7 May - 13 May 2013 Issue-19/2013 (7th May to 13th May)

CURRENT AFFAIRS
CLASS NOTES: 7 May - 13 May, 2013
(Compiled from 11 Newspapers & 7 Magazines)
7 May 2013 Way to go before calling it a day
The Chinese troops who had set up tented positions around Daulat Beg Oldi inside Indian territory some three weeks ago have withdrawn; Indian troops who pitched their tents in response to this provocation have also withdrawn. The Chinese withdrawal may be a victory for diplomacy but it is important to remember that the Depsang Plain, located in a far corner of Ladakh, has only reverted to being what it was part of the unsettled portion of the LAC between India and China. As a first step, completing the process of exchanging maps depicting each sides understanding of where the LAC lies is crucial. Unless this happens, such disputes are likely to arise again, and strain the entire gamut of ties. It is still unclear what caused the Peoples Liberation Army to move troops into the Depsang Plain. There is speculation that it might have done so to convey its displeasure at the recent infrastructure development undertaken by India in Ladakh. about Gujarati pride, management and effort. However, this judgment is about much more than Gujarat, or even lions. The judgment calls for something that policymakers have neglected what it calls the species best interest standard. Placing the persistence of species at its heart, the judgment calls for directives based on an eco-centric approach and not a human or anthropocentric approach. Combined with the idea of doing what is best for the species, rather than the whims of policies, planning and politics, the judgment makes a powerful call for a new conservation paradigm, based on both science and ethics, for our most threatened species. It has recognised the lack of governance and planning response to endangered species, and has called for the necessity for an exclusive parliamentary legislation for the preservation and protection of our endangered species. Finally, the judgment brings down the barriers of protected area conservation protection girded by State boundaries and State pride and calls for this to be done with the species in mind and not profit. In TN Godavarman Thirumulpad versus Union of India , Supreme Court, (2012) the Supreme Court ruled in favour of wild buffalo conservation. It also called for the eco-centric approach, one that would go beyond what is profitable for people. In the wild buffalo judgment (2012), the Supreme Court called for saving species on the basis of their intrinsic worth. Ecologically, this is an idea very relevant to our times, and takes us back to our earliest lessons in understanding nature that each species is important for resilient ecosystems. Our approach should not be human-centric or family-centric but eco-centric, the judgment on lions says.

NEWS IN NUTSHELL RBI panel favours differential tax regime for exporters
Seeking to boost exports and bridge the ballooning current account deficit, a Reserve Bank of India (RBI) committee, on 6th May, suggested a slew of measures such as introduction of differential tax regime, and increasing the scope of interest subsidy scheme for exporters. The Reserve Bank had constituted a technical committee on services/facilities for the exporters under the Chairmanship of RBI Executive Director G. Padmanabhan to suggest ways for improving financial support from alternative sources. Recommendations are: o Review of Gold Card Scheme for extension of export credit to exporters, appropriate inclusion of export finance under the priority sector lending, and raising of foreign currency loans on pool basis for extension of export credit to exporters. o Inclusion of additional sectors such as electronics and all engineering goods, especially automotive sector, and all exports originating from domestic tariff area units to SEZs o Recommended continuation of export credit refinance policy for three years o Setting up of a nodal agency for borrowing in foreign currency from abroad on a pool basis, and further lend to these companies in India at competitive rates.

The lion is an asset of whole nation

The Supreme Court has ruled that Gujarat has to part with some lions, to be shifted to Madhya Pradeshs Kuno-Palpur wildlife sanctuary, upholding the nations right to have a second habitat for lions Also, responses to the Supreme Court order have been all about lion conservation vis--vis Gujarat, testing the notions of how much ownership a State can have over a wild animal even if in recent times saving the lion has been

It is only KYC norm violation, says RBI

Reserve Bank of India (RBI) Deputy Governor K.C. Chakrabarty, on Monday, refuted money

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laundering charges levelled against various banks, and said that all exposures by Cobrapost.com were connected to know-your-customer (KYC) norms. The Supreme Court on Monday said there is no basis to the fear that the radioactive effects of the Kudankulam nuclear power plant, when commissioned, will be far reaching. Apprehension, however, legitimate it may be, cannot override the justification of the project. Nobody on this earth can predict what would happen in future and to a larger extent we have to leave it to the destiny. But once the justification test is satisfied, the apprehension test is bound to fail. Quoting a report of the International Atomic Energy Agency (IAEA), the Bench said: The report highlights that to sustain rapid global economic growth, it is necessary to double the supply of energy and tripling supply of electricity by 2050. Further, it is stated billions of poor people need energy and other life-saving and job-creating technologies. Apprehension, however, legitimate it may be, cannot override the justification of the project itself plans to replace it with a more credible Nuclear Safety Regulatory Authority. In the interim, and indeed even after the NSRA comes into being, the Supreme Court ought to subject these reviews to judicial scrutiny.

Money laundering charge: FinMin asks banks, LIC to act tough

The Finance Ministry, on Monday, asked public sector banks and the Life Insurance Corporation of India (LIC) to take immediate action against employees appear to be advising customers on ways of violating KYC (know-yourcustomer) and other regulatory norms.

