearing, Pakistans Supreme Court on 8 August 2012 ordered the Prime Minister Raja Pervez Ashraf to appear before judges for he failed to write Swiss authorities to reopen corruption cases against the president Asif Ali Zardari. The court asked the PM to appear before judges on 27 August 2012 to explain his actions. Earlier on 3 August 2012 the apex court had nullified a legislation which sought to protect elected legislators from 30 contempt charges. It was believed that the legislation was meant to prevent court from disqualifying current Prime Minister from the office under contempt charges. The Supreme Court of Pakistan had removed Yousuf Raza Gilani from his post on 19 June 2012 after he failed to follow courts order to write a letter to Swiss authorities asking them to reopen corruption case against President Asif Ali Zardari. Gilanis lawyers had argued that President enjoyed immunity from prosecution in foreign courts while in office, making an approach to Swiss authorities impossible. The ruling coalition, led by the Pakistan Peoples Party, is aiming to become the first elected administration in Pakistans history to serve a full five-year term. But the current controversy, which could see Raja Parvez Ashraf also witnessing the same fate as that of his predecessor, might push the country for an early election. Elections in Pakistan are scheduled to take place in 2013, when the present government is set to complete its five-year term. US imposed Fresh Sanctions on Belligerent Iran In pursuit of its goal to debilitate Irans oil exporting economy, the US government on 2 August 2012 announced to impose some fresh sanctions on Iran. Sanctions, imposed under Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA), put punitive regulation on those who continued to maintain ties with Iran. Under the sanction Bank of Kunlun in China and Elaf Islamic Bank in Iraq faced cut off from transactions with US institutions. The two banks were punished for facilitating transactions worth millions of dollars on behalf of sanctioned Iranian banks. The new sanctions categorically target the Iranian energy and petrochemical sectors. The sanctions are aimed at preventing Iran from establishing payment mechanisms for the purchase of Iranian oil to circumvent existing sanctions, and utilises the existing structure of our sanctions law, including exceptions for significant reductions in the purchase of Iranian oil. Earlier this year India, China and a host of other nations had opposed US dictate to cut down their oil imports from Iran. US and European Union have come down heavily on Irans nuclear programme seeking all possible diplomatic methods to stop the belligerent nation to carry on its nuclear programme. Though the heavy sanctions imposed by the US and EU over Iran have not yielded them the desired result as Iran has thus far not gave up its plan to build nuclear armaments. Global Food Security Report The United Nations Environment Programme released its food security reportAvoiding Future Famines: Strengthening the Ecological Basis of Food Security through Sustainable Food Systems during Rio+20 Summit on sustainable development in Rio de Janeirio, Brazil on 20 June 2012 . The report noted that food security must

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs be at the top of the priority list of countrys policy if the world has to provide food to its seven billion population - a number expected to cross nine billion mark by 2050. The report, based on a study conducted by a team of researchers from Swedish Institute of Food & Biotechnology and the Food and Agriculture Organisation, pointed out that an astounding 1.3 billion tones of food is wasted every year. A staggering 220 million tones of food is wasted every year in North America and Europe alone, the report figured out. The UNEP report seeks to draw the attention of global community on key environmental aspects, which are largely being ignored by economic activities like overfishing, unsustainable water use and other human activities. The report also kicks off a debate with respect to the Green Economy and sought for a food security mechanism which does not undermine the crucial ecosystem services. The report, which has been written by a team of eleven scientists and experts, covered several areas of expertise including food consumption patterns, agricultural production, marine fisheries and inland fisheries. International organizations including the International Fund for Agricultural Development (IFAD), the Food and Agriculture Organization (FAO), the World Bank, the World Food Programme (WFP) and the World Resources Institute (WRI), also made their contribution in the first of its kind study, which links global food security to ecological system. Resolution to protect the Online Human Rights of Global Citizens United Nations Human Rights Council (UNHRC), the Geneva based http://upscportal.com human rights wing of UN, adopted a first ever resolution to protect the online human rights of global citizens. The resolution adopted by consensus, stated that citizens of the world are as much entitled to the human rights online as they are offline. The resolution noted that there can be no double standard with regard to peoples right of fundamental freedom and since internet makes a major part of present worlds communication process, all governments must endeavour to protect the online rights of its citizens. The landmark resolution was sponsored by Sweden and cosponsored by over 80 countries, that includes United States, Brazil, Turkey, Nigeria, and Tunisia. India, Iran and Afghanistan agreed for Transit Co-operation through Chabahar port India, Iran and Afghanistan agreed to work for expanding trade and transit co-operation through Chabahar port in Iran. The representatives of the three countries will meet in September 2012 to expedite the process. The move was finalized at a trilateral meeting of the top officials from the three nations. India was represented by Foreign Secretary Ranjan Mathai. Located in South East Iran, Chabahar port offers g r e a t opportunities in trade and commerce for India in Afghanistan and Central Asia. New Joint Special Representative of UN and Arab League for Syria Veteran Algerian diplomat Lakhdar Brahimi was appointed the new joint special representative of the UN and the League of Arab States for Syria on 17 August 2012. Brahimi, the former Algerian Foreign Minister, will replace Kofi Annan, who had stepped down as UN and Arab League joint special envoy to Syria on 2 August 2012. Brahimi, who served as Algerias foreign minister from 1991 to 1993, joined UN in 1994 and served various high profile positions until he retired in 2005. Brahimi also has a vast experience of working with Arab nations. He served as undersecretary-general of the Arab League from 1984 to 1991.He also served as the Arab Leagues special envoy to Lebanon from 1989 to 1991, mediating the end of a civil war in that country. Brahimis appointment to the high profile poition came a day after the UN Security Council decided to set up a new political liaison center in Damascus, the Syrian capital. The UN General Assembly adopted a resolution on 16 February demanding the heads of the UN and

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs the Arab League to appoint a special envoy for Syria, a country which has been troubled by prolonged tension and violence between antigovernment protesters and rebels and the forces loyal to President Bashar al-Assad. Former UN Secretary General Kofi Annan was appointed the UN and Arab Leagues joint special envoy to Syria on 23 February 2012. China signed Economic Agreements with North Korea China in the second week of August 2012 signed agreements with North Korea to increase the bilateral economic co-operation. The agreements were signed during a visit of senior North Korean official. should pay North Sudan to transport oil resulted in South Sudan suspending all oil production. The dispute badly affected the economies of both nations. South Sudan stopped oil production in January 2012 over the dispute and Sudan will receive 3bn dollars as compensation for revenue lost in that period. However, the agreement will be scrutinized further. When South Sudan was separated from the north in 2011, three-quarters of Sudans oil went with the former. The two countries also have outstanding border disputes. South Sudanese troops briefly occupied the disputed oil-rich border area of Heglig in April 2012. Sanctions on Laskar-eToibas Top Eight Commanders The United States of America on 31 August 2012 slapped sanctions on Pakistan-based terror group Lashkar-e-Toibas top eight commanders, including Mumbai terrorist attack mastermind Sajid Mir and its founder Hafiz Saeeds son. LeT, despite being designated as a foreign terrorist organisation in January 2002, continues to operate in Pakistan and throughout the region and engage in terrorist activities worldwide. LeT conducted numerous terrorist acts against Pakistani, Indian, Afghan and US interests and is responsible for the November 2008 Mumbai attacks that killed more than 160 people, including six Americans, and the July 2006 Mumbai train bombings that killed more than 180 people. The US decision to designate the Lashkar-e-Toiba as a terrorist organisation again and ban it is the vindication of the long standing Indian assessment of this particular group. The specific US reference to the role of the Lashkar in the Mumbai attack of November 2008 will place greater politico-diplomatic pressure on the Pakistani government to take action against Lashkar-e-Toiba. India, Afghanistan and Iran to set up Joint Working Group to spur Trade Iran, India and Afghanistan discussed options for investment in the Chabahar Port, located in southeast Iran. In a crucial trilateral meeting held on 26 August 2012 ahead of the Non-Aligned Movement (NAM) summit, the three nations agreed to set up a joint working group to spur trade and transit through the Iranian port of Chabahar. Foreign Secretary Ranjan Mathai held

The agreements included the development of two special economic zones in North Korea. One is in Rason, on North Koreas east coast and the other is in Hwanggumphyong on the border with China. Moreover, China and North Korea also signed agreements on agricultural co-operation and electricity supply. Sudan signed a Deal with South Sudan Sudan in the first week of August 2012 signed an agreement with South Sudan over oil payments. South Sudan agreed to pay Sudan just over 9 dollars per barrel to transport oil to its ports. The two nations held three weeks of talks in the Ethiopian capital Addis Ababa before reaching the agreement. The dispute over how much South Sudan 32

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs dialogues with deputy foreign ministers of Iran and Afghanistan in Tehran to explore ways to expand trade and transit cooperation, including investment, among the three countries, starting with the Chabahar Port. In a joint statement released after trilateral dialogue the three countries committed to meet within next three months at Chabahar to take the discussions forward. In another significant development Indian External Affairs Minister SM Krishna held bilateral dialogues with his Iranian counterpart Ali Akbar Salehi on 27 August 2012. The two leaders discussed issues related to trade and economy during the meeting. The two nations hoped to take their economic ties to a new level through increased cooperation in the economic sector. Iran is hosting the 16th Nan-Aligned Movement Summit in capital Tehran from 26 August to 31 August 2012. Myanmar abolished Censorship Myanmar government abolished censorship of the countrys media. The reporters would no longer have to submit their work to state censors before publication. Burma had begun censorship on media on 6 August 1964. The journalists were given permission to print without prior censorship and restrictions were lifted on 30000 internet sites, allowing users unrestricted access to political content for the first time. Newly Appointed National Assembly in Libya The ruling National Transitional Council (NTC) handed over power to the newly elected National Assembly on 8 August 2012 in a night ceremony in Tripoli, Libya. NTC Chairman, Mustafa Abdel Jalil passed http://upscportal.com on the responsibility to the oldest member of the new two hundred member assembly, Mohammed Ali Salim. Later, the congress members took an oath led by Mohammed Ali Salim. The new assembly will appoint a new interim Prime Minister to form the government and a sixty member panel to draft the new constitution of Libya. The NTC Chairman Mustafa Abdul Jalil and the oldest member of the body, Mohammed Ali Salim, also signed documents during the event. weapons in the fight against rebel forces. The resolution, drafted by Saudi Arabia, deplored the unrelenting bloodshed in Syria and demanded a peaceful political transition in the country. The resolution got 133 votes in favour in the 193-member body, while 12 voted against the resolution. 31 nations including India chose to remain absent during the voting. The fresh resolution is largely in line with the League of Arab States resolution which demanded Syrian President Bashar-al-Assad to step down from power and urged world community to severe diplomatic relations and ties with Syria. Syrian government, however, deemed the resolution as an attempt to jeopardize the regional peace and stability. Those who opposed the UN resolution including China, Iran, North Korea, Belarus, Cuba argued that putting pressure only on one party would not help resolve the Syrian issue and would instead derail the issue from the track of a political settlement. India abstained from voting after it found some of the provisions of the resolution contrary to its long held stance on the Syrian crisis. Provisions such as forced regime change and sanctions against the country India found particularly objectionable. Before deciding to abstain from the voting Indian Ambassador to the UN Hardeep Singh Puri had held several rounds of dialogue with his Saudi and Qatari counterparts to remove these provisions. Cases of New HIV Infections among Children declined: UNAIDS Report According to UNAIDS Report released, new HIV infections among children are declining at a steady rate. 33

The ceremony marked the first peaceful government transition of the country post Gadhafi seized power in Libya. The event was held on the twentieth day of Ramadan. Though the handover of power came in as a good news, Libya still struggles with its security concerns. Unknown individuals attacked the residence of the International Committee of the Red Cross in Misrata on 5 August 2012. None of the staff members inside the building at the time of the attack were registered hurt, but the building suffered extensive damage. NTC was announced in the city of Benghazi, Libya on 27 February 2011 to act as the political face of the revolution. United Nations General Assembly adopted Resolution on Syria The United Nations General Assembly on 3 August 2012 adopted a non-binding resolution that condemns Syrias use of heavy

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs The report noted that about 330000 children were newly infected in 2011, which indicated a 24 percent drop in the new HIV case among children since 2009. Report asserted that nearly 60 percent of the 1.5 million pregnant women living with HIV in poor countries received effective antiAIDS medications last year, which lowered the chances of passing on the virus to their babies. As per the report about 34.2 million people worldwide were living with the AIDS virus at the end of 2011, while, a record eight million people in low- and middle-income countries received the antiretrovirals treatment in 2011. UNAIDS (United Nations Programme on HIV/AIDS) UNAIDS, the Joint United Nations Programme on HIV/AIDS, is an innovative partnership that leads and inspires the world in achieving universal access to HIV prevention, treatment, care and support. Member of United Nations Development Group, UNAIDS came into existence in 1994 by a resolution of the UN Economic and Social Council and launched in January 1996. UNAIDS has its headquarter in Geneva, Switzerland. Michel Sidibe is the Executive Chairman of UNAIDS. US Imposed Sanctions on Banks Handling Iranian Oil Transactions United States announced fresh sanctions against foreign banks that helps Iran sell its oil on 1 August 2012.The U.S government signed an executive order of new sanctions which will target anyone buying Iranian petrochemicals or facilitating payments to Iran, including an Iraqi and a Chinese Bank. The government stated that the measure would increase pressure on Tehran for failing to meet its international nuclear obligations. The sanctions are targeting the foreign banks that handle transactions for Iranian oil or handle large transactions from the National Iranian Oil Company (NIOC) or Naftiran Intertrade Company (NICO).

The order given by Obama also targeted the Chinas Bank of Kunlun and Iraqs Elaf Islamic Bank for providing services to Iranian banks. On this order, China reacted quite angrily , saying that the effort is being used to put pressure on Iran over its nuclear program. China, a big importer of Iranian oil decided to lodge an official protest with U.S.A after the recent development. The new order provides waiver to countries that have cut the purchases of Iranian oil significantly. Oil and Petrochemical industry account almost eighty percent of Irans revenues.

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Objective Questions

1. Consider the following statement. 1. Islamic Revolution Guards Corps is related to IRAQ. 2. Ground line of communication (GOLC or Nato supply lines) is related to the Afghanistan. Which of the above statement is/ are correct? (a) Both 1 & 2 (b) Only 1 (c) Only 2 (d) Neither 1 nor 2 2. Bolsa Familia cash transfer programme which targets poor women in a similar suggest that health outcomes, is related to which Country. (a) Spain (b) Brazil (c) Bangladesh (d) Moreico 3. Parcel Islands is disputed area claimed by which group of Nation. (a) China, Vietnam, Taiwan (b) China, South Korea, Philippines (c) China, South Korea (d) China, Japan & South Korea 4. According to the World Bank report 2010 ,which gulf nation has highest number of immigrant population ? (a) Qatar (b) U.A.E (c) Bahrain (d) Saudi Arabia 5. United Nations millennium Development Goals Deadline is ? (a) 2012 (b) 2013 (c) 2020 (d) 2015 6. GAAR (General Anti Avoidance Rules) is related to ? (a) Tax (b) Human Trafficking (c) Prostitution (d) Anti Terrorism 7. Sinai peninsula (disputed) borders between ? (a) IRAN & IRAQ (b) Russia & Germany (c) Gaza Strip & Israel (d) U.K & France 8. Aleppo city is in news since the Arab revolution. In which country Aleppo is located ? (a) Saudi Arabia (b) Libya (c) Iran (d) Syria 9. Japan recalling its ambassador from Seoul to protest South Korean Presidents Surprise Visit of a disputed island which is known as

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(a) Dokdo (b) Takushina (c) Ulleung I (d) Wheeler Julian Assange contraversial founder of wikileaks. Basically belongs from which country (a) Austria (b) Australia (c) U.K. (d) America The Maldivian Parliament is known as (a) Majlis (b) Shura (c) National Assembly (d) Congress Who takes over as the new Chief executive of the New York Times? (a) Mark Thompson (b) Joy Leno (c) Ian Goldsmith (d) Roy Mclaren Controversial Belo Monte HydroElectric Dam is situated in (a) Brazil (b) Mereico (c) Iran (d) France International Telecommunications Unions (A U.N. Body) Headquarter is in (a) New York (b) Geneva (c) Montreal (d) Paris Which Country granted asylum to wikileakes controversial founder Julian Assange ? (a) Peru (b) France (c) Ecuador (d) Switzerland Hizbollah is an so called militant Group of west asia, to which country you will corelate the Hizabollah (a) Syria (b) Iran (c) Lebonan (d) Iraq In which country you will find Marikana Platinum Mine where police killed 34 Mine Workers (a) Kenya (b) Nigeria (c) Zimbabwe (d) South Africa Match the following: Mineral Rich areas in Afghanistan and places Minerals Place 1. Gold a. Badakhstan 2. Copper b. Zarakashan / Gold 3. Copper c. Balkahab Balkahab (a) 1-a, 2-c, 3-b (b) 1-c, 2-b, 3-a (c) 1-a, 2-b, 3-c (d) 1-c, 2-a, 3-b

19. In which country you will find the worlds largest Refugee camp Dagahaley ? (a) Somalia (b) Ethiopia (c) Kenya (d) Ivory Coast 20. Consider the following statement about Somalia : 1. Al-shahab terrorist group of Somalia is known as the Somalian Taliban. 2. Ethiopia, Zibuti & Kenya are the Neighbour countries of Somalia. 3. Somalian Parliament to meet after 20 years (Aug) 4. African Union has expelled its membership due to Civil war & Unstability Which of the above statement is/ are True. (a) 1, 2, 3 & 4 (b) 1 & 4 (c) 2, 3 & 4 (d) 1, 2 & 3

Answers
1. 3. 5. 7. 9. 11. 13. 15. 17. 19 (a) (a) (d) (c) (a) (a) (a) (c) (d) (c) 2. 4. 6. 8. 10. 12. 14. 16. 28. 20. (b) (a) (a) (d) (b) (A) (b) (c) (c) (d)

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India and The World


India and China MekongGanga sixth Cooperation meeting was held in New Delhi on 3-4 September 2012.Senior officials meeting was held on September 3 whereas the Foreign Ministers meet was held on September 4 2012. The MekongGanga Cooperation (MGC) was established on November 10, 2000 in Vientiane, Lao Peoples Democratic Republic with a purpose of cooperation amongst India and the five Mekong region countries Cambodia, Lao Peoples Democratic Republic, Myanmar, Vietnam and Thailand. It was basically established to emphasize on four areas of cooperation, which are tourism, culture, education, and transportation linkage, in order to build strong foundation for future trade and investment cooperation among the region. This is the first time that the Mekong Ganga Cooperation meeting was hosted by India. India had earlier chaired the 5th MGC Ministerial Meeting on the sidelines of the ASEAN-India Meetings. Five Mekong Ganga Cooperation ministerial meetings has held so far, In Vientiane, Lao Peoples Democratic Rebuplic on November 10, 2000; In Hanoi, Vietnam on July 28, 2001; In Phnom Penh, Cambodia June 20, 2003; In Cebu, Philippines on January 12, 2007 and in Manila, Philippines on August 1, 2007. India China agreed to set up Joint Working Group on Trade and Investments India and China agreed to set up a joint working group (JWG) to look into issues related to trade and investments. The decision to set up the JWG was taken at the meeting of India-China Joint Group on Economic Relations, Trade, Science and 36 http://www.civilservicesmentor.com http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Technology in New Delhi on 27 August 2012. Besides the two nations also agreed to adopt a five-year plan on economic cooperation. The ministerial level meeting was attended by Indian Commerce Minister Anand Sharma and his Chinese counterpart Chen Deaming. The working group will submit its report within three months. The working group is set up even as India has expressed serious concerns over the widening trade deficit with its neighbour and sought a correction. On its part, China expressed serious concern over the imposition of duty on import of power equipment by New Delhi. The total bilateral trade between India and China for 201112, stood at 75457.42 million dollar as compared with 59000.36 million dollar in 2010-11. During 2011-12, the exports were 17902.98 million dollar while the imports stood at 57554.44 million dollar. The provisional trade deficit for 2011-12 was 39651.46 million dollar. The Joint Group on Economic Relations, Trade, Science & Technology was formed in 1988 when then Prime Minister Rajiv Gandhi visited Beijing. India, China discussed Border security and Bilateral Defence ties For expanding defence cooperation, India and China on September 4 2012, agreed to resume joint military exercises that were postponed since 2010 due the denial of visa to the then Northern Army Commander Lt Gen BS Jaswal by China in 2010, resulting to which New Delhi had suspended all bilateral defence exchanges with Beijing. Chinese Defence Minister General Liang Guanglie and his delegation, including high-ranking members of http://upscportal.com

the defence and military establishment met Indian Defence Minister A. K. Antony on 4 September 2012 to discuss measures to help avoid flares along the border between the nuclear-armed Asian giants. Both the two sides reached on an agreement on a wide range of issues relating to defence and military. This is the first visit after eight years by a Chinese defence minister to India. The last time a Chinese defence minister visited India was in 2004. A growing competition between the two emerging powers was highlighted as they are pushing up for influence and resources across Asia. Both the two sides went ahead on a wide range of issues relating to defence and military. The result of the meeting happened so that the both sides agreed to strengthen border security cooperation between the troops in order to maintain peace in the border areas. The Chinese delegation has also invited Antony to visit China, which he accepted and he will be visiting China next year.

India and Iran India and Iran 28 August 2012 decided to expand Trade and Economic Cooperation. The two nations agreed to expand trade and economic cooperation through the Chahbahar port. The port will act as an important trade and transit point for Afghanistan and central Asia. On the nuclear issue, India expressed hope that progress will be on the P5 plus one dialogue in the interest of peace and stability in the region. Both the nations agreed to set up an Indian cultural centre in Tehran. India also discussed the issue of global governance confronting the developing world.

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs India and Pakistan The Union Cabinet on 17 August 2012 approved the Commerce Ministrys proposal to cut down the list of sensitive items under South Asian Free Trade Agreement (SAFTA) for Pakistan by 30 percent. Besides, India will also cut import duties on about 234 items from Pakistan under the bilateral trade normalisation programme.The cabinet, however, made it clear that the India will follow these measures only when Pakistan reciprocates with the same gesture and allows goods to be traded through the land routes Pakistan permits only 137 items to be imported through the Attari land route, while the rest goods are imported through sea route, making exports largely unviable for Indian traders. Indian authorities have been consistently demanding Pakistan to allow all goods to be traded through land, but the demand has not received any positive response as yet. India and Pakistan initiated the trade normalisation programme in early 2011 which subsequently paved the way for fastpaced liberalisation of trade and investments. The process, however, slackened over the past few months due to the political turmoil in Pakistan. kept out strategic sectors of defence, space and atomic energy from Pakistan. Pakistan can explore sectors like cement, textiles and sports for investments in India. Besides, the FDI proposals from Pakistan need to be cleared from the Foreign Investment Promotion Board (FIPB). It is important to note that India had granted the MFN status to Pakistan in 1996. Although Pakistan had notified granting the MFN status to India in March 2012, it is yet to implement it fully. However, Pakistan had partially liberalised its trade regime with India in March 2012 by shifting from positive list rules to negative. It means that barring 1209 items Pakistan will allow import of all other Indian goods. can explore sectors like cement, textiles and sports for investments in the country. India and Sri Lanka After embarrassing delays caused because of intergovernmental coordination issues and contractor truancies, the pilot project of the $270- million Indian Housing project for displaced Tamils in Sri Lanka is complete. The pilot phase of the project for construction of 1,000 houses has been completed. The next phase of the Indian Housing project for 43,000 housing units under the owner-driven mode in the Northern and Eastern provinces has been launched, said Ashok K. Kantha, High Commissioner of India in Sri Lanka in an Independence Day message. The pilot project for the construction of 1,000 houses in the five districts of Northern Province was launched in November 2010. Till July 13, as many as 950 houses were completed under the pilot phase, and handed over to beneficiaries. The remaining 50 houses were completed by end-July. The remaining houses will be handed in the presence of a visiting Indian Minister next week. The next phase has already begun, and, having learnt from the experience of the pilot project, India is plugging the gaps to ensure that the next phase gets completed at an early date.

Indian government on 1 August 2012 decided to allow investment from Pakistan with the objective of boosting bilateral economic relations. However, India 38

The Indian High Commission has signed agreements to award work to four Implementing Agencies UNHABITAT; International Federation of Red Cross & Red Crescent Societies in partnership with Sri Lanka Red Cross; National Housing Development Agency (NHDA) of the Government of Sri Lanka; and Habitat for Humanity, Sri Lanka signalling the launch of the next phase of the Indian Housing Project for 43,000 housing units in Northern and Eastern Provinces. In the owner-driven model, beneficiaries will be selected through a transparent and normbased process on the basis of clearly defined and objective criteria. These beneficiaries will undertake the construction/repair of their houses with technical assistance and support provided by the Implementing Agencies. The money will be released directly by the High Commission of India into bank accounts of beneficiaries based on certification of progress of work. This phase is expected to meet bulk of the housing needs in these areas. India and Tajikistan India and Tajikistan on 3 September 2012 signed six http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs stations in the country of global standard. Under the agreement the two countries would share design and current practices in railway infrastructure and deputation of experts in areas of mutual interest. The countries will also explore the new avenues of co-operation in the Railway sector. Belgian state run companies such as Euro Station and Euro Immostar have vast experience in developing stations. The companies have extensive expertise in transforming historical railway stations into the modern international terminals. Numerous Belgium or Belgium-based companies are already operating in India and have been involved in activities such as fastening and coating of rails to delivery of parts for train construction and software for safety and network management. First India-CELAC Troika Foreign Ministers Meeting The first meeting of the IndiaCELAC Troika Foreign Ministers was held on 7 August 2012 in New Delhi. The Indian delegation was led by the External Affairs Minister of India, Shri S.M Krishna, whilst the CELAC Troika was led by the Minister of Foreign Affairs of Chile Mr. Alfredo Moreno Charme, the pro-tempore President of CELAC. Apart from both the nations, the Foreign Minister of Venezuela Mr. Nicolas Maduro and the Vice Foreign Minister of Cuba, Mr. Rogelio Sierra participated in the meeting as members of the Troika. Objective of the meet To discuss the regional and multilateral issues of mutual interest, to strengthen the multifaceted bilateral cooperation between India and CELAC. 39

agreements in the field of sports, health, culture, education, labour, textiles and energy. India and the central Asian country of Tajikistan agreed to advance their ties to a strategic partnership in order to impart greater strength to the relationship through all-round cooperation and engagement. The President of the Republic of Tajikistan, Mr. Emomali Rahmon, was on a State Visit to India from 1 to 4 September 2012 at the invitation of the President of the Republic of India. This was the fifth visit to India by President Mr. Emomali Rahmon. The visiting dignitary also attended a business meeting organized jointly by ASSOCHAM, CII and FICCI. Both the countries identified information technology, bio-technology, mining, tourism, pharmaceuticals among other sectors as high potential area. After the agreements it was decided that India will increase training slots for Tajikistan from 100 to 150 under India Technology and Eco Training Programme. India and Israel India and Israel signed a memorandum of understanding http://upscportal.com

(MoU) on 2 August 2012 for starting a collaborative academic research programme. Under the Research programme both the countries will together work in areas such as medical, information technology, social sciences, humanities and arts. The MoU was signed by Professor Benjamin Geiger, Chairman of the Israel Science Foundation and Ved Prakash, Chairman of University Grants Commission. The agreement will exist for next five years, providing support up to 100000 dollar a research project for three years The idea of collaborative academic research programme came into being during a recent visit of Minister for Human Resource Development Kapil Sibal to Israel. Sibal during the course of her visit had conducted dialogue with Israels Finance Minister Yuval Steinitz, Education Minister Gideon Saar and Chairman of Planning and Budgeting Committee Manuel Trajtenberg. India and Belgium India on 1 August 2012 signed an agreement with Belgium for the modernisation of the Indian Railways and make some of the major railway

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs India Shri Mullappally Ramachandran signed the Agreement with Jose Mandra, Minister of Interior, Govt of Mozambique at Maputo, Mozambique. The objective of the agreement was to discuss cooperation and both the countries decided to develop the relationship further in various fields for mutual benefit. Amongst the key highlights of the meet was that, Mullappally Ramachandran was on a three day visit to Mozambique.

To co ordinate responses to regional issues and address international challenges including the UN reform, the international financial crisis, climate change and international terrorism. To enhance the exchange of visits at all levels including at the Summit level leading towards a Strategic Partnership between India and CELAC. To expand relations between India and countries in the Latin America and the Caribbean region and make it possible for them to work together bearing in mind each sides respective development priorities based on the common shared values of democracy, freedom, equality and justice. Collective Discussions The two nations expressed satisfaction over the growth of commercial, economic and investment relations between India and CELAC, that has crossed US$ 25 billion in 2012. The nations agreed to set up an Energy Forum to discuss energy security issues. 40

Both the countries agreed to work towards providing value addition in the exchange of commodities through direct trading and by setting up of manufacturing units. Both sides agreed to work towards providing for food security for their people Both the countries agreed to initiate various projects related to tele-education, egovernance and tele-medicine that would cover the entire Latin America and Caribbean region. The Foreign Ministers of India and the CELAC Troika ended the First Meeting of the India-CELAC Troika Foreign Ministerial Dialogue at a good note after the commencement of CELAC in December 2011. The proTempore President and Troika Foreign Ministers of CELAC will present this Joint Statement in next meeting of the Foreign Ministers of the Community that will be held in September 2012 in New York. India and Mozambique India and Mozambique signed an agreement on Bilateral Security Cooperation on 14 July 2012. The Minister of State for Home Affairs,

There is an estimation of almost twenty five thousand people of Indian origin living in Mozambique for generations. The relations between both the countries have remained warm and friendly. India was amongst the first countries to extend recognition to Mozambique after the later achieved independence in the year 1975. India and Mozambique have mutually rendered and benefited in the fields of industry, trade, mineral resources and culture. India and Monaco India signed Tax Information Exchange Agreement (TIEA) with Monaco on 31 July 2012 in New Delhi. It will allow the two countries to check tax evasion and money laundering. This was the ninth TIEA signed by India. Key features of this agreement are as following; It is based on international standard of transparency and exchange of information. Information must be foreseeably relevant to the http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs administration and enforcement of the domestic laws of the Contracting Parties concerning taxes and tax matters covered by the agreement. The requesting State has to provide some minimum details about the information requested in order to justify the foreseeably relevance criteria. Information is to be treated as secret and can be disclosed to only specified person or authorities, which are tax authorities or the authorities concerned with the determination of tax appeal. It also provides for disclosure of information to any other person or entity or authority or any other jurisdiction (including foreign Governments) with the written consent of the competent authority of the requested Party. There is a specific provision that the requested Party shall provide upon request the information even though that Party may not need such information for its own tax purposes. There is a specific provision for providing banking and ownership information. There is a specific provision for Tax Examination Abroad where authorities of one State can present in the tax examination of taxpayer in the other State. Upon entry into force, the Agreement allows exchange of information forthwith. India and Niue Minister of State for External Affairs of India E Ahamed and Prime Minister of Niue H. E. Toke Talagi signed a Joint Communiqu on the establishment of Diplomatic Relations between India and Niue, at Cook Islands, on 30 August 2012. Niue is a Pacific island country, which is a member of regional bodies such as the Pacific Island Forum and the Pacific Community and also of UNESCO, WTO and FAO. It is an island of 1400 inhabitants, which is also known as the worlds first Wi-Fi nation, in which free wireless Internet access is provided throughout the country. Niue is also known as the Rock of Polynesia, and is situated 2400 km northeast of New Zealand in a triangle between Tonga to the southwest, the Samoas to the northwest and the Cook Islands to the southeast. Since 2002, India has intensified its cooperative relations with all countries in pacific island region. India always actively participated as a Dialogue Partner of the Pacific Island Forum, a regional group of Pacific Island countries. The country has always been engaged in assisting in the development of the island countries of the Pacific.

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Objective Questions

1. Consider the following statements: 1. U.S.A is number one in terms of power generation. 2. Indias ranking in power generation is 3rd Which of the above statements is/ are correct? (a) Both 1 & 2 (b) Only 1 (c) 2 and 3 (d) None of these 2. Recently with which country India signed a mou (memorandum of understanding) for launching a programme that would promote collaborative research across a wide range of discipline from medical & IT to Social Science.

(a) Japan (b) Israel (c) France (d) Germany 3. Recently which group has chose India as its first dialogue partner because of its size & Political Situation. ? (a) CELAC (b) NAFTA (c) MERCOSUR (d) EV 3. In March 2012 where the Fourth BRICS Summit held (a) China (b) India (c) South Africa (d) Russia 4. S.M. Krishnas Pakistani Counterpart is (a) Hina Rabbani Khar (b) Khurshid Mehmood Kasuri (c) Rehman Mallik (d) None of these

5. Consider the following statements about Jaitapur Project: 1. It will be Indias largest Atomic Reactor in terms of power generation. 2. Areva which is going to establish this project is an South Korean giant. Which of the above statement are/ is true ? (a) Both 1 & 2 (b) Only 2 (c) Neither 1 nor 2 (d) Only 1

Answers
1. (d) 3. (a) 5. (a) 2. (b) 4. (b) 6. (d)

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Economy
50% Diesel Subsidy to farmers An Empowered Group of Ministers (EGoM) on drought, headed by agriculture minister Sharad Pawar in a meeting on 31 July 2012 announced a 50 per cent diesel subsidy scheme for the farmers to help them save the standing kharif crop through irrigation. The total subsidy burden would be around Rs 1,260 crore and is to be borne equally by the state governments and the farmers. Districts that received 50 per cent deficient rainfalls can avail this facility. The subsidy scheme will be applicable in districts that had more than 50 per cent deficient rains as on 15 July 2012 The EGoM also approved an increase in the subsidy on the seeds of alternative crops under contingency plans. A relief package of Rs 1440 crore was also cleared towards watershed developmentrelated efforts in Karnataka, Maharashtra, Gujarat and Rajasthan where around 56 lakh hectares of farmland are estimated to go uncultivated. Around Rs 500 crore was approved for meeting drinking water-related challenges in these states. Rs. 453 crore would be given under the National Rural Drinking Water Programme (NRDWP) to Maharashtra, Karnataka, Rajasthan and Haryana. It was decided in the EGoM meeting that the subsidy amount on seeds of cereals is to be increased from Rs 500 a quintal to Rs 700 per quintal, while that of pulses and oilseeds would be enhanced from Rs 1200 per quintal to Rs 2000 per quintal. The government has prepared contingency plans for 320 districts. The Agriculture Ministry also decided to waive the duty on import of certain items to increase the availability of feed ingredients for animal husbandry sector needs. Duty- free imports of oilmeal is to be allowed to ensure feed availability to livestock. The withdrawal of customs duty on oilmeal imports is to be applicable for de-oiled soyameal, http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs sunflower, mustard and canola oilmeal. Currently, oilmeal imports attract a duty of 15 per cent. Patented Drug Prices to be Linked with Per-capita Income An inter-ministerial group formed in 2007 and entrusted with the responsibility of regulating prices of patented medicines recommended using a per capita income-linked reference pricing mechanism. The proposal by the group is expected to reduce prices of several patented dugs by up to onethird. However it will hit the profitability of foreign companies. The committee suggested fixing the price of patented drugs by comparing the price at which these drugs are procured by governments in the UK, Canada, France, Australia and New Zealand. The committee recommended that the retail price is to be fixed by adjusting it to the per capita income of the country. The new mechanism is to be applicable for patented drugs that dont have any therapeutic equivalents in the market. developing the drugs and other factors. Prices of patented drugs are currently unregulated. Patented drugs account for 1% of the $13billion domestic market. This share is expected to grow to 5% of the estimated $50-60 billion drug market by 2020. The Indian Pharmaceutical Alliance, the representative body of big Indian drug makers, supported the reference-based system. The Organisation of Pharmaceutical Producers of India (OPPI), the lobby body of multinationals however stated that the cross-country per capita income-linked proposal is fundamentally flawed. India had adopted a new product patent regime in 2005 after it became a signatory to TRIPS, an international intellectual property protection agreement, providing 20 years of marketing exclusivity to the patent holder. Global innovator companies such as GSK, Bayer AG, Novartis, Merck & Co and Bristol Myers Squibb who started launching their drugs in India continue to remain jittery about the governments policies aimed at reducing healthcare costs. They complain that Indias implementation of intellectual property rights has been unsatisfactory. ONGC strikes oil off the West Coast Oil and Natural Gas Corporation, on Saturday, announced a big discovery in the currently producing D1 oilfield off the West Coast. In a statement issued , the company said the new find would catapult D1 to become the third largest field in Western offshore after the prolific Mumbai High and Heera. D1, which is now producing 12,500 barrels per day (bpd), had an approved peak output of 36,000 bpd. With the new discovery, the peak output would jump to 60,000 bpd or three million tonnes a year, the statement said. Earlier, the D1 was known to have initial oil in-place (or in place reserves) of the order of 600 million barrels (82.20 million tonnes of oil). After the discovery of the new pool, its total in-place reserves are expected to be in excess of one billion barrels, it added. In the next phase of development, ONGC is implementing an integrated development plan for the entire D1 field.

This would raise the output to 36,000 bpd by February, 2013. The new pool now discovered will take the output to 60,000 bpd by 2016-17. 49 Percent FDI in Insurance and Pension Sector In a move aimed at encouraging investment sentiment in the country, the Union Finance Ministry on 22 August 2012 approved 49 percent foreign direct investment in insurance and pension sector. Earlier the permitted level of FDI in the insurance and pension sector was 26 percent. The proposal for 49 percent FDI in insurance and pension sector was made during Pranab Mukherjees tenure at the finance minister office. However, the decision on the same was delayed because of resistance from the cronies. With the approval of Union Finance Ministry, the bill will 43

For patented drugs that have similar alternatives in the market, the price is to be fixed in such a manner that it should not lead to an overall increase in the treatment cost. If the global launch of the patented drug takes place in India, the retail price will have to be based on the cost of http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs now be discussed in the cabinet and will require to be approved by the parliament. The chances of the bill getting through in the monsoon session of the parliament are very low as opposition parties have been consistently stalling the house on the issue of coal scam. The monsoon session is set to end on 27 August 2012. As per the Insurance Regulatory and Development Authority (IRDA) estimates, over the next five years, the insurance sector requires a capital infusion of more than 12 billion dollar. The Union Government has been trying hard to introduce the major reforms to revive the ailing economy. The measures such as FDI in multi brand retail and civil avaiation, implementation of Goods and Services Tax (GST) have , however, faced fierce opposition from different political parties. Indian economy is rapidly moving towards the grim economic situation similar faced during the recession. The economy needs some big ticket reforms to reverse the pessimistic economic environment. Indias GDP growth fell to 6.5 percent during 2011-12 but the fourth quarter growth rate dropped to 5.3 percent, the slowest in past nine years. Business confidence among the investors and business leaders has touched the historic low as industrial output and trade figures are constantly going down. 7 Alternative Investment Funds (AIFs) to start Operation in India Market regulator Securities and Exchange Board of India (SEBI) in August 2012 permitted seven Alternative Investment Funds (AIFs) to start operation in India under a newly formulated route that enable pooling of funds for investments in 44 areas such as real estate, private equity and hedge funds. Six AIFs registered with the regulator in August 2012, while one was granted registration back on 23 July 2012. SEBI had published its guidelines with regard to AIF in May 2012. The seven AIFs that registered with SEBI include IFCI Syncamore India Infrastructure Fund, Utthishta Yekum Fund, Indiaquotient Investment Trust, Forefront Alternate Investment Trust, Excedo Realty Fund, Sabre Partners Trust and KKR India Alternate Credit Opportunities Fund. The Category I AIFs are those where funds stand a chance of getting certain incentives or concessions from the government, SEBI or other regulators in India and include Social Venture Funds, Infrastructure Funds, Venture Capital Funds and SME Funds. The Category II AIFs are those funds which can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day operational requirements. These AIFs include PE funds, debt funds or fund of funds, as also all others falling outside the ambit of Category I and Category III. The Category III AIFs are those trading with an objective to make short term returns and include hedge funds, among others. Indias Exports declined to 22.4 Billion Dollar Indias exports for the month of July 2012 stood at 22.4 billion dollar registering a decline of - 14.8 percent as compared to 26.3 billion dollar during the same month of 2011. Imports during July 2012 stood at 37.9 billion dollar as compared to 41.1 billion dollar in July 2011. Balance of Trade stood at 15.5 billion dollar during July 2012 as compared to 14.8 billion dollar in July 2011. The trade data were released by the Union Ministry of Commerce and Industry on 14 August 2012. The cumulative figure for exports for the period of April-July 2012 stood at 97.6 billion dollar as compared to 102.8 billion dollar in April-July 2011; The cumulative figure for imports for April-July 2012 stood at 153.2 billion dollar as compared to 163.8 billion dollar in April-July 2011. The cumulative figure for the Balance of Trade for the period of April-July 2012 stood at 55.6 billion dollar as compared to 61.0 billion dollar in April-July 2011. http://upscportal.com

Funds established or incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing would have to follow a pre-decided policy. SEBI decided to allow promoters of listed companies can offload 10 per cent of equity to AIFs such as such as SME Funds, Infrastructure Funds, PE funds and Venture Capital Funds registered with the market regulator to attain minimum 25 per cent public holding. AIFs, as per SEBI guidelines can operate broadly in three categories and it is mandatory for them to get registered with the regulator. The SEBI rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others.