Background information on Nuclear Safety Regulatory Authority Bill The Bill seeks to dissolve the
Atomic Energy Regulatory Board and replace it with the Nuclear Safety Regulatory Authority (NSRA).

Cabinet nod for loans at low interest for Women Self Help Groups
In order to financially strengthen Women Self Help Groups (SHGs) across India, the Union Cabinet has approved key changes to the National Rural Livelihoods Mission (NRLM), aiming to eradicate poverty in villages by empowering women Rural Development Minister Jairam Ramesh announced on 6th May that over 25 lakh Women SHGs will now be provided bank loans at an interest rate of seven per cent. The Union Cabinet on May 1 approved the provision of interest subvention for Women SHGs operating under the NRLM, ensuring that they shall avail loans up to Rs. three lakh at an interest rate of seven per cent per annum. Initially, the scheme will be started as a pilot project in 150 districts, including the 82 Integrated Action Plan districts affected by naxal violence .And in the rest of the States, 75 per cent of the cost would be borne by the Central government and 25 per cent by the States. In the 150 districts, the Central government will bear the entire cost of the interest subvention from the market rate to seven per cent. In order to improve targeting, the Cabinet has decided to do away with the BPL (below poverty line) category in the NRLM, and instead identify target groups through the Participatory Identification of Poor (PIP) process, at the communitylevel.

The NSRA shall regulate nuclear safety and activities related to nuclear material and facilities. The government can exempt facilities from NSRAs jurisdiction if they relate to national defence and security. The Bill also establishes the Council of Nuclear Safety to review policies on nuclear safety. The Council shall include the Chairman of the Atomic Energy Commission.

8 May 2013 Supreme Courts landmark decision on Kudankulam

There are two parts to the Supreme Courts landmark decision on Kudankulam, and each is equally important. The court has said the power plant can now be switched on. But it has laid down important caveats on safety It has urged the authorities to roll-back the hundreds and thousands of cases that have been foisted, mostly unfairly, on the protesters. Apart from underscoring the need for the plant to satisfy all environmental safety conditions stipulated by the Ministry of Environment and Forests, the judges have wisely tasked Kudankulams operator the Nuclear Power Corporation of India Limited and its regulator, the Atomic Energy Regulatory Board, with a review of the plant every three months, The AERB today is not independent of the Department of Atomic Energy, which is the parent body of NPCIL, and the government

The Chairperson of the NSRA will be on the search committee for the remaining members. A member of the NSRA may be removed by the central government after providing him an opportunity to be heard.

An order of the NSRA can be appealed before the Appellate Authority, which would be set up by the Council as and when required.

The Bill penalises all violations with imprisonment for up to five years.

Right to receive
The hallmark of the National Food Security Bill 2011 is that if implemented it will translate into Indias first ever right to food legislation, guaranteeing food as a justiciable, legal entitlement to its people The repeated use of the word entitlement in the Bill makes it possible to conceptualise food security as a right. The Bill, however, defines food security as the supply of entitled foodgrains and meal. Such a narrow definition assumes the individual to be a passive recipient of a dole and not a proactive claimant of entitlements. Individual to be a passive recipient of a dole and not a proactive claimant of entitlements. Moreover,

Court Says Fear of nuclear disaster has no basis JTS Institute

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Supporters of the Bill, however, are unhappy about the continuation of targeting in PDS, reduction in monthly per capita PDS grain entitlement from 7 kg to 5 kg, omission of the health and preschool education components of ICDS, absence of special entitlements for the most vulnerable sections of the population (persons in destitution or starvation, the elderly, persons with disabilities and single women), proposed introduction of cash transfers and unsatisfactory grievance redress mechanisms, The bigger concern is that a robust understanding of the right to food, premised on hunger has been weakened to mean a passive right to receive whatever the state wants to give in the name of food security. five. The International Council on Monuments and Sites (ICOMOS), which evaluates the cultural properties for UNESCO, India has 29 world heritage sites 23 cultural and six natural properties

Parliamentary panel says Replace profit-sharing by coal companies with royalty payment
A Parliamentary panel has recommended removal of the provision of 26 per cent profit sharing by coal and lignite miners with project-affected people and replacing it with a system based on royalty payments by the firms concerned. As per the provisions of the new Mines Bill, coal and lignite miners would have to share 26 per cent of the profits from their mines with people impacted by projects. For non-coal and non-lignite miners, the new law has proposed payment of an amount equivalent to royalty paid by the companies to the State Government. The collected money was proposed to be used for the welfare of the projectaffected persons through a newly created District Mineral Foundation (DMF).