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs CLB stays the auction of Uninor The Company Law Board (CLB), stayed the auction of Uninor started by the telecom firms majority owner, Telenor of Norway, saying that the process being followed was very clever Hearing an application filed by Unitech, which holds a minority 32.75 per cent stake in Uninor, CLB Chairman Justice D. R. Deshmukh stayed the August 1 auction notice issued by Uninor, and said that the board would hear both parties in length. The CLB observed the manner in which the auction process was being carried out was very clever, before directing Uninor and other respondents to file their reply by Monday. It listed the matter for next hearing on August 8. In the August 1 notice, Uninor set a minimum bid price of Rs.4,000 crore, and sought bids by August 6. In case no bidder turns up, Telenor would pay Rs.4,190 crore for the company, the notice stated. The CLB said the terms and conditions set out in the auction notice appeared to be tough. Telenor holds 67.25 per cent stake in Unitech Wireless, which operates under the Uninor brand. Unitech, which is opposed to the auction, had, on Thursday, approached the CLB seeking a stay on Uninors plan to sell the business through auction in which Telenor might possibly be the only bidder. Telenor wants to scrap the joint venture with Unitech and migrate its business to a new company to seek fresh operating licences as the joint ventures 22 telecom permits were among the 122 quashed by the Supreme Court in February. Uninor had said that it wanted to auction the companys business, including its assets, while it was a going concern before the September 7 deadline set by the apex court for winding up of operations of all the firms whose licences had been cancelled. Two subsidiaries of Air India: AIESL and AITSL To split off the ground handling and engineering services of Air India, Union cabinet under the chairmanship of Prime Minister Dr. Manmohan Singh approved a proposal of Rs 768 crore on 6 September 2012. Now the two units Air India Engineering Services Limited (AIESL) and Air India Transport Services Ltd. (AITSL) will be operational as two completely owned subsidiaries and treated as separate profit centers. The approval came after waiting for almost two years since; Air India board agreed for the separate operations of the two units and sent it for clearance to the Ministry Of Civil Aviation. Ministry gave its nod to the proposal in the month of April. AIESL will be operational in line of repair, maintenance and overhaul (MRO) business for Air India only but also for airlines owned by different groups. Its expected that the unit can bring back a potential turnover of about $ 1.5 billion MRO business in Asia Pacific. Air India that has reportedly suffered a loss of about 7,853 crore in the financial year 20112012 is hoping to gain a total equity infusion of Rs 30,000 Crore by 2021 under the turnaround and restructuring time devised by the government. J.R.D. Tata founded Air India and is also known as the Father of Civil Aviation in India. Air India took its first flight on 15 October 1932. Air India is known as the national flag carrier of India. Rs 808 crore FDI proposal by Cloverdell cleared Mauritius based, Cloverdell Investments Ltd. got a clearance for their foreign direct investment proposal of investing Rs 808 crore on 6 September. The Mauritius based companys case was taken into consideration by the Foreign Investment Promotion Board (FIPB) in the meeting conducted on 27 July 2012, but the approval came after getting clarifications on certain issues. Clearance for making the investment in form of FDI to Cloverdell raised the total number of http://upscportal.com http://www.civilservicesmentor.com 45

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs cleared FDI application to 11 with an expected investment of Rs 2,067.98 crore. Cloverdells investment will be directed to introduce the foreign equity directly into the operating Non Banking Finance Company (NBFC) like the companies engaged in commodity broking, stock broking, housing finance and depository participant service. Textiles Ministry sets $40 billion export target The Textiles Ministry has revised the export target for textile products to $40.50 billion for 2012-13, an increase of about 22 per cent compared to the $38.18 billion that was set last year. Exports target for 2012-13 was initially fixed at $38.31 billion and has since been revised to $40.5 billion under the new Foreign Trade Policy. The Government has also recommended allocation of Rs. 15,886 crore for Technology Upgradation Fund Scheme (TUFS) during the 12{+t}{+h}Plan and the matter is awaiting the approval of the Planning Commission, Minister of State For Textiles, Panabaaka Lakshmi said in a written reply to the Lok Sabha on Monday. In 2010-11, the countrys textiles exports stood at $26.9 billion. Last fiscal, it was $33.31 billion. She also said that there was no report of job loss in the industry due to the slowdown. Ms. Lakshmi said against the budgetary allocation of Rs. 13,784 crore, an amount of Rs. 12,383.35 crore was utilised during the 11th Plan. Call for Deterrent Penal Provisions against Units in SEZs Parliaments Public Accounts Committee on 23 August 2012 decided to bring the three latest CAG reports on coal allocations, GMR-run Delhi airport and Reliance Power, onto its agenda for the year 2012. The Public Accounts Committee (PAC) in its meeting on 23 August 2012 called for deterrent penal provisions against units in Special Economic Zones which default duty payments to the exchequer. PAC in a report adopted in the meeting recommended an oversight mechanism which would ensure no misuse of the SEZ policy. The PAC panel based its findings on a sample of 22 SEZ units. The panel found that out of an overall export of Rs 7149.23 crore made by 22 SEZ units, the actual export content was only Rs 1999.27 crore (28%) and the remaining Rs 5149.96 crores (72%) related to Domestic Tariff Area earnings. Panel Findings & Recommendations The report stated that low figures of actual physical export of goods were typical of most SEZ units. The aim of SEZ Act was to boost exports and earning of foreign exchange by giving these units certain duty waivers and incentives. PAC however observed that there is no mandatory requirement of undertaking exports in the SEZ legislation. Since the units located in SEZs enjoy tax benefits and are expected to fuel economic growth, PAC recommended revisiting the scheme. The committee recommended that all SEZs undertake physical export of at least 51% of their product, and even import tax waivers raw material for goods falling under the Domestic Tariff Area (DTA) is to be considered on the credit account of the SEZ firms. It was noted that SEZ units could sell their goods, including by products, and services in DTA on payment of applicable duty including at nil rate with no requirement to payback the duty foregone on inputs used in the clearance of products. This policy will put SEZ units at a distinctly advantageous position compared to similar units in the DTA. India Registered 2.1 Percent growth in Foreign Tourist Arrivals Foreign Tourist Arrivals (FTAs) in India during the Month of July 2012 stood at 5.25 lakh as compared to 5.14 lakh in July 2011 and 4.67 lakh in July 2010. This translated into FTAs growth of 2.1 percent in July 2012 over July 2011 as compared to a growth of 10.1 percent registered in July 2011 over July 2010. FTAs during the period January-July 2012 were 37.62 lakh with a growth of 6.6 percent, as compared to the FTAs of 35.29 lakh with a growth of 10.7 percent during January-July 2011 over the corresponding period of 2010. Foreign Exchange Earnings (FEE) in the month of July 2012 stood

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs at 8389 crore rupees as compared to 7116 crore rupees in July 2011 and 5444 crore rupees in July 2010. The FEE recorded a 17.9 percent growth in July 2012 over July 2011. FEE from tourism in rupee terms during January-July 2012 stood at 52149 crore rupees with a growth of 23.3 percent, as compared to the FEE of 42279 crore rupees during JanuaryJuly 2011. NBFC-MFI norms modified All registered non-banking financial companies (NBFCs) intending to convert themselves into non-banking financial companymicro finance institutions (NBFCMFIs) must seek registration with immediate effect, and, in any case, not later than October 31, the Reserve Bank of India said in a notification on Friday. The NBFCs have to maintain net-owned funds (NOF) at Rs..3 crore by March 31, 2013, and at Rs.5 crore by March 31, 2014, failing which they must ensure that lending to the micro finance sector, that is, individuals, SHGs or JLGs, which qualify for loans from MFIs, would be restricted to 10 per cent of the total assets, the RBI said in a notification. The RBI made some modifications in the directions issued on December 2, 2011, to NBFC-MFIs. In order to provide encouragement to NBFCs operating in the northeastern region, the minimum NOF is to be maintained at Rs.1 crore by March 31, 2012, and at Rs.2 crore by March 31, 2014. However, all new companies desiring NBFC-MFI registration will need a minimum NOF of Rs.5 crore except those in the north-eastern region Rs.2 crore. To allow operational flexibility, the RBI has asked these NBFCs to ensure that the average interest rate on loans during a financial year does not exceed the average borrowing http://upscportal.com cost during that financial year plus the margin, within the prescribed cap. Moreover, while the rate of interest on individual loans may exceed 26 per cent, the maximum variance permitted for individual loans between the minimum and the maximum interest rate cannot exceed 4 per cent. The average interest paid on borrowings and charged by the MFI are to be calculated on the average monthly balances of outstanding borrowings and the loan portfolio, respectively. It has also been decided that the cap on margins as defined by the Malegam Committee may not exceed 10 per cent for large MFIs (loans portfolios exceeding Rs.100 crore) and 12 per cent for others. This measure will ensure that in a low cost environment, the ultimate borrower will benefit, while in a rising interest rate environment, the lending NBFCMFIs will have sufficient leeway to operate on viable lines. The figures may be certified annually by statutory auditors and also disclosed in the balance Sheet, the RBI said in the notification. Indias Marine Exports to grow by over 28% According to the data provided by the Marine Products Export Development Authority (MPEDA) in August 2012, Indias marine exports are likely to grow by over 28 per cent year-on-year to USD 4.5 billion in 2012-13 fiscal. The growth is expected to rise as a result of the increase in demand in western markets like the US and Europe. During 2011-12, seafood exports had stood at USD 3.5 billion. The US and the Europe together account for over 45 per cent of the countrys total seafood exports. The increase in demand, mainly for Litopenaeus Vannamei shrimp and Black Tiger shrimp, in the US and European markets are likely to raise the Indias marine exports by over 28 per cent. Litopenaeus Vannamei shrimp and Black Tiger shrimp are favourite seafood items in countries like Europe, American, Japan and China. During April-June 2012-13, the countrys marine exports grew at a healthy rate of over 15 per cent compared to the 2011-12 fiscal. The MPEDA, which is under the Commerce and Industry Ministry, is the nodal agency for promotion of export of marine products from India. Moodys cut Indias Growth Forecast to 5.5 Percent Moodys Analytics cut Indias growth forecast to 5.5 percent for the fiscal year 2012-13, as it blamed government or RBI of inaction despite slowing economy, as well as a poor monsoon. The research unit of ratings agency Moodys Investors Service becomes the latest to cut Indias growth forecasts this week.

Earlier CLSA and Citigroup had cut their growth outlooks for India to 5.4 percent and 5.5 percent, respectively for the fiscal year ending in March 2013. Moodys noted despite the slowing growth both the government and the Reserve Bank of India had provided little policy response. Moodys added weakerthan-average rainfalls during the monsoon period would also weigh on Indias growth. The research unit also cut its 2013 growth forecast to 6 percent from 6.2 percent. 47

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs SEBI allowed Partial Flexibility in IDRs Indias market regulator Security and Exchange Board of India (SEBI) on 28 August 2012 allowed partial flexibility in the conversion of Indian Depository Receipts (IDRs) into equity shares by investors. The SEBI move is aimed at retaining domestic liquidity besides, it is also expected to attract foreign entities to enroll their IDRs on India stock exchanges.

In another circular released by the RBI, the central bank put an overall cap of 5 billion dollar for raising of capital through IDRs by foreign companies in Indian markets. The RBI measure will help Indian investors to convert their depository receipts into equity shares of the issuer company and vice versa. RBI transferred a Surplus of Rs 16010 crore The Reserve Bank of India in its annual report released on 23 August 2012 mentioned that it transferred a surplus of Rs 16010 crore to the union government during 2011-12 which is 6.7% more than Rs 15,009 crore transferred in 2010-11.The central banks gross income increased by 43.4% to Rs 53176 crore in 2011-12. Its expenditure however rose by 17.1% to Rs 10137 core. After transfers to the contingency reserve, the asset development reserve and the four statutory funds, Rs 16010 48

crore was allocated for transfer to the centre. The Reserve Bank recorded a sharp rise in its income from domestic resources as it aggressively bought bonds through its open market operations. However, the lower interest rates in the advanced markets led to a dip in income from foreign currency assets for the third consecutive year. The earnings from domestic sources increased by Rs 17446 crore to Rs 33366 crore in 2011-12, an increase of 109.6% earned from liquidity adjustment facility (LAF) operations, higher coupon receipts on an increased portfolio of government securities and profit on sale of securities. The Reserve Banks earnings from the deployment of foreign currency assets (FCA) and gold fell 6.3% to Rs 9810 crore in 2011-12. The rate of earnings on FCA and gold was lower at 1.47% in 201112, compared with 1.74% in 201011 because of the low interest rates in international markets. StanChart to pay $340 m to New York regulator Standard Chartered Plc agreed to pay $340 million to New Yorks bank regulator over transactions

linked to Iran, in a speedily arranged deal that helped push up the emerging market-focused lenders shares. The deal with New York Superintendent of Financial Services Benjamin Lawsky on Tuesday caps a week of transatlantic tension and a furore over why a state agency had upstaged other authorities. The British bank still faces a separate probe of its Iran-linked transactions by other U.S. agencies. The resolution also averted a hearing on Wednesday at which the bank had been called to demonstrate why its licence to do business in New York should not be revoked. Standard Chartereds Hong Kong shares rose as much as 6.8 per cent, still nearly 6 per cent below where they were before the allegations hit the bank early last week. The settlement agreed by the bank is equal to less than 9 per cent of its first-half pre-tax profit. At the latest levels, Standard Chartereds market value is around $3.5 billion less than it was before Lawskys allegations. Lawsky on August 6 called Standard Chartered a rogue institution that had broken U.S. sanctions on Iran, saying it hid Iran-linked transactions with a total value of $250 billion from regulators. http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs External Overseas Borrowing Rules eased The high-level committee on external commercial borrowings (ECB),chaired by secretary, department of economic affairs Arvind Mayaram on 22 August 2012 decided to further liberalise the foreign borrowing norms. India eased overseas borrowing rules to enable easier access to cheap dollar funds to housing finance companies such as HDFC, small industry financier SIDBI. It was decided to permitted non-resident entities to provide rating enhancement facility to Indian borrower. Indias measure to ease overseas borrowing is expected to boost capital inflows by permitting lower rated companies to raise dollar funds. Even a company with low credit rating will be able to raise foreign funds using credit enhancement facility that states that third party is to assure the lender that he will be compensated if the borrower defaulted. The government permitted foreign entities to provide credit enhancement to rupee bonds of Indian companies which will improve their appeal to investors. The minimum maturity period of such rupee bonds was reduced from seven years to three years. Manufacturing sector too now will enjoy access to cheap dollar funds and they will be thus able to revive investments plans stuck on account of high costs. Earlier, only infrastructure and infrastructure finance companies could issue rupee-denominated bonds with guarantees from multilateral or regional financial institutions. The decision taken by the highlevel committee on 22 August 2012 includes the following: Foreign institutional investors were permitted to invest in these http://upscportal.com bonds upto US$5 billion within the overall corporate bond limit of US$45 billion. The minimum maturity period for rupee bonds was reduced to three years Credit enhancement to provide an enabling mechanism for Indian companies to raise foreign debt Costly credit observed to be one of the key issue impeding investments. The panel also decided to increase the maturity of such buyers credit to maximum five years thereby allowing companies flexibility in payment. Extending refinance facility to SPVs will ease debt financing for infra projects. 50% previously. Fitch revised the Indian Retail Sector Outlook to Negative Fitch Ratings revised theFitch Ratings revised the Indian retail sector outlook for the second half of the financial year 2012-13 to negative from stable in the backdrop of a decline in the discretionary spending ability. Fitch has revised down its real GDP forecasts to 6.5% and 7.0% for 2013 and 2014 respectively from the earlier 7.5% and 8.0%. The downward revision was attributed to sluggish demand, high construction costs and liquidity pressures. The worsening business conditions are likely to negatively impact credit profiles. The impact on individual retailers however depends on their ability to manage their capital structures. According to the rating agency the Private Final Consumption Expenditure (PFCE) growth rate, which was weakest in the last seven years in the first six months of 2012, cannot be expected to improve significantly unless consumer price inflation dips and consumers receive a significant raise in real wages. The agency stated that RBIs caution on interest rate cuts and high EMIs continue to be a deterrent for potential home buyers. The general slowdown and subdued job growth in the IT sector, which was at its lowest quarterly level so far is likely to hold back demand for commercial and retail properties. Real estate companies will continue to face margin compression from high construction costs for both building materials and labour. Assumptions Fitch assumes that retailers will combat slowing SSG across format 49

Advantages for Lower-rated Companies The guarantee for domestic companies from offshore entities effectively lifts the credit ratings of the bonds thereby benefitting lowerrated borrowers. Indian companies have always been constrained in their funding options due to high domestic interest rates and difficulties in tapping markets overseas. The actions targeting credit guarantees will benefit sectors such as telecoms and energy, where foreign companies often operate via Indian units, but whose domestic borrowing get constrained if they had lower ratings than their parent companies. Infrastructure and manufacturing companies can refinance a higher proportion of their rupee borrowings via cheaper overseas debt. These infrastructure and manufacturing companies can now tap overseas loans up to 75% of their average forex earnings over the previous three financial years from

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs (lifestyle and value) by offering discounts, which in turn would help boost volumes and consequently overall revenue. However, this may lead to an erosion of gross margins. Margin contraction, expansion plans as well as the need for inventory as retailers open up new stores, will increase working capital requirements which will be largely debt-funded. Companies, were however observed to be implementing various strategies to contain the debt, including raising equity and selling certain non-related assets and business segments to help in the maintenance of credit profiles. MoU with Financial Regulators of 9 Countries The Reserve Bank of India (RBI) signed three memoranda of understanding with Jersey Financial Services Commission (JFSC), Financial Services Authority of UK and Financial Supervisory Authority of Norway. The Memorandum of Understanding (MoU) was signed with regulators of other countries to promote greater co-operation and sharing of supervisory information between the regulators. RBI signed nine MoUs thus far with financial regulators of different countries. The MoU with the Jersey Financial Services authority was signed on 16 July 2012. Jersey Financial Services Commission (JFSC) is an independent statutory body. The main function of JFC is the regulation, licensing and supervision of financial services providers for compliance with prudential norms and conduct of business requirements in Jersey. The MOU with the Financial Services Authority (FSA), UK was signed on 17 July 2012 at FSA, UK Headquarters, London. The FSA is 50 the United Kingdoms principal national financial services and markets regulator and administers the Financial Services and Markets Act 2000(FSMA) that provides for the supervision of firms, financial services, financial products as well the financial markets. The MoU with the Financial Supervisory Authority of Norway (Finanstilsynet) was signed on 19 July 2012 at FSA, Norway headquarters. Finanstilsynet as the supervisory authority is entrusted with supervision of banks (insurance companies and investment firms, etc.) in Norway as per the Financial Supervision Act of 1956. Air India losses pegged at 28046 Crore Rupees Despite all the efforts made by the government to revive ailing Air India, the losses of the company have been constantly mounting. Since the five-year-old merger of Air India with Indian Airlines the collective losses of the company from 2007-08 to 2011-12 pegged at 28046 crore rupees. The data holds great significance as it was revealed by none other than the Union Aviation Ministry itself in the Parliament. The company had registered 2226 crore rupees loss in 2007-08. In year 2008-09 the figure shot up to 5548 crore rupees. The loss figure kept rising as in 2009-10, 2010-11 and 2011-12 it stood at 5552 crore rupees, 6865 crore rupees and 7854 crore rupees. Air India and Indian Airlines were merged in 2007 and subsequently a new entity National Aviation Company was formed. The merger which was aimed at reducing the financial losses and improve the quality of service of both the carriers did not work out rather it created more trouble for the already ailing companies. With the merger several new administrative and managerial issues surface which were not taken into account while government was contemplating merger. In stead of the loss figure coming down it climbed up significantly over the past five years making all the government attempts to revive the airline futile. India aviation industry has been passing through a period of grave economic crisis as most of the aviation companies including the big private carriers like Kingfisher and Jet Airways are facing a mounting loss. The aviation industry has been vociferously demanding the entry for the foreign carriers but the government has so far been quite reluctant in entertaining their demand. Though the Union Civil Aviation Minister Ajeet Singh has repeatedly put his view through that the era of national carriers have gone, the government is still in the state of dilemma over any such harsh decision. Notwithstanding the massive loss the national airline has incurred, the government is trying hard to set the things right. Indias Retail Inflation declined to 9.86 % According to the retail inflation data released by Central Statistics Office (CSO), on 21 August 2012, Indias Consumer Price Index (CPI) based retail inflation came down to 9.86 percent in July 2012. The retail inflation number for June 2012 was revised downwards to 9.93 per cent from the provisional estimate of 10.02 per cent. Prices of vegetables, edible oil, egg, meat, fish, pulses shot up considerably keeping the overall retail inflation high during the month of July. Inflation rates for rural and urban areas stood at 9.76 per cent and 10.10 per cent in July 2012. As per the revised data, the inflation http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs rates for rural and urban areas stood at 9.65 per cent and 10.44 per cent in June 2012. The Wholesale Price Index (WPI) based headline inflation also declined to 6.87 percent in July 2012. The WPI inflation stood at 7.25 percent in June 2012. RBI permitted Banks to lend to Telecom Companies The Reserve Bank of India (RBI) permitted banks to lend to telecom companies for the upcoming auction for spectrum, subject to conditions such as mortgaging the spectrum to the lenders. The RBI had laid down a few pre-conditions for financing of telecom firms for the auction of airwaves to protect banks against potential defaults. The Union cabinet on 3 August 2012 approved a proposal that allows telecom companies bidding for airwaves to mortgage spectrum to raise funds from banks. The government set a reserve or base price of Rs 14000 crore for the auction. That banks were revising their lending rates in specific maturities without lowering the base rate concerned the RBI. This activity of the banks resulted in the transmission of monetary policy signals by the central bank to be ineffective. The base rate is supposed to be responsive to changes in monetary conditions. The RBI had formed a committee to assess the monetary policy transmission mechanism and also loan products offering fixed interest rate. The RBI want banks to enact changes in lending rates through their respective benchmark base rates for floating-rate loans. Indias Fiscal Deficit reached 37 Percent of the Budget Estimate According to the latest data released by the Controller General of http://upscportal.com Accounts (CGA) on 1 August 2012, Indias fiscal deficit in the first quarter (April-June) of the fiscal year 201213 stood at 1.90 lakh crore rupees which was 37 percent of the entire budget estimate. The Union Government in the budget 2012 had pegged the fiscal deficit for the financial year 2012-13 at 5.13 lakh crore, or 5.1 percent of total GDP. Fiscal deficit during the corresponding period of fiscal year 2011-12 was 39 percent of the budget estimates amounting 1.63 lakh crore rupees. The revenue receipts, however, increased in the first three months of fiscal year 201213. The revenue receipt during the given period stood at 1.18 lakh crore rupees, which was 12.7 percent of the budget estimates. Total expenditure of the government stood at 3.12 lakh crore rupees, or 21 percent of the budget estimates. RBI for open policy on pricing of liabilities The Reserve Bank of India (RBI), on Tuesday, asked banks to have a board-approved transparent policy on pricing of liabilities and they should also ensure that variation between retail and bulk in interest rates on single term deposits of Rs.15 lakh and above and other term deposits is minimal. Banks are offering significantly different rates on deposits with very little difference in maturities. This suggests inadequate liquidity management system and inadequate pricing methodologies, the RBI said in a notification. There are wide variations in banks retail and bulk deposits rates, making it unfair to retail depositors, the RBI had said in its last annual policy statement. The Reserve Bank of India had permitted banks, in 1998, to offer, at their discretion, differential rates of interest on single term deposits of Rs.15 lakh and above, subject to the condition that the schedule of interest rates payable on deposits, including deposits on which differential interest was paid, was disclosed in advance and not subject to negotiation between the depositor and the bank. Earlier, the RBI had also stipulated that banks should not discriminate in the matter of interest rate paid on deposits, except in respect of fixed deposit schemes specifically meant for resident Indian senior citizens and single term deposits of Rs.15 lakh and above. 14000 Crore Rupees Fund to spur Production of Hybrid and Electrical Vehicle The government of India approved a 14000 crore rupees fund to spur the production of hybrid and electrical vehicles in the country. According to a new policy approved, Automobile companies and the government plan to put six million electric vehicles on road by 2020. The government under the new policy will fund research and development, infrastructure and subsidies. With an aim at reducing the burden on fossil fuels, the Union government in national budget 2011 had proposed a plan to develop electric and hybrid vehicles. Later, the government set up a National Council for Electric Mobility led by heavy industries minister Praful Patel, and a National

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Board for Electric Mobility to ensure uniform rules in all the states. According to an estimate about 130000 electric vehicles were sold in India in 2011-12. Electric scooters cost between 26000 rupees and 43000 rupees in Indian market, while countrys only indigenously built electric car Reva starts at 3.5 lakh rupees. Japan-based Nissan Motor Co. Ltds electric car, Leaf, is the largest-selling car in the world that runs on battery. It costs 33000 dollar (around 18 lakh rupees) in the US and its battery cost is at least half the cars price. The government has long been contemplating a policy to reduce its dependence on oil which make up a substantial part of Indias huge import basket. The hybrid and electric vehicles have emerged as a better alternative of traditional oil-based vehicles over the years. 49 Percent FDI in Insurance and Pension Sector approved In a move aimed at encouraging investment sentiment in the country, the Union Finance Ministry on 22 August 2012 approved 49 percent foreign direct investment in insurance and pension sector. Earlier the permitted level of FDI in the insurance and pension sector was 26 percent. The proposal for 49 percent FDI in insurance and pension sector was made during Pranab Mukherjees tenure at the finance minister office. However, the decision on the same was delayed because of resistance from the cronies. With the approval of Union Finance Ministry, the bill will now be discussed in the cabinet and will require to be approved by the parliament. The chances of the bill getting through in the monsoon session of the parliament are very low 52 as opposition parties have been consistently stalling the house on the issue of coal scam. The monsoon session is set to end on 27 August 2012. As per the Insurance Regulatory and Development Authority (IRDA) estimates, over the next five years, the insurance sector requires a capital infusion of more than 12 billion dollar. The Union Government has been trying hard to introduce the major reforms to revive the ailing economy. The measures such as FDI in multi brand retail and civil avaiation, implementation of Goods and Services Tax (GST) have , however, faced fierce opposition from different political parties. Indian economy is rapidly moving towards the grim economic situation similar faced during the recession. The economy needs some big ticket reforms to reverse the pessimistic economic environment. Indias GDP growth fell to 6.5 percent during 2011-12 but the fourth quarter growth rate dropped to 5.3 percent, the slowest in past nine years. Business confidence among the investors and business leaders has touched the historic low as industrial output and trade figures are constantly going down. The tight monetary policy measures adopted by the central bank to check inflation has actually aggravated the situation as high interest rates are hugely impacting the overall growth scenario. Indian industries have been reiterating that there is an urgent need to create conditions for revival of private investment. The FDI in insurance might prove to be a start of the long pending reform but the Union Finance Minister P Chidambaram will have to work hard on political front to make it possible. Earlier the government had to defer the decision on the bill as it faced opposition from its allies such as Trinammol Congress. CAG pegged Public Exchequers Loss at 1.86 Lakh Crore in Coal Blocks Allocation Scam The Comptroller and Auditor General (CAG) of India in its incisive audit report noted that Indias exchequer suffered a massive loss of 1.86 lakh crore due to the distribution of coal blocks without bidding. The CAG report was tabled in the parliament on 17 August 2012.

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs The CAG in its report stated that 57 coal blocks that were allocated to private companies during 2004-2009, extended them a windfall gain of 1.86 lakh crore rupees. The CAG report has also brought Prime Minister Manmohan Singh under scrutiny as he was holding the charge of Coal Ministry from 2006 to 2009. Besides, the CAG report also raised serious allegations against the PMO which delayed the fair bidding process for coal blocks despite the clearance from Law and Justice Ministry. Tata Group, Reliance Power, Jindal Power and Steel, Abhijit Group, Bhushan Group, Electro Steel, OP Jindal Group were some of the major beneficiaries of the coal blocks distribution. The government has distributed about 150 coal blocks over the past eight years. During this period Prime Minister Manmohan Singh, Shibu Soren and Prakash Jaiswal has been at the helm of the Coal Ministry. The 1.86 lakh rupees scam is the biggest in the history of India as it surpassed the 1.7 lakh crore 2G spectrum scam. RBI directed NBFCs to maintain Net-owned Funds (NOF) at Rs 3 crore The Reserve Bank of India (RBI) in a notification issued on 3 August 2012 stated that all registered nonbanking financial companies (NBFCs) which who intend to convert themselves into non-banking financial company-micro finance institutions (NBFC-MFIs) would have to seek registration with immediate effect, not later than 31 October 2012. The central bank also mentioned that the NBFCs have to maintain net-owned funds (NOF) at Rs 3 crore by 31 March 2013, and at Rs.5 crore by 31 March 31 2014. If the NBFCs fail maintain the NOF they will have to ensure that lending to the http://upscportal.com micro finance sector, that is, individuals, SHGs or JLGs, which qualify for loans from MFIs to be restricted to 10 per cent of the total assets. The NBFCs operating in the north-eastern region are to maintain the minimum NOF at Rs.1 crore by 31 March 2012, and at Rs.2 crore by 31 March 2014. Operational Flexibility To promote operational flexibility the NBFCs are to ensure that the average interest rate on loans during a financial year does not exceed the average borrowing cost during that financial year plus the margin, within the prescribed cap. The RBI notification also stated that while the rate of interest on individual loans may exceed 26 per cent, the maximum variance permitted for individual loans between the minimum and the maximum interest rate cannot exceed 4 per cent. The average interest paid on borrowings and charged by the MFI will have to be calculated on the average monthly balances of outstanding borrowings and the loan portfolio, respectively. Cap Margin The RBI also decided that the cap on margins as defined by the Malegam Committee are not to exceed 10 per cent for large MFIs (loans portfolios exceeding Rs.100 crore) and 12 per cent for others. The measure was initiated to ensure that in a low cost environment, the ultimate borrower will benefit, while in a rising interest rate environment and that the lending NBFC-MFIs will have sufficient leeway to operate on viable lines. First India-made part for Lockheeds Hercules The first made-in-India Centre Wing Box for the Hercules C-130 aircraft made by Tata Lockheed Martin Aerostructures Ltd., (TLMAL) at its facility, was delivered to Lockheed Martin. George Shultz, Vice-President & General Manager of Lockheeds C130 programs, recalled that they had already delivered six C-130s to India and were expecting more orders of the 4-engine turboprop military transport aircraft. The six C-130 J Super Hercules aircraft left our facility in Marietta on December 15 last and we are looking forward to India placing the order for the next six, he declared, adding that the new ones will have parts made in Hyderabad. The joint venture facility is export-oriented. Besides India, 15 other countries have placed order for C-130s, he said. Lockheeds trust in the Tata Group was well-placed and with the delivery of CWB before schedule, the Indian partner was now a trusted, long-term supplier of specialised aerospace components, Mr. Schultz stated. Supreme Court extended Deadline for 2G Spectrum Auction Supreme Court of India on 27 August 2012 extended the deadline for 2G spectrum auction and instructed the union government to carry out the auction by 11 January 2013. The court also allowed the mobile companies whose licences are set to be annulled to operate until 18 January 2013. In its first, the union government is set to conduct an open auction of 2G mobile radio airwaves, after the apex court scrapped all 2G licences awarded to mobile companies, citing massive irregularity in the license distribution as the reason. The court had earlier ordered the government to carry out the radio wave auction by the end of August 53

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs 2012and had ruled that the affected companies can operate on their existing licences until 7 September 2012. The government later urged the court to extend the deadline until 12 November 2012 to begin the auction and 40 days from the completion of auction to allocate frequencies. The government has said that it requires around two months to complete the entire auction process. Modified Allotment System The Securities and Exchange Board of India (SEBI), in a move to increase the participation of retail investors, modified the share allotment system, irrespective of his application size. It ensures every retail applicant gets allotted a minimum bid lot, subject to availability of shares in aggregate. The system will satisfy more number of smaller applicants in the oversubscribed issues. The minimum application size for all investors is also being increased to Rs.10,000-15,000, as against the existing Rs.5,000-7,000. To encourage professionals and technically qualified entrepreneurs who are unable to meet the requisite 20 per cent contribution by themselves as promoters they will be allowed to meet the same with the contribution of SEBI-registered Alternative Investment Funds such as SME Funds, Infrastructure Funds, PE funds and VCFs, subject to a cap of 10 per cent. SEBI also said that it would permit additional routes, including rights and bonus issue, to facilitate companies to reach minimum public shareholding requirements. To allow more flexibility to the issuers, changes up to 20 per cent in the amount proposed to be raised as given in the objects of the issue at the red-herring prospectus (RHP) stage, as against 54 the existing 10 per cent, will not necessitate re-filing with SEBI. To facilitate qualified institutional placements (QIPs) even in a falling market, issuers will be allowed to offer a maximum discount of 5 per cent to the price calculated as per the SEBI regulations. PMEAC pegged Indias Growth at 6.7 Percent According to the Economic Outlook 2012-13 released by Prime Minister Economic Advisory Council on 17 August 2012, Indias economy will grow at 6.7 percent in the financial year 2012-13. India economy had registered 6.5 percent growth in the fiscal 2011-12, which was the lowest in the past nine years. The council also raised the projection for inflation to about 6.5 7 percent from earlier 5 6 percent. The governments fiscal deficit is expected to go up to 6 percent in the financial year 2012-13 as compared to 5.8 percent in the previous fiscal. The current account deficit of the government pegged at 67. 1 billion dollar (3.6 percent of GDP). Reserve Bank of India (RBI) had earlier lowered its growth projection for 2012-13 to 6.5 per cent from 7.3 per cent estimated earlier. Other global agencies had also cut their growth forecast for Indian economy on the account of paralyzed policy reforms, high policy rates and weak monsoon. The PMEAC in its report advised the government to take some concrete measures to reverse the pessimistic economic environment in the country. To accelerate the stalled reform council Chairman C Rangrajan urged the government to open multi-brand retail to foreign investment. It also recommended the government to raise diesel prices in one or more steps to moderate the widening fiscal deficit. RBI stipulated the Norms for Securitisation of Loans by NBFCs Extending the guidelines of securitisation of loan from banks to non-banking finance companies (NBFC), Indias Central Bank Reserve Bank of India on 21 August 2012 tightened the securitisation norms for NBFCs. The RBI instructed that a nonbanking finance company will have to retain at least 5 per cent of the loan being sold to another entity. The RBI in its revised guidelines also stipulated that NBFC cannot sell or securitise a loan unless three monthly installments have been paid by the borrower. The latest directives from the RBI are aimed at checking unhealthy practices and distributing risk to a wide spectrum of investors. These guidelines have to implemented by NBFCs in two phases by the end of October 2012. Earlier, the RBI had issued similar guidelines with regards to securitisation of loans by banks. Indias NSE became the Worlds Largest Bourse in Equity Segment As per the latest global ranking compiled and published by the World Federation of Exchanges (WFE) in August 2012, the National Stock Exchange of India (NSE) become the worlds largest bourse in terms of the number of trades in

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs equity segment for the first six months of 2012. A total of 735474 trades took place in the equity segment of NSE in the January-June period of 2012, making it the worlds largest exchange on this parameter. NSE was followed by NYSE Euronext and Nasdaq OMX at the second and the third positions. Industry experts attributed the recent position of NSE acquired by the bourse to growing investor base, use of latest technology and new products. NSEs platform is connected to two lakh trading terminals in more than 2000 towns and cities across the country. NSE is the second largest exchange globally after Korea Exchange for index options. Eurex was the third largest exchange worldwide in terms of total number of index options traded during the first six months of 2012. BSE recorded a total of 187824 trades during this period in its equity segment. The total number of listed companies is much larger in case of the BSE, the exchange however lags behind NSE significantly in terms of volume and value of trades. The latest data published by WFE indicated that investors from tier-three cities contributed more than 45 per cent of total cash market retail turnover in the financial year 2011- 12. The tier-three cities account for more than half of the total retail investor base on NSE platform.

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Objective Questions
4.

1. Consider the following statement about RBIs quarterly review of monetary policy. 1. RBI Reduce SLR Rate by 1% 2. The growth forecast for 201213 has been revised down wards from 7.3 per cent to 6.5 per cent Which of the above statements are true? (a) Both 1 & 2 (b) Only 2 (c) Only 1 (d) None of these 2. Which Indian Company is the Partner of Lockheed Martin Aero structures? (a) Tata (b) Mahindra (c) Ashok Leyland (d) DLF

5.

6.

3. RBI issued new norms for NBPC MFIs Non Banking Financial Company Micro finance institutes.
1. All new companies designing NBFC MFI registration will need a minimum NOF of 5 crore except those in the North eastern region Rs. 2 crore 2. The average interest paid on borrowing & Change by the MFI are to be calculated on the average monthly balanced of outstanding borrowing & the loan portfolio. Which of the above statement is/ are true? (a) Both 1 & 2 (b) Only 1

7.

8.

9.

(c) Only 2 (d) None of these Standard chartered Bank is in news now a days for hiding about 60000 secret transactions with Iranian this Banks origin Country is (a) U.S.A (b) U.K (c) France (d) Switzerland GAAR (General Anti Avoidance Rules) is related to ? (a) Tax (b) Human Trafficking (c) Prostitution (d) Anti Terrorism Recently Union Cabinet has fix the base price for 5 megahertz of 2G Spectrum ? (a) 10000 crore (b) 14000 crore (c) 16000 crore (d) 15000 crore Which PSU (Public Sector Undertakings) announced the biggest quarterly net loss of 22451 crore. (a) IOC (b) HPCL (c) ONGC (d) SAIL Food & Agriculture Organisation issues Food Price Index (a) Monthly (b) Quarterly (c) Weekly (d) None of these In India which body is responsible for approving proposals of foreign investment in sensitive sectors ? (a) Finance Ministry

10.

11.

12.

13.

(b) Commerce Ministry (c) FIPB (d) P.M.O. Suzuki Motor Corp has announced to establish a car manufacturing plant in Mehsana, with an investment of 4000 crore in which Indian state you will find Mehsana (a) Haryana (b) Orissa (c) Maharastra (d) Gujrat Recently which Bank became the first lender to come out with a floating rate deposit product after the RBI nudged banks to switch to such mode of deposits in July. (a) IDBI (b) SBI (c) PNB (d) ICICI After 18 long years of negotiation which country entered the WTO ? (a) Papua, Newgini (b) Nepal (c) Russia (d) Portugal Recently which Indian Bank Issue the first publicity listed benchmark Singapore dollar bond issue from India ? (a) S.B.I. (b) I.D.B.I (c) P.N.B. (d) O.B.C.