RBI panel moots India Bill Payment System

The Reserve Bank of India (RBI) panel on Tuesday mooted India Bill Payment System (IBPS), a GIRO-based electronic bill payment system for payment of dues of essential services, insurance premia, utility payments, taxes, university fees, examination fees and school fees. This model will enable the setting up of a centralised infrastructure bringing all the billers and banks to the bill platform through the aggregators. It will also allow interoperability in the bill payment process and enable the consumers to make payments at any of the collection points, which is the essence of GIRO system. GIRO payment is a credit push transaction initiated by the payer and may involve the presence of three banks (collecting bank, payer bank and the payee bank). This is part of the ongoing efforts of the central bank in improving payment and settlement systems as laid out in its Payment Systems vision (2012-15). The RBI has released the report of the committee set up to study the feasibility of implementation of the GIRO-based payment system in India under the chairmanship of G. Padmanabhan What is GIRO?- Giro transfer, is a payment transfer from one bank account to another bank account and instigated by the payer, not the payee

NEWS IN NUTSHELL World Heritage Sites status sought for 6 Rajasthan forts, Himalayan park
India has nominated a group of six hill forts in Rajasthan and the Great Himalayan National Park in Himachal Pradesh as candidates for World Heritage Sites this year. The hill forts at Chittorgarh, Kumbhalgarh, Ranthambore, Gagron, Amber, and Jaisalmer are excellent examples of Rajput military architecture, which are found in palaces, temples, memorials and even in villages. Built between 13th and 19th centuries, these forts are unique to this region and creatively use the landscape to increase protection. Going by a report of the International Union for Conservation of Nature (IUCN), which evaluates nominations for natural sites, it is unlikely that the World Heritage Committee would inscribe the Himalayan Park as a World Heritage Site. The IUCN) has said the delineation of the park is disjointed. It recommended that the intervening land be added to the park to create a contiguous area. It suggested that the rights of local communities be accommodated and integrated in the management plan. The five Rajasthan forts were nominated last year too, but UNESCO rejected them. This year, the government added the Jaisalmer fort, reworked the documents and renominated the

9 May 2013 New head from the south At WTO

On May 7, in Geneva, the World Trade Organization (WTO) received a new leader, Roberto Azevdo of Brazil. The election of Azevdo is significant not because he is the first person from the Global South to lead the WTO that honour goes to Thailands Supachai Panitchpakdi, who ran it from 2002 to 2005. Azevdo comes with the backing of significant new blocs of the Global South, notably the BRICS grouping which put its heft behind his candidacy. This is the first time that a candidate of the Global South won against someone backed by the European Union Finance should not be the master of development. Whether it be slave of development is something else, but finance should serve development. The world pays a stiff price for the Norths monopoly over political and economic decisions. Global perestroika is needed. The recent issue of the U.N.s Human Development Report 2013 is called The Rise of the South: Human Progress in a Diverse World

GoM Says No powers for coal regulator to determine fuel prices

Settling the issue of fixing coal prices, a Group of Ministers (GoM), on Tuesday, decided that the proposed regulator would not determine fuel rates, a job that would continue to be vested with the producers. It would be empowered to resolve disputes, including disputes arising out of fuel supply agreements (FSAs)

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The authors of this report note that it would be a good idea to establish a new South Commission to bring a fresh vision of how the Souths diversity can be a force for solidarity. cited to distinguish one case from another, are irrelevant if what is involved is an offence under antiterrorism laws. It is tempting to see the fact that the same Bench comprising Justice G.S. Singhvi and Justice S.J. Mukhopadhaya delivered both verdicts within three weeks as ironical or contradictory. It isnt really, for the Das verdict shows that the court is willing and able to decide a challenge to a Presidential rejection on merits, facts and circumstances as well as sound principles of jurisprudence emphasised that the new drug has to be used in combination with at least three drugs to which the patients isolate has been shown to be susceptible in vitro. In the absence of in vitro testing results, it should be used in combination with at least four other drugs to which the patients isolate is likely to be susceptible, based on local TB drug resistance data and the patients previous TB treatment exposure. The drug has been approved based on Phase II trial results. Phase III trial involving more number of people across many countries is set to begin only now.

Background information on Doha Round (The Doha Agenda)

The Doha Development Round started in 2001 and continues today. The WTO launched the current round of negotiations, the Doha Development Round, at the fourth ministerial conference in Doha, Qatar in November 2001. This was to be an ambitious effort to make globalization more inclusive and help the worlds poor, particularly by slashing barriers and subsidies in farming. The initial agenda comprised both further trade liberalization and new rule-making, underpinned by commitments to strengthen substantial assistance to developing countries. The negotiations have been highly contentious. Disagreements still continue over several key areas including agriculture subsidies.

NEWS IN NUTSHELL Three lakh newborns last hardly a day

India accounts for 29 per cent of all such deaths Over three lakh newborns in India die within 24 hours of their birth every year the highest number in the world. This was a study by Save the Children

Finding traces of ancient tsunamis

Trenches and pits were dug to expose sediments that had been deposited over the last 2,000 years or so. Carbon dating made it possible to set an approximate period for a sediment layer from a tsunami. On the islands, the scientists found sediments produced by a major tectonic event accompanied by regional sea flooding that happened during A.D. 770-1040. As the event had also left its imprint on the coasts of Tamil Nadu, Sri Lanka and Sumatra, they concluded that the tsunami which resulted in those sediments seemed comparable in size to that of 2004. The islands also contained tsunami deposits from A.D. 1250 to 1450 that probably matched those reported previously from Sumatra and Thailand.