Answers
1. 3. 5. 7. 9. 11. 13. (a) (a) (a) (a) (c) (a) (b) 2. 4. 6. 8. 10. 12. (a) (b) (b) (a) (d) (c)

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U.S. Hypersonic Vehicle Fails Test An unmanned U.S. military jet designed to fly at hypersonic speeds and travel from London to New York in just 45 minutes has failed during a trial as it crashed into the Pacific Ocean within seconds of its launch. The test had called for a five-minute flight off the coast of southern California at Mach 6- up to 7,300 kmph six times the speed of sound. The X-51A Waverider was dropped from a B-52 bomber on Wednesday and launched by a rocket booster as planned but the flight was over in seconds after a control fin malfunctioned, said the U.S. Air Force in a statement. The faulty control fin meant that the vehicles flight ended before a speciallydesigned Scramjet engine could be ignited, it said. It is unfortunate that a problem with this subsystem caused a termination before we could light the Scramjet engine, said Charlie Brink, Programme Manager for the project. All our data showed we had created the right conditions for engine ignition and we were very hopeful to meet our test objectives, he said in a statement. The Waverider separated from the B-52 over Point Mugu naval sea range. However after 16 seconds, a fault was identified with one of the cruiser control fins. One of four X-51A vehicles remains after a series of tests with mixed results. The Pentagon which helped fund the project has been testing hypersonic technologies in an effort to develop faster missiles. It has also been suggested the research could eventually help build a commercial plane with the promise of London to New York trips taking as little as less than an hour, or Tokyo to Paris journeys slightly more than double that time. For now only one X-51A vehicle remains and the Air Force has not yet decided whether to organise a fourth test. The air travel distance between London and New York is around 5570 km. Earth might face More Heat Waves Scientists at NASAs Goddard Institute for Space Studies (GISS) warned that most of Earths land areas might face an extreme summer heat wave than they did between 1951 to 1980. Scientists revealed that over the past 30 years the northern http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs plant roots.To solve this problems, farmers seek help of phosphorus fertilisers. But in poor countries, this option costs too much, which means the plant is left undernourished. Ultimately, this meagre growth affects yields. In October 2011, the UN Population Fund (UNFPA) said the global population of seven billion could rise to at least 10 billion by 2100. Therefore, we need more yields.

hemisphere has witnessed more hot (orange), very hot (red) and extremely hot (brown) summers. Scientists noted that Earths northern hemisphere, which comprises of 90 percent of the planets land has become much more likely to experience an extreme summer heat wave compared to a base period from 1951 to 1980. The researchers described how extremely hot summers has become a routine over the past 30 years. Since 2006, about 10 percent of land area across the Northern Hemisphere has experienced these temperatures each summer. Study show how heat waves in Texas, Oklahoma and Mexico in 2011, and in the Middle East, Western Asia and Eastern Europe in 2010 fall into the new extremely hot category. A New Strain of Rice that could boost Crop Yields Scientists developed a new strain of rice that could increase crop yields by a fifth for small farmers. It grows well in soils lacking the nutrient phosphorus. The gene will be now transferred to modern varieties of rice using classic methods of crossbreeding, not genetic engineering. Many soil types bond tightly to phosphorus, allowing only a small quantity of the precious mineral to http://upscportal.com

can suffer from anaemia, episodes of pain, serious infections and even organ damage. Those with the defective gene from only one parent usually escape such health problems. However, these individuals too get milder forms of malaria rather than the life-threatening kind that can afflict people with the normal gene. This survival advantage has resulted in the faulty gene occurring at higher frequencies in malaria-endemic parts of the world. Complex life cycle At one stage during their complicated life cycle, the singlecelled Plasmodium parasites, which cause malaria, invade red blood cells and proliferate there, feeding on haemoglobin. In a paper published recently in the journal Cell Host & Microbe , Jen-Tsan Chi and his colleagues at the Duke University Medical Centre in the U.S. noted that short strips of the genetic material RNA, known as microRNA (miRNA), were found at enhanced levels in the red blood cells of people with the sickle cell gene. Like genes (which are needed to produce proteins), the genetic information to make miRNA too is carried in the DNA of organisms. The miRNA work with other components of a cell to limit the amounts of certain proteins that are churned out. Why any miRNAs are present in mature erythrocytes [red blood cells] is a mystery, since there is no 57

Phosphate fertilisers are typically extracted from layers of rock which were ocean sediments millions of years ago. How sickle cell gene protects against malaria A team of U.S. scientists has identified a new and surprising way in which those with the gene that causes sickle cell disease are protected from the ravages of malaria. People who develop sickle cell disease have inherited from both parents defective versions of a gene for haemoglobin, the iron-containing protein in red blood cells that transports oxygen from the lungs to tissues in the body. Their red blood cells, instead of being disc-like, turn crescent shaped. Such individuals

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs ongoing protein synthesis, observed Manoj Duraisingh of the Harvard School of Public Health and Harvey Lodish of the Whitehead Institute for Biomedical Research in a commentary on Dr. Chis paper that was published in the same journal. Dr. Chi and his fellow scientists found that some kinds of miRNA from the red blood cells were getting into Plasmodium falciparum , the parasite that causes the most dangerous forms of malaria. Doing so meant that these miRNA were getting past two membranes, one that surrounds the parasite (known as a parasitophorous vacuolar membrane) as well as the parasites own cellular covering. The papers findings were intriguing, according to Pushkar Sharma of the National Institute of Immunology in Delhi who works on the parasite. Only a few of the various miRNA present in the red blood cells were getting in and these were present in the parasite at higher levels than in the red blood cells. The molecular mechanisms that transported those miRNA into the parasite were not clear. Nor was it clear how a mutation in a gene required for haemoglobin set off increased production of the miRNA, he added. The Plasmodium parasites are not known to have the molecular machinery that miRNA typically uses to interfere with protein production. Instead, once inside, the human miRNA got attached to one end of some of the parasites messenger RNA (mRNA), which shuttle genetic information from genes to the protein-making apparatus known as ribosomes. Dr. Chis team found that this fusion impaired the loading of mRNA into ribosomes, thereby significantly reducing synthesis of some key proteins of the parasite. The findings that had been published were quite staggering and opened 58 up new avenues for research, remarked Dr. Sharma. The resistance of sickle cell patients to malaria has been interpreted to involve multiple mechanisms, noted G. Padmanabhan, former director of the Indian Institute of Science at Bangalore, who has studied the malaria parasites for many years. Dr. Chi and his colleagues had uncovered what appears to be one more mechanism by the host to contain parasite growth. New Technique to reduce the Side Effects of Chemotherapy Scientists developed a new technique to reduce the harmful side effects of chemotherapy. The new technique blocks an oxygensensitive enzyme and streamlines the blood flow by combining the specific PHD2 inhibitors with the chemotherapy. Inhibiting PHD2 results in the production of antioxidant enzymes were able to neutralise the harmful side effects of chemotherapy. The better formed blood vessels ensure that the anticancer drugs are distributed throughout the tumour, which increases their impact. In Chemotherapy, anti- cancer drugs are not easily delivered to the actual tumour because leaking blood vessels prevent anti-cancer drugs from reaching tumourb cells while promoting metastasis. Moreover, chemotherapy can adversely affect healthy organs, resulting into heart and kidney failure. New Oxidant in the Atmosphere Scientists for the first time found evidence of another oxidant named X, which plays an important role in the formation of gaseous sulphuric acid in the atmosphere. Until now there was a misconception that the combination of OH(hydroxyl radical) oxidant with sulphur dioxide was the reason behind the formation of gaseous sulphuric acid is formed in the atmosphere. The results are published on 9 August 2012 in Nature. The new oxidant is capable of oxidizing suphur dioxide. Experiments done by Scientists showed that the concentration of X also does not remain constant during the day. Indian Project won the World Environment Day Challenge An environment project made by Hand in Hand India, a Chennai based development organization was named the winner of World Environment Day Challenge 2012 organised by the UN. Projects of our other organisations also emerged victorious for their unique and inspiring work. Hand in Hand India created a colourful 10000 square foot rangoli carpet depicting 10 environmental themes. The awe inspiring theme came into being after the tireless efforts of nearly 500 volunteers. http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs The names of a Colombian group Fundacion Ecoprogreso, Kenyan group Maji Mazuri Centre International, Asutralias Sunshine Coast Environment Council and a Bangladeshi non-profit organization, Shidhulai Swanirvar Sangstha also figured in the list of winners. To increase the peoples participation in environmental activities the UN Environment Programme (UNEP) had come out with the innovative competition on World Environment Day 2012. Under the competition people across the world were asked to come out with an unique environmental project in connection with World Environment Day 2012. The World Environment Day is observed on 5 June every year. China to land first moon probe next year China has said it will land an exploratory craft on the moon for the first time next year, as part of an ambitious space programme that includes a long-term plan to put a man on the moon. in the 1970s. They (China) want a space programme that can be considered one of the finest in the world, said Morris Jones, an independent space analyst based in Sydney, Australia. If you want to be world leader in space, then you have to do missions like this. The landing planned for next year would be Chinas first on the lunar surface and mark a new milestone in its space development. It is part of a project to orbit, land on and return from the moon, the official Xinhua news agency said. U.S. stance on climate talks spurs row The United States ran into crossfire on Wednesday after it called for flexibility in climate talks, even if this approach could not guarantee meeting the UNs target on global warming. Europe demanded that the two-degree-Celsius (3.6-degreeFahrenheit) objective set at the Copenhagen summit in 2009 be honoured while small island states accused Washington of dangerous backsliding. In a barely-noticed speech in New Hampshire on August 2, chief U.S. negotiator Todd Stern said negotiations had to avoid a rigid format that prompted nations to defend their o w n interests and avoid painful curbs. He called for a flexible approach which would not only be easier to negotiate but also encourage deeper cuts in the long run. This kind of flexible, evolving legal agreement cannot guarantee that we meet a two-degree goal, Stern acknowledged. But insisting on a structure that would guarantee such a goal will only lead to deadlock. World leaders pledged in Copenhagen to stay below the 2C (3.6 F) temperature increase. What leaders promised must now be delivered, European Commission climate spokesman Isaac Valero Ladron said. Marlene Moses, chair of the Association of Small Island States (AOSIS), said Sterns speech follows a well-established pattern of the United States lowering ambition at the climate talks. Ring-Planet Saturn and Red Planet Mars paired in the Sky The Ring-planet Saturn and Red planet Mars came together in Western Sky after sunset on 15 August 2012. While the two planets appeared to be pairing in the sky, they were in actual quite far apart and different from each other. Saturn, the sixth planet from sun, is the second-largest planet in the solar system. The planet is composed almost entirely of gas, mostly hydrogen, with smaller amounts of other gases. It has no solid surface in our sense of the word, but it may have a small rocky core that is surrounded by thousands of miles of highly compressed gas due to the enormous gravitational effects of Saturns large mass, which is 95 times that of the Earth. Mars, which is also called the Red Planet, is fourth planet from the 59

Chinas third lunar probe will blast off in the second half of 2013 and attempt to land and transmit back a survey of the moons surface, state television reported late Monday. If it succeeds, experts said it would be the first craft to land on the moon as part of a mission as opposed to performing a controlled crash landing at the end of one since the Soviet space programme achieved the feat http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Sun in the Solar System. The planet is made of Iron-oxide gas, that gives the planet reddish appearance. Genetic differences seen in the same tree Believe it or not, Can clones can be genetically different, even by a small extent, from the parent body? For that matter, can there be genetic differences even within the same tree, such that tissues from the top and bottom of a single tree are genetically different? Ken Paige, an evolutionary biologist at the University of Illinois at UrbanaChampaign and his team made this startling discovery. Their finding was based on a genome-wide analysis of black cottonwood trees ( Populus trichocarpa ). This could change the classic paradigm that evolution only happens in a population rather than at an individual level, Brett Olds was quoted as saying in Nature . Dr. Olds, a biologist in Paiges laboratory, presented the research at the 2012 Ecological Society of America Annual Meeting in Portland, Oregon. Black cottonwood trees have the power to clone themselves. And by sharing the same root system, the resulting offspring continue to remain connected to their parents. According to the journal, the reasons why the scientists chose to study black cottonwood trees are simple. The full genome sequence is available. Most importantly, the trees live up to 200 years, and they grow to 30-50 metres height and thus the spacing between individual tissues is great both in terms of distance and years. Moreover, the trees exhibit connected clones, thereby providing an ideal opportunity to study both the parent and the offspring. Samples were collected from 11 parent-clone sets and the genomes sequenced from the root to the highest buds. The 60 genome results were compared with the reference sequence. The results were stunning 188,406 mutations were unique to just one tissue sample and these mutations were different from other parts of the same tree! Some of the mutations were seen within proteinencoding DNA sequences, and some in the amino-acid changes in the encoded proteins. According to Nature , Dr. Olds found the top buds of the parent and offspring in one tree were genetically closer to other tissues in the same plant. In another instance, the differences showed up in a peculiar manner the top bud was closer to the reference cottonwood genome than to any of the other tissues from the same individual. When people study plants, theyll often take a cutting from a leaf and assume that it is representative of the plants genome, Dr.Olds was quoted as saying in Nature. That may not be the case. You may need to take multiple tissues. Challenges of space travel Last month Sunita Williams entered the cosmos as part of NASAs Expedition 32 which aims to perform more than 240 experiments at the International Space Station in addition to testing a micro-satellite deployment system and transporting new research equipment. September 17 is when the crew will next be on terra firma after seventynine days in zero gravity. Re-adjusting to a life restrained by gravity has its complications particularly when propelling ones body is achieved merely by wiggling fingers. Accidentally bumping into a surface often results in the astronaut careering through the cockpit. In his book Do Your Ears Pop in Space? Col. Mike Mullane, a three-time astronaut, indicates that even eating in space involves slow, controlled movements to avoid spillage, not least because directing floating spheres of spilled food into ones mouth is a tiring and time-consuming exercise. From getting accustomed to sleeping in weightlessness like a zombie with arms floating in front of ones face to putting things down on a Velcro surface and then forgetting which of the many possible planes the object lies on, life in space requires adopting and adapting to a different lifestyle. Spending extended periods of time in zero gravity has some adverse effects on the body, namely muscle and bone atrophy. According to NASA Science, muscles can disappear at a rate of 4 per cent per week, while bones atrophy at 1 per cent per month. In the absence of gravity, the body no longer recognises a need for the muscles (particularly those in the calves and spine) that fight it and help maintain posture. Periodic exercise maintains the bodys cardiovascular system but does not have the same effect as exercise on Earth because of the unnecessary (and therefore absent) resistance to gravity. Protracted exposure to weightlessness causes a loss of calcium and reduction in bone mass for the same reason, called osteoporosis. While post-menopausal women on earth are more prone to osteoporosis, both genders are equally prone to decalcification in space. Furthermore, the mere act of living in space for days on end exposes an astronaut to a dose of space radiation equal to the dose an Earthling receives in a year. However this is only a fraction of the intake that scientists perceive as harmful. Also, the launch of space shuttles and the duration of expeditions are adjusted http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs to avoid high solar activity. If being bombarded by higher levels of cosmic and neutrino radiation is the downside of space travel, then physical growth is one of the perks. It certainly is true that disembarking astronauts are taller than embarking ones! This growth is due to zero gravity the vertebrae of the spine spread out. While this effect is permanent, not every aspect of adjusting to life in space is long-lasting. Space Adaptation Syndrome or space sickness, which scars the start of an expedition for some astronauts, is caused by a sudden change in spatial orientation. The satisfaction of weighing zero Newton is also temporary, and ends once the shuttle re-enters the Earths atmosphere and gravity comes into play. The Origin of the Singing Mice Unveiled Scientists discovered the origin of singing mice that use songs to communicate. The scientists stated that this can help identify genes that affect language in humans. The singing mice are brown fur rodents instead of the normal white ones, they are found in the tropical cloud forests in the mountains of Costa Rica. Apparently, the song of the singing mice is a rapid-fire string of high pitched chirps called trills , which are used mostly by males to attract mates. Up to twenty chirps are squeaked out per second, however unlike birds, the mice generally stick to a song made up of only a single note. Steven Phelps the main researcher behind the singing mice is already making news. Phelps research on the behavior of the mouse has appeared in the journals Hormones and Behaviour and Animal Behaviour. His newest research project is responsible for examining the genetic components that influence http://upscportal.com song expression and is a special gene called FOXP2. Why do ripened mangos have a strong smell? The fruit ripening signal is the sudden production of ethylene. Ethylene is the simple hydrocarbon gas produced in the ripening fruit and released into the atmosphere. This ethylene signal causes developmental changes that result in fruit ripening. hydrocarbons such as cis -ocimene, alpha and beta-pinene, myrcene and limonene seem to be particularly important contributors to the flavor of the fresh fruit, depending upon the variety. The momoterpene cis ocimene is a major flavor component in mango cultivars Alphonso from India and Jaffna from Srilanka, Among the sesquiterpenes, betacaryophyllene and alpha-humelene are common components in the volatiles mixture of almost all cultivars of mango. The mango fruits are harvested in any one of the three stages namely mature green stage in which the fruits have pale ash green colour with smoky appearance, half-ripe stage and ripe stage. The pulp of ripe fruit harvested at the mature green stage exhibited higher total amounts of the aroma volatiles namely the monoterpenes and the sesquiterpenes. Fruit harvested at the fully ripe stage resulted in higher concentrations of esters, alkanes and norisoprenoids. To achieve better quality and greater aroma volatile production of the ripe fruit, mango should be harvested at the mature green stage. Balwan Pyaj Seventeen years of painstaking effort in developing and maintaining a new onion variety by a small farmer, Balwan Singh from Haryana, bore fruit when the National Innovation Foundation India (NIF) under the leadership of Prof Anil Gupta recognised this variety at the national level.

These developmental changes are triggered by the set of enzymes called hydrolases. Ethylene apparently turns on the genes that are transcribed and translated to make these enzymes. The enzymes then catalyze reactions to alter the characteristics of the fruit. The action of the enzymes causes the ripening responses. Chlorophyll is broken down and sometimes new pigments are made so that the fruit skin changes color to red, yellow, or blue. Acids are broken down so that the fruit changes from sour to neutral. The starch is digested by amylase to produce the simple sweet sugars. As a result, the mealy quality is reduced and juiciness is increased. Finally enzymes break down large organic molecules into smaller ones that can be volatile (evaporate into the air), which we can detect as an aroma. A wide range of such compounds has been identified, including esters, lactones, mono- and sesquiterpenes. Monoterpene

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs NIF honoured the farmer in its sixth biennial award ceremony at the Rashtrapati Bhavan, New Delhi recently. This onion variety named Balwan Pyaj has a longer shelf life as compared to other commercial varieties due to its tightly adhered bulb skin. The varietys yield per hectare is over 30 tonnes, and is believed to be resistant to pests and diseases occurring in onion. Its dark red coloured globular shaped bulbs with about 50-60 gm weight, appear more attractive than common ones with firm, bright red coloured, bulbs yielding about 20 tonnes per hectare. That is the new variety developed by the farmers yields nearly 50 tonnes. A Web-based System developed for advising Farmers on Fertilizers The Indian Institute of Soil Science developed a web-based system for advising farmers the right quantity of fertilizers that they should use in their soils for a particular type of crop. The software takes into account the soil type in different districts of the country and available nutrient in the soil. It takes into consideration the crop and cropping season in calculating the nutrient requirement. In some cases, it takes care of even different available varieties of main crops. Finally, the system converts the nutrient data into the quantities of main fertilizers-urea, MOP and SSP that are required to be used by the farmer. This system is presently available district-wise for these 11 states: Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Himachal Pradesh, Karnataka, Maharashtra, Orissa, Punjab, Tamil Nadu and West Bengal. Rover: first step to human space programme to Mars NASAs Jet Propulsion Laboratory has high expectations for 62 the upcoming landing of the Curiosity rover on Mars and is certain of great science results, a lab engineer says. Torsten Zorn, a robotics engineer with JPL and a four-year veteran on the Curiosity project team, told Xinhua in an interview that the most interesting part of the venture could be learning more about the geological history of Mars. Zorn said scientists want to find out how Mars once wet surface dried up, how long the process took and what caused the changes. The findings will be important for scientists to determine whether Mars is habitable for humans. To find life, in any form, Zorn said, is a goal of Curiosity. The rover is equipped with a drill to gather samples underground and send them to a self-contained lab to determine Mars geological conditions and changes, and if there are any microorganisms present on the planet. The small lab will also test the soil samples to see if there are signs of life in the history of Mars. Curiosity will test the Mars soil only with its own equipment after it lands on the planet on Sunday (August 5) but future missions will bring samples back to Earth for more study, Zorn said. A new oxidant in the atmosphere identified Scientists have for the first time found unequivocal evidence of another oxidant playing a vital role in the formation of gaseous sulphuric acid in the atmosphere. Until now, it was thought that the combination of OH (hydroxyl radical) oxidant with sulphur dioxide (SO{-2}) was the dominant way by which gaseous sulphuric acid is formed in the atmosphere. The results are published today (August 9) in Nature . R.L. Mauldin from the University of Helsinki and other coauthors are yet to identify the oxidant with certainty, and have named it as X. They found the new oxidant has significant capacity to oxidise sulphur dioxide. The investigation into the presence of X was conducted in the boreal forest region in Finland. The OH concentrations are not constant throughout the day. The maximum concentration is found at noon and much lower values during night. Measurements taken in the field for a week showed that the concentration of X also does not remain constant during the day. But its levels are much higher than the hydroxyl radical (OH) during evenings and nights. And the levels of gaseous sulphuric acid measured were also much higher than expected if only OH were present. Sulphuric acid originating from this non-OH source may contribute up to 50 per cent of the total H{-2}SO{4}budget, demonstrating the important role of this H{-2}SO{4}formation route, they write. Since the new oxidant was found to be particularly abundant during the evenings and nights, the scientists postulate that it must be related to reaction of surface emission, such as naturally produced hydrocarbons, with ozone. To confirm their findings, the scientists carried out laboratory experiments where SO{2}was exposed to mixtures of ozone and various alkenes, and the resulting atmospheric sulphuric acid levels were measured. The experiments were repeated using an OH scavenger. To their surprise, sulphuric acid was still being formed, thus confirming the results obtained in the field. The most efficient way of producing atmospheric sulphuric acid from a non-OH source could be from monoterpenes than for other alkenes, they note. Apparently, monoterpenes, including limonene and alpha pinene used in the http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs experiment, are emitted by trees. And these two were found in abundance in the field. They followed the next logical step of reconfirming its actual production by the trees. They cut branches from different trees and measured the amount of OH and X produced. The amount of OH produced was minor in comparison to production of X. In conclusion, they state: Our findings add to the already substantial significance of forests in the Earth system by introducing a previously unknown oxidant, probably an sCI, capable of oxidizing at least SO{-2}and possibly also other atmospheric trace gases relevant to atmospheric chemistry. The technique used by them to measure OH is known as chemical ionization mass spectroscopy (CIMS), and it has been used in a range of environments. It is therefore surprising that the significance of background signals has not been recognized in previous studies, notes a News piece in the same issue of the journal. The forested environment studied by the authors emits large quantities of alkene, and so provides ideal conditions for the formation of X. Measurements of X are now needed in other environments, to determine its global impact on the production of atmospheric sulphuric acid. Tumor Stem Cells multiply and Fuel Cancer In the studies conducted by American, Belgian, British and Dutch researchers it was found that tumors contain their own pool of stem cells that can multiply and keep fueling the cancer, seeding regrowth. Studies were published on 1 August 2012 in the journals Nature and Science Stem cells in healthy tissues are known for their ability to produce any kind of cell. The new research deals with a different kind, cancer stem cells. Some researchers, but not all, believe they lurk as a persisting feature in tumors. The three studies used labeling techniques to trace the ancestry of cells within mouse tumors. Sharp drop in HIV cases in India India had witnessed a sharp decline in the number of new HIV cases a 56 per cent drop in the past 10 years. HIV infections have declined by 56 per cent during the last decade from 2.7 lakh in 2000 to 1.2 lakh in 2009 in our country, Indian Health and Family Welfare Minister Ghulam Nabi Azad said in the national capital. This has been possible due to political support at the highest levels to the various interventions under National AIDS Control Programme, including Parliamentarians and elected leaders at the state and local levels and a symposium while addressing an international HIV vaccine symposium. Expressing similar sentiments, Minister of Science and Technology and Earth Sciences Ashwani Kumar said that the Government believes that the new HIV infections could be significantly reduced if effective prevention programs are expanded and reach those at greatest risk of HIV infection. In fact, HIV which causes AIDS was detected in India nearly 25 years back. Though more than 2 million people are affected by the virus, India is said to be one of the few countries which has actually made significant reductions in HIV infections. The countrys HIV AIDS prevention model has been even lauded by United Nations Secretary General Ban-Ki Moon. China unveils ambitious space projects China will launch several space projects, including a hard X-ray telescope for black hole studies, between 2014 and 2016, a Chinese academic announced Wednesday. Su Dingqiang, an academic at the Chinese Academy of Sciences, announced this at the opening ceremony of the International Astronomical Unions 28th General Assembly, the China Daily reported. Su, a former president of the Chinese Astronomical Society, revealed some details regarding the hard x-ray modulation telescope (HXMT), Chinas first space telescope. The hard Xray band is a key waveband for highenergy astrophysics studies. Hard X-rays originate mostly from regions close to black holes and 63

cooperation received from NGOs, civil society, etc the minister said at http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Curiosity touched the Surface of Mars The US space agency NASA landed Curiosity, a huge new robot rover on Mars on 5 August 2012. The one-tonne vehicle touched the surface of Mars after a 345-millionmile expedition. The robot rover will now conduct a study to find out whether the planet was ever hospitable to life. The robot rover, which epitomizes the technological wizardry of mankind, is set to spend nearly two years for the mission. NASA undertook the mission with an objective to determine whether Mars has ever had the conditions to support life. The ambitious project costed the US government about 2.5 billion dollar. Specific Technological Features of Curiosity The 900 kg rover has the top speed of about 4cm/s Plutonium generators installed on the rover will deliver heat and electricity for at least 14 years 75kg science payload more than 10 times as massive as those of earlier US Mars rovers Equipped with tools to brush and drill into rocks, to scoop up, sort and sieve samples Variety of analytical techniques to discern chemistry in rocks, soil and atmosphere Even carries a laser to zap rocks; beam will identify atomic elements in rocks Equipped with 17 cameras, which will identify particular targets, and a laser will zap those rocks to probe their chemistry Findings of the mission will be delivered to Earth through antennas on the rover deck A classic example of biased and unscientific study For the past several years, there has been growing concern about the health impact of radiation from mobile towers. In 2008, Government of India adopted the Guidelines developed by the International Commission on Non-Ionizing Radiation Protection (ICNIRP) for Electromagnetic radiation from mobile towers.The values chosen for the permissible Power Density are 4.5 W/Sqm for 900 MHz and 9 W/Sqm. for 1800 MHz. Based on media reports and public concerns, the Government set up an Inter-Ministerial Committee (IMC) of specialists on August 24, 2010. The Committee examined the environmental and health related concerns and indicated that most of the laboratory studies were unable to find a direct link between exposure to radio frequency radiation and health; and the scientific studies as yet have not been able to confirm a cause and effect relationship between radio frequency radiation and health. The effect of emission from cell phone towers is not known yet with certainty. However, the IMC recommended lowering the mobile towers EMF exposure limits to 1/10th of the existing prescribed limit as a matter of abundant precaution. The Government accepted the recommendation and issued directions making the new norms applicable from September 1, 2012. Among the inputs submitted to the Department of Telecom was a document Report on Cell Tower Radiation authored by Prof. Girish Kumar of the Department of Electrical Engineering, IIT Bombay. The report listed symptoms and diseases allegedly caused by electromagnetic radiation. The only http://upscportal.com

have high penetrative power, making them important tools for studying physical processes in extreme conditions, such as high matter density and high energy density, the daily said. Detecting gamma rays Su said China will develop another satellite, the dark matter particle explorer (DAMPE), to help detect high-energy electrons and gamma rays, as well as a telescope to study the solar magnetic field and a Sino-French joint mission to study gamma ray bursts. An observatory Su said Chinese scientists were also planning to establish an Antarctic astronomical observatory. An Antarctic Survey Telescope (AST) was installed there at the beginning of the year and another AST will be installed in 2013, said Cui Xiangqun, an academic at the Chinese Academy of Sciences. Chinas first Antarctic telescope was installed in 2009. Chinese space exploration has developed rapidly in the past decade, China Daily said. Some largescale astronomical projects in China, including the Large Sky Multi-Object Fiber Spectroscopic Telescope (LAMOST) completed in 2008 and the Five-hundred-metre Aperture Spherical Radio Telescope (FAST) to be completed in 2016, have drawn global attention. The ongoing conference is the first of its size to be held in China. 64

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs items not included in it were jealousy and baldness! The author mined part of the scary data from papers of Arthur Firstenberg, the founder director of the Cellular phone task force which is dedicated to halting the expansion of wireless technology because it cannot be made safe. Firstenberg filed and lost many suits against the spread of wireless technology. Wikipedia, noted his claim that electromagnetic fields from his neighbours cell phone are destroying his health and that he sued his neighbour seeking damages $ 530,000 for refusing to turn off her cell phone and other electronic devices! Firstenberg is a symbol of the collective schizophrenia against RF radiation. Prof. Kumar uncritically accepted the Bio-initiative Report 2007 (BIR), a booklet well known for its lack of balance. Advocacy document The Committee on Man and Radiation (COMAR), a technical committee of the Engineering in Medicine and Biology Society (EMBS) of the Institute of Electrical and Electronics Engineers (IEEE) noted that BIR is an advocacy document. BIR itself conceded that it was written to document the reasons why current public exposure standards for non-ionizing electromagnetic radiation are no longer good enough to protect public health. Fourteen individuals under the direction of a 4-person organizing committee wrote BIR. Most of its 21 sections are authored by single individuals or (in a few cases) pairs or trios of authors; the section Key Scientific Evidence and Public Health Policy Recommendations was written by a pair of individuals and appears to reflect their views only, COMAR clarified in a paper in Health Physics http://upscportal.com

Journal. There is no indication of how the members of the committee were chosen or how balance was provided in the group of contributors, a majority of whom have public records of criticism of existing exposure standards and guidelines. COMAR added that since appearing on the Internet in 2007, the BIR has received much media attention but, more recently, has been severely criticized by health organizations and scientific groups such as EMF-NET, a coordinating committee of the European Commission 6th Frame Work Programme, The Netherlands Health Council and Australian Centre for Radiofrequency Bioeffects Research BIR report was slammed by these agencies thus: written in an alarmist and emotive language and the arguments have no scientific support from well-conducted EMF research; There is a lack of balance in the report; no mention is made in fact of reports that do not concur with authors statements and conclusions. It is not an objective and balanced reflection of the current state of scientific knowledge; and As it stands it merely provides a set of views that are not consistent with the consensus of science. In May 2010, The INTERPHONE Study concluded that overall, no increase in risk of brain tumours was observed with the use of mobile phones. There were suggestions of an increased risk of glioma at the highest exposure levels, but biases and error prevent a causal interpretation. The possible effects of long-term heavy use of mobile phones require further investigation, the authors added The INTERPHONE study supported by WHO is the largest casecontrol study of mobile phones and brain tumours conducted to date, including the largest numbers

of users with at least 10 years of exposure and the greatest cumulative hours of use of any study. Thirteen countries including UK, Sweden, France and Germany collaborated. Interphone study in 2010 mentions that excessive use of mobile phones has doubled to quadrupled brain tumor risk. However, they claim that for an average user, increase in cancer cases is not significant, the Prof. Kumars report says. By this assertion, the report is misinterpreting the lucid conclusion provided by the study Prof. Kumar argued that the allowable power level must be brought down in India. A number of adverse health effects have been documented at levels below the FCC guidelines, which include altered white blood cells in children; childhood leukemia; impaired motor function, reaction time, and memory; headaches, dizziness, fatigue, weakness, and insomnia etc, the report said, possibly based on the much criticized Bio-initiative Report 2007 . Prof. Kumar had cherry-picked many references to substantiate such claims. International agencies such as the WHO and national agencies have not accepted such preposterous claims. A newspaper reported that in a building in Mumbai four cases of cancer were linked to radiation from a mobile phone tower. Based on this, Prof. Kumar estimated the power level at the building to be about 0.1 W/ m2 and claimed that the tower was the cause of cancer in several people in 2-3 years time! He also measured a power level of 7,068 microwatt/m2 in the home of a cancer patient who allegedly developed cancer within an year of installation of a mobile phone tower, and links the cancer to radiation from the tower! Arriving at a conclusion based on studying one or two individuals is 65

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs not how epidemiological studies are conducted. First song from Mars NASA transmitted the first song to be broadcast from Mars on Tuesday, by Grammy-winning US musician will.i.am, as part of efforts to inspire young people to get interested in science. Reach for the Stars was then beamed back by the Curiosity rover, which landed on the surface of the Red Planet earlier this month, to NASAs Jet Propulsion Laboratory (JPL) in Pasadena, California. It seems surreal, the US rapper and actor said explaining how NASA administrator Charles Bolden had called him to suggest beaming a song back from Mars as part of educational outreach efforts by the US space agency. The song with lyrics including I know that Mars might be far, but baby it aint really that far involved a 40-piece orchestra. The singer said he didnt want to do a song that was done on a computer,given that it was going to be the first piece of music broadcast back to the Earth from Mars. I wanted to show human collaboration and have an orchestra there and something that would be timeless, and translated in different cultures, not have like a hip hop beat or a dance beat, he said. A lot of times people in my field arent supposed to try to execute something classical, or orchestral, so I wanted to break that stigma, the 37-year-old real name William James Adams told a student audience. The aim was to inspire young people like those at the NASA event, to take a greater interest in science. Why does the immune system in females not attack sperms (foreign bodies) that enter the female body? The basic tenet of the human 66 immune system is that it can differentiate self from others. This allows the body to fight off any foreign cells which it encounters. That is why it is difficult to transplant organs without suppressing the immune system. However, when it comes to reproduction, the human body not only ignores the sperm, but also fails to recognise the foetus (which has half of its material from a foreign donor) as a foreign body. In the decidua the tissue surrounding the foetus and the placenta the immune response is switched off and thus preventing an assault on the developing baby. It is obviously an evolutionary advantage for the female body not to recognise sperms as dangerous foreign invaders. Studies have confirmed the presence of markers on the surface of the human sperm that prevent them being attacked by the female immune system. These markers on the sperm are universally recognised by any womans immune system, and trick the immune system into believing that the sperm is harmless. That is why reproduction can occur between any two people. However, there are probably many still unrecognised mechanisms which allow sperm to escape the search and destroy mission of the female immune response. Centre to Prepare revised Guidelines for Tourist Activities The Supreme Court of India on 29 August 2012 directed the Centre to prepare revised guidelines for tourist activities in core areas of tiger reserves. A bench including justices AK Patnaik and Swatanter Kumar ruled that the fresh guidelines should be evolved within four weeks after consultations with States, all stakeholders, hotel associations affected by the ban, guides and tour operators. The apex courts decision came after the Attorney General GE Vahanvati sought permission to revise the existing guidelines to ensure that tigers are protected even while tourism is promoted. The Supreme Court once again extended the ban imposed by the court on tourist activities in the core areas of tiger reserves till the 27th of September 2012. On 24 July 2012, the apex court had banned all tourism activities in the core areas of tiger reserves. Elephant impregnated with frozen sperm Breeders have used frozen sperm from a wild elephant for the first time to impregnate a female living in captivity, the Schoenbrunn Zoo in Vienna, Austria. Useful for other species The new freezing method could also be used with other endangered species like rhinoceros and gorillas, said Thomas Hildebrandt, a researcher at Berlins Leibniz Institute for Zoo and Wildlife Research, who was involved in the international project. Previously, elephant breeders could only use a limited number of elephant bulls living in zoos, as semen could not be frozen and had to be used within twelve hours.In Vienna, Austria, the female African elephant Tonga is now nine months pregnant and is expected to give birth in September 2013. The father lives in South Africa. Schoenbrunn Zoo chief Dagmar Schratter said that the new method was a milestone for wildlife conservation and for breeding in zoos. Growing rice in soil poor in phosphorus possible A gene present in a specific (aus-type) rice variety, Kasalath, http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs which has its origin in eastern States of India, holds the key to improving yield across the world. This includes soil deficient in natural phosphorus, a mineral essential for food crops. Natural reserves of the mineral in the soil are limited in almost half of worlds soil. About 60 per cent of rain-fed lowland rice is cultivated in phosphorus-poor soil. The compulsion to use phosphorus fertiliser therefore becomes inevitable. But rock phosphate, which is the source of this precious mineral, is limited in quantity and is a non-renewable source. But growing rice even in such poor and problematic soil without totally depending on phosphorus fertiliser can soon become a reality. Rico Gamuyao from the International Rice Research Institute, Manila, Philippines and his colleagues have successfully identified the gene that provides phosphorus-deficiency tolerance in rice. The results are published today (August 23) in Nature . Though the locus of phosphorus-deficiency tolerance in the aus-type variety, Kasalath was identified a decade ago, the specific gene (PSTOL1) that provides the tolerance remained elusive. Encoding The gene encodes for a protein kinase enzyme that vastly improves rice yield even when the crop is grown in soils deficient in phosphorus. If the expression of PSTOL1 is pronounced in the roots of rice that have the phosphorus uptake (Pup1) genomic region, it becomes all the more enhanced when the rice is grown in phosphorus-deficient soil conditions. This gene is absent from the rice reference genome and other phosphorus-starvation-intolerant modern varieties, they write. The absence of PSTOL1 from modern rice http://upscportal.com varieties underlines the importance of conserving and exploring traditional germplasm. To understand and quantify the effect of PSTOL1 in rice grown in phosphorus-deficient soil, the scientists inserted the gene into two rice varieties that naturally lack the gene. The two rice varieties chosen represent two distinctly different types of modern irrigated varieties. The field trials were conducted in soil that was phosphorus deficient. What they observed was a truly significant effect of the gene the yield improvement was as high as 60 per cent. They also found that expression of PSTOL1 above a certain threshold was essential to confer tolerance to phosphorus deficiency. So how does PSTOL1 help the plants to grow in phosphorus-deficient soil? PSTOL1 expresses itself at high levels in the roots of the plants. This results in these plants having a significantly higher total root length and root surface area. PSTOL1 expression also leads to increased root growth and root proliferation. Though much more has to be known, the scientists are already attempting to translate their discoveries into improved phosphorus efficiency in rice crops by use of targeted inter-variety breeding, notes a news piece in the same issue of the journal. Ban on Tourism Activities in Tiger Reserves extended The Supreme Court of India on 22 August 2012 extended the ban on tourism activities in the core areas of tiger reserves. A bench of Justices A K Patnaik and Swatanter Kumar asked the Union government some

searching questions as it made a fresh plea for the review of the apex courts July 24 order banning tourism in the core areas of tiger reserves. The ban extended would remain in place at least till next hearing on 29 August 2012. Integrated management of sweet potato weevil Sweet potato weevil causes extensive damage in the field as well as in storage. Small white legless larvae bore tunnels in the tubers and inside vines. The tunnels are infected with fungi and bacteria that cause the tuber to rot. Further, the larva feed on the internal tissues and deposit excreta within the tunnels rendering the tubers unfit for consumption. Larval period About 165 eggs are laid in the hollows of stem/vines or tubers and hatching takes place with in 5-7 days. Larval period lasts for 14 days and pupation takes place inside the plant lasting about a week. The entire life cycle is completed in 6-7 weeks and there are 7-8 generations each year. Adult weevil measures 6-8 mm in length and life span is for 2-3 months. This pest is disseminated from field to field through infested vines and carried over every season by breeding in damaged tubers left in the fields after harvest. The pest is more abundant during monsoon and 67

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs remains active throughout the year but population attains peak during March to May. Adopt crop rotation and use resistant varieties. Select weevil free lands for sweet potato cultivation. Use weevil free planting materials of early maturing varieties. Planting of deep rooting varieties and irrigating at 7 days interval control the infestation. Earthing up the plants 50 days after planting reduces the weevil attack. Closing of cracks in the field by periodical hoeing minimizes the weevil infestation. Mulching with Eupatorium odoratum leaves at rate of 3tonnes per hectare 30 days after planting suppresses the weevil attack. After the harvest the field should be cleaned of trashes. Destruction of infested crop materials and crop residues help to lower pest population. Pheromone traps Trap the adult weevils using cross-cut sweet potato pieces of about 6 cm diameter (100g size) kept 5metres apart during 50 to 80 days after planting at 10 days interval. Use pheromone traps at rate of 5 numbers per acre to attract and kill the male weevils. Dip the planting slips in 0.05 per cent fenthion solution for 5 to 10 minutes prior to planting . Advisory to reduce the Impact of Communication Towers The Ministry of Environment and Forest (MoEF) on 14 August 2012 issued an advisory to reduce the negative impact of Electro Magnetic Radiations emanating from the communication towers. Acting on the recommendations made by an expert panel, constituted to Study the possible Impacts of Communication Towers on Wildlife including Birds and Bees, the ministry 68 Telecommunications to facilitate appropriate policy formulations. 4. The location and frequencies of cell phone towers and other towers emitting EMR, should be madeavailable in public domain. 5. State governments are urged to spread awareness among the people about the negative impacts of EMR using different media. Kinesio tape, latest musthave for injuries Athletes must be falling apart because, suddenly, everyone from Novak Djokovic to Mario Balotelli is taped up. Are these elaborate weaves of coloured Kinesio tape a genuine leap forward in the treatment of sports injuries? Kinesio Tex tape, a strong elasticated tape, was developed more than 30 years ago by a Japanese chiropractor, Dr Kenzo Kase. He found that the application of the tape replicated some of the beneficial effects of manual therapy such as massage in reducing pain and soreness for injured patients. First seen on Sumo wrestlers, the tape took off when rolls were donated to 58 countries at the Beijing Olympics in 2008. Sportsmen and women from Lance Armstrong to Serena Williams have sported various types of elastic therapeutic tape. Its absolutely bloody brilliant, says physiotherapist Paul Hobrough, who uses a variety of brands to help runners. Tape has been used to patch up injuries for years, but Hobrough finds Kinesio tape better than oldfashioned zinc, which prevents all movement. A common problem for runners is a mistracking kneecap; Kinesio tape can stretch and contract, inhibiting damaging movements but http://upscportal.com

issued numerous guidelines. Some of the major directives issued by the MoEF are as follows: 1. Regular Electro Magnetic Radiation (EMR) to be conducted in urban localities and ecologically sensitive regions. 2. New mobile towers not to be set up within the 1 km radius of existing towers. 3. Any study conducted on impact of EMR radiation on wildlife needs to be shared with Forest Department andDepartment of

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs allowing the right kind, explains Hobrough. Runners can continue to train even when they have a problem. Hobrough is cautious about people attempting to apply the tape themselves and the perception that it is a panacea. It is a rehab tool, not rehab, he says. Kase has a more expansive view of his tapes benefits. Space, flow and cooling are, he explains, his basic concepts. He believes the source of many joint and muscle pains lies in the thin layer of skin between the epidermis and the dermis. Conventional therapies compress these areas. I needed to create something to lift these layers. The tape, he claims, opens the space between the epidermis and dermis, enabling a better flow of blood and lymphatic fluids. Through this flow, the body loses excessive heat that can damage it. China develops a robot that walks on water The first bio-inspired microbot is capable of not just walking on water but jumping up and down on the waters surface like the insect, a study shows. Qinmin Pan and colleagues from Harbin Institute of Technology and the National Natural Science Foundation of China, reported a number of advances toward tiny robots that can walk on water. However, even the most advanced designs, including one from Pans team last year can only walk on water. Pan noted that real water striders actually leap, the journal Applied Materials & Interfacesreported. Pans group looked for novel mechanisms and materials to build a true water-striding robot, according to a Harbin Institute statement. Making a jumping robot is difficult because the downward force needed to propel it into the air usually pushes the legs through the waters surface. Using porous, super waterrepellent nickel foam to fabricate the three supporting and two jumping legs, the group made a robot that could leap more than 5.5 inches, despite weighing as much as 1,100 water striders. In experiments conducted at the institute, the robot could jump nearly 14 inches forward more than twice its own length leaving the water at about 3.6 miles per hour. The study authors report that the ability to leap will make the bio-inspired micro robot more agile and better able to avoid obstacles it encounters on the waters surface. Cataract risk from drug People using cholesterollowering drugs may be at an increased risk of developing agerelated cataracts, a new study has claimed. Researchers from the University of Waterloo in Canada found that the additional risk of cataracts in statin drug users appears similar to that associated with type 2 diabetes. The study involved nearly 6,400 patients, 452 of these patients had type 2 diabetes. Statin treatment and diabetes were evaluated as possible risk factors for age-related cataracts. Fifty-six per cent of patients with type 2 diabetes were taking statins, compared to 16 per cent of those without diabetes. Both diabetes and statin use were significantly associated with an increased rate of age-related cataracts. Symposium on antibiotic resistance A first ever joint meeting of Medical societies in India on tackling antibiotic resistance will be held at Chennai on August 24, 2012. The plan is to formulate a roadmap to tackle Indian perspective of the global challenge of antibiotic resistance, said Dr. Abdul Ghafur, Consultant in infectious diseases at Apollo Hospitals, Chennai. He is also the co-ordinator of the symposium. The compulsion to formulate a roadmap arises as India does not still have a workable national antibiotic policy. That may partly explain why drug resistance to many powerful antibiotics is increasing in a short span of time. If carbapenem resistance in 2008 was 2-3 per cent in some hospitals in India, it has now increased to 20-25 per cent, says Dr. Ghafur. Worse, resistance to colistin, which is used for treating carbapenem - resistant Gramnegative bacteria, is also seen in many countries. Tackling antibiotic resistance becomes a bigger challenge in India due to several reasons. The spread of drug resistance is faster in India due to many reasons lack of infection control practices in hospitals, absence of antibiotic policy, sanitation issues in the community etc, he said. One of the highlights of 69

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs the meeting is the participation of several medical societies. Aside from medical societies, very senior members from national and international bodies like the WHO are participating. Dr V.M. Katoch, Secretary, Health Research, Government of India and Director General of ICMR, Dr. Sanjeev Singh of NABH, Dr.G.N. Singh, Drugs Controller General of India and others will be present. Ban GM Food Crops recommended In a major setback to the production of genetically modified (GM) foods in the country, a parliamentary panel on agriculture asked the government to ban all field trials of GM crops until it develops until it develops a better system of monitoring and oversight. In the 389page report submitted in the parliament on 9 August 2012, the panel also demanded a complete probe into how permission was granted in 2009 for the commercialisation of Bt brinjal (also known as aubergine, or eggplant). Bt Brinjal was developed by Punebased Mahyco (Maharashtra Hybrid Company) in a joint venture with US seed giant Monsanto. The Genetic Engeneering Appraisal Committee had cleared the commercialization of Bt Brinjal on 14 October 2009, though soon after its clearance it was caught amidst bitter controversies ranging from its environmental impacts to ethical concerns such as corporate control of the food supply and intellectual property rights. Bt cotton was the only GM crop before Bt Brinjal which had got clearance for commercialization.