Misuse of Bedaquiline?
Bedaquiline was the first TB drug to be discovered in more than 40 years, and the first one specifically for multi-drug resistant TB (MDR-TB). MDR-TB arises when the M. tuberculosi s bacteria become resistant to two commonly used first-line TB drugs isonazid and rifampicin. Need for caution:The drug must be restricted to certain patients to prevent patients developing resistance to bedaquiline. Some private doctors have already started prescribing bedaquiline drug to their patients by importing it The drug is yet to be approved for use in India, and WHO and India have not yet drawn up guidelines to help doctors treat MDR-TB patients with this drug. FDA approved the drug under its accelerated approval programme Though the Drug Controller General of India is responsible for issuing permits for import, it cannot deny permits to doctors if it is to treat patients. WHO, on its part, has made it clear that the drug has to be administered by directly observed treatment (DOT) The global body has also

A Story of two SC verdicts

The Supreme Courts verdict last week quashing the Presidents rejection of a mercy petition by Mahendra Nath Das, who was to hang for a gruesome murder, shows a salutary approach to the question of whether a prolonged delay in disposing pleas for clemency should not be a ground for commuting death sentences to life terms. The court took note of the 12year delay prior to the rejection of Dass mercy plea. Another fact the court took note of was that President Pratibha Patil was kept in the dark about her predecessor, A.P.J. Abdul Kalam suggesting in 2005 that Das be granted clemency, as this was not mentioned in a summary prepared for her consideration. It held that the President was not properly assisted or advised. The principle that unexplained delay on the part of the executive will be a constitutional limitation on carrying out an execution stands reconfirmed by the Das judgment. In the case of Devinder Pal Singh Bhullar, acts and circumstances, which are often

Gene delivery by Bio-inspired peptides

Seeking to overcome the problem of suitable delivery mechanism for gene therapy, scientists at CSIR-Centre for Cellular and Molecular Biology (CCMB) have designed peptidebased delivery platforms for tumour targeting which holds the potential for cancer treatment. The scientists have developed recombinant peptides through bacterial fermentation to bind DNA or small interfering RNA (siRNA) or short hairpin RNA (shRNA) and deliver them into cells to target tumours. Since DNA, siRNA and shRNA are negatively-charged, they require carriers like recombin Since DNA, siRNA and shRNA are negatively-charged, they require

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carriers like recombinant proteins, The advantage with DNA or siRNA is that they help in silencing the targeted genes. For instance, if the TF gene involved in new blood vessel formation is silenced, the tumour would get regressed.

10 May 2013 Paid news v/s democracy

In a major twist to the Ashok Chavan vs. Madhav Kinhalkar legal battle (more notorious as the Paid News scandal), leading civil society organisations and eminent individuals have approached the Supreme Court to implead themselves into the case. A recent move of the Union Law Ministry which could destroy the Election Commission of Indias power to disqualify candidates filing incorrect or false accounts. This action follows the Union Law Ministry filing a counteraffidavit on behalf of the Government in the Ashok Chavan case. The power of the Election Commission to disqualify a person arises only in the event of failure to lodge an account of expenses and not for any other reason, including the correctness or otherwise of such accounts. Simply put: the government claims the ECI has no right to disqualify a candidate even if his accounts are found to be improper or fraudulent.

Pedal power Energy

Atom, a lightweight bicycle generator, can power your mobile, lights or any electronic device via USB. It comes with a detachable rechargeable battery pack, meaning the stored energy can be used whenever and wherever you need it. The Atom is designed to charge phones at 2.5 W at 14.5 km per hour, initiating the charging at 5 kmph with 0.75 W. The rate of power generation is dependent on speed, but weve designed the Atom to be fully functioning at moderate speeds.

As of now, China and India have set up border-related mechanisms including the Special Representatives Talks, working mechanism for consultation and coordination over the border affairs, defence and security consultation, border flag meetings, etc, which prove to be effective platforms established with joint efforts by two countries. Fifth, both sides have confidence. At present, the comprehensive development of China-India relations has created favourable conditions for solving border-related issues. Both countries hope to maintain the hard-won sound momentum of healthy and stable development of China-India relations. The China-India boundary question is a problem left over from history. It is complex and sensitive, with a bearing on the feelings of the two peoples. Both countries have made tremendous efforts for an early solution to this issue. As the saying goes: Good fences make good neighbours. To strengthen good-neighbourly and friendly cooperation with India is Chinas strategic choice and established policy which will not change.

New sign of black-hole birth

Black holes are exotic space phenomena whose gravitation pulls are so strong that not even light can escape. They are formed when heavy stars exhaust all their hydrogen and collapse under their own weight. Just before a black hole forms, the dying star may generate a distinct burst of light that could allow astronomers to witness the birth of a black hole for the first time. When a massive stars core collapses, its protons and electrons merge to form neutrons. As the collapse intensifies, an extremely dense core called a neutron star is formed. Particles called neutrinos are also formed simultaneously. They zip through matter at close to the speed of light, taking away a lot of the mass in the core, making its gravitational pull drastically weak. When this happens, the gaseous layers around the core would be propelled away and collide with the outer layers at 1,000 km/hr, causing the latter to heat up and glow. The glow would not be strong enough to be distinguishable from other bright light in the universe. A flash 10-100 times brighter than the outer layers glow would be visible for 3-10 days.