Extreme summer heat due to global warming

Microbes, sponges and worms add to reef woes

Climate-change sceptic reverses stance

A new statistical analysis by NASA scientists has found that Earths land areas have become much more likely to experience an extreme summer heat wave than they were in the middle of the 20th century.
Lotus leaf inspires fog-free finish to glass

A study in Marine Ecology Progress Series says that pollution and overfishing on reefs have an ecological cascading effect the proliferation of microbes, sponges, and worms that further degrade corals.
Multiple planets orbiting a pair of stars

A prominent U.S. sceptic of the human causes of climate change, Richard Muller, now believes human greenhouse gas emissions are responsible.
Stem Cell Therapy to prevent Osteoarthritis

Inspired by the water-repellent properties of the lotus leaf, scientists in China have found a way to impart a fog-free, selfcleaning finish to glass and other transparent materials says the journalApplied Physics Letters .
Cheap, most efficient solar cells created

Besides finding the first circumbinary planet, NASAs Kepler mission has discovered multiple transiting planets orbiting two suns for the first time.
Oldest occurrence of preserved arthropods

Scientists in the second week of August 2012 found a stem cell therapy to prevent osteoarthritis after a joint injury. Scientists used MSCs (mesenchymal) stem cells in mice with fractures that typically result into developing arthritis. This scientific finding could result into a therapy that will be used after joint injury. Osteoarthritis means painful and stiff joints.
New system that could predict solar flares

Research published in Nature Nano technology describes a breakthrough in the development of colloidal quantum dot (CQD) films, leading to the most efficient CQD solar cell ever created out of inexpensive materials.

Scientists have found the oldest record of arthropods which include insects, arachnids, and crustaceans preserved in amber. The specimens are 100 million years older than any other amber arthropod ever found.

As varying decay rates of atoms due to solar activity lead to differences in gamma radiation, Purdue University researchers have found a method to predict http://upscportal.com

70

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs solar flares more than a day before they occur.
Releasing GM algae in the wild may be risky

may still have unwanted effects on modern populations of the species.


Coconut water is an excellent sports drink

dark chocolate or cocoa powder daily and found that their blood pressure dropped slightly compared to a control group.
Nanotechnology for solar panel efficiency

Scientists, in the journal BioScience , say they need to know whether some types of algae, genetically engineered for use as fuel, could produce toxins or harmful algal blooms in the wild.
Sperms grown from skin to treat infertility

Coconut water is a natural drink that has everything your average sports drink has and more. It has five times more potassium than Gatorade or Powerade, the American Chemical Society concluded recently.
Maps reduce tourisms impact on dolphins

A University of Houston researcher has developed a nanoparticle coating for solar panels that makes it easier to keep them clean. This helps in keeping them efficient and cuts maintenance costs.
Electronic nose prototype developed

Scientists claim to have successfully created early-stage sperms from human skin that could potentially help infertile men, including survivors of childhood cancer.
Software simplifies dolphin identification

Preventive measures in a small number of bays, identified by maps created by a study, rather than limiting access to dolphins along the entire coast of Hawaii benefits tourists and tourism operators as well as the dolphins.
Role of nature parks in saving biodiversity

An electronic nose prototype that can detect small quantities of harmful airborne substances has been developed.
Pandas are selective while scent marking

A computer program simplifies photo-identification of bottlenose dolphins by applying computer vision and signal processing techniques to automate much of the tedious manual photo-id process.
Smiling facilitates stress recovery: study

Some of the tropical nature parks are in danger of sinking, though they are our best hope to sustain tropical forests and their amazing biodiversity in perpetuity, says a study in Nature of more than 30 different categories of species.
Third of organisms live in rocks, sediments

Pandas have many ways to communicate when they are ready for close contact. One way is scent marking. A study shows that pandas clearly, specifically select trees to use for scent marking, so that the scent lasts longer.
Bending light waves on surfboards

A study forthcoming in Psychological Science , shows that smiling during brief stressors can help to reduce the intensity of the bodys stress response, regardless of whether a person actually feels happy.
Cross-breedings effect on American bison

By some estimates, a third of the Earths organisms by mass live in rocks and sediments, yet their lives and ecology are almost a complete mystery.
Dark chocolate, cocoa may cut blood pressure

A University of Exeter scientist is using foam from inside surfboards to make materials that can manipulate light.
Asian Ladybugs in Europe turn pests

Scientists writing in Conservation Biology are exploring how the cross-breeding of bison with domestic cattle in the late 1800s http://upscportal.com

Research in The Cochrane Library reviewed evidence from trials in which participants were given

The Asian ladybug, introduced into Europe to combat aphids, is displacing the native European ladybird and has become a pest that can contaminate homes say findings in the journal PLoS One. 71

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DNA sharing of modern human, Neanderthal Humpback whales delaying migrations Annihilating effects of gamma rays

A study at the University of Cambridge suggests that common ancestry, not hybridisation, better explains the average 1-4 per cent DNA that those of European and Asian descent (Eurasians) share with Neanderthals.
Nanoparticles in soil affect soybean crops

Humpback whales are remaining along the Western Antarctic Peninsula to feast on krill late into the austral autumn, long after their migrations to distant breeding grounds usually begin, says a Duke University study.
One extinction leads to another

Gamma-ray photons seen emanating from the centre of the Milky Way galaxy are consistent with the possibility that darkmatter particles are annihilating each other, say University of California Irvine astrophysicists.
Antioxidant levels in sweet potato raised

In the first major study of soybeans grown in soil contaminated by two manufactured nanomaterials (MNMs), it was found that crop yield and quality are affected by the addition of MNMs.
Soil bacteria help plant in thwarting infection

When a carnivore becomes extinct, other predatory species could soon follow, according to new research.
Primate study helps predict human diseases

A simple, inexpensive electric current treatment increases sweet potatos content of healthful polyphenols or antioxidants by 60 per cent, scientists said at a conference of the American Chemical Society.
Egg yolk almost as bad as smoking for heart

With the help of beneficial bacteria, plants can slam the door on disease pathogens, University of Delaware researchers have discovered. Soil bacteria at the plants roots signal the leaf pores to close, thwarting infection.
Airborne technology sheds light on tree loss

A new study has investigated how diseases are shared among species of primates with a view to predicting what diseases may emerge in humans in the future. The findings aim to help in the fight against these diseases.
Disturbed forests, key to greater bio-diversity

A paper published in the journal Atherosclerosis shows that eating egg yolks accelerates atherosclerosis in a manner similar to smoking cigarettes, causing build-up of carotid plaque.
Robotic hand can disable IEDs

3-D mapping by Light Detection and Ranging technology on the Carnegie Airborne Observatory reveals that elephants play a big role in toppling trees in the African savannah.
Obesity, a risk factor in faster cognitive decline

Bio-diversity of forests hammered by windstorms, avalanches, wildfires and volcanic eruptions can be maximised by land managers by altering their practices and creating areas with a wide variety of species.
Meditation reduces loneliness

Researchers have developed a cost-effective robotic hand that can be used in disarming improvised explosive devices, or IEDs.
Earliest modern human fossil in SE Asia found

People who are obese and also have high blood pressure and other risk factors called metabolic abnormalities may experience a faster decline in their cognitive skills over time than others, according to a study in Neurology. 72

Researchers at University of California Los Angeles report that a simple meditation programme lasting just eight weeks reduced loneliness in older adults.

An ancient skull recovered in Laos is the oldest modern human fossil found in Southeast Asia. The discovery pushes back the clock on modern human migration through the region by as much as 20,000 years. http://upscportal.com

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Objective Questions
6.

1. Consider the following statements about IMD. 1. Indian Institute of Tropical meteorology is situated in Panji 2. IMD has classified the monsoon rain fall into 3 categories Which of the above statement are true? (a) 1 & 2 (b) Only 1 (c) Only 2 (d) Neither 1 nor 2 2. Consider the following Statements. 1. Curiosity rover will test the Mars Soil after it lands on the Planet. 2. Curiosity will help pave the way for future named Mars Mission. Which of the above statements are correct? (a) Only 1 (b) Only 2 (c) Both 1 and 2 (d) Neither 1 nor 2 3. The condition is an autosomal congenital disorder which leads to narrowing of the heart value, formation of multiple holes in the heart and depressed breast bone. The above symptoms is related to which syndrome. (a) Noonan Syndrome (b) Vascular Syndrome (c) Pataya Syndrome (d) None of these 4. Which of the above statements is/are correct? (a) Both 1 & 2 (b) Only 1 (c) Only 2 (d) Neither 1 & 2 5. Among hepatitis viruses A, B, C, D & E which kind of Hepatitis present the greatest danger through periodic outboards ?

7.

8.

9.

(a) B & C (b) B & D (c) D & E (d) All of Them The Atomic Energy Regulatory Board (AERB) on Friday accorded the much - awaited approval for initial fuel loading of reactor 1 at the Kudankulam Nuclear Power Project. AERB is headed by (a) S. S. Bajaj (b) Som Mittal (c) Anil Kakodkar (d) C. N. Rao An India company has recently signed an agreement with UNITAID promoted medicines for Developing Countries (a) Cipla (b) Dr. Reddy (c) Ranbaxy (d) Hetero drugs Consider the following statements: 1. In 2008, Government of India adopted the Guidelines developed by the International Commission on Non-Ionizing Radiation Protection from mobile towers. 2. The values chosen for the permissible Power Density (Mobile radiation) are 4.5 W/ Sqm for 900 Mhz & 9 W/Sqm for 1800 Mhz. Which of the above statement are/ is true ? (a) Only 1 (b) Both 1 & 2 (c) Neither 1 nor 2 (d) Only 2 Consider the following statements: 1. International Rice Research Institute is situated in Dhaka. 2. Kasalath gene present in a specific (aus-type) rice variety. Which of the above statement are/ is true ?

(a) Only 2 (b) Only 1 (c) Both 1 & 2 (d) Neither 1 nor 2 10. Consider the following statements about PATH (Programme for appropriate Technology in Health): 1. PATH is responsible for controversial clinical trial 2. PATH has used HPV (Human Papillama Virus) for clinical trial. Which of the above statement is/ are true ? (a) Both 1 & 2 (b) Only 1 (c) Only 2 (d) Neither 1 nor 2 11. Consider the following statements: 1. 10 Nuclear Power Plants of India comes under the AERB (Atomic Energy Regulatory Board). 2. Meckani Committee recommended that the Nuclear Regulator be created as a statutory Body. 3. Kudankulam Nuclear Project will operate by AERB. Which of the above statement are/ is true ? (a) 1 & 2 (b) 1, 2 & 3 (c) 1 & 3 (d) 1 & 2

Answers
1. 3. 5. 7. 9. 11. (d) (a) (a) (d) (a) (a) 2. 4. 6. 8. 10. (c) (d) (a) (b) (a)

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SPORTS
OLYMPICS
The 30th Summer Olympics (London Olympics 2012) concluded in London on 12 August 2012. The 17-day event was inaugurated at Olympic Stadium at the Olympic Park in East London on 27 July 2012. London Olympics witnessed nearly 10500 athletes from 204 National Olympic Committees participating in as many as 26 sports events. At the end of the game US topped the medal tally with a total of 104 medals (46 Gold+29 Silver+ 29 Silver) followed by China, which bagged a total of 88 medals (38 G o l d + 2 7 S i l v e r + 2 3 Bronze). Great Britain with 65 medals (29 G o l d + 1 7 S i l v e r + 1 9 Bronze), Russia with 82 medals (24 Gold+26 Silver+32 Bronze) 74 and South Korea with 27 medals (13 Gold+8 Silver+6 Bronze) finished third, fourth and fifth respectively. India with a total of 6 medals (2 Silver+4Bronze) finished 55th on the medal tally. India at London Olympics 2012 India had sent 83-member team to the London Olympics 2012, which is the largest ever contingent sent by Indian Olympic Association in the Olympics. Indias total number of medals in L o n d o n Olympics 2012 stood at a record haul of six medals. Shooter Vijay Kumar bagged the silver medal in the 25 m Rapid Fire event, while MC Mary Kom, five-time world womens boxing champion, ace shuttler Saina Nehwal and rifle shooter Gagan Narang won India bronze medals. Gagan Narang opened Indias account at the medal tally after he won bronze in shooting event on 30 July 2012. Indias mens hockey team badly disappointed those who were expecting them to reclaim the lost glory of Indian hockey. The team in a show of disastrous performance finished 12th and at the bottom most as they lost all their six matches. It was the worst-ever performance by the Indian hockey team in the history of Olympics. Prior to this the worst ever performance of the Indian Hockey team came in 1996 Atlanta Olympics when it had finished 8th. Besides, major medal hopes for the country such as Beijing Gold medalist Abhinav Bindra in shooting and Deepika in Archery also could not meet with the expectations of the people, as they squarely failed to http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs deliver a medal winning performance. Beijing bronze medalist Vijender Kumar also failed to recreate the magic in the boxing ring as he lost to Uzbekistans Abbos Atoev 17-13 in the quarterfinals. Indias History in Summer Olympics India started participating in Summer Olympics from Paris Olympics 1900 after Norman Pritchard, an Anglo-Indian, participated in two events and claimed silver in both the events. India first sent its contingent to Summer Olympics in Antwerp Olympics 1920 and has sent its team in every Olympics since then. In the last 112 years of modern Olympics India has won mere nine gold and 8 of them are in hockey and one in individual shooting event. After 6 medal haul at the London Olympics 2012 total number of medals won by India now stands at 26. Major Medal winning Performances at London Olympics 2012 Michael Phelps bagged 6 medals(4 Gold+2 Silver) in swimming, becoming the most decorated Olympian ever with 22 medals. Jamaican sprinter Usain Bolt clinched three gold in three separate events (100 meter race, 200 meter race and 4X100 meter relay team race). He won the 100 metres gold medal with a time of 9.63 seconds, setting a new Olympic record for that distance. He took 19.32 seconds to clinch 200 meters gold. With a storming http://upscportal.com victory in both 100 and 200 meters race he became the only sprinter in the history to defend both Olympic titles. Jamaican Sprinter Usain Bolt won Gold in Mens 100 Meter Race, set Olympic Record Germany beat Netherlands 2-1 to win mens hockey gold. Mexico beat Brazil 2-1 to win Soccer gold United States defeated Spain to win mens Basketball gold Andy Murray of Great Britain beat Roger Federer of Switzerland to win tennis mens singles gold Russia defeated Brazil to win mens volleyball gold Dan Lin of China beat Malaysian Chong Wei Lee to clinch Badminton mens singles gold Olympic Games which is lit in Olympia (modern day Greece). The initial editions of Olympics were organized without flame. The tradition of torch was reintroduced in Amsterdam Olympics 1928. Olympic Medals There were 4700 medals (Gold, Silver, Bronze) up for grab at the London Olympics 2012. The Olympic medals weigh between 375-400 grams, they are eighty-five millimetres in diameter and seven millimetres thick. The gold medals are not actually made of solid gold. They are in fact 92.5 percent silver and 1.34 percent gold, while the rest is copper. Metals used in the medals were mined in Mongolia and Utah in the United States.On every medal there is the image of Nike, the Greek Goddess of victory. Next Olympics (31st Summer Olympics) The 31st edition of Summer Olympics will be held in Reo de Janeiro, Brazil in 2016. The city was made the host of the event in 121st IOC session. The games are scheduled to be held from 5 August to 21 August 2016. Indias Medal count in London Olympics 2012 India bagged Record Six Medals in London Olympics 2012 as:Sushil Kumar - Silver Wrestling Vijay Kumar - Silver - Shooting Gagan Narang - Bronze Shooting Yogeshwar Dutt - Bronze Wrestling Mary Kom - Bronze -Boxing Saina Nehwal - Bronze Badminton 75

Mascot for London Olympics 2012 Mascots have been a part of Olympic Games since Munich 1972, when Waldi, a dachshund, was the symbol of the Munich games. The mascots of London Games were Wenlock and Mandeville. While Wenlock is a mascot of Olympics, Mandeville is mascot for Paralympics. These are two ultra-modern oneeyed creatures. Olympic Torch Olympic Torch is the symbol of

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CRICKET
ICC Under-19 Cricket World Cup India defeated host and defending champion Australia to win ICC Under-19 Cricket World Cup. In the final match played at Townsville in Australia on 26 August 2012, the Indian under -19 squad led by Unmukt Chand beat Australian side by 6 wickets. Skipper Unmukt Chand scored unbeaten 111 runs leading his team to a glorious victory. Batting first the Australian team scored 225 runs with the loss of 8 wickets. Australian captain William Bosisto scored unbeaten 87 runs. India started strongly but lost 4 wickets on just 97 runs. Subsequently skipper Chand guided the Indian team to a 6 wickets victory in the 48th over. William Bosisto, the Australian skipper received the Man of the Tournament award. Anamul Haque of Bangladesh scored 365 runs, highest in the tournament. Reece Topley of England claimed 19 wickets and remained the leading wicket taker of the tournament. This victory marked third under19 world cup title for India after Mohammad Kaif in 2000 and Virat Kohli in 2008 had led the team to the tournament victory. A total of 16 teams participated in the tournament. The teams were put into four groups A, B, C and D. India was placed in group C along with Papua New Guinea, West Indies and Zimbabwe. Australia was placed in group A alongside Ireland, England and Nepal. ICC Under-19 World Cup The ICC Under-19 World Cup started as an 8-team event in 1988. The tournament was not staged after 76 its first edition in 1988 till 1998 and since then has been organised by the ICC as a biennial event. The number of competing teams in the tournament has increased from eight in 1988 to the present 16 giving an opportunity for a number of associate and affiliate teams to showcase its talent. India beat New Zealand by 2-0 Test Series India won the second cricket test against New Zealand by 5 wickets on 3 September 2012. Chasing a target of 261 set by New Zealand on the fourth day of the second and final Test in Bangalore, India overhauled the target in the post-tea session with one full day remaining. Virat Kohli on 51 and Skipper MS Dhoni on 48 remained not out. Kohli, who had made 103 in the first innings, was adjudged man of the match, while Spinner Ravichandran Ashwin was named man of the series. With this, India won the 2 match series 2-0. India had won the first test at Hyderabad by an innings and 115 runs. South Africa is Worlds Number One Cricket Team South Africa replaced England as the Worlds Number One Test Cricket team. The feat was achieved after its 2-0 victory over England in the three Test-match series, which ended at Lords Cricket Ground in London on 21 August 2012. England had been the top team in the Reliance ICC Test Championship table since August 2011 when it dethroned India while South Africa has assumed the number one spot for the first time since November 2009. The latest ICC Test Championship table is given below: South Africa 120 points England 117 points Australia 116 points Pakistan 109 India 104 Sri Lanka 98 West Indies 90 New Zealand 80 Bangladesh 0 Note: Zimbabwe is presently unranked, as it has played insufficient matches. VVS Laxman announced Retirement V.V.S. Laxman, on 18 August 2012 announced his retirement from international cricket, ending a glorious career spanning 16 years. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Laxman played 134 Tests, amassing 8781 runs at an average of 45.97. He scored 17 hundreds and 56 half centuries and earned the sobriquet Very Very Special. Laxman made his Test debut in 1996 against South Africa at Ahmadabad. Laxman, played 86 ODI matches for an aggregate of 2338 at an average of 30.76. But he could never become the part of Indian team in any cricket world cup edition. Fastest Player to reach 3000 ODI Runs Hashim Amla, the star South African Batsman, became the fastest http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs player to score 3000 runs in one-day international on 29 August 2012. Amla achieved the tremendous feat during the course of his 150 run individual knock that led South African squad to a 80-run victory over England at the Ageas Bowl in Southampton. Hashim Amla took a total of 57 innings to become the fastest player to score 3000 runs while his closest competitor Vivian Richards took 69 innings. Below is the list of 10 players who reached the landmark 3000 ODI runs, in quickest time, in terms of innings.
Player Team Innings 57 69 72 72 72 77 78 79 79 79 Hashim Amla (RSA) Vivian Richards (WI) Gordon Greenidge (WI) Gary Kirsten (RSA) Virat Kohli (IND) Graham Gooch (ENG) Kevin Pietersen (ENG/ICC) Navjot Singh Sidhu (IND) Brian Lara (WI) Boeta Dippenaar (RSA/AFR)

Andrew Strauss retired Englands test team captain Andrew Strauss announced his retirement from international cricket on 29 August 2012. Under Strauss captaincy the England team witnessed back-toback Ashes wins over Australia and reached to the top of the test rankings. He was appointed the skipper of English team in 2009 replacing Kevin Pietersen. A left-hand batsman, Strauss made his first class debut in year 1998 and one-day international debut in 2003 against Sri Lanka. Strauss made his test debut against New Zealand at Lords in 2004, where he scored 112 and 83 runs in two innings and received Man of the Match award. In a nine-year long international career, Strauss played 100 tests and 127 one-day internationals. Strauss has to his credit 7037 and 4205 runs in test and ODIs respectively.

DLF ended its Association with IPL Indias largest real estate company DLF decided to end its fiveyear long association with Indian Premiere League as its title sponsor. The last date of renewal of contract was 28 July 2012, and the company did not file application for the renewal of its contract. The company spent 250 crore rupees in its five-year association with IPL. DLF has been actively promoting different sports in the country. The company organizes DLF Masters Golf Tournament in Gurgaon every year. It is also one of the sponsors of the Davis Cup tennis tournament 2012, which will be held in Chandigarh. Besides, DLF has associated itself with various other sports over the years. It had supported Haryana Open Badminton Championship, Delhi Football League and various other sports events.

TENNIS
Womens Singles US Open 2012 Serena Williams of USA won her fourth Womens Singles US Open title in New York on 9 September 2012. In the final match played a short while ago, fourth seeded Serena showed incredible resolve as she beat the top seeded Victoria Azarenka of Belarus, 2-6, 6-2, 7-5 in two hours and 18 minutes. Besides the fourth US Open title, this was Serenas 15th Grand Slam singles crown. Meanwhile, the Italian duo of Sara Errani and Roberta Vinci won the Womens Doubles trophy. In the title clash, the second seeded Italian duo defeated the Czech pair of Andrea Hlavackova and Lucie Hradecka, 6-4, 6-2 to win the title. Cincinnati Masters Mens & Womens World no. 1 tennis player Roger Federer won a record fifth Western & Southern Open Title (Cincinnati Masters ) at Cincinnati on 19 August 2012. Federer beat second seeded Novak Djokovic 6-0, 7-6, (9-7). This was the first time when top-seeded mens players clashed in the final of Cincinnati Masters. http://upscportal.com In womens singles final Chinas Li Na beat German Angelique Kerbar to win her first title of the season. Li Na overcame the terrible first set to record a 1-6, 6-3, 6-1 victory over her rival. To make it to the final, Li defeated American wild card Venus Williams in the semifinals. Kerber, 77

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs meanwhile defeated Petra Kvitova, the winner over Li in Montreal, in her semifinal match at night on Center Court. Defending Champion Maria Sharapova withdrew from the tournament due to illness. Cincinnati Masters Double Indias duo of Mahesh Bhupati and Rohan Bopanna finished runnersup at the Western and Southern Open tennis tournament (Cincinnati Masters) after they lost to the fourth seeded duo of Robert Lindstedt and Horia Tecau in the final clash on 19 August 2012. The fourth seeds Lindstedt and Tecau defeated sixth seeds Bhupati and Bopanna 4-6, 4-6. Bhupati and Bopaana were aiming to win their second title of the season after they won Dubai Open in February 2012. The duo had defeated Croatias Ivan Dodig and Brazils Marcelo 6-4, 6-3 in the semifinal on 19 August 2012. Another Indian Leander Paes and his Czech partner Radek Stepanek were knocked out of the tournament in the second round.

SHOOTING/ARCHERY
Fourth International Junior Shotgun Cup Ankur Mittal won the bronze medal in double trap in the fourth International junior shotgun Cup in Orimattila, Finland. He scored 177 points. Mittal had scored 45, 41 and 45 in qualification and 46 in the final. Shayan Masood, the other Indian came fourth, one point behind. He had scored 130 in qualification following a series of 43, 45 and 42. The results of Mens double trap: 1. Artem Nekrasov (Rus) 190 (142); 2. Kiril Fokeev (Rus) 183 (139); 3. Ankur Mittal 177 (131); 4. Shayan Masood 176 (130).

FOOTBALL
Nehru Cup Football Tournament India won Nehru Cup football tournament on 2 September 2012 after beating Cameroon 5-4 via penalty shoot-out. In the final played at the Jawaharlal Nehru Stadium in New Delhi, India vanquished Cameroon 5-4 via penalty shootout and retained the Nehru Cup football. The match went into tie-breaker after the two teams were locked 2-2 at the end of 120 minutes of play. Gouramangi Singh (19th minute) and Sunil Chhetri (77th) scored for India in the regulation time, while Makkon Thierry (29th) and Kingue Mpondo (54th) found the net for Cameroon.In the tiebreaker, Robin Singh, skipper Chhetri, Denzil Franco and Mehtab Hosain struck to ensure

that India managed a clean slate. Taking the final shot, Makkon hit the post to leave Cameroon shattered.

Ashu C Tambe, Ousmalia, Bebey Kingue Paul and Mpondo scored for the visitors in the shootout.

HOCKEY
3 Member Committee to resolve Issues in Indian Hockey The Indian Olympic Association 78 set up a three-member committee to resolve the issues in Indian Hockey. Hockey India and the Indian Hockey Federation, the two bodies for Hockey in India have been asked to present their stand before the committee on 21 August 2012. The committee has been set up following the directions from the International Hockey Federation in July 2012. The http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs three-member committee will have former Wrestling Federation of India president GS Mander, the Indian Weightlifting Federation president Birendra Prasad Baishya and the Handball Federation of India secretary-general SM Bali as its member. The committee will submit its report on 31 August 2012. In its worst ever performance the Indian Hockey team had finished at the bottom in the London Olympics 2012. The team, which had failed to qualify for the Beijing Olympics 2008, suffered defeat in all the eight matches it played in the London Games.

GOLF
US PGA Golf Championship Rory Mcllroy won the US PGA Golf Championship at Kaiwah island on 12 August 2012, claiming his second major title with a record-setting eight-shot victory. With this victory Mcllroy also became world number one player surpassing Luke Donald. 23-year Mcllroy, hit a six-uneder 66 to finish 13 under, while, David Lynn and Ian Poulter finished second and third respectively. Tiger Woods, four-time winner of the title, faltered to a level par 72 and two under total.

VARIOUS
Rajiv Gandhi Khel Ratna Award 2012 London Olympics silver medalist Vijay Kumar and Bronze medalist Yogeshwar Dutt will be conferred with the countrys highest sporting honour Rajiv Gandhi Khel Ratna Award for the year 2012. Besides, 25 sportspersons will be presented the Arjuna Awards, the second highest sports award in the country. The awards were announced by the Union Sports Ministry on 19 August 2012. Usually the Rajiv Gandhi Khel Ratna award is given to only one sportsperson in one calendar year but the rule can be relaxed in special circumstances such as an Olympic medal. Pistol shooter Vijay Kumar bagged a silver in the 25m rapid fire event at the London Olympics, while wrestler Yogeshwar Dutt claimed a bronze in 60kg free style event. List of the sports persons, chosen for Arjuna Awards: Deepika Kumari (Archery), Laishram Bombayla Devi (Archery), Sudha Singh (Athletics), Kavita Ramdas Raut (Athletics), Ashwani Ponnappa (Badminton), Parupalli http://upscportal.com Kashyap (Badminton), Aditya S Mehta (Billiards and Snooker), Vikas Krishan (Boxing), Yuvraj Singh (Cricket), Sardar Singh (Hockey), Yashpal Solanki (Judo), Anup Kumar (Kabaddi), Samir Suhag (Polo), Annu Raj Singh (Shooting), Omkar Singh (Shooting), Joydeep Karmakar (Shooting), Deepika Pallikal (Squash), Sandeep Sejwal (Swimming), Ng. Sonia Chanu (Weightlifting), Narsingh Yadav (Wrestling), Rajinder Kumar (Wrestling), Geeta Phogat (Wrestling), M. Bimoljit Singh (Wushu), Deepa Mallick (Athletics Paralympics), Ramkaran Singh (Athletics - Paralympics). A 15-member selection committee headed by Rajyavardhan Singh Rathore, the 2004 Sydney Olympics silver-medalist and comprising noted sportspersons such as Akhil Kumar (boxing), Khajan Singh (swimming), Baichung Bhutia (football) and Ravi Shastri (cricket) finally approved the name of the 27 sportspersons for the coveted award. The awardees will be presented the award by the President of India on National Sports Day on 29 August 2012. Rajeev Gandhi Khel Ratna Award: The Rajeev Gandhi Award was instituted in 1991-92. The award carries a medal, a scroll of honour and a cash prize of 7.5 lakh rupees. So far the award has been given to as many as 26 sportspersons. Vishvanathan Anand was the first sportsperson to receive the award. Arjuna Award: Arjuna Award was instituted in 1961. The award carries a medal, a scroll of honour and a cash prize of 5 lakh rupees. London Paralympic Games Queen Elizabeth officially on 29 August 2012 opened the London Paralympic games, which will be the biggest in the events 64 year history. The flame was lit at midnight, local time. The ceremony was watched by some 80000 spectators. Britains first Paralympic Games gold medallist, Margaret Maughan hit the cauldron. The opening ceremony signalled the start of 11 days of competition by 4200 athletes from 164 countries, including more than 300 athletes from Britain. Federation Cup National Throwball Championship Delhi teams, both in male and female categories, lifted 23rd 79

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Federation Cup Throw Ball Championship-2012. The Championship which was held on 2325 August 2012, was organised by the J&K Throw Ball Association in collaboration with Throw Ball Federation of India at sports ground Government College for Women M A Road Srinagar. As many as 20 teams, both in male and female categories, from various States and Union Territories of the country participated in the Championship. Delhi beat Tamil Nadu 15-10, 15-12 in the womens final of the Federation Cup National throwball championship which was held in Srinagar. In the mens final, Delhi beat Andhra Pradesh 2-1. Nine State teams took part in the championship. Rajiv Gandhi Khel Ratna Awards Committee Rajyavardhan Singh Rathore, the silver medallist of Athens Olympics 2004, was named the head of the 15member committee, set up to select the Rajiv Gandhi Khel Ratna Awardee and Arjun Award winners. Aslam Sher Khan, the former hockey team skipper, was named the head of the 15-member committee that will select the Dronacharya Awardees. Rajeev Gandhi Khel Ratna Award is the highest sports award in the country. The award consists of a cash award of 7.5 lakh rupees, a scroll of honour and a medal. Arjuna Awards, the second highest awards given to sportspersons, carries a scroll of honour, and a cash award of five lakh rupees. Dronacharya Awards are given to the coaches of different sports for their remarkable contribution. The Dronacharya Awards are consisted of a plaque, a scroll of honour, ceremonial dress and a cash award of five lakh rupees. Most Successful Athlete in the Olympic History US swimmer Michel Phelps became the most successful athlete in the history of Olympic games after he won the gold medal in 4x200 metre freestyle relay in final race at the Aquatic Centre on 31 July 2012. Phelps, who is playing his 4th Olympics, with this victory took his individual Olympic tally to 19 (15 gold, two silver and two bronze), surpassing the 18 won by Soviet gymnast Larisa Latynina between 1956 and 1964. He first swam at the Olympics in 2000 Sydney Olympics, when he was just 15. He became the youngest American male swimmer in 68 years and placed fifth in the 200m butterfly. He also holds the world record in swimming when he swam1: 54.92 in the 200m butterfly event in March 2001. Six-time winner of the World Swimmer of the Year Award, Phelps has to his credit the record of winning maximum number of gold medals (8) won in a single Olympics, the feat he achieved hduring 2008 Beijing Games surpassing American swimmer Mark Spitzs seven-gold record at Munich in 1972.