Five basics to handle Indo-china border differences

Border troops of the two sides have now pulled back from the area of stand-off at the Tiannan River Valley area/Daulat Beg Oldie sector by the Indian side The two sides should steadily push forward the negotiation process through equal and friendly consultation First, both sides have reached consensus. Second, both sides have the willingness. Leaders of both countries have expressed strong political desire for the early settlement of the boundary question by including it as one of outstanding issues in the Ten-pronged Strategy they committed themselves to in 2006. Third, both sides have the experience. China and India are important neighbours sharing a border which has yet been formally demarcated. Fourth, both sides have means.

State of the Worlds Mothers report

Over three lakh newborns in India die on the very first day of their birth. With this the country ranks as number one in terms of first day of birth mortality; its share in global first-day deaths stands at 29 percent. The appalling state of Indian health care to which this speaks is further highlighted by the fact that the next worst performer, Nigeria, is a distant second with less than 90,000 deaths a year and a nine per cent share of global deaths. These are some of the statistics in the State of the Worlds Mothers report released by Save the Children recently. Poor mothers living in rural areas are another at-risk group that needs undivided focus. If poor health before and during pregnancy is already a big risk factor, lack of good medical care during delivery exacerbates it. This brings to the spotlight the need to have a greater percentage of institutional deliveries. Forty-six percent of mothers

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deliver at health-care facilities in sub-Saharan Africa. Though Indias national average of 73 per cent is much higher than sub-Saharan Africas, why is neonatal mortality still high in many States? The uncomfortable truth is the questionable quality of care at many of these facilities. The personnel attending to deliveries are very often not properly trained and hence not fully proficient in labour-room protocols. Labour rooms are not always fully equipped with essential medicines, equipment and electricity. States must therefore emulate the Tamil Nadu model where women-friendly public services are provided by fully equipped healthcentres with a well-trained nurse round the clock to ensure safe deliveries.

7 May - 13 May 2013 The Levants last chance

The joint Russian and United States announcement of a conference to bring together Syrian President Bashar al-Assads government and opposition groups could be a decisive moment U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov stated the plan in Moscow on the night of May 7-8, and the meeting is likely to take place later this month Mr. Lavrov says the aim is to enforce the Geneva communiqu issued on June 30, 2012 calling for the implementation of the United Nations six-point plan. The plan requires that violence cease immediately, and that any process towards settlement be Syrian-led; it also calls for the release of relevant detainees as well as freedom of association, the right to demonstrate peacefully, and freedom of the media. The U.N.-Arab League Special Envoy for Syria, Lakhdar Brahimi, says the Moscow announcement is very significant and the first hopeful news concerning Syria in a long time. The Assad forces have long been aided by Hezbollah combatants from Lebanon and Iraq; the opposition Syrian National Coalition (SNC), for its part, receives arms from Qatar and Saudi Arabia, as well as U.S. funds for non-lethal equipment Another complication is that the extreme Sunni group Jabhat alNusra is trying to replace the SNC as the main opposition. Nevertheless, Israels air attacks against Syria last week amount to a potentially deadly escalation. The U.S. must ensure that its Israeli allies do nothing to undermine the forthcoming conference, which provides the embattled region with its best chance yet of avoiding a wider war.

only if we view the PDS in isolation, rather than as part of a larger food policy. Indias food policy begins with the procurement of rice and wheat and price support operations by the Food Corporation of India (FCI) and the CACP. Each State is entitled to purchase a certain amount of food grains from the FCI at subsidised prices for distribution through its Fair Price (Ration) Shops. It is this distribution end that constitutes the PDS, and what the cash transfers would replace. Besides not taking into account the devaluing effect of inflation or the role of intrahousehold dynamics when it comes to cash transfers, its supporters do not specify what would happen to the agricultural commodities that are procured by the FCI. To reduce its stocks, the government has preferred open market operations (to bulk consumers) and export to distribution through the PDS. The governments policy reaction to the Bengal famine of 1943, which led to the death of 1.5 million people, provides us with a primer of what not to do in a famine situation. o At first, there was a complete laissez-faire policy towards food grain trade, which led to hoarding by traders, farmers and consumers. Subsequently, the provincial governments introduced a policy of procurement and distribution of food grains, which failed miserably as they did not have the requisite infrastructure to implement the policy. o For example, grains were rotting in Calcutta, the centre of distribution in the eastern region, as the government had not made arrangements to handle incoming stocks Since the 1950s, India has made major strides in agricultural production as evidenced by the large government-held stocks of wheat and rice. However, problems of inadequate nutrition, starvation and double digit food price inflation remain. Strengthening of the PDS, as seen in Chhattisgarh and Tamil Nadu, would serve the purpose of ensuring food security for the nation through stabilising prices, production and consumption. As seen in the past, government