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Objective Questions

1. Recently American Swimmer Michael Phelps Surpassed the 48 years old Record of 18 Olympic Medals of which Player? (a) Boris Shakhlim (b) Takashi Ono (c) Nikloi Audrinov (d) Larisa Latynnina 2. Recently Vijay Kumar won Silver in London Olympic in which event. (a) 25 m Rapid pistol event (b) 50 m Rapid pistol event (c) 75 m Rapid pistol event (d) None of these 3. Consider the following statement 1. Lee Chong Wei became the first man to win two successive Olympic gold in badminton (London Olympic) 2. Olympian Ben Ainslie of Britain is related to Hockey. 3. Andy Murray won gold medal

(in mens single Tennis) (Olympic 2012) Which of the above statement are true? (a) 1 & 2 (b) Only 3 (c) 1, 2 & 3 (d) None of these 4. Kirani James won First gold medal (mens 400 m hurdles) for his tiny Country, from which country he belongs ? (a) Kenya (b) Grenada (c) Fiji (d) Scotland 5. Sally Pearson wins 100 m hurdles in Olympic record time, from which country she belongs ? (a) France (b) Germany (c) U.K (d) Australia 6. Which Olympian smashes 800m world record (in London Olympic 2012) (a) Usain Bolt

(b) David Rudisha (c) Ashton Eaton (d) None of these 7. Yogeshwar Dutt clinched fifth medal for India (In Olympic 2012) in Which game he is Associated ? (a) Wrestler (b) Boxing (c) Badminton (d) None 8. Who was Indias flag bearer at the Opening Ceremony of London Olympic (2012) ? (a) Gagan Narang (b) Abhinav Bindra (c) Sushil Kumar (d) Saina Nehwal

Answers
1. 3. 5. 7. (d) (b) (d) (a) 2. 4. 6. 8. (a) (b) (b) (c)

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A&P

Awards & Prizes


Dronacharya Award for 2012 The names of six sporting coaches were recommended for the Dronacharya Awards for the year 2012. Wrestling coach Yashvir Singh, Boxing Coach BI Fernandez, Athletics Coach Virender Poonia, Kabaddi Coach Sunil Davas, Parathletics Coach Dr. Satyapaul and Hockey Coach Harinder Singh are the six coaches who have been selected for the coveted award, given to the coach of different sports, for their excellent contribution to the sports. Boxing Coach BI Fernandez, who is a Cuban national, became the first foreign coach to be recommended for the Dronacharya Award. Fernandez has been instrumental in Indias impressive performances in Boxing in the international tournaments. The Dronacharya Awards committee was headed by former Indian hockey captain Aslam Sher Khan. The other members include Rajkumar Sangwan (boxing), Dhanraj http://upscportal.com Pillai (hockey), Shiny Wilson (athletics), Morad Ali Khan (shooting), Karnam Malleswari (weightlifting), Bahadur Singh (athletics), Bhupender Dhawan (powerlifting,G S Sandhu (boxing), Ramphan Mann(wrestling,Prem Chand Degra (body building). Dronacharya Award The Dronacharya Award was instituted by the government of India in 1985. The award has been given to 72 people until 2011. The award carries five lakh rupees and a citation and is conferred to coaches of different sports for their noteworthy contribution. The awards will be presented by President Pranab Mukherjee at Rashtrapati Bhawan on 29 August 2012, the National Sports Day. Miss World 2012 Beauty Pageant Chinas Yu Wenxia won the Miss World 2012 beauty pageant at the Ordos Stadium Arena in inner Mongolia, China on 18 August 2012. Wales Sophie Moulds was adjudged the first runner-up, while Australias Jessica Kahawaty was the second runner-up. Indias Vanya Mishra made it to the top seven spot but failed to win the competition. However, She, bagged the titles of Miss Social Media and

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Miss Beauty with a Purpose. Venezuelas Ivian Sarcos had won the Miss World pageant in 2011. Magsaysay Awards 2012 Indian social activist Kulandei Francis, age sixty six will be felicitated with the Magsaysay Award. In the year 1979, Francis begun with his organisation, Integrated Village Development Project (IVDP) in Krishnagiri, wherein he initially started with small projects, amongst his achievements, he has conducted night schools in the light of gas lamps, set up first aid centres. Then, with the help of development organizations, he undertook a micro-watershed programme that, over twenty-two years, built three thirty one mostly small check dams benefitting cultivators and their families in sixty villages. His organisation, the Integrated Village Development Project also provides training to rural students a in enhancing their skills namely training in rural sanitation, accountancy, management, giving educational assistance for students in high schools, scholarships and also computer skills. The visionary Mr. Francis was also successful in pursuing the holistic economic empowerment of thousands of women and their families. The Board of Trustees of the Ramon Magsaysay Award Foundation (RMAF) announced the recipients of this year, 2012 Asias premier prize, the Ramon Magsaysay Award on 25 July 2012. The six individuals chosen from around the globe are from countries, Bangladesh, Cambodia, India, Indonesia, the Philippines, and Taiwan. The other people chosen for the prizes, announced by the Ramon Magsaysay Award Foundation (RMAF) in Manila, are Ms Chen ShuChu from Taiwan, Mr Romulo Davide from the Phillipines, Ms Syeda Rizwana Hasan of Bangladesh, Mr Yang Saing Koma of Cambodia and Mr Ambrosius Ruwindrijarto from Indonesia. Kulandai Francis who has been awarded with the Magsaysay says, working with the objective of eradicating poverty and empowering more than one lakh rural women for thirty five long years has got him the award. Magsaysay Award winners receive a certificate, a medallion bearing the likeness of the late President, and a cash prize. They will be formally felicitated with the Magsaysay Award during the Presentation Ceremonies which is to be held on 31 August 2012 at the Philippine International Convention Center (PICC) in Manila. In the past, many Indians have won the Magsaysay award. In the year 1958, awardee was Vinoba Bhave, in the year 1959 C.D Deshmukh, again in the year 1994, it was awarded to Kiran Bedi, in 1996, T.N seshan , in the year 2003, James Michael Lyngdoh,in the year 1965 Jayaprakash Narayan,In 1974 M.S. Subbulakshmi was awarded, in 1982 Manibhai Desaiwas awarded. Ramn del Fierro Magsaysay was the seventh President of the Republic of the Philippines, he served from 30 December 1953 until his death in a 1957 aircraft disaster. The Ramon Magsaysay Award known as Asias Nobel Prize was established in April 1957 by the trustees of the Rockefeller Brothers . Nisan-i-Imtiaz Acclaimed Pakistani writer Saadat Hasan Manto on 14 August 2012 was honoured with the Nisan-iImtiaz, Pakistans highest civilian award. Manto is best known for his Urdu short stories, especially those that explored the impact of the partition of the subcontinent into India and Pakistan in 1947. Toba Tek Singh, Bu (Odour), Khol Do (Open It) and Thanda Gosht (Cold Meat) were written by him. Saadat Hasan Manto worked for the Urdu Service of All India Radio in 1941 for several months. Manto ended a career as a scriptwriter in Mumbai to move to Pakistan in 1948. He died at the age of 42 in 1955. His frank style angered conservatives in Pakistan and he faced trial three times on charges of obscenity. Besides Manto, renowned singer Mehdi Hassan, Lt.Gen (retired) Khalid Kidwai and Munir Ahmed Khan were honoured with civilian awards for their contributions in fields like arts and literature, nuclear science, education and sports, healthcare and public service. The awards will be given away at a ceremony to be held on Pakistan Day on 23 March 2013. Damien-Dutton award State Leprosy Officer P.K.B. Pattnaik, has been selected for the coveted Damien-Dutton award for the year 2012 for his work in the field of leprosy eradication. A select group of activists and medical professionals including Mother Teresa, Baba Amte http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs and Dr. Dharmendra have been given the award. Dr. Pattnaik said: I am thrilled to get the news of being selected for the award. During the past two decades, I have been working in leprosy elimination programme in various capacities. At last my dedicated work has been recognised. We have been able to treat 12 lakh leprosy patients, rehabilitate 40,000 patients with leprosy and performed surgical deformity correction on 3,500 patients, he said. Dr. Pattnaik said the Damien-Dutton Society must have conducted in-depth study before zeroing in on his name. Norman Borlaug Award Aditi Mukherjee, a Delhi based scientist, won the prestigious Norman Borlaug Award in Field Research and Application. Mukherjee was picked for the award for her work in transforming access to water for (Kolkata), JNU (Delhi), she completed her PhD at the University of Cambridge. The international award is conferred by the World Food Prize Foundation, which was started by Norman Borlogue, the father of Green Revolution in India. The award carries 10000 dollar cash prize. The Borlaug Award is restricted to scientists under 40. Charles L Bennett received the Gruber Cosmology Prize 2012 Charles L Bennett, a professor of physics and astronomy at Johns Hopkins University, US, was awarded with the Gruber Cosmology Prize 2012 in Beijing at the opening ceremony of the 28th Conference of the International Astronomical Union on 22 August 2012. The 500000 dollar award was given to him acknowledging his immense contribution to the world of physics. study helped astronomers refine their understanding of the age, shape and makeup of the universe. The Gruber Prize is the second for Bennett, who also was a member of a NASA team that won the prize in 2006. As the member of the COBE Team he conducted a ground-breaking studies confirming that our universe was born in a hot Big Bang. Shram Awards for year 2011 Union Ministry of Labour and Employment announced the Prime Minister Shram Awards for year 2011 on 15 August 2012. This year, no nomination was found suitable for the presitigious Shram Ratna Award. Six nominations for the Shram Bhushan Award, Thirty Three nominations for Shram Vir/Shram Veerangana and twenty nine nominations for Shram Shree/Shram Devi Awards have been selected. Even though, the total number of Shram Awards is 33, the number of workers receiving the Awards is 68 (Including six women), as some of the Awards have been shared by workers and/or teams of workers consisting of more than one worker. These include 52 workers from the public sector and 16 workers from the private sector. Shram Bhushan awards carry a cash prize of 1 lakh rupees and a Sanad. Shram Veer/Veerangana awards carry a cash prize of 60000 rupees and a Sanad. Shram Shree/Devi Awards comprise of a cash prize of 40000 rupees and a Sanad. Shram Awards were set up by the Government of India in 1985 to recognize the outstanding contributions of workers in different fields. Fundamental Physics Prize Bennett, a prominent physicist, led a 26-member team that worked on NASAs Wilkinson Microwave Anisotropy Probe. The findings of the 9 physicists worldwide were given the Fundamental Physics Prize on 31 July 2012. The prizes were given to the physicists for their 83

thousands of farmers in West Bengal. The award will be formally presented to Mukherji on 17 October 2012 in Des Moines, Iowa, US. Mukherji, 37, is a senior researcher at the Delhi office of the International Water Management Institute (IWMI). As alumnus of Presidency College http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs remarkable contribution to the field of fundamental physics. Fundamental Physics Prize has been established by Russian Businessman Yuri Milner and the most moneyspinning academic prize in the world. Winners of the award include , Ashoke Sen, N J Nima, Arkani-Hamed, Juan Maldacena, Nathan Seiberg, Edward Witten, Andrei Linde, Alexei Kitaev, Maxim Kontsevich, Ashoke Sen. The winners will receive 3 million dollar as the prize amount. The Nobel Prize currently comes with an award of 1.2 million dollar, which is generally divided between two or three people. Delhi Governments Lifetime Achievement Awards Celebrated Sarod exponent Amjad Ali Khan, vocalist Girija Devi and famous writer Ruskin Bond were conferred the Delhi governments Lifetime Achievement Awards on 24 August 2012. Delhi Chief Minister Sheila Dikshit presented the award Fahimuddin Dagar, Ebrahim Alkazi, , Habib Tanvir, Vishwanathan Anand and Ram Kumar are some of the noted recipients of the award. Sitara-i-Imtiaz Pakistan government on 14 August 2012 honoured Urdu author, Gopi Chand Narang with sitara-iImtiaz, the third highest civilian honour given by the nation. In the past, former Prime Minister Morarji Desai and matinee idol Dilip Kumar were bestowed Pakistans highest civilian honour, Nishan-i-Imtiaz. The award will be given to Gopi Chand Narang in Pakistan on 23 March, 2013, Pakistans Republic Day. Gopi Chand Narang was born on 11 February, 1931, in Dukki, Pakistan. He is an Indian scholar of Urdu language and literature, an eminent Urdu writer, scholar, critic and linguist. He is author of many books in Urdu, Hindi and English.

acknowledging the outstanding contribution of the awardees to their respective fields at the national and international level. The award was consisted of a cash prize of 11 lakh rupees and a citation. The award was instituted by the Delhi governments Sahitya Kala Parishad in 2004 to felicitate on eminent personalities for their outstanding contributions to the fields of music, dance, theatre, visual arts, sports and literature. Bhimsen Joshi, MS Subbulakshmi, Zohra Sehgal, Kapila Vatsayan, Rahim

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In The News
APPOINTED
Vayalar Ravi Vayalar Ravi assumed charge as the Union Minister for Science and Technology on 21 August 2012. He was allocated the charge by the Prime Minister Manmohan Singh after Vilasrao Deshmukh, who was holding the portfolio passed away on 14 August 2012. In three years of UPA II, Vayalar Ravi is the fifth Science and Technology minister. Earlier, Vilasrao Deshmukh, Pawan Kumar Bansal, Kapil Sibal and Prithviraj Chavan had been in the charge of the Ministry. Vayalar Ravi is also holding the portfolio of Union Ministry of Overseas Affairs, the charge he assumed in January 2006. Besides he also holds the charge of Ministry of Earth Sciences and Ministry of Micro, Small and Medium Enterprises. Admiral Devendra Kumar Joshi Admiral Devendra Kumar Joshi (DK Joshi) took over as the new Indian Navy chief on 31 August 2012. He is the 21st Chief of Naval Staff of Independent India and the 19th Indian to command the Indian Navy. He succeeded Admiral Nirmal Verma. DK Joshi has commanded several naval ships which includes aircraft carrier INS Virat. He was also the chief of Eastern Fleet. He specializes in anti-submarine warfare. During his tenure, the Navy will start 13000 crore rupees phase II expansion of Project Seabird, the naval harbour under construction near Goa. Syed Nasim Ahmed Zaidi Syed Nasim Ahmad Zaidi, a 1976 batch IAS officer of UP cadre, was appointed as an Election Commissioner on 7 August 2012. His appointment was approved by President Pranab Mukherjee. Zaidi had retired as Civil Aviation Secretary on 31 July 2012. Zaidi was appointed to fill the vacancy which was created by the retirement of former Chief Election Commissioner S Y Quraishi http://www.civilservicesmentor.com 85

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs (BBC), was named Chief Executive of The New York Times Co. on Tuesday, a move that underscores the companys effort to broaden its focus beyond traditional print media and develop new digital products. Mr. Thompson, 55, takes over in November, replacing Janet L. Robinson, who abruptly left the company late last year. Mr. Thompson will be the first CEO hired from outside the Times Co., suggesting a renewed push for change at the publisher, which also owns The Boston Globe and the Worcester Telegram & Gazette. As Director-General of the BBC since 2004, Mr. Thompson has been responsible for managing 10 national TV channels, 10 national radio stations, 40 local radio stations, and a global news website. Most recently, he led BBCs multimedia coverage of the London Olympic Games, which drew historically high audiences in TV and radio. Mr. Thompson will also become a member of the Times Co. board and will report to Arthur Sulzberger Jr., Chairman of the company. Mr. Thompson has also spent most of his career in broadcast journalism and will be the first leader of the company to come from a non-print background. Mr. Thompson takes over during a challenging time for the company, which reported a net loss of $88.1 million in the second quarter because of a $194.7 million writedown in the value of its online resource company, About.com., and continuing declines in print and digital advertising revenue. Mr. Thompson joined the BBC in 1979 as a production trainee. Raghuram Rajan Raghuram Rajan, former chief economist of International Monetary Fund (IMF) took over as the Chief 86 http://www.civilservicesmentor.com Economic Advisor in the Finance Ministry on 29 August 2012. The Appointments Committee of Cabinet had cleared the appointment of Rajan as the new CEA on 10 August 2012. The position was lying vacant since Kaushik Basu demitted the office on 31 July 2012. Raghuram Rajan has already been serving as the Honorary Economic Advisor to the Prime Minister, the position he was given in November 2008. He also headed High Level Committee on Financial Sector Reforms in 2007. Born on 3 February 1963 in Bhopal, Madhya Pradesh, Rajan obtained his bachelors degree in

and the elevation of V S Sampath as Chief Election Commissioner. H S Brahma is the other Election Commissioner. In a long and illustrious career as a bureaucrat, Syed Nasim Ahmed Zaidi has served various key positions including Director General of Civil Aviation (DGCA), Permanent Representative of India to the Council of International Civil Aviation Organization (ICAO) from and Chairman in Airport Authority of India. PM Nair The Ministry of Home Affairs on 27 August 2012 appointed P M Nair as the Director General, National Disaster Response Force & Civil Defence (NDRF & CD). The appointment will be effective from the date of his taking over the charge of the post and until his superannuation on 31 May 2013 or until further orders, whichever is earlier. A 1978-batch Indian Police Service Officer of Bihar cadre, Nair is presently working as Special Director General, Central Reserve Police Force. Mark Thompson Mark Thompson, the outgoing head of the British Broadcasting Corp.

Electrical Engineering from the Indian Institute of Technology, Delhi. Later, he studied at the Indian Institute of Management, Ahmedabad followed by a PhD in Economics from the Massachusetts Institute of Technology (MIT) in 1991 with a thesis entitled Essays on Banking. A Professor of Finance at the Booth School of Business of University of Chicago, Rajan also served as the Economic Counselor and Director of Research (Chief Economist) at the International Monetary Fund from September 2003 until January 2007. Lakhdar Brahimi Algerian diplomat Lakhdar Brahimi was appointed the new UNArab League envoy for Syria on 17 August 2012. He will succeed Kofi Annan, who resigned earlier this month after his six-point peace plan http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs autonomous administrative body for Darjeeling hills in West Bengal, India. GTA has three hill sub-divisions they are: - Darjeeling, Kalimpong, Kurseong and some areas of Siliguri sub-divisions. Poonam Kishore failed to achieve a meaningful ceasefire. Lakhdar Brahimi will be known as the Joint Special Representative for Syria. The 78-year-old Algerian diplomat has served as a U.N. special envoy in Iraq after the U.S. invasion; in Afghanistan, before and after the end of Taliban rule; and in South Africa after the apartheid era. He also brokered an end to the Lebanese civil war as a senior Arab League official between 1984-91. He went on to serve as Algerian foreign minister between 1991-3. Bimal Gurung Gurung was sworn in as the CEO on 4 August 2012. It was administered by the Governor of West Bengal, Union Ministers Sushil Kumar Shinde and Mukul Roy, and Mamata Banerjee.He was appointed as Chief Executive Officer (CEO) of Gorkhaland Territorial Administration (GTA) on 3 August 2012. He was the former president of Gorkha Janmukti Morcha (GJM). He has the responsibility to develop hills of Darjeeling, Terai and Dooars. He has to take care of the Administration of Gorkhaland. Gorkhaland Territorial Administration (GTA) is a semiThe Union Finanace Ministry appointed Poonam Kishore Saxena, a 1975 batch IRS officer, as Chairman of Central Board of Direct Taxes (CBDT) on 21 August 2012. She was holding the additional charge of the post after incumbent chairman Laxman Das retired July 2012. Prior to her appointment as CBDT Chairman, Saxena worked as Director General (Investigation) in Jaipur for three years. In her more than three and a half decade long career in IRS, Saxena has worked in various areas like Administration of Income Tax, Appeals and Recovery. Central Board of Direct Taxes (CBDT) CBDT is responsible for administration of direct tax laws through the Income Tax Department and also provides essential inputs for policy and planning of direct taxes. PJ Kurien Congress leader PJ Kurien was unanimously elected the Deputy Chairman of Rajya Sabha. Prime Minister Manmohan Singh moved the motion for the election of Kurien. Kurien has been the member of national parliament for the last three decades representing Idukki, and Mavelikkara Lok Sabha constituencies. Since 2005 he is a member of the Rajya Sabha. The Deputy Chairman is elected in the meeting of the Rajya Sabha as decided by Chairman of the Rajya Sabha from amongst the members of the Rajya Sabha. He is supposed to resign from his original party because as a Deputy Speaker, he has to remain impartial. Deputy Chaiman of Rajya Sabha acts as the Presiding Officer in case of leave or absence of the Chairman of Rajya Sabha, the VicePresident of India. Rakesh Singh Rakesh Singh was appointed as the 55th President of Institute of Cost Accountants of India (ICAI) on 21 July 2012 for the year 2012-13. He succeeded M. Gopalakrishnan. Rakesh Singh was the former VicePresident of ICAI. S.C. Mohanty succeeded Rakesh Singh as the Vice-President of ICAI. Institute of Cost Accountants of India (ICAI) is the Professional Institute. It is a statuary body under an act of Parliament. ICAI serves for the nation, government, industry and the Society. They had received the National Award for Excellence in Cost Management in the year 2011. G Ashok Kumar Rear Admiral G Ashok Kumar assumed the charge as the Southern Naval Command Chief, Kochi on 28

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs August 2012. Prior to this this, Kumar was serving as the Flag Officer at Sea Training, Kochi, where he was responsible for preparing all major warships for combat readiness. A specialist in navigation and direction, he commanded INS Kulish and INS Ranvir. G Ashok Kumar, who hails from Ponnani in Malappuram district in Kerala, joined the Navy in 1982. In a career spanning 30 years, Kumar served various top-notch positions such as, the defence adviser of India in Singapore, Chief Staff Officer (Operations) at the Western Naval Command and head of Naval Training at the Defence Services Staff College in Wellington. He also received the Vishisht Seva Medal for his extra ordinary service to the Indian Navy. Fareed Zakaria Was Fareed Zakarias plagiarism a case of journalistic lapse, an unintentional error and an isolated incident, or is he just too valuable to his employers to get fired over a serious violation of a basic tenet of reportage? Either way, Mr. Zakaria appeared to emerge battered but victorious this week, after his suspension from TIME magazine and CNN television news channel, over allegations that he plagiarised lines in an article on gun control, was revoked and he was reinstated at both major media houses. In restoring Mr. Zakaria to his Sunday morning, prime-time spot on the GPS show, CNN said it had

completed an internal review of his work, including a look back at his Sunday programs, documentaries, and CNN.com blogs. The rigorous review found nothing that merited continuing the suspension, it concluded, underscoring that Mr. Zakaria had apologised for the lapse and his quality journalism, insightful mind and thoughtful voice meaningfully contribute to the dialogue on global and political issues. Similarly, a TIME spokesperson said it had completed a thorough review of each of his columns and was entirely satisfied that the language in question in his recent column was an unintentional error and an isolated incident for which he has apologised. Jawahar Thakur Jawahar Thakur, a 1979-batch Indian Civil Accounts Service officer took over as the new Controller General of Accounts (CGA) of India, the post earlier held by C.R. Sundaramurti. Prior to his

appointment as the CGA, Thakur was the Principal Chief Controller of Accounts in the Central Board of Direct Taxes (CBDT) under the Department of Revenue in the Finance Ministry. Thakur, a Post Graduate and a Law Graduate from Delhi University, also holds a M.Sc. degree in Public Economic Management from University of Birmingham, U.K. and Diploma in Public Financial Management from the University of Strathclyde, UK. He has extensive experience in the areas of Public Financial Management and has worked in diverse capacities in the Ministries of Earth Sciences, Commerce, Human Resource Development, Science & Technology, Labour, Health, Home Affairs and Finance. He is known for his initiatives in the area of development of an effective financial management information system.

DEATH
Vilasrao Deshmukh Vilasrao Dagadojirao Deshmukh, the Union Minister for Science and Technology and Earth Sciences died of multiple organ failure at the Global Health City Hospital in Chennai on 14 August 2012. He was 67. He was 88 http://www.civilservicesmentor.com admitted to hospital on 6 August after his kidney and lever stopped to work. Born on 26 May 1945 in Babhalgaon, Latur district, in Maharashtra, he received his Bachelors degree his in science and arts from M.E.S Abasaheb Garware College, Pune. He entered in active politics. Starting http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs his political career as a deputychairman of Lathur District Panchayat Committee, he was first elected to Maharashtra State Legislative Assembly from Lathur constituency in 1980. Vilasrao Deshmukh first became the Chief Minister of Maharashtra after 1999 state assembly elections. He remained on the position till 2003. Year 2004 saw him again taking over as the Chief Minister of the state. He resigned from the post following the Mumbai Terror Attack on 26 November 2008. In 2009, Deshmukh was elected to the Rajya Sabha and was made the Minister of Heavy Industries and Public Enterprises. Later he became the Minister for Rural Development replacing Manishankar Aiyyar . AK Hangal Veteran actor Avatar Krishan Hangal, popularly called AK Hangal, passed away in Mumbai on 26 August 2012 after prolonged illness. He was 97. In a career spanning nearly 40 years Hangal worked in around 225 films. A devoted artist, he also worked in numerous theatre plays and TV Series. Born in Sialkot, now in Pakistan, on 1 February 1917, AK Hangal actively participated in the Indian freedom struggle from 1929-1947. An ardent communist, he was also jailed for two years from 1947-1949 due to his leftist leanings. Hangal was long associated with IPTA, where he worked alongside Balraj Sahani and Kaifi Ajami. AK Hangal made his debut in the Hindi cinema at the age of 50 with Basu Bhattacharyas Teesri Kasam in 1966 and Shagird. Some of his memorable works came in the movies like Namak Haraam, Shaukeen , Sholay, Aaina, Avtaar, Arjun, Aandhi, Tapasya, Kora Kagaz, Bawarchi, Chhupa Rustam, Chitchor, Balika Badhu, Guddi, Naram Garam. Considering his immense contribution to the Indian film industry the government of India awarded him with the Padma Bhushan in 2006. John Atta Mills President of Ghana, John Atta Mills Passed away on 24 July 2012. He won international praise for a stable model democracy in Africa. He was 68 years old. John was a lawyer and the taxation expert. He made his Meles Zenavi Meles Zenavi, the Ethiopian Prime Minister, passed away on 20 August 2012 following prolonged illness. He was 57. Deputy Prime Minister Hailemariam Desalegn, who is also Ethiopias foreign minister, will

country proud for the economic policies and good governance. He was born on 21 July 1944 in Tarkwa, Ghana. He had spent most of his carrier as the professor in the University of Ghana. He had done doctorate from London School of Oriental and African Studies. In addition, he was the Fulbright scholar in Stanford University at Palo Alto, Calif. John Dramani Mahama succeeded John Atta Mills. John Dramani Mahama sworn in as the President of Ghana. The Oath was administered by the Chief Justice of Ghana with the article 60 (6) of the 1992 Constitution of the Republic of Ghana. He is 53 years old.

assume the charge as the acting Prime Minister of the country. Born into a middle-class family in Adawa, Tigray, in Ethiopias northern highlands, Meles Zenavi joined the politics when he was still studying in the university. He later dropped out of university to take full participation in the insurrection against the Syrian military regime. In 1991 when Mengistu Haile Mariam led Military Council was finally thrown out of power, Meles assumed the charge as the president in a transitional government. Later in 1995 he took over as the prime minister of the country. He went on to lead the African country for nearly 20 years and influenced the Ethiopian public life until his death. Neil Alden Armstrong Neil Alden Armstrong, the US Astronaut, who got his name written in the history of mankind after he became the first person on the Earth to walk on the surface of moon, passed away on 25 August 2012. He was 82. At the age of 38, Armstrong, as the commander of the Apollo 11 mission, became the first human to land on the moon on 20 July 1969. Right after he stepped on the surface 89

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs space shuttle Challenger in June 1983. Sally Ride was, however, not the first woman to travel into space, as Valentina Tereshkova of erstwhile USSR had visited space in June 1963. Born on 26 May 1951 at Los Angeles, California, Ride received her Masters degree in Physics from Stanford University. Subsequently, she joined NASA in 1978. Ride went on her first of moon, Armstrong uttered that famous sentence Thats one small step for man, one giant leap for mankind. Born on 5 August 1930 in Wapakoneto, Ohio, US, Neil Armstrong was an American astronaut, test pilot, aerospace engineer, university professor and United States Naval Aviator. The Apollo 11 mission was his last mission to space. Armstrong was awarded the Presidential Medal of Freedom by President Richard Nixon along with Collins and Aldrin, the Congressional Space Medal of Honor by President Jimmy Carter in 1978, and the Congressional Gold Medal in 2009. Apollo 11 was the space flight which landed Neil Armstrong and Buzz Aldrin, two humans for the first time on the surface on moon. The landing of Apollo 11, also called mission insignia, on the lunar surface marked Americas triumph in the Cold War space race that began on 4 October 1957, with the launch of the Soviet Unions Sputnik 1, a satellite that sent shock waves around the world. Sally Ride Sally Ride, the first US woman to travel into space died in La Jolla, California on 23 July 2012. She was 61. She was suffering from pancreatic cancer. Ride fired the imagination of millions of women across the world when she set off for space in the US 90 http://www.civilservicesmentor.com Mumbai. During his long career in Bollywood Mehta worked with prominent filmmakers like Subhash Ghai, Rajiv Rai and MF Husain. He was the director of photography in films like 36 Chowringhee Lane, Utsav, Trikal, Khalnayak, Bandit Queen, Chalte Chalte, Gajgamini, Trimurti, Khalnayak, Moksha and Ram Lakhan. Ernest Borgnine American Actor Ernest Borgnine passed away on 8 July 2012. He was 95 years old. He took his last breath at Cedars-Sinai Medical Center. He won the Oscar Award for his role in the film named Marty in the year 1955. He was the part of many space shuttle mission on board the Challenger in 1983. She was only 32 when she first travelled into space, making her the youngest person in America at the time to go into space. Her second space visit occurred in 1984, also aboard the Challenger. She spent a total of more than 343 hours in space. Ashok Mehta Veteran Cinematographer Ashok Mehta passed away in Mumbai on 15 August 2012. He was 65. Mehta was suffering from lung cancer and was getting treatment at Kokilaben Dhirubhai Ambani Hospital in famous films from Hollywood like: The Dirty Dozen, Ice Station Zebra, McHales Navy, the Wild Bunch etc. In late 1990s, he was the part of the famous Television series named The Single Guy. Basket Ball and Gattaca were his recent films. Ernest Borgnine received Golden Globe Nomination 2007 for his role in A Grandpa for Christmas. In addition, He achieved Lifetime achievement Award at the 17th Annual Screen Actors Guild Award 2011. http://upscportal.com

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ACCUSED/RESIGNED/CONTROVERSY
Fareed Zakaria Noted Indian-American journalist and author Fareed Zakaria has been suspended by CNN andTime magazine after he admitted to having plagiarised from The New Yorker portions of an article he wrote on gun control for the August 20 issue of Time . Mr. Zakaria issued an apology, saying he had made a terrible mistake and his lifting a paragraph from the article of Harvard University professor of American History Jill Lepore was an ethical lapse. Time said it was suspending Mr. Zakarias column for a month, pending review. Time accepts Fareeds apology, but what he did violates our own standards for our columnists: their work must not only be factual but original; their views must not only be their own but their words as well, Ali Zelenko, a spokeswoman for the magazine, said. Mr. Zakaria said: Media reporters have pointed out that paragraphs in my Time column on gun control, which was also a topic of conversation on this blog, bear close similarities to paragraphs in Jill Lepores essay in the April 23rd issue of The New Yorker . They are right. I made a terrible mistake. It is a serious lapse and one that is entirely my fault. I apologise unreservedly to her, to my editors atTime and CNN, and to my readers and viewers everywhere. A frequent commentator on issues related to international relations, trade and American foreign policy, the Mumbai-born Zakaria, 48, was honoured with the Padma Bhushan in 2010 for his contribution to journalism. He was managing editor of Foreign Affairs magazine, editor of Newsweek International for 10 years before moving to CNN in 2010. Tin Aung Myint Oo Myanmars first Vice President Tin Aung Myint Oo resigned on 4 July 2012 due to health reasons. officers in the countrys legislature. The resignation of Tin Aung Myint Oo is likely to accelerate the pace of economic change in Myanmar after the European Union and the US began lifting their longstanding economic sanctions against the country during the past several months. Kaushik Basu Kaushik Basu ended his tenure as Indias Chief Economic Advisor on 31 July 2012. A professor from Cornell University , he held the position for two and a half years at the NorthBlock, New Delhi. Prior to his stint as the economic advisor, Basu was the Chairman of the Department of Economics in the year 2009 and between 2006-9 he was the Director of the Center for Analytic Economics at Cornell. He at present is the fourth President of the Human Development and Capabilities Association, which was founded by Amartya Sen.

CNN, where Mr. Zakaria hosts a weekly foreign affairs show, Fareed Zakaria GPS, said it would suspend it for an indefinite period. We have reviewed Fareed Zakarias Time column... He wrote a shorter blog post on CNN.com on the same issue, which included similar unattributed excerpts. That... post has been removed, and CNN has suspended Fareed Zakaria while this matter is under review, it said. In a statement, http://upscportal.com

The move, which is expected to begin a broader reshuffle in the government, could see the appointment of some more reformers to Myanmars cabinet. Tin Aung Myint Oo, a former army general is widely regarded as a hard-liner. He took over as the vice president in 2011 after being selected by a bloc of military

He has also held advisory posts with the ILO, the World Bank, the Reserve Bank of India and was, for several years, member of the steering committee of the Expert Group of Development Issues set up by the Swedish Government. At present, he is a member of the Board of Directors of the Exim Bank of India. As a Fellow of the Econometric Society, the Ex chief economic advisor published widely in the areas of Development 91

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Economics, Industrial Organization, Game Theory and Welfare Economics. His books include Analytical Development Economics , Prelude to Political Economy: A Study of the Social and Political Foundations of Economics and Of People, Of Places: Sketches from an Economists Notebook. In the month of May, 2008 he was awarded, the Padma Bhushan, by the President of India, which is one of Indias highest civilian awards. As a pass out from the St. Stephens College and the London School of Economics, this stalwart saw various fluctuations in the economic background of this country. Whilst stepping down , he stated that the inflation in India is expected to dip down by September 2012, by seven percent. Basu also stated that India needs to tackle corruption to be able to tackle bigger issues. Laisenia Qarase Prime Minister of Fiji, Laisenia Qarase was punished for One year Prison on 3 August 2012 by the Supreme Court of Fiji. He found guilty on corruption charges. He was unable to answer the Government about his private investment in three companies to whom he was helping financially from past 20 years. He is not allowed to take part in the Prime Ministers elections of Fiji in the year 2014. Laisenia served as the Prime Minister for six years. He became the Prime Minister in the year 2000. In 2006, he was ejected from a military coup. He was also convicted for nine charges when he was a public servant in the era of 1990. The former Prime Minister of Fiji, Mahendra Chaudhry was also caught in the case of Corruption. He was blamed with the three charges under the Foreign Exchange Control Act. Kofi Annan Former UN Secretary-General Kofi Annan on 2 August 2012 stepped down as the UN special envoy to Syria. Annan formally informed UN Secretary-General Ban Ki-moon and the Secretary-General of the League of Arab States, Nabil El Araby about his decision. His appointment for the high-profile as the UN peace interlocutor was set to expire on 31 August 2012. Annan was appointed the UN-Arab League special envoy to Syria in February 2012. A formidable diplomat Annan was assigned with the task to explore for the peaceful solution to the Syrian crisis and secure a peaceful transition of the regime. Kofi Annan right after taking over the charge as the special envoy to Syria came u p with a s i x point peace plan to stop violent struggle in the Syria. The peace plan which was submitted to UN Security Council comprised of following points: 1. Working with international envoy to secure peaceful political transition in the country by taking into account of the legitimate aspirations and concerns of Syrian people 2. End to violence by all sides; army troops to stop using heavy weapons and withdraw to barracks 3. Permission for humanitarian assistance particularly for the areas worst hit by violence 4. Accelerate the pace of release of detainees who were detained arbitrarily by the present government 5. Ensuring freedom of movement for journalists 6. Permission to the citizens for peaceful demonstrations Kofi Annan, who was named the special envoy to Syria given his extra ordinary credential as a diplomat, starkly failed to restore peace in the war-torn nation. His failure in making Bashar-al-Assad led Syrian regime fall in line caused major disappointment for the peace initiatives in the country. Besides, he also failed miserably in attempt to get all the super powers on one platform as Russia and China two veto-wielding nations in UN Security Council vehemently opposed the western plan of peace in Syria. An estimated 20000 people have already lost their lives in one of the most violent chapter of Arab Spring, which took the entire Arab world by strom in 2011. The unrelenting bloodshed is now on the verge of morphing into a civil war, which could prove to be more troublesome for the global community. http://upscportal.com

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HONOUR
Pather Panchali Pather Panchali secured 42 rank in Sight and Sound Poll with 31 votes on 2 August 2012. It was featured in the 50 greatest films of all time List by Sight & Sound Maganzine. Pather Panchali (Song of the Road) was made by the Film maker Satyajit Ray. part of the Sight & Sound list. In 2002, this film was ranked 22 in Sight and Sound Poll. Sight & Soundis the reputed Magazine from the Film Institute of British. Vertiogo secured first rank in Sight and Sound Poll. Sonia Gandhi Sonia Gandhi ranked number six in the Forbes magazines list of the worlds 100 most powerful women. Sonia Gandhi, the chairperson of the ruling United Progressive Alliance and the Congress party is among the five Indian women who have been named in the worlds 100 most powerful women list. The other four Indian women in the list are Indira Nooyi (12), Padmashree Warrior (58), Chanda Kochar (59) and Kiran Mazzomdar Shaw (80). Gandhi was figured on 7th position in the list of powerful women in 2011. German Chancellor Angella Markel topped the list for a second successive year. She was followed by US Secretary of State Hillary Clinton and Brazilian President Dilma Rousseff, who have been ranked number two and three respectively for second year in a row. Melinda

This Film was based on Bengali Novel Pather Panchali written by Bibhutibhushan Bandopadhyay. This movie was made under the small budhet of Rs. 150 thousand. It was lyrical and the story of the film was related to the peasant family in rural India of 1920. Approximately, 846 critics, academics and distributors had given the vote to Pather Panchali for the 50 greatest films. Pather Panchali was honoured with Best Human Document prize at the Cannes Film Festival in the year 1956. This is first Indian Film that was the

Gates, co-chair of the Bill & Melinda Gates Foundation and wife of Microsoft Corp co-founder Bill Gates, and Jill Abramson, executive editor of the New York Times was ranked fourth and fifth respectively. Michelle Obama, wife of the US President Barak Obama and IMF director Christine Lagarde ranked seventh and eighth respectively in the list. The magazines list included women who have been working in the areas such as policymaking, business, entertainment, technology and nonprofit organizations.

BOOKS
No Easy Day The book No Easy Day: The Firsthand Account of the Mission That Killed Osama bin Laden written by a former Navy SEAL claimed that Osama bin Laden was shot in the head by a SEAL bullet when he looked out of his bedroom door into the hallway and not killed inside the room. The book was written under the pseudonym Mark Owen. The US government after the raid in May, 2011 claimed that the SEALs shot Osama bin Laden only after they entered his bedroom. http://upscportal.com http://www.civilservicesmentor.com 93

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VARIOUS
Time Magazine Leading American magazine Time on the cover of its latest Asian edition dubbed Indian Prime Minister Manmohan Singh as the Underachiever. The magazine which hit the stand on 16 July 2012 carried three stories including the cover story to describe the gloomy economic scenario in the country. The magazine insisted that Indian Prime Minister has been starkly unable to reverse the pessimistic economic environment in the country. Once widely regarded as a staunch reformer, Manmohan Singh has come under severe criticism over his failure in beefing up the economy. Earlier US President Barack Obama had urged Indian government to introduce some much needed reforms in the country to reinvigorate the investment sentiment among the global investors. Earlier Time magazine in its June 2002 edition had termed the then Indian Prime Minister Atal Bihari Vajpeyee asleep on the wheel.Time sells 264000 copies in entire Asian continent, while, the Indian subcontinent accounts for the sell of as many as 47000 copies, accounting for almost 18 percent of the sales. Species of Rat that doesnt Chew A unique species of rat that doesnt chew was discovered in Indonesia. The animal with a long, pointed snout is the only rodent out of more than 2200 known species that does not have molars and instead has bicuspid upper incisors. Rats were found in the mountainous rainforest of southern Sulawesi Island on Mount Latimojong and 100 km northwest on Mount Gandangdewata. They lives off earthworms. 94 Rogelio Sierra Diaz Rogelio Sierra Diaz, vice foreign minister of Cuba visited India on 7 August 2012 to participate in the First India-CELAC foreign ministers Troika meeting in New Delhi. On the sidelines of the meeting, he met SM Krishna, Minister of External Affairs of India. During this meeting, both nations discussed ways to improve bilateral relations encompassing the areas dealing with political, commercial and economic; energy; sports; science and technology; education and culture. India and Cuba agreed on the need for the reform of the United Nations Organisation. The Indian side appreciated Cubas expression of support to Indias candidature for permanent membership of the United Nations Security Council. Hyderabad The Confederation of Indian Industry (CII) held the eleventh Energy Efficient Summit in HICC, Novotel Hyderabad. The summit was held between 22 August 2012 to 25 August 2012. The objective of the summit was to facilitate the Indian industry to improve energy efficiency on a continuous basis and help them in achieving the target set as part of Perform Achieve and Trade under the National Mission on Enhanced Energy Efficiency. Also, to Create a platform for all the energy efficient technology suppliers and equipment manufacturer who could interact with industry and support them in achieving the target for energy efficiency improvement. The other objective was also to disseminate information on the latest trends and energy efficient technologies and facilitate sharing of best practices amongst the Industries. The conference involved the following four parallel conferences. EnCon in Electrical systems EnCon in Thermal systems Compressors & Compressed air system Energy efficiency in buildings Also while the summit was going on, The Swedish Energy Agency, CII and the Cleantech Scandinavia entered into a memorandum of understanding (MoU) of understanding for cooperation in the energy sector. MoU for a Joint Venture with Rosoboronexport, Russia Ordnance Factory Board on 27 August 2012 signed a Memorandum of Understanding for a Joint Venture with M/s Rosoboronexport, Russia and M/s Splav SPA, Russia to manufacture five versions of Smerch Rockets based on the technology received from Russia. The MoU was signed in New Delhi. The Smerch Rockets are technologically superior having a range of 70-80- kms. With formation of this Joint Venture, the Indo-Russian Friendship will be strengthened. After indigenizing the technology of Smerch Rockets, OFB will attain new heights in manufacturing of advanced Rocket. New Species of Spider named after Naturalist David Attenborough A new species of spider found only on one island in Queensland, Australia was named after the British naturalist and celebrated TV broadcaster Sir David Attenborough. The prethopalpus attenboroughi spider is just over one millimetre in length and exists only on Horn Island http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs in the Torres Strait in Queensland. The spider was discovered and described by Queensland Museum research fellow Barbara Baehr and WA Museum head of terrestrial zoology Professor Mark Harvey. Prethopalpus is commonly known as a goblin spider. It is not the first time a species has been named after Sir David as earlier a fossil of a fish that existed 380 million years ago was named Materpiscis attenboroughi. Didier Reynders The Belgian Deputy Prime Minister and minister of Foreign Affairs, Foreign Trade and European Affairs Didier Reynders visited India from 1-5 August and 8-12 August 2012. During his visit, he discussed bilateral, regional and international issues of mutual interest. Besides that, A MoU was signed between Ministry of Railways, Government of India and the Ministry of Mobility of Kingdom of Belgium on 2 August 2012. 2000-Year Old Sculpture in Mexico Mexican archaeologists in the first week of August 2012 discovered a 2000-year-old sculpture of a jaguar in Izapa. The one-tonne piece measures 1.38 meters long by 87 centimeters high and 52 centimeters wide. Izapa, is located about 12 km from the border with Guatemala. It was an important civic religious center built 2500 years ago by a preMayan culture. The sculptures of Izapa were made with stones because there were no metals in that period. The jaguar sculpture seems to be only partially completed because the other faces of the stone are blank. It indicated that it was possibly in the process of being carved when work was halted on it. Keshubhai Patel Former Chief Minister of Gujarat, http://upscportal.com Keshubhai Patel launched Gujarat Parivartan (GPP) Party on 6 August 2012. Keshubhai Patel and the former union textile minister Kanshiram Rana resigned from Bhartiya Janta Party (BJP) on 4 August 2012. This Party would contest all the 182 seats in Gujarat assembly elections which will be held by the end of 2012. Karl Mehta Indian-American entrepreneur Karl Mehta was selected among the 18 Presidential Innovation Fellows who would work on five high-impact projects in the US capital Washington DC. protection, investor education and all the other responsibilities within Rajasthan state. New look Website of the President of India The re-designed website of the President of India was launched at Rashtrapati Bhavan on 3 August 2012. While the historical perspectives from the earlier websites have been retained, the re-designed website has some new features, which include direct connectivity from the website to social networking media of the President i.e. Facebook and You-Tube. These two features have been initiated after assumption of charge by the President Pranab Mukherjee. The new website also has a Video Gallery. Citizens can connect to the President directly by clicking the button Write to the President, which will take them directly to the helpline portal. Moreover, visuals have been conceptualized and made user friendly. Launching the website would be a step forward to bring the President of India closer to the people. Kim Jong Un Democratic Peoples Republic of Korea (North Korea) on 18 July 2012 awarded the title of Marshal to its top leader Kim Jong Un. The decision to confer the title on Kim was taken by nations top military brass and government officials on 17 July 2012. Kim Jong Un rose to helm of Communist Nation following the death of his father Kim Jong Il in

Selected from an applicant pool of nearly 700 innovators from across the country, the Fellows would spend six months in Washington DC to work on five high-impact projects aimed at supporting entrepreneurs, small businesses and the economy, while significantly improving how the Federal Government serves the American people. Jaipur Securities and Exchange Board of India (SEBI) inaugurated their local office here. Jaipur is known as the Pink City. It is the largest city in Rajasthan State. Securities and Exchange Board of India(SEBI) inaugurated their local office in Jaipur on 4 August 2012. It was inaugurated by Rajeev Kumar Agarwal, the member of SEBI. The office will be responsible to look after all the regulatory aspects of investor

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs December 2011. Since then he has been serving as supreme commander of the Korean Peoples Army. Kim Jong Il was named the Marshal of North Korea following the death of his father Kim Il Sung in July 1994. The death of Il on 17 December 2011left the position of Marshal vacant for nearly seven months. Kim Jong Il was posthumously made grand marshal, the nations top military title, in February 2012. Before formally being named the Marshal, Kim Jong Un carried out a high-profile reshuffle in the countrys army, which saw the chief of the army, Ri Yong Ho being sacked from all posts due to illness on 16 July 2012.Subsequently a less renowned military general, Hyon Yong Chol took over as the vice marshal on 17 July 2012. Senkaku Islands Ten Japanese on 23 August 2012, made an unauthorized landing on Uotsuri, which is known in Japan as the Senkaku Islands and in China as the Diaoyu Islands. The uninhabited islands surrounded by rich fishing grounds are controlled by Japan but also claimed by China and Taiwan. The Senkaku Islands dispute engulfs in itself a territorial dispute on a group of uninhabited islands. Of the ten Japanese people who visited the island, five were apparently conservative local assembly members. The Senkaku Islands are located in the East China Sea between Japan, and the Republic of China. The archipelago contains five uninhabited islands. Oak Creek Oak Creek is a city in Milwaukee County of Wisconsin state in United States. 96 Wisconsin Wisconsin is one of the 50 states of United States, located in the northcentral part of the country. The place came in spotlight after a gunman killed 6 worshipers at a Sikh temple at Oak Creek in Wisconsin on 5 August 2012.The temple in Oak Creek was founded in October 1997 and has a congregation of 350 to 400 people. An estimated 500000 or more Sikhs live in the United States. Since the attacks of September 11, 2001 by Islamist militants, Sikhs have sometimes been confused publicly with Muslims because of their turban headdress and beards. Sikh is the fifth-largest organized religion in the world, with more than 30 million followers. Lakshya-1 The Air Force version of microlight pilot-less target aircraft Lakshya1 was successfully test-flown from the launch complex-2 of the Integrated Test Range (ITR) at Chandipur, Orissa on 23 August 2012. The test was carried out with an objective to test the validity of its engine and duration enhancement. Lakshya has been inducted into the Indian Air Force since 2000. The aircraft is remotecontrolled from the ground and designed to provide training to both airborne and air defence pilots. Lakshya-1, fitted with an advanced digitally controlled engine and is a sub-sonic, re-usable aerial target system. It is launched by a solid propellant rocket motor, and sustained by a turbojet engine in flight. The flight duration of the sixfoot-long aircraft is 30 to 35 minutes. The PTA developed by Indias aeronautic development establishment, Bangalore has been designed to perform discreet aerial reconnaissance of battlefield as well as target acquisition. Methodist Church get Permission by Fiji Government The Military led Government in Fiji on 14 August 2012 gave the influential Methodist Church permission to hold its annual meeting for the first time in four years although any discussion of politics has been banned. The government is slowly easing its grip on the country. The church has been critical of the army which overthrew an elected government in 2006. A promise to restore democracy has prompted Australia and New Zealand to reestablish diplomatic ties with Fiji. First Type of Tea Prepared 1000 Years Ago Scientists claimed that the first cup of primitive form of tea was brewed by native Americans some thousand years ago. Inhabitants of Cahokia, a massive pre-Columbus settlement near the meeting point of Missouri and Mississippi rivers in Illinois, consumed a Black Drink from ceramic beakers. The beverage, made from toasted holly leaves and stems, was six times more potent than coffee. It could have been created for special ceremonies and is the first known evidence of a tea-like drink in what is now the US. Cahokia was a city with as many as 100,000 residents in its heyday - the largest prehistoric North American settlement north of Mexico. The pre-Columbian settlement at Cahokia was the largest city in North America north of Mexico, with as many as 50000 people living there at its peak. Europeans were the first to record the use of what they called the black drink by Native American men in the southeast. The Castle Naggar The Castle Naggar, Himachal Pradesh Tourism Development http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs Corporations prime hotel in the picturesque Kullu valley, was notified under the heritage status by the Union Tourism ministry on 23 August 2012. Naggar was the capital of the erstwhile Kullu state for about 1460 years. The castle was built by Raja Sidhi Singh in the 16th century. The castle has traditional architecture called Kathloonmi, which uses a combination of stones and wooden beams. The castle was handed over to state-owned HPTDC in 1978 to be run as a hotel. Agni II India on 9 August 2012 successfully test-fired domestically built surface-to-surface two stage Agni-II ballistic missile. The missile was launched from a test range at Wheeler Island off Odisha coast. The nuclear capable missile with a strike range of 2000 km was first test fired on 11 April 1999. The missile was inducted in the Army on 17 May 2010. The missile was launched by the strategic force command of Indian Army as a routine users trial. The objective of the launch was to train the user team to launch the missile. Agni-II is 20 metres long and capable of carrying a nuclear warhead weighing one ton. Agni-II was developed under the joint work of advanced systems laboratory, the missile development laboratory of the DRDO, Defence Research Development Laboratory and Research Centre Imarat, while it was integrated by Bharat Dynamics Limited, Hyderabad. The Agni-II missile belongs to the genre of medium range ballistic missiles developed by India under the Integrated Guided Missile Development Program. The missile was made operational by the Indian Army in March 2010. Twitter banned Six Accounts Social media site Twitter on 23 August 2012 banned six accounts similar in appearance to the Prime Ministers Office account. The move by twitter came after the Department of Information Technology served an ultimatum to the social media site for failing to block the offending and inflammatory web pages. Government has already ordered blocking of 310 webpages where morphed and inflammatory contents were uploaded with the aim to incite disturbance in the country. Earlier, the government issued guidelines for its departments using social media networks asking them not to post

confidential information and unverified facts. In the meantime, after checking the use of SMSes to prevent spreading of rumours which had led to mass exodus of north eastern people from certain states, the government has increased the number of SMSes to 20 per day with immediate effect. The other conditions will remain the same. New Delhi The first meeting of the IndiaCELAC (The Community of Latin American and Caribbean States) Troika foreign ministers was held in New Delhi on 7 August 2012. The CELAC Troika was led by the Minister of Foreign Affairs of Chile Alfredo Moreno Charme, the pro-tempore President of CELAC. The Foreign Minister of Venezuela Nicolas Maduro and the Vice Foreign Minister of Cuba, Rogelio Sierra participated in the meeting as members of the Troika. The Indian delegation was led by the External Affairs Minister of India, SM Krishna. The meeting was held with the objective of strengthening India-CELAC relationship.