NEWS IN NUTSHELL Cabinet okays for two new major ports in West Bengal, Andhra Pradesh
Giving a push to infrastructure development, the government, on 9th May, approved a proposal to set up two major ports in West Bengal and Andhra Pradesh at an investment of about Rs.15,820 crore. The new ports will be notified as major ports under the Indian Ports Act, 1908. Major ports come under the Central Government, while minor ports are operated by State governments as well as by the private sector Here are at present 12 major ports Kolkata-Halida, Paradip, Visakhapatnam, Ennore, Chennai, V O Chidambaranar (formerly Tuticorin), Kochi, New Mangalore, Mormugao, Mumbai, Jawaharlal Nehru (JNPT) and Kandla. The need for a port at Sagar in West Bengal was felt as the existing ports at Kolkata and Haldia were facing capacity constraints. The location for port in Andhra Pradesh has not yet been finalised, and the State Government has identified three locations Nakkapalli in Visakhapatnam, Ramayyapatnam in Prakasam and Dugarajapatnam in Nellore. The new major ports are likely to be set up on public-private partnership (PPP) mode, and will cater to increased imports of coal and oil

11 May 2013 Bad thing about Cash transfers for food security
A recent report by the Commission for Agricultural Costs and Prices (CACP) concluded that the provision of food subsidies in the form of cash would save the government crores of rupees. Cash transfers are a solution

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withdrawal from the food sector can lead to a decline in production and an increase in hoarding and speculative activity. Unlike the PDS, cash transfers cannot counter the resultant shortages and price rise. In a growing economy like India with constantly increasing demand, the government needs to intervene on both the demand and supply sides to ensure food security for all its citizens. would reach Mars after a ninemonth journey and keep going around it in an elliptical orbit. were able to succeed in getting a new job/sponsor, they could continue to stay there without facing any hardship. The problem for Saudi employers in implementing Nitaqat was that they would have to reserve 10 per cent jobs for the locals and give them a minimum of 3,000 Riyals (one Riyal is equal to about Rs.14.50) a month as salary.

States for common exemption list under GST

Seeking speedy implementation of the Good and Services Tax (GST), State finance ministers, on Friday, pitched for a common exemption list so that fewer number of items remained outside the indirect tax net. As of now, the exempt list of States contains 96 items, whereas the Centres list has 243 items. The empowered panel has arrived at a consensus that 12 of the 96 items contained in the States list on which the Centre levies taxes be exempted from Central taxes The empowered committee had arrived at a consensus that there should be no dichotomy between the exempt list of States and that of the Centre. State finance ministers also asked the Centre to prune its exemption list in a phased manner to match it with that of States. The committee also decided to increase the threshold limit for registration under the GST for small traders The committee had recommended increasing the threshold limit to Rs.25 lakh turnover, but a consensus regarding this was yet to be reached as many States were yet to study the implications. The State finance ministers also recommended traders with a turnover of less than Rs.1.50 crore be exempted from dual control, which led to tax overburden. They suggested that only those with a turnover of over Rs.1.50 crore be kept under the tax levying agencies of Centre and States.

Pilot project for LPG subsidy transfer cleared

CCPA gives the go-ahead to the launch in 20 districts from May 15 Under the direct benefit transfer (DBT) scheme, consumers will get the subsidy amount about Rs. 4,000 annually in their bank accounts. They will then have to buy LPG at the current market price of Rs. 901.50 per 14.2-kg cylinder. A consumer will have to get his or her bank account seeded with the Aadhaar number for getting the LPG subsidy.

NEWS IN NUTSHELL Rural Mission to be executed in phased manner

The government has reiterated that it will implement the National Rural Livelihoods Mission (NRLM) in a phased manner to ensure targeted and time-bound delivery of results. NRLMs mandate to guarantee that at least one member from each identified rural poor household, preferably a woman, be brought under the Self Help Group (SHG) network in a time-bound manner, the ultimate target being full coverage of BPL families. The Union Cabinet had approved key changes to the NRLM to eradicate poverty in villages by empowering women. Rural Development Minister Jairam Ramesh announced that over 25 lakh women SHGs would be provided bank loans at an interest rate of seven percent. A proposal had already been moved for finalising the target group based on the Participatory Identification of Poor process (PIP). Additionally, in order to improve targeting, the Cabinet agreed to do away with the BPL (below poverty line) category in the NRLM instead of identifying target groups through the PIP process, at the community level.

12 May 2013 SUNDAY SPECIAL ARTICLES Chinese medicine education is cheaper

As the costs of a medical education in India continue to rise, an increasing number of students are heading to foreign shores, with China, in particular, emerging as a favoured destination. Six year-education at an approved Chinese medical university, consultants say, can cost Rs. 25 lakh, including one-year internship and annual travel to India, although costs vary at the nearly 50 approved medical colleges. With capitation fees alone at some Indian colleges amounting to more than double that figure, it is not surprising that there are now as many as 9,000 Indian medical students in China. The more serious concern for most Indian medical students is a Medical Council of India (MCI) screening test which they will be required to take in India after graduation. The exam is a mandatory requirement for students who study overseas. This exam is excessively difficult The MCI, however, argues, with

New concession for Indians in Saudi Arabia

The Saudi Arabian government has announced a new concession to the expatriates who are affected by the new Nitaqat (naturalisation) law to be enforced in the kingdom. Those expatriates who were staying illegally/overstayed could return to homeland without facing penal action. The cut-off date for this would be April 6, 2013 (ie, those who were found to be staying illegally on or prior to that date). If the expatriates, who have to return to the homeland jobless,

ISRO says Comet unlikely to affect Mars Orbiter mission

The scheduled launch of Mars Orbiter mission by the Indian Space Research Organisation (ISRO) in October-November this year is unlikely to be affected by a comet approaching the red planet. The spacecraft for ISROs first interplanetary mission was getting ready and it would be injected by a Polar Satellite Launch Vehicle . It

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some merit, that students who study overseas cannot be allowed to practice in India unless they are rigorously tested. The MCIs website lists the 49 universities that have been approved by Chinas Ministry of Education to enroll foreign students. It also aims at improving hygiene and sanitation infrastructure. taxation of sugar, textile and tobacco products, and the other to draft GST legislation.