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Objective Questions

1. Who won the 2012 Sastra Ramanujan prize (Mathematics) (a) C. N. Rao (b) Prof. Yashpal (c) Zhiwei Yun (d) Anita Sharma 2. On the eve of Pakistans 66th Independence Day which eminent Urdu literature (Indian) got Pakistans third highest Civilian honour Sitara-i-imitiyaz (a) Gopichand Narang

(b) Javed Akhtar (c) Guljar (d) Nida Fajli 3. Who Crowned Miss World 2012 ? (a) Wen Xia Yu (b) Sophie Moulds (c) Jessica Kahawaty (d) Vanya Mishra 4. Indias Highest honour for sportsman for a specific achievement in a year (a) Arjun Award (b) Dronacharya Award

(c) Khel Ratna Award (d) None of these 5. In 2012 two eminent players got Rajiv Gandhi Khel Ratna award. Players are: (a) Yuvraj Singh & Gagan Narang (b) Vijay Kumar & Yogeswar Dutt (c) Saina Nehwal & Sushil Kumar (d) M.C. Marycom & Vijay Kumar

Answers
1. (c) 3. (a) 5. (b) 2. (a) 4. (c)

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Verious Objective Questions


(b) S. Radhakrishnan (c) Neelam Sanjeev reddy (d) Shankar Dayal Sharma 3. Americas Republican presidential candidate mitt Ramney Named Wiscon sin Congressman for Vice President (a) Paul Ryan (b) Jim Carry (c) Fredrick Goldsmith (d) Al - Gore 4. Angkor Wat Temple (Lord Vishnu) is situated in (a) Cambodia (b) Vietnam (c) Myanmar (d) Laos

1. Recently Noted Indian American Journalist and author Fareed Zakaria has been suspended by a channel & magazine after he admitted to having plagiarised from The New Yorker Portions of an article. In which channel he is associated ? (a) CNN (b) BBC (c) Gulf News (d) NDTV 2. Mr. Hamid Ansari is the Second Vice President who elected for a second tenure, Before Ansari Who got this honour(For Second tenure) ? (a) Zakir Hussain

5. Sports maker giant Adidass paternal Country is (a) Germany (b) France (c) America (d) Britain 20. Ms. Julia Gillard is the prime minister of (a) Canada (b) New Zeland (c) Australia (d) Iceland

Answers
1. (a) 3. (a) 5. (a) 2. (b) 4. (a) 6. (c)

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Teaching the basics of finance


The Reserve Bank of India is certainly not short on ambition with its draft strategy for financial education for consumers. The discussion paper, now thrown open for public comments, recognises the important role financial literacy and financial education play in promoting financial inclusion and inclusive growth. As a first crucial step towards reaching those important national goals, the draft paper discusses ways of creating awareness and educating consumers on access to financial services, availability of various types of products and their features. The strategy makes a strong pitch for conditioning the changing attitudes of consumers so that the knowledge gained through financial education is translated into responsible consumer behaviour. Finally, consumers of financial products need to be made aware of their rights and obligations. The RBIs approach to financial education is in line with those of many other countries which, especially since the beginning of this century, have realised the full potential of spreading financial literacy through national projects. Given the large number of stakeholders, including the Central and State governments, banks and financial institutions, a coordinated national project rather than piecemeal approaches at different levels will be more beneficial. Financial inclusion, by itself, is one of the top policy priorities of the government. It is also an essential part of the larger social inclusion agenda. Financial education will help in promoting knowledge and skills which a relatively youthful

population needs to avoid the pitfall of reckless spending through, say, the indiscriminate use of credit cards, a habit vigorously promoted by irresponsible marketing schemes. Financial education in that sense is akin to the investor education programmes conducted by the Securities and Exchange Board of India and affiliated investor associations. Such initiatives have not had the impact hoped for. One hopes that the national level financial education programme starting at the primary school level will make up for the shortfalls in the sector specific programmes. Financial education will have a positive, multiplier effect as ordinary citizens get to know the nuances of savings and investment. In turn, there will be a welcome deepening of the financial markets. While the RBIs draft paper is comprehensive, what is missing is a recognition of the existing skills shortage in the financial sector and the steps to be taken to overcome this basic problem. For the financial sector, the biggest challenge is to train and retain manpower for not only its more traditional functions but also to further highly desirable social goals such as financial education. The Hindu

As maximum as it gets
Locality Residential Plots 6.26 2.26 FSI for Commercial Plots 11.93 2.09

Manhattan CD-8 Mumbai C Ward

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Locality Persons/hectare Persons/ hectare Of built-up floor of built-up floor Area residential area commercial 157 (or 64 sq.m 235 (or 43 sq.m per person) per person) 1,014 (or 10 sq.m 1,186 (or 8sq.m per person per person) dangerous and damaging for the city. Here are the FSI values for one of the most crowded residential localities in Manhattan, Community District 8, known as the Upper East Side, compared with Mumbais C Ward, one of Mumbais densest areas: On the strength of comparisons like this, Mumbais FSI has been portrayed as undesirably low and pushed up to 4, which is the current upper limit, except in the case of hotels, educational institutions, hospitals and the like where the limit can be much higher.

Manhattan CD-8 Mumbai C Ward Locality

Street Crowding Residential Persons/ hectare FSI Manhattan CD-8 2,190 6.26 Mumbai C Ward 4,690 2.26 Indian cities have evolved over centuries, and in general do not have the grand layouts and leafy avenues of many of their more recent western counterparts. New Delhi is an exception, but then its layout is a western imposition and has nothing to do with the way old Delhi developed, or indeed any other city in India barring a few more recent exceptions. In every city, buildings are meant to conform to a set of building codes informal earlier, now formalised. These codes are complex: buildings have to observe a minimum required front open space, possibly side and rear open spaces as well, with plinths often mandated to cover no more than a specified fraction of the plot area. The maximum number of floors is also often specified. A post-World War II innovation from America introduced a new form of building control. This is called FSI (Floor Space Index) in India and FAR (Floor Area Ratio) everywhere else in the world. It is the ratio of built-up area of all floors on the plot to the area of the plot itself. The FSI regulation is welcomed by architects. They like the freedom to reduce the footprint of the building and increase the number of floors, while still observing the FSI rule which sets the total built-up area allowable on each particular plot. But from the authorities point of view, the FSI specified has to be carefully managed to ensure that the extent of built-up floor space permitted in a locality does not exceed that localitys infrastructure capacity, in regard to water supply and sewerage of course but, more importantly, in regard to transport and crowding on the streets. The World Bank has been relentlessly complaining that Indian cities are not optimally using their land. They particularly pick Mumbai to make this case and point out that the citys irrational building rules impede good economic use of real estate. Alain Bertaud, in particular, a consultant to the World Bank, is vehement that FSI levels in Mumbai are too low and need to be immediately and drastically increased. Once this happens, it will become a model for the rest of the country. To underline its argument, the World Bank presents a bald comparison of FSI across international cities, which is both meaningless and misleading. It is like comparing individuals weights without considering their heights or the societies they live in. The policy recommendations that emerge can be both

Indoor Crowding
But there is a major factor missing in this World Banks comparison of FSI. This is that cities are at different levels of economic development, inhabited with individuals occupying, on average, different extents of floor space. Living is simply more crowded in some places, and less crowded in others. Here is a comparison of what we might call indoor crowding. The following table highlights staggering differences: Manhattan, at 64 sq.m per person, has six times more residential floor space than someone in Mumbais C Ward, and Manhattan has over five times as much floor space per job. With such extravagant use, no wonder Manhattan needs a much larger FSI.

Building codes

Buildable area
A second factor that is missing in comparing cities is the extent of buildable area: in other words, the proportion of buildable plots to street area. FSI applies only to buildable plots. In Manhattans CD-5 the Plot Factor (plot area / street area) is 1.7, which means 37 per cent of the area is under roads and only 65 per cent is available for construction (65/ 37 = 1.7). In Mumbais C Ward, the area under roads is less and the area available for construction is higher 71 per cent buildable, 29 per cent streets (making for a Plot Factor of 2.4). What must be factored into any debate on FSI is street crowding. This is an important index which gives an idea of how many occupants live within a given street area. It is the product of the number of residents per unit of floor area, the Plot Factor and FSI. Despite the higher FSI in Manhattans CD8 (three times that of Mumbais C Ward), the street crowding is only 2,190 persons per hectare, whereas Mumbais C ward even with its lower FSI has 4,690 persons per hectare: Mumbais C Ward already has its streets more than twice as crowded as Manhattans Upper East Side. Any doubling or quadrupling of FSI in Mumbais C Ward, as is being currently debated under prodding by the World Bank, will only double or quadruple its already massive street crowding to levels so far not seen anywhere in the world. We have recently witnessed this in a small way in Mumbais suburbs. In October 1997, there was a sudden relaxation and FSI could be increased from 1 to 2 in the western suburbs, using Transferable Development Rights. Everyone experienced the sudden increase in traffic volumes,

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a new and infuriating congestion arising from a doubling of traffic which could not be explained by the slow rise in car ownership, and was much more closely related to the increase in building volumes. The World Banks comparison of international FSI values is thus simplistic in the extreme and seriously misleading, because it ignores the other equally relevant parameters of indoor crowding and Plot Factor. Pressing for a major upward revision of FSI without a corresponding improvement in infrastructure, particularly transport to deal with crowding, is logically indefensible. It promises something it cannot deliver, an improvement in the quality of life. For the poor, and the vast majority of citizens, it will result in a worsening of living conditions, particularly travelling conditions. But worst of all, it is a red herring. It distracts us from the central problem, which is that adding to the citys land area by establishing new transport arteries is being invariably and unaccountably delayed. There is also a deliberate companion policy of withholding land from the market by one means or another. How to keep land in short supply is thus the name of the game, by which fortunes can be made in short order, and never mind what happens to Mumbai or its citizens. The Hindu

As I reflect, I wonder had my school teacher not been there would I have continued my education despite being pushed out of the school! I remember feeling very sad seeing my sisters go to school and on coming back narrating how they spent their day studying, playing and having fun. I was not allowed to go out in the locality where we lived as my grandmother felt that if people saw me, it would spoil the marriage prospects of my two elder sisters. I know she loved me but her actions made me feel miserable and sometimes even unwanted. Many children with disabilities (not disabled children as they are children first and the disability happens to be one of their many characteristics) like Mira (name changed) have historically been excluded from mainstream education. Legislation has played a crucial role in changing this scenario. Parliament recently passed the Right of Children to Free and Compulsory Education Act, 2009. This Act has been amended lately. Also, India has ratified the United Nations Convention on the Rights of Persons with Disabilities (CRPD) which mandates equal rights, outlines non-discrimination in the context of disability and inclusion. How have these moves impacted on children with disabilities like Mira who have been pushed out of the system and many others who have been invisible for too long?

Dont disable her right to go to school


When I learnt that I have been granted admission in the college of my choice, fear of being part of the rest of the world gripped me. Though confident about my academic abilities, I was terrified at the thought of how the others would react to me: a cerebral palsy wheelchair user with a speech difficult to comprehend and a drooling mouth. Would they look at me with poor you written all over their faces? My early life experiences came back as a vivid flashback. We belong to a minority community of scavengers, lived in poverty and I remember being teased in school on account of my disability and background. Despite this, I learnt to take the insults in my stride. I was a keen learner and was admired for my learning abilities, though silently. As I finished primary school, suddenly the world changed. I was asked to leave school as parents of my classmates had raised objections about my peculiar characteristics, in particular the drooling (which would spoil my books and clothes). A big fuss was created even after my mother, on being asked, had unconditionally signed a declaration absolving the school authorities of all responsibility in case of a mishap! I was forced to continue my learning in a home-based education programme under the Sarva Shiksha Abhiyan. A special educator who my classmates called the teacher of the mad children came once a month to teach me for two hours. However, my class five teacher voluntarily continued to teach me regularly at home and, with my mother, worked hard to also seek support from other teachers/institutions/agencies. Eventually I completed my schooling through the open schooling system.

Mixed response
Most often when we talk about educating a child, we think about school and believe that true learning can only take place within the four walls of a formal classroom. However education occurs in many different forms and environments. The recent amendments regarding an option for home-based education for children with severe and multiple disabilities are based on this latter outlook. The amendments have received a mixed response. What are the implications for children with disabilities like Mira? Although the law does give a choice and an option for home-based education to parents, did Miras mother really have a choice? Parents of children with severe and multiple disabilities are particularly vulnerable because society often does not see the point of their child going to the school and thus may not provide the required support. Parents, particularly those with meagre resources, have an unequal relationship with the system and this is evident from how their children are pushed out of the system more easily. Again Miras story is an example in point. Post-amendment, voices have argued that home is the natural and first place for life-long education for all children and thus why should we legally legitimise it for children with high support needs? If we are legitimising it, then why only for children with high support needs, and not for a child who is excessively shy or for a child with a different learning style? Should they also not be given an option? Why do we not think about asking children their own choice for the type of schooling they want to opt for? Should they not have a voice in a matter that affects their life?

Objective
Is education only for personal gain or does it also offer benefits for the general growth of an entire community

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providing a place for children, youth and adults to interact, socialise, and unify societies? If we agree with the latter, then clearly home-schooling cannot really provide for this goal. Having ratified the CRPD, will categorising children as those with high support needs or not be appropriate? The Convention sees disability as part of human diversity and therefore persons with disabilities as equally valued members of society. It underscores the fact that disability is not just a medical issue. People become disabled because of all the social, cultural, economic, political and other factors that prevent them for participating fully in society. We also need to consider what are the opportunities available for children with disability from the large population of migrants. Who would identify and certify the children as severely disabled for providing the home-based education programme? What would be the kind of curriculum and standard of pedagogical principles followed? How often will these children be visited and by what kind of professionals? What kind of support will parents entrenched in the daily grind of making ends meet be able to provide? Furthermore, are we in a position to provide the required support such as rehabilitation services at home, social security for the family, and personal assistance for the child everywhere in the country? Who would monitor them if they are abused or given corporal punishment? How will the children in homebased education access the midday meal or other such incentives? Will not the state be shirking its responsibility to improve mainstream education systems to better respond to differences and diversity of learning and learners if we start labelling children as uneducable within the education system? There is also a possibility of misuse. For example the parents of a partially deaf girl or a girl with low vision may not be able to escape the inclination to opt for home-based education possibly due to social or financial constraints. In addition, discrimination often has multiple dimensions such as a girl child with disability who may find herself doubly disadvantaged on account of her gender and disability and may remain uneducated for life. inclusive? Home-based education cannot be the only alternative. It can at best be considered a preparation for including children with a strong will to bring them back into the mainstream. We will know how progressive this move is as we build research into the implementation of the RTE Act with its amendments. What stands out clearly though is the need for concerted efforts to make provisions in the Act a reality. And to make parents having to sign declarations absolving schools of their responsibility of children with disabilities (as Miras mother had to do) an action of the past. Let us join hands to make schooling and life a happy experience for all children, acknowledging, respecting and celebrating diversity as enriching humanity and a normal aspect of society. Our efforts ought to be geared towards All for the children, for all the children including Mira! The Hindu

A question of autonomy
Public sector banks that continue to occupy a pivotal position in the Indian financial sector have reasons to be upset over recent circulars of the Union Finance Ministry which, they say, are an attack on their autonomy. The banks specific allegation is that over the past year, the government has been trying to micro-manage them by issuing as many as 36 directives setting new rules as well as reiterating existing ones. All of these, it is claimed, impinge on their freedom to take independent decisions even in areas that are considered very basic. The reform of the financial sector in the 1990s hinged on a fundamental compact: new private players were to be let in but an effort would also be made to ensure that the PSBs were equipped to take on the resultant competition. One of the important measures in that regard was the conferment of autonomy on public sector banks so that they could take commercial decisions independent of the government, which remains their largest shareholder. The extent of such autonomy has varied from bank to bank but in all cases it was hoped that the government would respect their autonomous status. The advent of new shareholders has further strengthened the case for autonomy. The arrangement between banks and the government is tilted towards the latter. It calls for very seasoned bureaucrats to draw a line between exercising rights that arise out of majority ownership and those that are regulatory in nature. Obviously it would be desirable if the government sticks to policy making and allows banks the freedom to take decisions in an increasingly competitive environment. Reserve Bank governor D. Subbarao and his predecessor, Y.V. Reddy, have come out on the side of the banks. Micro-management is bad for banks and, in the long run, hurts the interests of the major shareholder, the government too. Of course, minority shareholders suffer the most and in these days of shareholder activism the government should not risk antagonising them. As Dr. Reddy has argued, the government should demonstrate exemplary corporate governance by exercising its ownership

Towards inclusion
Home-based education may have a negative or perhaps even a regressive impact on teachers attitudes as the responsibility to address different learning needs is passed to special educators in-charge of home based education. This will mean moving away from the principles of nondiscrimination and inclusion. Many argue that the current regular schools do not offer any relevant service for children with high support needs. A few feel that children with multiple disabilities, low functioning intellectual disabilities, the deafblind, the autistic, and others such as those with a high level of osteoporosis will definitely need the home-based option. The counter argument is: how can systematic changes be planned if these children remain hidden at home unseen, unheard and unknown to anyone? How will children learn to live together, respect differences and diversity and realise each others strengths and weaknesses? How will we move towards building inclusive societies if our schools are not

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rights through its nominees on the boards of banks. The developments in the banking sector have a bearing on the governments dealings with top-notch public sector enterprises. In their case, autonomy has been sanctified by signing MOUs, the conferment of navratna/maharatna status and so on, which basically expand the administrative and financial powers delegated to them. So, not just banks but a much larger constituency would be interested to know how the new Finance Minister intends to find a way out of this entirely avoidable area of friction. The Hindu Tahrir was heating up again. Activists had already called for SCAFs exit. Anti-Tantawi graffiti in and around Tahrir Square would put more pressure on the government to punish the Maspero massacre perpetrators. There was a lot of back and forth between the Ikhwan (Brotherhood) and the SCAF. In the end SCAF walked away with a good deal, says a source in the Defence Ministry. The source viewed it as a safe exit for the military men. Look at Mubarak: hes serving time in prison, with a weak heart, because of the Arab Spring martyrs. Alternatively Morsi rode the Sinai wave. SCAFs mismanagement of the Sinai crisis, and indeed, the mismanagement by Mubarak and his cronies of the entire peninsula was an opportunity Morsi simply grabbed. The August 5 militant Islamist attack on Sinais border patrol left 16 soldiers dead, the new government red-faced and the generals mum. The public took to the streets again; the generals had been exposed as being more concerned with lining their pockets than ensuring the security of the state. Something had to be done and fast, says Mahmoud Alaa at the Muslim Brotherhoods Media Centre. The Sinai incident was Morsis and indeed post-Mubarak Egypts first major challenge. Morsi was quick to act. He sacked the intelligence chief, Mourad Mowafi, as well as the governor of Northern Sinai and the head of the military police. Since the attack by the militants, the Egyptian military has launched overnight strikes and ground assaults. Fighter planes have, for the first time since the 1973 war with Israel, entered the Sinai Peninsula. The Sinai was declared a demilitarised zone under the terms of the 1979 peace treaty between Israel and Egypt. Morsi moved in to regain control of Egypts anarchic periphery as Egyptian troops now raid villages in the area. For 18 months, as people power captured audiences around the world, the Sinai quietly descended into chaos. These months of negligence and years of disregard have resulted in a security vacuum in the poorest region of Egypt. Security lapses officials were informed about a potential attack but failed to act for they believed violence during Ramadan was unlikely is just one aspect of the bigger problem facing the peninsula. The vast stretch of desert inhabited by Bedouin tribes has for long been impoverished and marginalised. The people of Sinai are among the poorest in Egypt. The area has traditionally suffered from chronic under investment in health, transport, and education and for long has been viewed as being beyond Cairos writ. The outcome is the unchecked movement of arms from Libya and political chaos presided over Bedouin tribes who command control over the gun and the rise in jihadist activity. Camps in the region tell the sorry tale of torture, rape and a burgeoning industry of drugs and arms smuggling. Still, Morsi will have to keep delivering. Cairo suffers from daily power outages, the price of bread is on the rise and the government struggles to fund a shortfall that has cast

Made at Tahrir, sealed in Sinai


Its a soft coup, Ramy Yasser said over Skype. His voice was tinged with excitement, his Facebook status equally jubilant as he readied to march to Tahrir Square. Only in November of last year, I had seen Ramy standing on the front lines of Mahmoud Street off Tahrir Square, his eyes bloodshot and wet from the teargas canisters lobbed at his feet by the army. He had run from baton wielding police officers, had taken a hit on his head and seen friends fall to their feet as police fired rubber bullets at the protesters. He yelled then: Down with Tantawi, Down with SCAF. A couple of weeks earlier, on October 9, outside Maspero, the state TV building, Coptic Christians faced the wrath of the army. Only they werent as lucky as Ramy. As many as 27 protesters were crushed under the weight of the militarys tanks: soldiers loyal to SCAF the Supreme Council of the Armed Forces flattened their bodies. SCAF looked invincible until Sunday. So when newly elected President Mohamed Morsi, a soft-spoken Islamist from the Muslim Brotherhood fires two of the most powerful men from theancien rgime , the Egyptian Army, the question is, what gives? Morsi has booted out Field Marshal Tantawi, who was the acting head of state since the revolution and his second-in-commend General Sami Anan. They are now Morsis advisors. For long, a tussle between the Muslim Brotherhood and the army had been speculated upon. After all, the military had outlawed the party from political participation. Morsis promise of an end to the Superman era was viewed with scepticism simply because of the mantle he inherited. The armys influence was present in all institutions and the balance of power tilted in the generals favour. For example, upon assuming power, Morsi had to contend with the generals supplemental constitutional declaration that granted them legislative authority. He would be further curtailed by the imposition of the June 13 declaration of martial law that the generals had imposed in order to curtail the powers of the presidency. Days before Morsi assumed his position, Tantawi had re-established the National Defence Council, which placed the generals at the helm of Egyptian security policy.

Two possibilities
There are two possible explanations behind the unexpected dismissals.

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doubts over Egypts ability to meet the demand for imports of basic commodities such as fuel. Central bank reserves too suffer at $14.42 billion compared with $36 billion under Mubarak. Optimists look towards the Renaissance Project that Morsi has floated to deal with problems while sceptics count the number of political prisoners languishing behind bars for daring to have a voice that brought about the change that he embodies. The Hindu nice neat line in the sand between work and their non-work life. So much so that a recent survey states that compared to just five years ago, 72 percent employees are working longer hours, with 66 percent saying they work more than 40 hours a week. While 56 percent reveal that email has increased their workload, 72 percent admit that it infringes on their personal lives. A whopping 79 percent revealed that they regularly take job related calls, even when work hours are officially over. The prospect of full-time availability is leading to higher employer expectations as employees are expected to be at the beck and call of the management/customers round the clock. It increases accountability too, given that there is no excuse whatsoever not to check work-related mails or take business calls beyond work hours. People are working all the time; they can never really get away from it all in the true sense of the word. Research by Harvard professor, Leslie Perlow, author of Sleeping with your Smartphone reveals that even while on vacation only 2 percent of managers and professionals turn off their devices. The obsessive digital workloads, information overload and relentless technological interaction aggravated by the restless impulse to constantly check mails/calls/texts not just interferes with quality of life but also drains productivity, physical health and mental well-being. Employees rue the constant accessibility as always being on call leads to anxiety, burnout and ultimately depression. Another dark side emerges as the internet is a huge distraction with employees constantly browsing the web, checking personal emails, logging into social networking sites and playing online games while supposedly working. The growing addiction supersedes everything with negligible faceto-face human interactions; it wastes time and drains productivity as well. So, wheres the question of improving performance or efficiency?

Technology boon or bane


Volkswagen regularly organises digital blackouts by stopping the email server for some employees who use Blackberry 30 minutes after their shift ends and restores it 30 minutes before work the next day! Boston Consulting Group has tied up with a research centre, and high-powered consultants are required to switch off their gadgets after work once a week. Intel Technologies has initiated humorous enforcement of temporary moratoriums with Quiet Time and Zero E-mail Friday. Deloitte too imposes a No E-mail Friday rule for its staff. Tech fasts and tech cleansing is quickly taking root in several thoughtful and progressive organisations. In fact, a No E-mail Day was organised online urging people to log out of their e-mail accounts for a day. Doesnt this sound ironic and downright weird? After all, the very purpose of emerging technologies is to impart flexibility and mobility to the traditional offices. And internet, email, social networking sites, smartphones, tablets, cloud computing etc. have definitely revolutionised the workplace with telecommuting, virtual offices, outsourced call centres, cloud meetings and the like. Its the era of instant communication as, armed with Blackberry and Ipads, employees can literally work from anywhere anytime, reaching out to people/data around the world, that too in real time. Emerging technology, therefore, is the answer to all troubles as it saves time, lightens workloads, facilitates easy access, imparts freedom and increases efficiency, productivity and business performance. Employees can eliminate monetary waste and deliver top results every time!

Keeping things in perspective


The tools to bolster productivity are right here; but we are not truly becoming productive. Yet, there is no stopping technology and we cannot truly ban it from the workplace. Instead, why not use it smartly and maintain a sense of proper balance. A corporate shift is the need of the hour with organisations firmly committing guidelines about disengaging from technology and discouraging incessant internet checkins. Professor Dalton Conley, author of Elsewhere observes, Companies are increasingly realising that employees need to be disconnected from time to time and giving workers time to chill helps ultimate long-term productivity. Management should also temper expectations and not expect continuous access to the employees. Encourage them to switch off electronic devices to both lighten workloads and increase face-to-face communication.

The digital paradox


But the reality is far from expectations. The constant connectivity is breaking barriers and invading employees personal life as they carry work home with them, actually every where. There is no personal time or work-life balance anymore as everyone is plugged in 24/7 working longer and longer hours - on the commute, at home, on weekends, even during vacations or sickness. Nothing is sacred anymore. As Kate Southam, editor, www.careerone.com.au remarks, People are not saying Im leaving office, its the end of the business day. They are saying Ill pop in the earpiece and have a few phone calls on the way home, Ill respond to a couple of emails at home. People have no way of having a

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Employees themselves should establish boundaries and limit connectivity stop accessing mails during off-hours or turn the mobile off. Unplug - remain electronically unreachable for short periods - to gain control over the increasingly obsessive disruptions. The results will be there for all to see a more relaxed, empowered and satisfied workforce with work-life balance in tow. Professor Perlow also confirms that disconnecting from the workplace fosters a healthier, happier lifestyle. He reports from his Boston Consulting Group trial, People initially resisted turning off their gadgets, but eventually responded favourably and actually improved their work performances when allowed one night off from accountability. The Hindu e-Islami, which has a power base near the Myanmar border, could be involved, after reports that the Islamist party, which opposed the countrys independence from Pakistan, was encouraging the refugees. The activities of a few Rohingya organisations, including that of the Rohingya Solidarity Organisation (RSO), which allegedly have links with terror groups in Bangladesh and outside, have only underlined the concern. The allegations that the refugees are being supported and armed by JamaatE-Islami, the fundamentalist party that had violently opposed the countrys independence from Pakistan in 1971, have ensured there is little public support today for the Rohingyas. As if to prove Bangladeshs concerns, the Myanmar authorities have also dubbed the Rohingyas as Islamist insurgents. Whatever the factual position, such allegations have led to considerable antipathy towards the Rohingyas. Locals blame them for various anti-social activities. The refugees migration to the Chittagong Hill Tracts, which is yet to recover from its own burns from a protracted conflict, has also generated insecurities among the indigenous people of that region. While Bangladeshs earlier hospitality to the refugees is well known, this time the government ordered its border guards not to allow anyone. Foreign Minister Dipu Moni explained that the country had no obligation to shelter the Rohingyas because it is not a signatory to the 1951 Refugee Convention and the 1967 Protocol. However, the country is party to other international instruments through which humanitarian assistance to refugees may be offered. Following a recent government order to a few Western NGOs to stop operations in Coxs Bazaar where most refugee camps are located, the United States has urged Bangladesh to allow international humanitarian groups to continue their aid to refugees. The UNHCR and the European Commission have also requested the country to let humanitarian groups continue. The government, however, is firm about not allowing them to come into the country. Myanmars pro-democracy leader Aung San Suu Kyi called for laws to protect the rights of the ethnic minorities in her maiden speech to national parliament. But the democracy icon has disappointed the human rights groups, both in Bangladesh and outside by not offering stronger support to Rohingyas who are described by the United Nations as one of the worlds most persecuted minorities. Myanmar President Thein Sen has postponed his scheduled visit to Bangladesh in mid-July to discuss bilateral issues which included the Rohingyas. Bangladesh, as of today, considers the issue Myanmars domestic problem, and hopes it will be resolved soon. But the history of the crisis and its repeated spill-over across the border suggest that those hopes may be belied, unless Myanmar adopts a humane approach to end the crisis. The Hindu

Not welcome anymore


Bangladesh, which neighbours Myanmar, has watched with much interest the Thein Sein governments moves at making peace with ethnic groups in the countrys peripheries. But the ethnic issue that Bangladesh is most interested in Myanmar has yet to address. Rohingyas, whose population in Myanmar is estimated between 800,000 to 1 million, have faced discrimination in that country since 1982, when by law, they were denied Myanmarese citizenship. Bangladeshs concerns on this issue date back to 1977. That was the year that saw the first mass migration of Rohingyas to Bangladesh after the Myanmar authorities enforced a controversial national census. By the next year, over 200,000 Rohingyas had crossed the border into Bangladesh. During 1991 and 1992, more than 270,000 refugees crossed the border again. They all carried stories of horrific violence, forced labour, rape, executions and torture. After the latest episodes of violence in Rakhine, in which tens of thousands of Rohingyas are reported affected, Bangladesh made it clear that unlike in the past, there would be no welcome for refugees. Despite repeated international appeals to Bangladesh to open its borders to the fleeing people, the Sheikh Hasina government took the stand that her overpopulated country, with its scanty landmass and resources, could no longer bear the burden of additional displaced Rohingyas. Bangladesh is already sheltering 3 to 5 hundred thousand refugees who fled Myanmar in two phases, and despite its best efforts, has not been able to repatriate them, as Myanmar does not accept them as its citizens. There is a new concern too. Government leaders, including Prime Minister Sheikh Hasina, have voiced the anxiety that a section of the Rohingyas may have terror links. The Prime Minister has suggested that the international community investigate the cause of the recurring mass exodus from Rakhine. She aired a suspicion that the fundamentalist Jamaat-

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Outsourcing vote-catching
Their cause was always clear: fighting corruption. And now their target too is in focus: the United Progressive Alliance government at the Centre. As the 2014 general election draws near, the movement of civil society groups against corruption is turning into an electoral battle. When Team Anna announced its intention to enter practical politics and challenge all hitherto existing parties, the campaign for a Lokpal to eliminate corruption was effectively scaled up to a fight for political power. Not to be left behind, Baba Ramdev, whose original agenda was the repatriation of black money, began another agitation in New Delhi and declared an all-out war on the Congress. The Bharatiya Janata Party, far from leading the fight against the Congress, has lined up behind the yoga guru, seeking his approval in the guise of offering support. Indeed, among those hanging on to the Babas angavastramare some parties not exactly known for their commitment to probity in public life. Even the BJP, whose leader L.K. Advani was among the first to make the case for repatriation of black money at every available public forum, is tailing the Baba on this issue now. All of this despite growing evidence that popular support for Anna and Ramdev is nowhere near what it was earlier. Clearly, the BJP is low on confidence and is looking for every available crutch in the run-up to the general election. Unable to convert the public disaffection with the ruling establishment to its own advantage, and conscious of the limited purchase the Ram Mandir and Hindutva planks can offer, the BJP seems ready to court Ramdev for whatever he is worth. But this is a risky strategy. Although the sangh parivar did mobilise numbers for Ramdevs agitation, if and when the flag-waving movement snowballs into a major political protest, the BJP might not be the one in control. With Team Anna and Baba Ramdev going political, the Congress might feel vindicated in having stopped engaging the civil society groups in the drafting of an effective Lokpal Bill. But it would be suicidal to dismiss the growing public disenchantment with the corruption-laden governance system as politically-inspired from beginning to end. In the absence of a counter-strategy, and meaningful steps on the ground to reassure voters that corruption is being tackled effectively, the UPA could well turn into a lightning rod for public anger. But although corruption is a serious issue with great public resonance, there is no saying how it would play out in an election. With the BJP and its allies yielding the opposition space to sundry outfits, and many claimants for the leadership role in the campaign against corruption, all those votes cast in anger might not fall any one way. The Hindu

itself was doing so well? Perhaps, there was no real takeoff and hopes for sustained double digit growth rates were the result of unwarranted euphoria. There has been for quite some time now persistent high inflation, high interest rates, rising fiscal and current account deficits and declining growth rates.

Bleak Scenario
To add to the negativity of the domestic perspective, the international environment could not have been bleaker. The advanced economies of the U.S., Europe and Japan are still struggling with the consequences of the 2008 financial crisis. Europe is in a crisis regarding the future of the euro itself. A political consensus on a clear road map for the way forward is still a work in progress with deep differences in both diagnosis and policy prescriptions. If the pessimists are right then the best case scenario may be to assume that perhaps by 2015, Europe and the global economy would have recovered, India may by then have been able to undertake necessary but difficult reforms and then, perhaps, higher growth rates could be hoped for. But are some underlying trends being missed? When the 2008 global financial crisis hit India, the economy suddenly went into a free fall. The general consensus then was that India would be in for a prolonged period of difficulty, and recovery would occur along with that of the rest of the global economy. India surprised itself and the rest of the world by its extraordinary, swift and robust recovery and that too with a stimulus package that was crafted and implemented as the country went in for a general election. The actual fiscal stimulus was quite modest; less than one per cent of GDP and considerably less than that of most others. What made rapid recovery possible was that it was domestic demand driven. Domestic demand rose substantially on the back of some earlier political decisions (seen with unease and apprehension by most mainstream economic analysts); the positive wealth effect of the write off of farmers loans, the improvement in the terms of trade for farmers through higher support prices, and higher salaries for state employees on the implementation of the Pay Commissions recommendations. In contrast, in the U.S., the negative wealth effect due to a sharp fall in housing prices as well as stock market was so steep that consumer demand fell sharply. Recovery is still a work in progress. A combined and well coordinated fiscal and monetary stimulus was feasible as there was policy space. The Reserve Bank of India had been raising interest rates to prevent overheating of the economy and inflation, which had shown upward movement, had come down and so the RBI could lower interest rates significantly. Tax revenues had been growing rapidly with both manufacturing and services growth rates being in double digits in the preceding years and so there was fiscal space. The fiscal stimulus was not grandiose but aimed at creating demand immediately in the coming months across a wide spectrum, ranging from increased expenditure for Bharat Nirman projects to grants for purchase of buses for public transport in cities.

Rediscovering the growth magic


Over the last six months there has been an increasing sense of pessimism regarding Indias economic future. Is the growth story over? Was the eight-nine per cent growth a temporary aberration of a few years when the global economy

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The world suddenly took note of what appeared to be Indias unusual strength, the ability to achieve high growth rates on the basis of domestic demand. Historical experience suggests that inclusiveness has been conducive for growth if growth is not to be export led. This was the essence of the American experience for over 50 years in the 20th century till the 1970s, from the time Ford successfully made and sold its cars to ordinary people who also became industrial workers with growing real wages. Larry Summers, the eminent American economist, in an unusual speech in 2010 referred to the possibility of the World in 2030 acclaiming the success of the Mumbai consensus rather than the Shanghai or the Washington consensus; the strength of the Mumbai consensus being domestic demand driven inclusive growth in a robust democratic framework. This was in contrast to the state driven export led growth paradigm of East Asia, the allusion to the Shanghai consensus, which was no longer feasible due to the emerging difficulties in the West which had no option but to make serious structural adjustments. The Washington consensus of liberalisation, privatisation and deregulation with the faith in the market to deliver the best possible outcomes had crossed its useful shelf life with the global financial crisis in 2008. Business cycles and recessions have been normal to open free market economies since the advent of industrialisation. Since our transition has been somewhat recent, the reality of recessions has yet to sink into our understanding and discourse. If we look at IIP numbers, we were in negative growth territory for some months. The reasonable questions would then be: when to expect recovery, what would be its nature, feeble or robust, and how to try and strengthen it? With tight monetary policy in response to high inflation, excess demand should have been squeezed out of the system by now and this seems to be indicated by core inflation numbers. If this indeed is the case, then recovery should, indeed, be around the corner. Credibly signalling fiscal responsibility would hasten lowering of interest rates by the RBI. Becoming more investor friendly would naturally help in turning market sentiment around. The sharp depreciation of the Rupee is a real blessing at this juncture. It has, in the course of a few weeks, undone the appreciation of the real exchange rate that had taken place due to the difference between our higher inflation rates and those of our major trading partners. This should address the current account deficit as devaluation is a time tested remedy. What is more important, depreciation of this order should be of great advantage to domestic value addition in manufacturing both for the domestic market as well as for exports; with the open domestic market being more important in the current state of the global economy. Indias reluctance to see the advantages of a competitive exchange rate and to pursue it could be a reflection of the weakness of the political constituency for manufacturing in comparison to that for trade and consumption. Brazil, for instance, has been vocal about the appreciation of its currency due to capital flows. It even attempted measures to moderate this to preserve competitiveness in manufacturing.

Inclusiveness critical
The real discussion needs to focus on how to make the recovery robust enough. Given the international situation, it would depend entirely on the success in promoting domestic demand. Without raising the fiscal deficit, the state needs to find innovative ways to drive much larger investment flows into infrastructure to reduce the competitive disadvantage that exists. Mitigating policy and regulatory uncertainty and hence risk is what investors seek rather than big ticket reforms, which would benefit over the medium term rather than in the coming quarters. Going by recent experience, inclusiveness would be critical for higher growth. Inclusiveness is not something unproductive that can be afforded with growth but is essential for it. Bharat Nirman needs to be carried further in terms of 24x7 electricity, an essential requisite of the last century, and broad band, the essential requirement of this century. Bridging the divide between India and Bharat could make the difference between a modest recovery and a surge to plus-nine per cent. The Hindu

Judicial appointments & disappointments


The Constitution of India operates in happy harmony with the instrumentalities of the executive and the legislature. But to be truly great, the judiciary exercising democratic power must enjoy independence of a high order. But independence could become dangerous and undemocratic unless there is a constitutional discipline with rules of good conduct and accountability: without these, the robes may prove arrogant. It is in this context that Chief Justice S.H. Kapadias observations, at an event at the Supreme Court of India on Independence Day, underlining the need for the government to balance judicial accountability with judicial independence, have to be reconciled with what Law Minister Salman Khurshid observed about judicial propriety. It is this reconciliation of the trinity of instrumentality in their functionalism that does justice to the Constitution. A great and grand chapter on judicial sublime behaviour to forbid the robes becoming unruly or rude and to remain ever sober is obligatory. The Constitution has three instrumentalities executive, legislative and judicative. The implementation of the states laws and policies is the responsibility of the executive. The Cabinet headed by the Prime Minister at the Centre and the Cabinet led by the Chief Minister in the States, are its principal agencies. The rule of law governs the administration. Parliament consisting of two Houses and legislatures at the State level make law. When the executive and the legislature do anything that is arbitrary, or contrary to the constitutional provisions, the judiciary has the power to correct them by issuing directions under Article 143. The Constitution lays down the fundamental rights, and if the States do not

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safeguard them, any citizen can approach the Supreme Court for the issue of a writ to defend his or her fundamental rights. Thus, among the three instrumentalities, the judiciary has pre-eminence. But the judiciary itself has to act according to the Constitution and work within the framework of the Constitution. Felix Frankfurter pointed out thus: Judges as persons, or courts as institutions, are entitled to no greater immunity from criticism than other persons or institutions. Just because the holders of judicial office are identified with the interests of justice they may forget their common human frailties and fallibilities. There have sometimes been martinets upon the bench as there have also been pompous wielders of authority who have used the paraphernalia of power in support of what they called their dignity. Therefore judges must be kept mindful of their limitations and of their ultimate public responsibility by a vigorous stream of criticism expressed with candor however blunt. socialism and social justice remain a promise on paper. Then came a new creation called collegiums. The concept was brought in by a narrow majority of one in a 5-4 decision of the Supreme Court for the selection of judges. It was binding on the executive, the decisions of which in turn were bound to be implemented by the President. Thus, today we have a curious creation with no backing under the Constitution, except a ruling of the Supreme Court, and that too based on a very thin majority in a single ruling. Today, the collegium on its own makes the selection. There is no structure to hear the public in the process of selection. No principle is laid down, no investigation is made, and a sort of anarchy prevails. In a minimal sense, the selection of judges of the highest court is done in an unprincipled manner, without investigation or study of the class character by the members of the collegium. There has been criticism of the judges so selected, but the collegium is not answerable to anyone. In these circumstances, the Union Law Minister has stated that the government proposes to change the collegium system and substitute it with a commission. But, how should the commission be constituted? To whom will it be answerable? What are the guiding principles to be followed by the Commission? These issues remain to be publicly discussed. A constitutional amendment, with a special chapter of the judiciary, is needed. Such an amendment can come about only through parliamentary action. Surely a commission to select judges for the Supreme Court has to be of high standing. It must be of the highest order, of a status equal to that of the Prime Minister or a Supreme Court judge. The commissions chairman should be the Chief Justice of India. In the process of selection, an investigation into the character, class bias, communal leanings and any other imputations that members of the public may make, may have to be investigated. This has to be done not by the police, which function under the government, but by an independent secret investigation agency functioning under the commissions control. These and other views expressed by outstanding critics may have to be considered. The commission has to be totally independent and its ideology should be broadly in accord with the values of the Constitution. It should naturally uphold the sovereignty of the Constitution beyond pressures from political parties and powerful corporations, and be prepared to act without fear or favour, affection or ill-will. It should act independently such should be its composition and operation. The commission should be immune to legal proceedings, civil and criminal. It should be removed only by a high tribunal consisting of the Chief Justice of India and the Chief Justice of all the High Courts sitting together and deciding on any charges publicly made. We, the people of India, should have a free expression in the commissions process. The Hindu

Ultimate authority
Judges are the ultimate authority in the interpretation of the Constitution, and so must be learned in the law and in the cultural wealth of the world. They play a vital role in the working of the Constitution and the laws. But how judges are appointed is a matter of concern. Simply put, the President appoints them, but in this the President only carries out the Cabinets decisions. The Preamble to the Constitution lays down as the fundamentals of the paramount law that India shall be a socialist, secular democratic republic which shall enforce justice social, economic and political and ensure liberty of thought, expression, belief, faith and worship, equality of status and of opportunity, and promote among them fraternity, ensuring the individuals dignity and the nations unity and integrity.

Need for clarity


But who will select the judges, and ascertain their qualifications and class character? Unless there is a clear statement of the principles of selection, the required character and conduct of judges in a democracy may fail since they will often belong to a class of the proprietariat, and the proletariat will have no voice in the governance: the proprietariat will remain the ruling class. Winston Churchill made this position clear with respect to Britain thus: The courts hold justly a high, and I think, unequalled pre-eminence in the respect of the world in criminal cases, and in civil cases between man and man, no doubt, they deserve and command the respect and admiration of all classes of the community, but where class issues are involved, it is impossible to pretend that the courts command the same degree of general confidence. On the contrary, they do not, and a very large number of our population have been led to the opinion that they are, unconsciously, no doubt, biased. We in India have under the Constitution the same weaknesses pointed out by Churchill, with the result that

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Threes not enough


The agreement between India and the US to start a trilateral dialogue with Afghanistan marks a major shift in Washingtons attitude towards Delhis role in the unending conflict on the subcontinents northwestern frontiers. In the 1980s, following the Soviet Unions military intervention in Afghanistan, India and the US were on opposite sides of the divide. After US forces ousted the Taliban in 2001, Washington welcomed Indias substantive contribution to Afghanistans economic reconstruction. But the US actively discouraged India from raising its security profile in Afghanistan by citing the Pakistan armys sensitivities about Delhis military footprint across Pakistans western borders. Now, as the US prepares to end its combat role and finds it difficult to reconcile differences with Pakistan, Washington is urging Delhi to take greater responsibility for securing Afghanistan. America is not the only one disenchanted with Pakistans negative role. Concerned that the Taliban might return to power in Kabul with Rawalpindis support and destabilise the region, Beijing has recently inducted Afghanistan into the Shanghai Cooperation Organisation as an observer. China, Pakistans all-weather friend, has also announced plans to build a bilateral strategic partnership with Kabul. While Rawalpindis dreams of dominating Afghanistan after the US withdrawal are turning sour, India has no reason to delight in Pakistans growing isolation. Instead India must focus on making the most of the current unprecedented alignment of its own interests in Afghanistan with those of the international community. Delhi must begin to translate the provisions of its bilateral strategic partnership agreement with Kabul through expanded military training, supply of defence equipment and financial support to the armed forces. Indias new consultations with the US must be followed by similar talks on regional security with China, Russia and others. Above all, India must renew its offer to begin a dialogue with Pakistan on Afghanistan and propose a framework for trilateral economic cooperation. That Pakistan has been reluctant to engage India on Afghanistan in the past should not stop Delhi from a fresh diplomatic initiative. Geography, after all, makes Pakistan central to the future of Afghanistan. Courtesy-The Indian Express

Not just a neighbourly visit


The stand-off between the military regime and Aung San Suu Kyi has been the defining feature of the domestic political scene in Myanmar since 1988. Her unconditional release from detention (for 15 of the past 24 years) on November 13, 2010, was the first step in the Myanmar governments efforts to ensure her active participation in the countrys politics, which it has continued to facilitate in heretofore inconceivable ways. Her hectic schedule of political activities since then has led to her being elected a member of parliament. She has finally chosen to become a participant in

the pathbreaking processes of political transformation in the country, thus according them legitimacy, both in the international and the domestic contexts. A 13-point agreement has been reached between the government and the Karen National Union for a ceasefire, bringing to an end the longest running ethnic conflict within Myanmar. Countries which had shunned and excoriated Myanmar are now rushing to embrace it. This dramatically transformed domestic and external scenario explains the context of para three of the joint statement issued by India and Myanmar The visit of the Prime Minister, the first after 25 years, is a historic milestone in relations between India and Myanmar. Above all, this visit symbolises the resolution of Indias moral dilemma: reconciling proactive Indian engagement with an authoritarian military regime, dictated by overriding considerations of national interest preempting Myanmar from being fully absorbed into Chinas orbit, a concern likely to diminish even though China will remain a significant player in Myanmar with Indias strong attachment to democracy, socio-political pluralism and unity in diversity. The prime minister had a long meeting with Aung San Suu Kyi, whom he praised in generous terms. She has accepted an invitation to visit India to deliver the Jawaharlal Nehru Memorial Lecture. President Thein Sein has accepted an invitation to attend the ASEAN-India Commemorative Summit in December 2012; the two leaders would have then met three times in 14 months. In the joint statement, the two leaders have said, The range and frequency of engagement between the two countries has intensified significantly since Myanmars transition to a more democratic form of government in March 2011. This fact itself and the use of this phraseology in the joint statement are worthy of note. The MoU on India-Myanmar Border Area Development is particularly significant. India will execute a large range of specified, small developmental projects in the Naga SelfAdministered Zone (in Sagaing Division bordering Manipur and Nagaland) and the Chin State (bordering Mizoram) of Myanmar, creating new development corridors in erstwhile inaccessible and backward areas of the country. This initiative will greatly enhance cross-border economic, and people to people, interaction. This represents an important psychological breakthrough since Myanmar has rarely allowed foreigners access to this region. Clearly, the bilateral relationship has now acquired a sense of closeness, ease and mutual confidence. India has long believed that Myanmar is vital to the economic development and internal stability of four of Indias northeastern states, which share a 1,463-km border with that country. The states would benefit from strong cross-border economic links, access to India through transport corridors from Sittwe and cooperation in eliminating insurgency. Myanmar is the land bridge between India and ASEAN and thus vital to the success of the Look East policy. It could provide much-needed economic and transport connectivity

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between India and Southeast and East Asia. The trilateral highway linking India with Thailand and beyond through Myanmar will be completed by 2016. Substantive discussions revolved mainly around these themes. Many elements of the joint statement represent a virtual roadmap to fulfil these specific objectives while others provide a blueprint for Indias greatly enhanced involvement in Myanmars economy, with a specific role for the private sector in many fields. Indias involvement in energy, infrastructure and power sectors is slated to grow. Agriculture, capacity building and education have been given special focus. New Indian presence in the vital banking sector should help overcome the many hindrances to direct trade. Several new trading facilities will be set up along the border. Many of the 12 agreements deal with Indian assistance in diverse fields. The number of training slots for Myanmar in the Indian Technical and Economic Cooperation has been doubled, making it the leading recipient of such assistance. In funding much of this, India has exhibited uncommon financial generosity. Such a broad spectrum of engagement has never been seen in the past. The foundations have been laid for a quantum jump in bilateral relations. Indias policies since 1992 stand validated as a bright new dawn grows visible over the horizon. Courtesy-The Indian Express other socialist artefacts, urged by insecurities and electoral fears rather than ideology. The government has shown some signs of waking up with Prime Minister Manmohan Singh putting the spotlight back on infrastructure. But the UPA should not need S&P to tell it to get a move on. It is aware of urgent priorities controlling inflation, decontrolling fuel prices, FDI in retail, allowing foreign airlines to invest in domestic carriers, longpending reforms in the financial sector, tangible movement on subsidies. Singh has to pursue these with the daring and determination he showed in pushing the Indo-US nuclear deal. The Centre cannot keep blaming the governments in Bengal and Greece. Mondays S&P report was wishy-washy, merely wondering if India would be the first BRIC to fall with a thud. The next one could announce that fall from grace. Courtesy-The Indian Express

The resistible rise of Modi


BJPs troubles are set to multiply: it will either continue to suffer from a leadership problem or lose more allies In the post-Bofors context, the BJP had made a name for itself against a corrupt Congress: it was clean, it was a party with a difference. After six years at the Centre and at the helm of many state governments, this myth has imploded. Today, even as the Sangh Parivar supports the Anna Hazare movement, its own political wing is struggling with scores of serious cases of misdemeanour, including that of businessman Anshuman Mishra and former Karnataka chief minister B.S. Yeddyurappa, not to say anything of the induction of former BSP leader Babu Singh Kushwaha whom the BJP has previously denounced as tainted. But this is nothing compared to the development of a much more serious disease, by RSS standards the rise of indiscipline. In February, after leaving the BJP branch of Himachal Pradesh, rebels led by four-time MP Maheshwar Singh announced the formation of a new political outfit named Himachal Pradesh Lokhit Party (HPLP). Last month, in Rajasthan, Gulab Chand Kataria announced a yatra to protest Congress governance in the state. The state party leader, Vasundhara Raje, however, thought that only she could convene a yatra. Having had her authority challenged, Raje complained to BJP President Nitin Gadkari, threatened to resign, and had 52 of 78 MLAs back her. And now, BJP CMs are congratulating Pranab Mukherjee for the strong chance that he may be president, even though P.A. Sangma may be their official candidate. There is nothing new in factional fights at the state level Virendra Kumar Sakhlecha, Kailash Joshi and Sunder Lal Patwa were similarly at loggerheads in Madhya Pradesh, as were Kalraj Mishra, Lalji Tandon and Kalyan Singh in UP. But this time, factionalism reflects a crisis of leadership at the top level state leaders behave in such a manner because they do not respect their leaders, including the party president,

Standard: Poor
Standard & Poors report speculating on a second downgrade of Indias credit rating to junk level contains neither new information nor insight, and S&P admits that nothing has changed since April when it downgraded India to BBB-. This document, released when India is grappling with multiple uncertainties, reads like a self-fulfilling prophecy. It spooked the markets and may hamper inflows in the short term though the fundamentals remain unchanged, the slowdown owes to political rather than economic factors and the report itself admits that India is well prepared to weather storms. Finance Minister Pranab Mukherjee has dismissed the report, but its implicit message needs to be taken seriously. Industrialists have chorused their fears about faltering reforms and the latest Index of Industrial Production data, which shows a standstill with a growth rate of 0.1 per cent, has triggered a clamour for immediate intervention by the central bank. S&P raises questions without definitive answers and loses its way in a wilderness of pros and cons. But it does indicate that in the worst-case scenario unlikely but not impossible Indias creditworthiness could plummet. A section of the report, titled Divided leadership at the Centre may be the biggest hurdle, reads like it was ghostwritten by Sushma Swaraj and L.K. Advani. S&P ascribes the slowdown to the division of roles between Sonia Gandhi and Manmohan Singh. It states that Singh does not appear to have the political backing that he had enjoyed as P.V. Narasimha Raos finance minister and that the Congress is deeply divided on reforms, with leaders seeking to protect discretionary powers and

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Nitin Gadkari. In fact, one has to go back to the struggle between Balraj Madhok and the Vajpayee-Advani duo in the late 1960s-early 1970s to find a similar crisis of authority and similar disputes at the highest level of the decision-making process. For four decades, from the early 1970s until the 2009 election, the Jan Sangh and then the BJP benefited from the exceptional domination of two leaders Atal Bihari Vajpayee and Lal Krishna Advani who not only alternated in power at the helm of both parties in a perfectly harmonious way, but who could also project two complementary faces, one moderate and one radical, usually with the full support of the RSS. The defeat of Advanis BJP in 2009 marked the end of this cycle. Not only because Vajpayee was now out of the picture, but also because the RSS asked Advani to step down in a rather unceremonious way and he resisted. Anxious to restore the partys fundamentals, the Nagpur-based RSS leaders imposed Gadkari, who has no other source of legitimacy. After setbacks such as the UP elections, Gadkari was bound to be attacked by rivals. Advani, who skipped the party rally that followed the national executive meeting this month, wrote a bitter post on his blog and attacked Gadkari for undermining the partys campaign against corruption. Narendra Modi, who is a strong contender for the post of prime minister in 2014, also turned on Gadkari. He demanded that Sanjay Joshi be eased out from the partys national executive, and threatened to skip the executive council if this was not done. Few BJP presidents had been blackmailed that way before and Modi won. Indeed, now the BJP has become a party with a difference, and a big one it has no leader worth the name. Such a situation cannot last for long when the general elections are round the corner. Modi may well try to fill that vacuum, seemingly the most popular among the Indian urban middle class, which is not that concerned with democracy but wants growth. Large sections of the corporate sector are prepared to fund him. He may not be the preferred choice of senior RSS workers who believe in organisation above ego, but their clout was limited even in 2007, when he won in Gujarat for the second time. In the 21st century, elections are not won by swayamsevaks in khaki shorts canvassing door to door, they are fought the populist way by leaders benefiting from the needed media exposure and money. To counter Modi, a coalition may take shape across the board, gathering together his opponents in the BJP and in the rest of the Sangh Parivar. This irregular coalition may support Gadkari, Advani or someone else of their choice as primeministerial candidate in 2014, knowing that none of them could give a decisive fight. To see whether his rise is resistible, we may have to wait for the Gujarat elections. Are Indian voters disillusioned by the Congress and others of the political class, and affected by the economic slump willing to turn to an authoritarian and inegalitarian administration? Either way, the BJPs troubles are set to multiply. It will either continue to suffer from a leadership problem or lose more allies. The NDA has shrunk from 17 parties to seven since the late 1990s. And the selection of Modi as a candidate for prime ministership would alienate more allies, including the JD(U) which is already supporting Mukherjee for the post of president. The disintegration of the NDA, if it continues, will accelerate the formation of a third front under the aegis of regional parties like the JD(U), Nitish Kumar being a credible candidate for PM himself. This is the scenario that may unfold even if Modi is not the BJPs chosen leader, given the steady rise of state parties at the expense of the national parties over the last 20 years. Courtesy-The Indian Express

Modi vs Nitish
The Nitish Kumar versus Narendra Modi spectacle has been waxing and waning for some time now. In its latest version it was sparked off by an interview given by the Bihar chief minister in which he reiterated his aversion to the Gujarat chief minister without taking his name, and made it clear that his party would not brook Modis prime ministerial candidature in 2014. The public sparring between the two NDA partners may have subsided again, but it leaves a new suggestion in its wake: in the revived secularism debate, the two ends may no longer be held up by the BJP and the Congress-Left combine. It looks like the primary and spunky challenge to the BJP on secularism now comes from a regional party, which, ironically, also happens to be a BJP ally. It is still a long way to go to 2014, and Modi is caught up in Gujarat at least till the assembly election at the end of this year. There are other obstacles to him being declared the BJP-NDAs PM candidate, not least of which is the robust opposition to him within the Sangh Parivar. Yet, it must be marked that on the ideological-political front, the first red flag against Modi for PM has been planted by Nitish, not by the Congress or the Left. Nitish may have his reasons for making this manoeuvre at this moment. Yet, those reasons may be incidental to the larger pattern that appears to be firming up in Indias politics which is reconfirmed by the JD(U)s apparent overtaking of the Congress in the secularism argument. On most of the consequential issues today, regional parties have inserted themselves into the discussion, displacing the BJP in one and the Congress in another. If the JD(U) has all but nudged out the Congress to become the anti-Modi in the secularism debate, another regional party, the Trinamool Congress, was till recently playing the role of the main opposition to the Congress on a host of other issues from the Lokpal to federalism. On these, it is the BJP that found itself relegated even though it is the leading party of the opposition in Parliament. The growing assertion of the regional parties presents a challenge to the Congress and the BJP and an opportunity. How they deal with their apparent relegation will determine the course politics will take in the run-up to 2014 and beyond. Courtesy-The Indian Express

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Not just rollbacks


On a day when the stock markets soared by over 400 points and the PMO quickly stepped in to block a mischievous draft circular on the General Anti-Avoidance Rules issued by the finance ministry, Prime Minister Manmohan Singh confronted both the extent of the faith the economy is putting in the new role he has assumed and the road blocks a recalcitrant bureaucracy can put in his way. There was no reason for the finance ministry to issue the draft guidelines just a day after Singh had clearly expressed his unhappiness at the impact of the tax measures on the economy. While Singh reacted with alacrity in this instance, he must now read the riot act to other ministries. Some of the problems that the telecom and coal ministries are wrestling with have been created by a bureaucracy over which the ministers have lost all semblance of control. Beyond undoing the tax measures, Singh now faces the difficult task of addressing these distortions and then taking appropriate steps to guide the economy back to a faster growth path. These options were always before him. But now, arguably, he has a stronger opportunity to bring in substantial changes. The agenda includes moving ahead with the setting up of transparent allocation mechanisms for resources like natural gas, telecom spectrum, coal and even water and land. He must also address the deepening emergency in the education sector that is contributing to the debilitating skills shortage a subject this government has waxed about only to get sidetracked into petty skirmishes in the higher education sector. What is needed at this stage is for Singh to announce his priorities for the remaining term of this government in detail. The prime minister provides an overarching vision but the finance minister moves the money and so has the responsibility to break down priorities into achievable objectives. Since Singh has chosen to take on the latter role too, he has to show his hand soon. That will include his estimate of growth rates, inflation, current account movements and subsidy reduction targets. The economy will demand these if catchwords like restoring confidence and reviving animal spirits have to play out. This will be necessary even if there is to be a new finance minister at some stage. The stamp of the prime minister has to be made visible in a clear agenda for the economy. Anything short of that will again push the economy back into the stagflation zone, from which a rescue will be very difficult. Courtesy-The Indian Express

create an easy investment avenue for the middle class. As the world economy lurches through a prolonged recession, with daily liquidity at the cash market in Indias National Stock Exchange plummeting to just about Rs 12,000 crore, it will be interesting to observe how the new exchange is able to ramp up liquidity. For the Indian economy, this will be the measure of the success of this bold new venture. The Indian financial sector has lagged behind the rest of the economy as a means to raise funds to maintain a trend GDP growth rate of 8 per cent per annum. Since interest rates too are higher in India than in comparable economies, the combination of shallow liquidity and high rates has encouraged a raft of companies to move their financial requirements overseas. In the calendar year 2010, before the economy tumbled, the total primary issue was only Rs 48,654 crore. Compared with an aggregate bank credit of Rs 35,82,048 crore, this looks paltry and shows the extent to which the Indian economy depends on the latter. This asymmetry needs to be addressed. To the extent that the new exchange is able to make retail investors come in to trade and small enterprises to list, the depth of the markets will improve. But before that, the promoters of the new exchange will need to show that they will follow the spirit and letter of the Sebi licence to instil best practices. As the rule stands, promoter groups have to keep their holdings in the exchange within 5 per cent of the total equity. This is the understanding with which MCX-SX has been given the licence, after a long court battle, which must be respected. Courtesy-The Indian Express

Manesar red alert


The khap panchayat is no longer the only institution Haryana needs to be urgently concerned about. The state, which projects itself as an attractive investment destination, is fast acquiring a reputation for violent labour unrest. There have been at least five outbreaks in recent years, the most significant being the strike at Hero Honda in 2005. Last week, there was a savage attack on managers at Marutis Manesar plant, with one senior manager brutally beaten up and left to die in a flaming office. Now, with Marutis scrip sliding in response to the incident, foreign investors may be wary about sinking their money into a state offering insufficient protection. But violent labour unrest is not just Haryanas problem. It must be addressed nationally. India has developed a strong trade union movement but it has insufficient legal safeguards against unreasonable and militant trade union activity, which is harming the formal sector and discouraging investment. Within two decades of Independence, agitations had severely damaged Maharashtras textiles industry, and wiped out heavy industries and jute mills in West Bengal. This is because labour laws had excessively valorised labours right to employment over the entrepreneurs right to security, both personal and fiscal. Today, almost 200 Central and state laws impinge on labour relations and markets including the archaic Industrial

Exchange benefits
The approval for MCX-SX to set up Indias third major stock exchange comes in a year when interest in the financial markets among retail investors has reached its nadir. So, as a move to perk up interest among investors, this is a step in the right direction. The primary justification for a stock market to exist is to provide liquidity to companies listed there and

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Disputes Act of 1947. Dispute resolution is painfully slow, with tens of thousands of cases pending for years. Besides, as economists have pointed out, laws governing labour markets were written simplistically. Rigid strictures on hiring and firing protected jobs without regard for the implications for productivity, or the strategies that entrepreneurs would use to get around them. Because of this lack of perspective, the formal sector has grown to only a fraction of its potential while the unorganised sector has burgeoned, though it offers no protection to labour or employers. Incidents like the one at Manesar are local red alerts. But the government should recognise that they indicate a structural sickness which must be solved nationally. Courtesy-The Indian Express vagaries of the weather. Assumptions about the weakening purchasing powers of farmers, the resultant impact on companies that depend significantly on sales in rural India, the effect on government finances, banks non-performing assets and on the growth rate of the economy, are predicated on this error. In the six years when India declared drought in parts of the country since 1970, just after the Green Revolution, the impact has depended on how these policy errors have played out. Monsoon 2012 will also impact Indias economy to the extent these errors are magnified or minimised. The Indian economy today has a foodgrain stock that can, with the expected addition from the winter rabi crop, shore up the countrys basic food security for about two years. This means that any rise in prices of these grains principally wheat, rice and sugar is more the result of inadequate or distorted distribution mechanisms than of a shortage. The missing links could be pulses and coarse grains. The top exporters of pulses to India Canada and Myanmar are not hit by a drought this year. So, imports should not be a problem. Of the coarse grains, more than 50 per cent are used as feedstock for poultry and cattle; a shortage in production, therefore, will not hit food security. There has been, however, a rise in prices of food products, especially in urban markets. Of these, vegetable production does not depend on rainfall. The issue seems to be, once again, of food supply management, which ruling parties in several states refuse to reform, despite the evidence of a breakdown at the first sign of pressure. Since the futures market is banned in the rest, any way of knowing if a potential shortage is developing has been precluded, except through government statistics. A rise in food prices increases the farmers income, which is a good thing. A bad monsoon provides an opportunity to transfer resources to farmers from the rest of the economy. Landless labourers could see a decline in income but since the government has a committed NREGA programme, it is time to measure its efficacy now. A weak monsoon is a problem only when the government response is weak. Courtesy-The Indian Express

The e-way
By Tuesday evening, nearly two crore Indians will have filed their income tax data online. Ever since the inauguration of the online railway ticket reservation in the 1980s, few events will have as dramatically illustrated the changing nature of the government-citizen relationship. The changeover from paper filing to e-filing has been so sweeping that the income tax department has found it possible to close its annual melas at the end of July, like the one at Pragati Maidan in New Delhi, a showpiece event and a demonstration of rising tax compliance by middle-class Indians. E-filing has been made compulsory for only those with an annual income of over Rs 10 lakh. But as the 1.64 crore filers from last year showed, this is a good habit others too are willing to adopt. E-filing of one of the most significant pieces of paperwork for the expanding middle classes also demonstrates how corruption can be cut down. As successive reports by think tanks have shown, elimination of personal contact between government employees and citizens is possibly the best way to do this. This becomes possible as the process grows transparent, which means in the next stage citizens can even get accurate statistics about the government revenue collection machinery. Beyond corruption, the e-filing procedure has solved the storage problem for the mountain of files that physical returns generated and freed up time for the income tax department employees to scrutinise many more returns. In fact, the tax departments impact on a largely urban population replicates earlier developments in rural areas. Bhoomi in Karnataka, online birth and death registration in most of southern India and even the emerging banking correspondent models have already shown the way forward. Courtesy-The Indian Express

National Skill Development Corporation


What is the National Skill Development Corporation (NSDC)?
NSDC is a first-of-its-kind Public Private Partnership (PPP) in India set up to facilitate the development and upgrading of the skills of the growing Indian workforce through skill training programmes. The NSDC was set up as part of National Skill Development Mission to fulfil the growing need in India for skilled manpower across sectors and narrow the existing gap between demand and supply of skills. A large part of the organisations efforts are directed at the private sector and towards developing the skills in the unorganized sector in India. NSDC supports skills development efforts, especially in the unorganized sector in India by funding skill training and

Blaming it on rain
A shortfall in the monsoon rains directly translates into some shortage of agricultural produce in the kharif season, but most spectres that build on this obvious point are based on assumptions that confuse incorrect policies with the

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development programmes. It also engages in advocacy and training programmes, in-depth research to discover skill gaps in the India workforce, and developing accreditation norms. The objective of NSDC is to contribute significantly (about 30 percent to the overall target of skilling 500 million people in India by 2022), mainly by fostering private sector initiatives in skill development programmes and providing viability gap funding.

What is the role of NSDC?


Funding and incentivizing Enabling support services Shaping/creating

NSDC Role
The NSDC will facilitate of catalyse facilitate or catalyse initiatives that can potentially have a multiplier effects as opposed to being an actual operator in this space. In doing, it will strive to involve the industry in all aspects of skills development. The approach will be to develop partnerships with multiple stakeholders and build on current efforts, rather than undertaking too many initiatives directly or duplicating efforts currently underway. The scale up efforts necessary to achieve the objective of skilling / upskilling 150 mm people, the NSDC will strive to: Develop ultra low cost, high-quality innovative business models Attract significant private investment Ensure that its funds are largely re-circulating; i.e. loan or equity rather than grant Create leverage for itself Build a strong corpus Keeping this in mind, the NSDC will play three incentivising: Funding and incentivising: In the near term this is a key role. This involves providing financing either as loans or equity, providing grants and supporting financial incentives to select private sector initiatives to improve financial viability through tax breaks etc. The exact nature of funding (equity, loan, grant) will depend on the viability or attractiveness of the segment and, to some extent, the type of player (for-profit private, non-profit industry association or non-profit NGO). Over time, the NSDC aspires to create strong viable business models and reduce its grant-making role. Enabling support services: A skills development institute requires a number of inputs or support services such as curriculum, facility and their training, standards and quality assurance, technology platforms, student placement mechanisms and so on. The NSDC will play a significant enabling role in some of these support services, most importantly and in the near term, setting up standers and accreditation systems in partnership with industry associations. Shaping/creating: In the near term, the NSDC will proactively seed and provide momentum for large scale participation by private players in skill development. NDSC will identify critical skill groups, develop models for skill development and attract potential private players and provide support to these efforts.

Why is there a need for an Organisation like NDDC?


A growing economy like India requires large and skilled workforce. However, the lack of quality trainers and training institutes has created roadblocks to growth. Skills shortage is evident in every sector of the economy. NSDC seeks to fill the gap between the growing demand for, and the scarce supply of, skilled personnel across sectors, by funding skills training programmes. The primary goal is to foster private sector and industry participation in skill training and development.

How does NSDC function?


NSDC is a non-for-profit company set up by the Ministry of Finance, under Section 25 of the Companies Act. It has an equity base of Rs. 10 crore, of which the private sector holds 51 percent, while the Government of India controls 49 percent. This makes NSDC a one-of-its-kind public private partnership in education in India. The corporation has a tiered structure a 12-member Board and the National Skill Development Funds (NSDF), a 100 percent government-owned trust which work in sync to fulfill the NSDCs strategic objectives.

Who mangers NSDC?


NSDC is a Public Private Partnership (PPP), and is managed by a team of experienced professionals. It has a team of professional and an end-to-end decision-making process in places. A tiered decision-making structure a Board, Board Sub-Committees and the Executive Council helps the organisation formulate strategies and run it effectively.

Which sectors does NSDC provide services for?


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. The NSDC provides service for 21 sectors including Automobile/auto-components Electronics hardware Textiles and garments Building and construction Food processing IT of software Media, entertainment, broadcasting, content creation, animation Healthcare Banking / insurance and finance Education/skill development Unorganized sector

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs What are the Focus Areas of NSDC?
Skill development: The challenge of skilling/ upskilling 500 million by 2022 will require both fundamental education reform across primary, secondary and higher education and significant enhancement of supplementary skill development. In the near term, the NSDC will focus primarily on supplementary skill development and strive to create seamless tracks within the education system. Foster Private Sector Initiatives: In strengthening supplementary skill development, NSDC will focus on foresting private sector led efforts that will include both non-profit and for-profit initiatives with the goal of building models that are scalable. The NSDC will adopt a differentiated approach to supporting private sector initiatives depending on the target segment. Based on the marketability of the skill group and income level of the student population, there are three segments across which the NSDC will focus: Attractive segment: Given that the market automatically works, the NDSC will only play a reactive role and support the scale-up by various players. Viable segment: But with marginal economics or involving high risk/uncertainty: This will be a key focus area of NSDC particularly in the near term, with the aim being to make this segment much more attractive for private investment. Completely unviable segment: Over time, NSDC will aspire to work in this segment in collaboration with government departments and help develop innovative business models which can move players from this segment to the viable segment. Courtesy-Yojana mitigation. Although China in its action, was not very strong initially, India from the beginning along with other BASIS countries and G-77 put forward the issues of Equity, Intellectual Property Right (IPR) and Barriers to Trade, asking some more in planets carbon space so that it can take a new deal at least after 2015, as per its cabinet decision.