NEWS IN NUTSHELL Cyclonic storm Mahasen to bring more rain

Mahasen, the cyclonic storm brewing over the Bay of Bengal, is more than 1,000 km from Indias eastern coast, but its outer reaches could bring rain and squalls to places as far away as Karnataka The cyclone, which developed on 11th May morning, is likely to intensify into a severe cyclonic storm in the next 24 hours Mahasen is the first cyclone this season, but we generally see two or three in the Indian Ocean at this time May is known also for sporadic hailstorms Pre-monsoon showers will continue until the arrival of the monsoon at the end of the month,

Chidambaram says Bihar will qualify for special status

Union Finance Minister P. Chidambaram on 11th May said Bihar would qualify for the grant of special status under new criteria for backwardness. Under the chairmanship of Chief Economic Adviser Raghuram Rajan would be formed in a few days The panel will evolve new criteria for backwardness and submit a report to the Centre within a month.

State of health in India

It is poor health that places India 134th in the Human Development Index although on GDP, it is a success Globally, in terms of Life Expectancy at Birth, India is positioned at 132; 124 in maternal deaths; 143 in Infant deaths and 145 in child deaths under-five years of age even though 50 to 75 per cent of new-born and maternal deaths are preventable. India fares worse than Bangladesh, China, Nepal and Sri Lanka. Non-availability of health professionals and financing are key factors for such inequities Medical attention at hospitals and health centres before death is particularly low at 34 per cent (including 12 per cent in private) and 38 per cent by individual health professionals. However, the disparity is wide Tamil Nadu (34 per cent with 15 per cent in private) and Kerala (74 per cent with 34 per cent in private). Health professionals in India range from doctors, nurses and allied health staff including pharmacists, and technicians to the frontline Auxiliary Nurse Midwives (ANM) and male health workers. The health sector is the 2nd largest employer (education being 1st).

13 May 2013 Indian pharma flying high in weak World economy

In 2012-13, the BSE Healthcare Index returned 21 per cent compared to the modest 8 per cent rise in the Sensex, and the stocks of 6 of the top 10 pharmaceutical companies (by market cap) outperformed the broader index. This strong performance was underpinned by an amalgam of strong exports to the U.S. and the depreciation of the rupee against the dollar. It has grown consistently at a compounded annual growth rate (CAGR) in excess of 15 per cent over the last five years. This is also a reflection of improving healthcare standards in the country. This upbeat trend in formulation exports is expected to continue in future too, with 14-16 per cent CAGR envisaged between 2012-13 and 2017-18. Over the next five years, drugs with sales of more than $100 billion are expected to lose patent exclusivity and open up to generic competition Healthcare expenditure is also spiralling the world over, and the steepest rise is seen in the developed markets of the U.S. and Europe, which traditionally contribute the largest share to global medicine sales. Healthcare reforms initiated by the U.S. government, aimed primarily at reducing healthcare spending and extending public healthcare to a larger proportion of the population, are expected to

Review of support price fixing method by Farm leaders group

This group will suggest if there is a need for the Commission for Agricultural Costs and Prices (CACP) to re-position itself in the light of the demands from farmers to raise the remunerative price for essential commodities. The committee will come up with comprehensive recommendations that are centred round technical issues, costing, MSP formula and price realisation, as well as additional issues beyond prices, to ensure that farming is made viable

Background Information of NRHM to improve the situation

National Rural Health Mission (NRHM) is an Indian health program for improving health care delivery across rural India. The mission, initially mooted for 7 years (2005-2012), is run by the Ministry of Health. The scheme proposes a number of new mechanism for healthcare delivery including training local residents as Accredited Social Health Activists (ASHA), and the Janani Surakshay Yojana (motherhood protection program).