Major Decision / Out Come in Durban Climate Change Conference


New Deal in a post Kyoto Protocol to be finalized by 2015 and launched by 2020 Second Commitment Period in Kyoto Protocol to be operational in 2013 and continue Green Climate Fund (GCF) Launched to boost technology transfer and promote Clean Tech Equity finds a place back in future Climate talks More importance to Adaptation mechanism Goe-political Impacts to the Negotiations India regains Leadership of the Developing World Developed Nations Leadership remains in EUs hand Small Island States weakens their ties with G-77, becoming EU front BASIS Counties look more united, although China was in weak bond at the beginning Indias Gains Equity along with Common But Differentiated Responsibility (CBDR) Principle retained Secure 10 years of Economic Growth without Carbon containment Indias Losses IPR and technology not as well anchored in new deal Emissions from Agriculture Sector finds more importance in Negotiation texts Agenda ahead for India Ensure that review of existing commitments of develop world is mandated Smooth Introduction of Kyoto Protocols Second Commitment Period Fight to place Equity, IPR and Trade issues in right prospective before all Negotiations for 5 years the hard talks that would set out terms of new global regime Let us now see how important is Durban conference from Indias perspective? Although India was pleading constantly on Common but Differential Responsibility (CBDR), equity and IPR and unilateral technical barrier to trade issues, along with historical burden sharing to have an equitable right on per capita basis; India managed to retain equity with CBDR into negotiations text and got the extension of Kyoto Protocol to its second commitment period 2013-17 and a new treaty could be finalized by 2015 which would be

Durban Conference: The Road Ahead and Lessons for India


Srikanta K Panigrahi In Recent past, the seventeenth conference of parties (COP 17) of United Nations Framework Convention on Climate Change (UNFCCC) is concluded at Durban International Convention Centre where 195 nations of the globe participated. The people from throughout the world were anxiously waiting for the positive and stronger outcomes breaking many roadblocks created since the last two COPs at Copenhagen and Cancun. In Durban right from the beginning there were a lot of obstruction in the negotiations and irrespective of intense consolation and dialogue, a common consensus was not reaching out for which the host country South Africa extended the time period of the conference for further thirty six hours. European Union (EU) along with Association of small Island Countries and United States (US) were insisting that Kyoto Protocol should come to an end and India and China must take a legally binding deal with some financial commitments towards global climate change

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operational from 2020. These will certainly provide India and other developing countries some more breathing space to facilitate their citizens to grow and to have access to some of the basis necessities where the developed nations will also get some little time to meet their Kyoto commitments, which unfortunately none of them have achieved even 15 percent so far. The technical details of gains and losses will emerge in coming days and deeper assessments are made, but India certainly took the centre-stage and regained its position as the leader and moral voice of the developing world. The principle of equity found its place back and life was infused in Kyoto Protocol which will now continue to be in force beyond 2012. During Durban Climate Change Negotiations, India enjoyed a strong support and backing of African nations particularly on Equity and Common but differentiated responsibility issues. India very strongly put its stand to go with Bali Actions Plan which should be implemented in next two years and Cancun Agreement should be operationalized along with funds and technology as promised, but said no to a legally binding treaty now. India is one of the least CO2e emitter and many of its people dont have an access to common basic necessities like food, clothing, shelter and electricity. In 2010, the per capita CO2e emissions were estimated at 16.9 tonnes for the US and 9.2 tonnes for the EU as compared to 1.5 tonnes for India and 6.8 tonnes for China. When small island countries broke away from G-77 and joined EU and the US in demanding a new deal, India was backed by BASIC countries and developing economies like Egypt, Indonesia and Pakistan. It seems the negotiators from the industrialist countries were able to remove tactfully the text of historical burden sharing from Cancun Agreement and a lot of damage was caused to negotiations, particularly in last two COPs. Another positive outcome of Durban conference is regarding the modalities of a Green Climate Fund (GCF). Although GCF remains and empty shell with no new funding commitment, it was decided that the fund will start operating from 2013 and G20 would look into the details of modalities during its sessions in 2012. Nations have backed an intention to raise $100 billion fund in climate cash by 2020 which would be run by a 24 member board, split evenly between developing and developed counties. The World Bank would remain as an interim trustee subject to a review after 3 years and would be accountable to the board. The fund will provide money and other assistance like technology transfer relating to clean energy technologies and help poorer nations shift towards low emissions power generation and adapt to the impacts of the climate change. Poorer nations can access funds via multi lateral lending agencies or specialist UN bodies or directly after an accreditation process. Countries can nominate domestic agencies to access funds after vetting. The United States desired greater emphasis on the role of private sector and also favoured a model based on multilateral banks playing a leading role with World Bank. It is at the same time, a matter of concern that emission level of all the individual countries as well as that of planet is constantly increasing. The 512 metric ton increase amounted to a near 6 percent rise between 2009 and 1010, going from 8.6 to 9.1 billion metric tonnes. These increased emissions released into the atmosphere is the result of burning coal and gas, largely contributed by China, the US and India, the worlds top three Green House Gas (GHS) emitters. GHS Emissions from the US has increased to 5.25 in 2010 from 2010 from 5.04 billion tonnes in 2009 and similarly EU-27 had a rise from 3.94 in 2009 to 4.25 billion tonnes in 2010. In terms of absolute annual emissions, India emitted 1.84 billion tonnes of CO2e in 2010, just 35 percent of the emission of the US, even though the population of the US is one third of India. Moreover, India has already announced a cut of 20-25 percent in its Carbon Intensity by 2020. Another important discussion of the Conference is imposition of Carbon Tax on aviation and maritime transport. The International Civil Aviation Organisation (ICAO) and International Maritime Organisation (IMO) have proposed Carbon Tax on the line European Union enforced the scheme for flights landing or passing through European skies, starting next year 2013 (was proposed to start from January 2012 at Durban Climate Change Negotiations but could not be approved) under Emission Trading Scheme (ETS) and to extend the same to the shipping sector in 2015. This TU move was opposed and resisted by India, China, the US and Russia as they have agreed collectively to a bouquet of countermeasures, if EU does not withdraw its scheme of charging additional levy, which in fact does not have the Concurrence of the apex decision making body Conference of Parties to UNFCCC yet. Indian Environment Minister Ms Jayanthi Natarajan took this issue with partners in BASIC group in a recent meeting at New Delhi. It is quite alarming to notice that there is a geometric rise of global green house gas emission, from 8.6 to 9.1 billion metric tons (more than 6 percent) during 2009 to 2010 in just one year time period. It is high time the whole world come & forward for rapid actions to combat climate change collectively to protect our planet. Although developing nations are doing a lot voluntarily as India is going though its Eight national missions mode approach, at this hour, we need to shape its outcome and be more visible and look aggressive to the world. Courtesy-Yojana

India-Nepal Eco-Political Relations: Retrospect and Prospects


Dr. Pramod Kumar

Introduction
Relationship between Indi and Nepal, when defined as a relationship between the two neighbour countries, does not, and cannot, reflect the true nature of relationship between them as it extends to cultural and ethnic ties between them as its extends to cultural and ethnic ties between the people of

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the two countries. Hence, Nepal, for India, is not just a neighbour, but something beyond that and one may name it as neighbour plus country. Nepal is a land-locked country of the size of 1,47,181 sq. km. with a population of 39 million. It shares the border of over 1,850 km to the south with five Indians states Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand and in the north, with Tibet autonomous region of the Peoples Republic of China. The geographical position of Nepal bring brings it different kinds of sufferings as the transit problem, which makes it extremely different for it to conduct international trade. At the same time, it is the geographical location of this small but beautiful Himalayan country which makes it extremely important, as far as the security of two major countries of Asia, India and China is concerned. It looks as though it is sandwiched between India and China but its strategic importance is such at that it offers itself as a battleground to any of these two powers, that powers will win. Hence, there has been a long and old story that these two regional powers (India and China) have been pulling Nepal to its side s and Nepal, in return, has been playing cat and mouse game with these two countries in order to achieve all benefits from them. Ethnically, India is closer to Nepal because when Nepal became a nation under the warrior king and statesman, Prithvi Narayan Shah, some 240 years ago, he wanted to establish an Asli Hindustan because the British were already in India and he wanted Nepal to be the real Hindustan, meaning, a Hindu state. At the time of analyzing relationship between India and Nepal, two major issues attract everyones mind are economic and political. And these issues are so mixed up that, what becomes important when, is difficult to say. It has been experienced that most often when Nepal wants some economic favors from India it plays the political card and on the other hand, when India wants some political favor from Nepal then it starts playing the economic card. Under the above background, this paper is aimed at analyzing the politicoeconomic situation of Nepal in different time periods under different political setups, reflecting the impact of politicoeconomic policies on the relationship of these two reighbour plus countries. Hence this paper is divided into four parts. The first part deals with the introduction of the subject, second part discusses the politico-economic situation and relationship between the two countries up to 1990 (retrospect) and the third part is the devoted to the analysis of the above relationship after the true revival of democratic government in Nepal in post 1990 years (prospects) and the fourth part concludes. fought the war in which Nepal was defeated. This led to the Sugauli Treaty which was signed in 1816, limiting Nepal to its present size. A major policy was farmed during 1846 when Jung Bahadur Rana captured power after Kot Massacre. He became the Prime Minister and decided that Nepal would remain isolated from the outside world and ignore China since it was a declining power. He strengthened the link with the British and consequently, Nepali troops fought in Lucknow for the British to equal the Sepoy Munity in 1857. Rana also allowed British to recruit Nepalis for their colonial wars. In 1923, the British accepted Nepal as an independent nation and in the process; Nepali market was opened to British manufactured products. Though trade relations between India and Nepal can be traced from the ancient times, even Kautilya (400 BC) mentions Nepal as principal exporter of woolen goods. Trade activities increased between these two neighbourig countries during the golden age of Guptas (beginning from 320 AD). The East India Company proposed a 7-clause treaty during the Nepal Tibet war of 1971 under which imports and exports of goods between Nepal and British India would be subject to 2.25% customs duty. The land-lockedness of Nepal compelled it to have trade relations only with India and Tibet. For India to trade with Tibet, the only route was through Nepal, which helped Nepal to develop its trade. Though the structure of trade between India and Nepal was dominated by agriculture and forest products, before the 19th century, Nepal mostly imported items like scrap metals, precious stones, spices, tobacco etc. from India. On the other hand, Nepal exported most of her primary products like timber, rice, ghee etc. to India. A very remarkable fact here was that there was a complete absence of any trade related pact of agreement between these two countries which continued up to 1923. The landmark situation arrived, with regard to the trade relations between these two countries, when they signed the first trade in 1923. Article 6 of this treaty provided that; No customs duty shall be levied at BritishIndian ports, as goods imported on behalf of the Nepal government for immediate transport to the country. This trade treaty led to the development of free trade between these two countries through the port of British India, for Nepal could not import goods from other overseas countries. Nepal was compelled to purchase goods manufactured in Britain. The composition of Nepals trade with Indian almost remained the same during the whole of 19th century and first half of the 20th century. There was no distinct change in Nepals exports to India as it mainly exported food grains, raw jute, wool, cotton, hides and skins, musk, medical herbs, cardamom, metal goods, ghee, tobacco etc. This was the time when internal economic conditions of both the countries were almost similar and there was complete absence of modern industrialization in these two countries. Therefore, India too exported almost similar goods like wheat, rice, gram, pulses, iron, brass, copper, cotton goods, salt and animals belonging to the agricultural sector to Nepal. India has been a major trade partner of Nepal for a long time. The necessity of trade between these two countries is also facilitated by the similar

Relationship between the Two Countries till 1990


India and Nepal maintained a very cordial relationship from a long, long time out but the real sourness started in it after death of Shah which saw palace intrigues and conspiracies. The British in India took advantage of this situation and obtained the permission in 1801 to establish a British residency in Kathmandu. At the same time, the Nepali state entered an expansionary phase and pushed its borders to Kangra in the west and the Teesta River in the east. This led to conflict with the British Empire. The British Empire in Nepal

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taste and fashion arising out of the similar culture and nationality of the people of these countries and is also substantiated by the free movement of the people as there is open border between these countries. Though Nepal is a small country of only 29 million people, its working population is 61.1 per cent. Of its total population, 80.2 per cent are Hindus and 10.7 per cent, Buddhists. As in India too, Hindus population is 80.5 per cent, Nepali people find it very homely to travel to India, search jobs and get established here. This is the reason why there are around 4.1 million Nepali people residing in India, search jobs and get establish here. This is the reason why there are around 4.1 million Nepali people residing in India. Commonality of language also encourages the migration and movement of Nepali people to India because half of the people of Nepal (Terai region) speak Hindi or its sister-language like Maithilli, Bhojpuri and Tharu. A dramatic change came in the attitude an perception of the Nepali people after establishment of democratic government in India in 1947, which generated aspirations among the Nepali people to have a democratic government in their country too. Incidentally, this was the time when Rana regime in Nepal sought the support of India in lieu of extending a sympathetic attitude towards New Delhis security concerns at a time when the victory of the Communist revolution in China and the Chinese Military assertion in Tibet and made India vulnerable to China. Consequently, both these countries signed tow treaties, namely, The Treaty of Peace and Friendship and The Treaty of Trade and Commerce on July 31, 1950. Under these treaties, these countries agreed to have everlasting peace and friendship between them and also not to tolerate any threat to security of the either by a foreign aggressor. The striking feature of this treaty was that Nepal would consult India before importing any war equipment from any country other than India. Political relations have been going up and down during this period but it was at its lowest when King Mahendra equated his regimes security with Nepals national security and began to exploit and engineer nationalistic emotions, protests and demonstrations against India. Thus, a divergence in India-Nepal security perception developed which only increased with Nepal developing ties with China and Pakistan. Then onward, King Mahendra and his successor started playing the China card to obtain concessions from India. As the political relationship did not remain cordial, it affected the trade between the two countries which reached its nadir towards the end of 80s, when in clear defiance of the 1950 Treaty and past assurances and commitments; Kathmandu took a number of steps which were resented by the people and government of India. In 1987, in introduced the workpermit system for Indians working in Nepal, even though the Nepalese nationals have been treated in this country at par with the Indian citizen in matters of securing jobs and purchasing property as per the 1950 Treaty. The relation turned worse when the Nepalese government instructed some of the foreign countries and agencies not to employ Indians. It went a step further when Nepal imported military hardware from China. It compelled Prime Minister Rijiv Gandhi to adopt a firm stand while negotiating the terms of fresh treaties on trade and transit in the wake of the expiry of the Indo-Nepal Transit Treaty of 1978, which lapsed on March 23, 1989. Undoubtedly, the dispute surfaced on the issue of Nepals insistence on separate trade and transit treaties and against Indias preference for a composite trade and transit treaty for checking smuggling of third countrys luxury goods into India and the unauthorized passage of Indian primary products like jute via Nepal to other countries as Nepali goods. Understandably, India expected reciprocity from Nepal for its accommodating stance on trade and economic issues. But Nepals failure to oblige India on this matter led the Rajiv Gandhis Government to blockade the supply of essential goods like salt, sugar, coal, kerosene, etc., causing enormous sufferings to the Nepali people. Ups and down in the political relationship had the direct impact on the size and structure of foreign trade between India and Nepal which is reflected in the fact that during the year 1956-67 to 1970-71, the size of Nepals export was 98.7 per cent of its total export, saw a declining trend and it came down to 75.4 per cent and 40 per cent during the years 1975-76 and 1985-86 respectively. It was at the lowest during the year 1990-91, when it reached 21 per cent, and 9.6 per cent in 1992-93. Similar was the case with regard to import from India as it was 69.9 per cent in 1975-76, 42.5 per cent in 1985-86 and it went on declining. This was the result of trade diversion policy of Nepal which decided not to over-depend on India and search for overseas countries. Fortunately, this situation did not continue for long as there was a change of guard in both the countries. In India, Janta Dal Government came to power and it lifted the blockade. In Nepal too, there was a political transition in April 1990 when the multi-party democracy replaced the authoritarian Panchayati regime in that country.

Prospect of India-Nepal Trade Relation


The prospect of India-Nepal trade and political relations and in general, a relationship of friendship based on trustworthiness look bright. Still, there are certain issues which have been causing trouble in these two countries relationship. To mention a few, they are Peace and Friendship Treaty, 1990, The Arms Assistance Agreement, The Mahakali Treaty and other water issues, the Chinese influence and security concerns, democratic movement in Nepal and Maoists problem. As mentioned earlier, the researcher considers it suitable to analyze these problems in short, as they carry enough potential to disturb the relationship between the two countries at any point of time. Though it is a gone issue, but the Segowlee Treaty (Sagauli Treaty) of March 1816 still haunts the minds of the Nepali people because Nepal lost almost one-third of its territory on the east, south and west. Nepal lost and upto Teesta in the east, Kangra in the west and nearly the confluence of Ganga and Jamuna in the south. At times, the demand for greater Nepal surfaces in Nepal to regain this territory. But, some of the portions were returned to Nepal on later dates as a reward to it for helping British India to

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suppress the Indian rebellion of 1857. Almost similar in the case with the 1950 Treaty of Peace and Friendship which provides for free movement of people and goods between these two countries and putting Nepal under Indias close observation on Defence and Foreign affairs. This also against Nepal and at times it threatened of defy this treaty. Another in the line is the Arms Assistance Agreement of 1965 which aims at assisting in reorganization and modernization of the royal Nepal army so that the security of Nepal can be strengthened by providing military hardware and training assistance. This agreement made India the main supplier of arms and ammunition to Nepal. Since 1965, India had been providing 70 per cent subsidy to defend against the Maoist Peoples war which started on February 13, 1996. Quite obviously, Maoist did not like it and even after the peace accord in 2006, they launched a strike against the alleged arms import from India on the eve of elections to the Constituent Assembly, March 25, 2008. The YCL (Young Communist League) blocked three district Rupandehi, Nawalparasi and Kapilbastu. Mahali Treaty was signed between India and Nepal on February 12, 1996. Nepal was to receive 1000 cusecs of water from Sarada barrage in the west season and 150 cusecs during the dry season. As per the treaty, India shall maintain and preserve the rive ecosystem. There are certain other important provisions in this treaty such as sharing and sale of energy etc. But, this treaty has been opposed by power, politics and property. The integrated Mahakali Treaty was designed to cover up the fatal Tanakpur Treaty. The Kathmandu Post stated that he Nepali Congress of G.P. Koirala has signed the Tanakpur Treaty at the cost of the countrys sovereignty. Finally, it is heartening to note that both the countries have been able to conclude the Mahakali agreement in 1996 to build a 6,480 MW Panchueswar Project, though they are yet to successfully negotiate projects like Karnali and Rapti. As the Nepalis see this agreement as a yardstick for all future projects at least in terms of benefit sharing, success or failure of this treaty is therefore going to be a test case which would largely determine a major dimension of future direction of India-Nepalese relations. Water issues between India and Nepal, in general, have been affected to a great extend by al lack of appreciation of the other sides perspective. Even the Kosi agreement has not gone off very smoothly between the two countries. India and Nepal signed the Kosi Agreement long back in 1954 to regulate the flow of the river and insure flood management. Accordingly, a barrage was build in Birpur of India-Nepal border and embankments were raised on either side of the river. Power generation and irrigation were the other two important objectives of this agreement. But this agreement has experienced many disputes arising out of the floods in the Kosi region. In April 2008, there was devastating flood in the Kosi basin which displaced 30 lakh people in India and around 50,000 people in Nepal. Both the countries blame each other for failing to prevent such a massive disaster. Nepal puts the blame of India by saying that India has neglected maintaining the upkeep of the embankments of the barrage.

China Factor
It has been observed that China factor has emerged between the relationship between India and all its neighbouring countries, particularly with Nepal, which most often causes dampening of the relationship between India and Nepal. Very recently, on 27th February 2009, China submitted a draft for the Peace and Friendship Treaty to Nepal stating that this draft will have the provision for China not to attack Nepal and to respect its sovereignty and territorial integrity. At the same time, India wanted Nepal to sign an extradition treaty, but the letter has not done so. It has also been observed that in the last two decades, Nepals trade with China, in both size and composition, has increased substantially at the cost of India. This will be explained separately at a later stage in this paper. The emergence of Maoists as a strong force has also been s affecting India-Nepal relations, particularly in the fields of trade and commerce. This is reflected in the 40-points demand put forward by the Maoists United Peoples Front (UPF), which include nationality, democracy and peoples livelihood. Among the nine demands concerning nationality, four of them relate to abrogation of Indo-Nepal Treaty 1950 and Mahakali Treaty 1996, regulation and control of the porous border between Nepal and India and the ban upon the culture polluting media such a vulgar Hindi movies, videos and magazines. Two other demands that are of prime concern, as far as the economic relation between these two countries is concerned, are implementation of Work permit an abolition of foreign capital (FDI from India). In spite of all these obstacles, there have been some positive initiatives from both the sides with regard to the cooperation in the field of trade and commerce. In this part of the study, the author would be trying to see the recent size and composition of trade between the two countries, followed by recent initiatives of this front by these two governments. As mentioned earlier and also evidenced by statistical data, the trade relation between India and Nepal, though always good, saw some declining trend during late seventies and eighties and grew rapidly after the establishment of demographic government in Nepal. India was at the third position till 1995, rose to the first position in the year 2003 and continued the same till 2011. A remarkable fact which is also evidence from the above table is that gradually, the prime position held by US has been declining over the years and the emergence of China. It position was important only during 2003, which declined to a lower position during 2011. After the establishment of SAARC and SAPTA, trade among the SAARC countries are conducted under its provisions with accordance to principles, at least. But the fact is that trade among these countries is conducted on the basis of bilateral relation. The closeness of political and trade relationship between India and Nepal is well reflected by the following table which reflects well the prime position of India as far as trade of Nepal with other SAARC countries is concerned. India is the biggest destination of Nepals exports which stands

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at NRs. 21220700 thousand during the years 1999-2000, having the percent of 99.18 in comparison to 90.08 percent during the years 1995-96, followed by Bangladesh with the size of exports of NRs. 385535 thousand during the years 1995-96 and NRs. 127554 thousand during the years 1999-200 forming the percentage of 9.43 and 0.60 respectively. Similar is the case with Nepals imports with the SAARC countries. As far as Nepals import from SAARC countries is concerned, a very similar trend is found just like its exports. Here also we find that India is the biggest source of its imports. Nepal imported goods amounting to NRs. 24398600 thousand during the years 1995-96 forming the percentage of 96.55, which rose to NRs. 39660100 thousand during the years 19992000 having the percentage of 97.80. This relationship in the field of trade is the outcome of bilateral trade treaties between these two countries. This trend continues even now. A number of concerted efforts were undertaken time to time since 1990 and improvement in trade relation continues. Bilateral trade and trade related activities between India and Nepal are generally governed by the treaties of trade, transit and other agreement for cooperation to control unauthorized trade. After the installation of democratic government in Nepal, India and Nepal signed the Treaty of 1991 which had the provisions of extending substantial concessions to Nepal. This treaty was valid for five years and was revised and renewed in December 1996 for another five years. It was again renewed with some modification in February 1002. In the year 1991, the two countries signed an agreement of cooperation to control unauthorized trade. Under this agreement, both the countries have the right to pursue independent foreign trade policies. One of the important provisions of this agreement is that both the countries will cooperate effectively with each other to prevent infringement and circumvention of the laws, rule and regulations of either country with regard to matter relating to customs, narcotics, psychotropic substances, foreign exchange and foreign trade. It also prohibits both the countries from re-exporting goods to the other country. Indo-Nepal Trade Treaty 1996, which was signed on December 3, 1996 in Kathmandu, is a landmark as far as trade relation between India and Nepal is concerned. It provided Nepal a new direction and scope for its trade. Apart from this, there are several other treaties related to trade and commerce, few of which are listed below. Treaty of Transit, 1999-This provides Nepal with a desire to maintain, develop and strengthen the existing friendly relations and cooperation between the two countries, recognizing the need to facilitate the traffic-in-transit through their territories. Indo-Nepal Treaty of Trade, 2002-This is a revised version of the Treaty of Trade 1006 with some modifications and exclusion of some of the provisions in the article. Most important among the provisions is preferential access to the Indian market free of customs duties and quantitative restriction for all articles manufactured in Nepal with a rider that it must be of Nepali origin made out of Nepali material or Indian material or of both with certain other provisions also. Agreement of Cooperation to Control Unauthorized Trade-This was signed in March 1002, where both the countries agreed to extend the validity of all the eight articles of the agreement of cooperation between the two countries to control unauthorized trade in their present form for a period of five years. Revised Treaty of Trade between the Government of India and the Government of Nepal, October 2009This treaty resolved to conclude a treaty of trade in order to expand trade between their respective territories and encourage collaboration in economic development. This treaty consists of twelve articles with the provisions like exploration of measures for technical cooperation and to promote, facilitate, expand and diversify trade between these two countries. This also talks about granting maximum facilities to each other for free and unhampered flow of goods. There is the provision of exemption from basis customs duty and quantitative restrictions on agreed import of primary products, etc. As per this treaty, there is a list of Nepalese manufactured articles allowed entry into India free of customs duty on a fixed quota basis (Annexure C). The list consists of vegetable fats (Vanaspati) = 100,000 MT per year; Acrylic yarn 10,000 MT per year; Copper products under Chapter 74.00 & Heading 85.44 of the H.S. Code - 10,000 MT and Zinc Oxide 2,500 MT. Only MFN rates of duty will apply on the quantities in access of the fixed quota mentioned above. These agreements and treaties have been the continuous effort of both the countries and subsequently, the visit of the dignitaries time to time from both the countries have been helping to reinforce the relationship. Most recently, the first president of Nepal Dr. ram Baran Yadav paid an official visit to India from 27th January to 5th February 2011. Other recent visit from Nepal to India have been by Prime Minister Dr. baburam Bhattarai from October 20-23, 2011, Prime Minsiter Madhav Kumar Nepal from 18-22 August 2009 and Prime Minister Pushpa Kumar Dhamal Prachanda from 14-18 September 2008. From Indian side, External Affairs Minister, Shri S.M. Krishna visited Nepal from 15-17 January 2010 and again from 20-22 April 2011. Finance Minister, Shri Pranab Mukherjee visited Nepal on 27th November 2011. Apart from the visit of the dignitaries of both the countries, India has been continuously contributing to the development efforts of Nepal by undertaking various development projects in the areas of infrastructure, health, rural and community development, education etc. India has been generous in granting aid and assistance to Nepal substantially. During the years 2007-08, 2008-09 and 2009-10, India granted aid to Nepal to the tune of US$25 million, $22 million and 161 cores (Indian rupees) respectively. In addition to that, India has extended considerable economic assistance

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to the ongoing peace process in Nepal. India has extended an amount of Rs. 3600 crores approximately for the small development projects scheme offered by the Embassy of India which delivers development assistance at grass-root level in sectors identified with the local population. These types of projects are now 370 in number with an outlay of 402 crores approximately. India assists Nepal in the front of human resource development also by offering 1500 scholarships annually to Nepali students to pursue various courses in India and Nepal. India is the largest source of foreign investment and tourist arrival in Nepal. The two countries have recently concluded a Rail Services Agreement and revised Air Services Agreement to enhance bilateral connectivity. A Motor Vehicles Agreement is on the offing. India being the largest source of foreign investment in Nepal, which invested Rs. 1586 crores for 461 FDI projects accounting to 44 percent of the total foreign investment in Nepal. The relationship between these two countries is so deeprooted and accordingly widespread that it will take volumes to explain. Just to mention, India played a leading role in helping the Nepal army in its modernization through provision of equipment and training. relations are so deep-rooted on all the economic, political, ethnic and cultural front that Nepal cannot be considered just a neighbour of India but as rightly suggested by the author in the beginning, a neighbour plus country. A close look of Nepal compels one to think that India and Nepal are just the two sides of a coin. In spite of having such a close relationship, there have been issues with the potential of disturbing the relationship such as illegal trade, transit, water issues etc. The type of political establishment in Nepal has been the matter of concern for India since long, particularly when India sees that Nepal is going closer to China. Nepal had been playing China card with India very often, sometimes to obtain some special concessions from India, and sometimes just to satisfy its other neighbour, China, King Mahendra and his successor king Birendra also played China card and situation reached to alarming level and India Prime Minister Rajeev Gandhi had no other option that to go for economic blockade of Nepal. Nepal feels cheated at the hands of British India under the Sugaui Agreement because it feels that it lost at least one third of its territory. This issue hounds Nepal now and then and Maoist forces have been trying to exploit this for their political gains. From Indian point of view, India wants to have a close and cordial relationship with Nepal wants to have a close and cordial relationship with Nepal for its security reasons and also to exploit Nepals water resources which it has in plenty and mostly unused. Courtesy-World Focus

Conclusions
After a close analysis of the India-Nepal relations, particularly on the economic front, the author is in a position to conclude his discussion in the following ways: India-Nepal

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If we go by the dictionary the development has following meanings: The systematic use of scientific and technical knowledge to meet specific objectives or requirements. An extension of the theoretical or practical aspects of a concept, design, discovery, or invention. The process of economic and social transformation that is based on complex cultural and environmental factors and their interactions. The process of adding improvements to a parcel of land, such as grading, subdivisions, drainage, access, roads, utilities. Today the main challenge in front of international community is to sustain and accelerate the process of poverty eradication and ensure food

and energy security, particularly to developing countries while shifting gradually to a Green Economy. A green economy approach to development holds the potential to achieve greater convergence between economic and environmental objectives. Agriculture plays a critical role in determining food, water, ecological and livelihood security. Integrating the strategies and policies for a green economy into agriculture has to proceed with an absolute imperative of ensuring these and not forgetting the differentiated needs of subsistence agriculture and marketoriented crops. Also, transitioning to a greener model of agriculture will depend on the expeditious provision of green technologies and financial support to developing countries for productivity enhancement, improved resilience and diversification of production systems. Sustainable development and

management of agriculture would benefit from sharing of best practices including farm and non-farm development, improved post-harvest management, integration of supply chains and strengthening of public distribution systems. Eradicating poverty is an indispensible requirement for sustainable development. A major cause aggravating poverty is the unsustainable pattern of consumption and production. Poverty eradication remains an overriding objective of governments in developing countries, and efforts to build green economies should contribute substantially to realizing that objective. Integrating green economy strategies and policies into poverty eradication, food security and energy security is an imperative for sustainable development. Food security and access to affordable clean energy are both crucial to http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs eradicating poverty and promoting social development. The issue of energy security and universal energy access is intricately linked with economic development and growth, and rising energy needs to meet it. Energy poverty coexists with inefficient energy use in much of the world, which given continued heavy dependence on fossil fuels has been a major contributor to greenhouse gas emissions. Understanding the flexibility or lack of flexibility of each country to change this energy mix and devising innovative methods to secure energy security are the need of the hour without compromising on the need for high economic growth to meet the aspirations of the people, especially in developing countries. Energy security is a multifaceted concept. In the current context, the primary focus is on poor peoples securing adequate energy supplies to raise their living standards, including through improved income generation, health and education. Renewable energy should be considered as an integral part of the solution to the energy needs of the poor, but that will only be feasible if it is affordable and technologically accessible. As affordability is a function in part of large-scale deployment and learning, the strategy to address energy poverty needs to be linked to a broader alternative energy strategy as part of a green economy. With respect to energy security, rural energy access remains seriously deficient in many developing countries, with well over a billion people lacking access to electricity and clean cooking and heating fuels. At the same time, even in urban areas, electricity is often underprovided and unreliable, especially for urban poor communities. This exacerbates http://upscportal.com poverty and closes off escape routes by limiting income generation opportunities as well as educational opportunities especially for girls. What is Green Economy? A green economy is typically understood as an economic system that is compatible with the natural environment, is environmentally friendly, is ecological, and for many groups, is also socially just. These attributes are the conditions that must be imposed on an economy from the perspective of many green economy advocates. This conventional concept of a green economy may be alternatively described as the greening of an economy. Some fundamental criteria for meeting these conditions have been established since Rio, such as using renewable resources within their regenerative capacity, making up for the loss of non-renewable resources by creating their renewable substitutes, limiting pollution within the sink functions of nature, and maintaining ecosystem stability and resilience. A Green Economy is a system of economic activities related to the production, distribution and consumption of goods and services that results in improved human wellbeing over the long term, whilst not exposing future generations to significant environmental risks and ecological scarcities. Conditions for social justice may include: 1) not compromising future generations capability to meet their needs; 2) the rights of poor countries and poor people to development and the obligations of rich countries and rich people to changing their excessive consumption levels; 3) equal treatment of women in access to resources and opportunities; and 4) ensuring decent labor conditions. A green economy is one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. A green economy is a economy or economic development model based on sustainable development and a knowledge of ecological economics. Its most distinguishing feature from prior economic regimes is direct valuation of natural capital and ecological services as having economics value and a full cost accounting regime in which costs externalized onto society via ecosystems are reliably traced back to, and accounted for as liabilities of, the entity that does the harm or neglects an asset. Green Economy defined by Karl Burkart is based on six main sectors,which are as follows: Renewable energy (solar, wind, geothermal, marine including wave, biogas, and fuel cell) Green buildings (green retrofits for energy and water efficiency, residential and commercial assessment; green products and materials, and LEED construction) Clean transportation (alternative fuels, public transit, hybrid and electric vehicles, carsharing and carpooling programs) Water management (Water reclamation, greywater and rainwater systems, low-water landscaping, water purification, stormwater management) Waste management (recycling, municipal solid waste salvage, brownfield land remediation, Superfund cleanup, sustainable packaging) Land management (organic agriculture, habitat conservation and restoration; urban forestry and parks, reforestation and afforestation and soil stabilization) 123

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs UNEP Green Economy Initiative (GEI) The Green Economy Initiative launched by the United Nations Environment Programme in October 2008 is aimed at seizing the opportunities this modern concept of a green economy has to offer. It seeks to accomplish two tasks. First, it tries to make a beyond-anecdotal macroeconomic case for investing in sectors that produce environmentally friendly or environmentally enhancing products and services (green investment). By a macroeconomic case, it mainly refers to the contribution of green investment to output and job growth. Second, the initiative tries to provide guidance on how to boost pro-poor green investment. The goal is to encourage and enable policymakers to support increased green investment from both the public and private sectors. The UNEP GEI activities include providing advisory services to countries interested in greening their economies; producing research products, such as The Green Economy Report, The Economics of Ecosystems and Biodiversity (TEEB) series of reports, and the Green Jobs Report; and engaging partners to effectively promote and implement green economy strategies. Concept of Inclusive Growth Rapid and sustained poverty reduction requires inclusive growth that allows people to contribute to and benefit from economic growth. Inclusive Growth refers both to the pace and pattern of growth, which are considered interlinked, and therefore in need to be addressed together. Inclusive growth by its very definition implies an equitable allocation of resources with benefits accruing to every section of society, which is a utopian concept. But the allocation of resources must be focused on the indented short and long terms benefits and economic linkages at large and not just equitable mathematically on some regional and population criteria. Utopia it is because it dreams of an ideal state which we all strive towards. The inclusive growth approach takes a longer term perspective as the focus is on productive employment rather than on direct income redistribution, as a means of increasing incomes for excluded groups. The inclusive growth definition is in line with the absolute definition of pro-poor growth, but not the relative definition. By focusing on inequality, the relative definition could lead to sub-optimal outcomes for both poor and non-poor households. Inclusive growth focuses on ex-ante analysis of sources of, and constraints to sustained, high growth, and not only on one group the poor. Salient components of Inclusive Growth (IG)should be as follows: IG focuses on economic growth which is a necessary and crucial condition for poverty reduction. IG adopts a long term perspective and is concerned with sustained growth. (i) For growth to be sustained in the long run, it should be broad-based across sectors. (ii) It should also be inclusive of the large part of the countrys labor force, where inclusiveness refers to equality of opportunity in terms of access to markets, resources and unbiased regulatory environment for businesses and individuals. IG focuses on both the pace and pattern of growth. IG focuses on productive employment rather than income redistribution. IG has not only the firm, but also the individual as the subject of analysis. IG is in line with the absolute definition of pro-poor growth, not the relative one. There are important lessons to learn from this approach including that development policy is countryspecific, may involve just a few reforms that can be optimally sequenced to relax binding constraints, and it may lead to large positive welfare impacts. The main instrument for a sustainable and inclusive growth is assumed to be productive employment. The ability of individuals to be productively employed depends on the opportunities to make full use of available resources as the economy evolves over time. The analysis distinguishes between self- or wageemployed, and further looks at employment by sector, size of firm, rural/urban, formal/informal, and other. The inclusive growth approach takes a longer term perspective. With this longer term perspective, it is important to recognize the time lag between reforms and outcomes. Inclusive growth is about raising the pace of growth and enlarging the size of the economy, while leveling the playing field for investment and increasing productive employment opportunities. Policies for inclusive growth are an important component of any government strategy for sustainable growth and the frameworks for inclusive growth analytics are eclectic in spirit. Delhi Ministerial Dialogue, 2011 The Ministerial Dialogue on Green Economy and Inclusive Growth has taken place in New Delhi http://upscportal.com

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs on 3-4 October. The event, organized by UN DESA and the Indian Government, is focusing on sustainable development initiatives in the lead up to next years UN Conference on Sustainable Development in Rio de Janeiro. The issues addressed at the two-day 2011 Delhi Ministerial Dialogue on Green Economy and Inclusive Growth include sustainable management of sectors like agriculture, industry, energy and transport, urgent adoption of sustainable life styles and consumption patterns through reduction in per capita ecological footprint, appropriate population policies, equity concerns, poverty eradication and developmental imperatives. Designed properly, green economy policies and programmes can directly contribute to poverty eradication. The Delhi Dialogue is a step forward in preparations for the UNCSD, also known as Rio+20, scheduled to take place in June 2012 in Rio de Janeiro, Brazil. It aims to provide a platform for international deliberations on the integration of green economy architecture and global challenges of poverty eradication, food security, and energy security. Eradicating poverty is an indispensible requirement for sustainable development. A major cause aggravating poverty is the unsustainable pattern of consumption and production. The Delhi Dialogue will be an opportunity for high level government officials and UN agencies to explore in depth the linkages of a green economy for poverty eradication and broadbased, inclusive growth. Integrating green economy strategies and policies into poverty eradication, food security and energy security is an imperative for sustainable development. Objectives of the Ministerial Discussion were:i) To obtain a comprehensive update on the recent green economy developments within major international policy forums and through the UNEPled green economy initiative; ii) To discuss how the concept of the green economy can be further implemented at the country level; iii) To build on existing policies and processes that are supporting the shift to sustainable consumption and production and a green economy; Conclusively we can say, designed properly, green economy policies and programmes with inclusive growth mechanism can directly contribute to poverty eradication. Successful examples can offer lessons and possible models for replication. For instance, Indias rural employment guarantee programme is at one and the same time an anti-poverty programme and an ecosystem restoration programme. Understanding the flexibility or lack of flexibility of each country to change this energy mix and devising innovative methods to secure energy security are the need of the hour without compromising on the need for high economic growth to meet the aspirations of the people, especially in developing countries.

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The Union cabinet on 24 November 2011 approved 51 per cent foreign direct investment (FDI) in multi-brand retail. The Cabinet also decided to raise the cap on foreign investment in single-brand retailing to 100 per cent from 51 per cent. An estimated Rs 30-lakh-crore retail sector was thus opened to foreign investors by clearing a bill that allows 51 per cent investment in multi-brand retail. The decision being perceived as game-changer for the estimated USD 590 billion (Rs 29.50 lakh crore) retail market was taken at the meeting of the Cabinet presided over by Prime Minister Manmohan Singh. India currently allows 51 percent foreign investment in singlebrand retailers and 100 percent for wholesale operations but no FDI in multi-brand retail. The major provisions for FDI investment include that the minimum investment will have to be $100 million. Retail stores will only be

allowed in cities with more than one million people. Also it will be mandatory for retailers to source a minimum 30 per cent of the value of manufactured goods, barring food products, from small and medium enterprises. Investment up to 50 per cent will have to be in storage and back-end infrastructure. India being a signatory to World Trade Organisations General Agreement on Trade in Services, which include wholesale and retailing services, had to open up the retail trade sector to foreign investment. There were initial reservations towards opening up of retail sector arising from fear of job losses, procurement from international market, competition and loss of entrepreneurial opportunities. FDI in cash and carry or wholesale trade, was allowed way back in 1997 during the United Front Government. Foreign investment of up to 51 per cent in single brand retailing came to India in January 2006.

The Union government further asserted that 30 per cent sourcing under FDI in multi-brand retail has been made mandatory from Indian MSEs only. The government highlighted that the 30 per cent obligation before the global players is limited to India. The governments explanation came amidst protests from the opposition and the micro and small enterprises (MSEs).According to governments previous stand, the overseas players have to do 30 per cent of their sourcing from MSEs which, however, can be done from anywhere in the world and is not India-specific. The only condition placed was that these MSEs must not have more than $1 million [Rs.5 crore] investment in plant and machinery. In 2004, The High Court of Delhi defined the term retail as a sale for final consumption in contrast to a sale for further sale or processing (i.e. wholesale), A sale to the ultimate http://upscportal.com

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consumer. Thus, retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers Retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. A retailer is involved in the act of selling goods to the individual consumer at a margin of profit. The retail industry is mainly divided into:- 1) Organised and 2) Unorganised Retailing Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers. The organized retail however is at a very nascent stage. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10 per cent of Indias GDP. For those brands which adopt the franchising route as a matter of policy, the current FDI Policy will not make any difference. They would have preferred that the Government liberalize rules for maximizing their royalty and franchise fees. They must still rely on innovative structuring of
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franchise arrangements to maximize their returns. Consumer durable majors such as LG and Samsung, which have exclusive franchisee owned stores, are unlikely to shift from the preferred route right away. For those companies which choose to adopt the route of 51% partnership, they must tie up with a local partner. The key is finding a partner which is reliable and who can also teach a trick or two about the domestic market and the Indian consumer. Positive aspects FDI can be a powerful catalyst to spur competition in the retail industry, due to the current scenario of low competition and poor productivity. The policy of singlebrand retail was adopted to allow Indian consumers access to foreign brands. Since Indians spend a lot of money shopping abroad, this policy enables them to spend the same money on the same goods in India. FDI in single-brand retailing was permitted in 2006, up to 51 per cent of ownership. Between then and May 2010, a total of 94 proposals have been received. Of these, 57 proposals have been approved. An FDI inflow of US$196.46 million under the category of single brand retailing was received between April 2006 and September 2010, comprising 0.16 per cent of the total FDI inflows during the period. Retail stocks rose by as much as 5%. Shares of Pantaloon Retail (India) Ltd ended 4.84% up at Rs 441 on the Bombay Stock Exchange. Shares of Shoppers Stop Ltd rose 2.02% and Trent Ltd, 3.19%. The exchanges key index rose 173.04 points, or 0.99%, to 17,614.48. But this is very less as compared to what it would have been had FDI up to 100% been allowed in India for single brand. The policy of allowing

100% FDI in single brand retail can benefit both the foreign retailer and the Indian partner foreign players get local market knowledge, while Indian companies can access global best management practices, designs and technological knowhow. By partially opening this sector, the government was able to reduce the pressure from its trading partners in bilateral/ multilateral negotiations and could demonstrate Indias intentions in liberalising this sector in a phased manner. Permitting foreign investment in food-based retailing is likely to ensure adequate flow of capital into the country & its productive use, in a manner likely to promote the welfare of all sections of society, particularly farmers and consumers. It would also help bring about improvements in farmer income & agricultural growth and assist in lowering consumer prices inflation. Apart from this, by allowing FDI in retail trade, India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and costcompetitiveness of Indian producers in all the segments. It is therefore obvious that we should not only permit but encourage FDI in retail trade. Lastly, it is to be noted that the Indian Council of Research in International Economic Relations (ICRIER), a premier economic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of big money (large corporates and FDI) in the retail sector would in the long run not harm interests of small, traditional, retailers. In light of the 127

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UPSCPORTAL Current Affairs : http://upscportal.com/civilservices/current-affairs above, it can be safely concluded that allowing healthy FDI in the retail sector would not only lead to a substantial surge in the countrys GDP and overall economic development, but would inter alia also help in integrating the Indian retail market with that of the global retail market in addition to providing not just employment but a better paying employment, which the unorganized sector (kirana and other small time retailing shops) have undoubtedly failed to provide to the masses employed in them. Concerns It is feared that, it would lead to unfair competition and ultimately result in large-scale exit of domestic retailers, especially the small family managed outlets, leading to large scale displacement of persons employed in the retail sector. Further, as the manufacturing sector has not been growing fast enough, the persons displaced from the retail sector would not be absorbed there. Another concern is that the Indian retail sector, particularly organized retail, is still under-developed and in a nascent stage and that, therefore, it is important that the domestic retail sector is allowed to grow and consolidate first, before opening this sector to foreign investors. Antagonists of FDI in retail sector oppose the same on various grounds, like, that the entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and social tension elsewhere. Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up. Argument that only foreign players can create the supply chain for farm produce is bogus. International retail players have no role in building roads or generating power. They are only required to create storage facilities and cold chains. This could be done by governments in India. Move will lead to large-scale job losses. International experience shows supermarkets invariably displace small retailers. Small retail has virtually been wiped out in developed countries like the US and in Europe. South East Asian countries had to impose stringent zoning and licensing regulations to restrict growth of supermarkets after small retailers were getting displaced. Fragmented markets give larger options to consumers. Consolidated markets make the consumer captive. Allowing foreign players with deep pockets leads to consolidation. International retail does not create additional markets, it merely displaces existing markets. India has the highest shopping density in the world with 11 shops per 1,000 people. It has 1.2 crore shops employing over 4 crore people; 95% of these are small shops run by selfemployed people. Global retail giants will resort to predatory pricing to create monopoly/oligopoly. This can result in essentials, including food supplies, being controlled by foreign organizations. Jobs in the manufacturing sector will be lost because structured international retail makes purchases internationally and not from domestic sources. This has been the experience of most countries which have allowed FDI in retail. Comparison between India and China is misplaced. China is predominantly a manufacturing economy. Its the largest supplier to Wal-Mart and other international majors. It obviously cannot say no to these chains opening stores in China when it is a global supplier to them. India in contrast will lose both manufacturing and services jobs. Conclusion Conclusively we can say that FDI in retail has the both positive as well as negative aspects of it, but what we should consider before jumping on any conclusion that fears of small shopkeepers getting displaced are vastly exaggerated. When domestic majors were allowed to invest in retail, both supermarket chains and neighbourhood pop-and-mom stores coexisted. If anything, the entry of retail big boys is likely to hot up competition, giving consumers a better deal, both in prices and choices. Mega retail chains need to keep price points low and attractive - thats the USP of their business. This is done by smart procurement and inventory management: Good practices from which Indian retail can also learn. The argument that farmers will suffer once global retail has developed a virtual monopoly is also weak. To begin with, its very unlikely that global retail will ever become monopolies. Stores like Wal-Mart or Tesco are by definition few, on the outskirts of cities (to keep real estate costs low), and cant intrude into the territory of local kiranas. So, they can not eat up their share of pie. Secondly, it cant be anyones case that farmers are getting a good deal right now. The fact is that farmers barely subsist while middlemen take the cream. Lets not get dreamy about this unequal relationship. Pankaj Kumar http://upscportal.com

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