States oppose declared goods tag for mobile phones

State finance ministers, on 11th May, turned down the Centres request to place mobile phones and tablets in the list of declared goods in the Goods and Services Tax (GST) regime, saying the idea was untenable. The IT-enabled GSTN will provide an interface to stakeholders and avoid evasion in indirect taxation systems. The empowered committee also set up two important committees, one to look into

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continue driving growth in the generics market. Although incentives for substituting costly, patented drugs with low-cost alternatives will boost the demand for generic drugs, price cuts are becoming increasingly prevalent in the region, impacting innovator and generic drugs. Some of the downsides in the developed markets are obviated by the strong presence that Indias pharma companies have established in some of the other fast-growing semi-regulated markets such as Russia, South Africa, select Latin American countries (Brazil and Mexico) and Southeast Asia. Indian companies have also been partnering multi-national corporations (MNCs) in some of these emerging markets Sales of gynaecology, antiinfectives segment and dermatology drugs will grow the fastest over the next five years. In the domestic market, the National Pharmaceutical Pricing Policy would limit growth in sales and profitability of pharmaceutical companies. But this will only be a small blip different to chemical drugs because of its biological nature and it is regulated under extended set of rules for it. merchant export growth disappointed Its reports are published twice a year. The RBI has eight policy statements which it can use to revise its projections.It is also not having a forum to update its forecasts. It should disabuse the notion that they are being deliberately optimistic and puff up projections.

Growth forecasts: how realistic are they?

Reserve Bank of India (RBI), in its annual credit policy statement, estimated gross domestic product (GDP) growth at 5.7 per cent, which is a full one percentage point below the top end of the union budgets forecast of between 6.1 per cent and 6.7 per cent. the Economic Advisory Council to the Prime Minister (EAC) had pegged it at 6.4 per cent A survey conducted by the RBI on the eve of the credit policy statement, the consensus rate among professional forecasters is 6 per cent. The International Monetary Fund (IMF) and the World Bank project growth rates of 5.9 per cent and 6 per cent, respectively The Asian Development Banks (ADBs) forecast rate is also 6 per cent. There is a convergence in the forecasts of non-official professional forecasters and international agencies to around 6 per cent. The EAC is not the only agency whose initial estimates have completely been at variance with the actual figures, 6.7 per cent estimate ( in August, 2012) versus just 5 per cent. Under two key parameters, it has been overly optimistic. It gives two reasons. One, it underestimated the strong rebound in the economy in the post-crisis years, 2009-10 and 2010-11, when the GDP grew by 8.8 per cent and 9.3 per cent much higher than the uniform 8.4 per cent official forecast initially. In the event, the investment rate in 2010-11 turned out to be almost 2 per cent higher than the EACs estimate. Two, the EAC did not take into account the ground reality of too many projects with large investments in key infrastructure areas getting stalled On the wide divergence in the CAD projection and the latest figures available, the EAC says (1) gold imports did not decline the way it was anticipated and (2)

NEWS IN NUTSHELL Chinas first blue book on India sees a Govt. in serious crisis
The first ever blue book on India released in China by a prominent official Beijing publisher has portrayed a government in serious crisis, but expressed the belief that India would likely emerge as a stronger country by conquering its current obstacles Not representing the governments view, the books are put together by official think tanks Compiled by Yunnan University, which has one of Chinas biggest South Asia programmes. Corruption scandals are the main issues.It also details Indias rising military strength, which it sees as being partly directed at China.

Background information on Generic Drug A generic drug (generic drugs,

short: generics) is a drug defined as a drug product that is comparable to brand/reference listed drug product in dosage form, strength, route of administration, quality and performance characteristics, and intended use.It has also been defined as a term referring to any drug marketed under its chemical name without advertising.

NABARD shifts blame for corporate warehousing scheme to FinMin, RBI

In the eye of the storm for funding corporate warehousing projects on terms far softer than those offered to poor farmers, the National Bank for Agriculture and Rural Development (NABARD) is now blaming the Ministry of Finance (MoF) and the Reserve Bank of India (RBI) for the transgressions. NABARD came under pressure from the RBI and withdrew its controversial Rs. 2,000-crore Rural Infrastructure Development Fund (RIDF) scheme with retrospective effect. The deposits drawn from various banks under RIDF XVII (2011-12), amounting to Rs. 759.09 crore, were also refunded by NABARD to the contributing banks on 8 April 2013, together with the applicable rate of interest

Although they may not be associated with a particular company, generic drugs are subject to the regulations of the governments of countries where they are dispensed. Generic drugs are labeled with the name of the manufacturer and the adopted name (nonproprietary name) of the drug.

Prescriptions may be issued for drugs specifying only the chemical name, rather than a manufacturers name; such a prescription can be filled with a drug of any brand meeting the specification. A generic drug of biological type (e.g. monoclonal antibodies), is

Democracy in Pakistan
Pakistan achieved a historic

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landmark with the completion of its five-year term by the civilian coalition government led by the Pakistan Peoples Party (PPP) and the successful completion of elections resulting in the clear victory for Nawaz Sharifs Pakistan Muslim League (PML-N). Its success comes entirely through the support of one ethnic group the Punjabis. Every Pakistani province appears to have chosen a different party to represent it. The overall high turnout nationwide masks the harsh reality that very few people voted in Balochistan, where alienation from the centre has been growing. The virtual wiping out of the PPP in Punjab means that each Pakistani political party now reflects the dominant sentiment of a particular ethnic group The PPP was the only party that had representation from all four provinces of Pakistan in the outgoing Parliament. The election result may be a step forward for Pakistani democracy. It is a step backward for the Pakistani federation Given the history of complaints about Punjabi domination, Nawaz Sharif will have to reach out to the leaders of other provinces Sharifs other major headache would be to evolve a functioning relationship with Pakistans military establishment.

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Current Affairs Notes