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Economic Survey 2012-13: Expecting Turnaround


MAY, 2013 AUGUST, 2012 Chief Editor: Sachchida Nand Jha Editor: Yagya Nand Jha

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From Hunger to Food Security

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Budget 2013-14: No Pain No Gain

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Railway Budget 2013-14: On Recovery Path

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Economic Survey 2012-13: Expecting Turnaround

Economic Survey 2012-13: Expecting Turnaround


Economic Survey is presented every year, just before the Union Budget. It is a flagship annual document of the Ministry of Finance, Government of India. Economic Survey reviews the developments in the Indian economy over the previous 12 months. It summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. The economic survey 2012-13 was prepared by a team of economists led by Chief Economic Advisor Raghuram Rajan, and pitches for speeding up economic reforms to activate a sluggish economy. It serves as an indicator of what is likely to be contained in the General Budget proposals. According to Economic Survey 2012-13 Indian economy likely to grow between 6.1% to 6.7%. The survey points out that the priority for the Government will be to fight high inflation by reducing the fiscal impetus to demand as well as by focusing on incentivizing food production through measures other than price supports. Following the slowdown induced by the global financial crisis in 2008-09, the Indian economy responded strongly to fiscal and monetary stimulus and achieved a growth rate of 8.6 per cent and 9.3 per cent respectively in 2009-10 and 2010-11, but due to a combination of both external and domestic factors, the economy decelerated growing at 6.2% and an estimated 5% in 2011-12 and 201213 respectively. The Economic Survey 2012-13, presented by the Finance Minister Shri P. Chidambaram in the Lok Sabha predicts that the global economy is also likely to recover in 2013 and various government measures will help in improving the Indian economys outlook for 2013-14. While Indias recent slowdown is partly rooted in external causes, domestic causes are also important. The slowdown in the rate of growth of services in 2011-12 at 8.2%, and particularly in 2012-13 to 6.6 percent from the double-digit growth of the previous six years, contributed significantly to slowdown in the overall growth of the economy, while some slowdown could also be attributed to the lower growth in agriculture and industrial activities. But despite the slowdown, the services sector has shown more resilience to worsening external conditions than agriculture and industry. For improved agricultural growth, the survey underlines the need for stable and consistent policies where markets play an appropriate role, private investment in infrastructure is stepped up, food price, food stock management and food distribution improves, and a predictable trade policy is adopted for agriculture. FDI in retail allowed by the government can pave the way for investment in new technology and marketing of agricultural produce in India. Fast agricultural growth remains vital for jobs, incomes and food security. The survey points out that the priority for the Government will be to fight high inflation by reducing the fiscal impetus to demand as well as by focusing on incentivizing food

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Economic Survey 2012-13: Expecting Turnaround


production through measures other than price supports. But unlike the previous year, when food inflation was mainly driven by higher protein food prices, this year the pressure has been coming mainly from cereals. On the Balance of Payments and External Position, the survey highlights that with net exports declining, Indias balance of payments has come under pressure. Moreover, in the current fiscal, foreign exchange reserves have fluctuated between US$ 286 billion and US$ 295.6 billion, while the rupee remained volatile in the range of Rs 53.02 to Rs 54.78 per US dollar during October 2012 to January 2013. The survey had a special chapter focusing on jobs. The future holds promise for India provided we can seize the demographic dividend as nearly half the additions to the Indian labour force over the period 2011-30 will be in the age group 30-49. India is creating jobs in industry but mainly in low productivity construction and not enough formal jobs in manufacturing, which typically are higher productivity. The high productivity service sector is also not creating enough jobs. As the number of people looking for jobs rises, both because of the population dividend and because share of agriculture shrinks, these vulnerabilities will become important. Because good jobs are both the pathway to growth as well as the best form of inclusion, India has to think of ways of enabling their creation. The survey calls for a widening of the tax base, and prioritization of expenditure as key ingredients of a credible medium term fiscal consolidation plan. This along with demand compression and augmented agricultural production should lead to lower inflation, giving the RBI the requisite flexibility to reduce policy rates. Lower interest rates could provide an additional fillip to investment activity for the industry and services sectors, especially if some of the regulatory, bureaucratic, and financial impediments to investment are eased. On financial sector reform, it takes note of the high level of gross NPAs (non-performing assets) of the banking sector which increased from 2.36 percent of the total credit advanced in March 2011 to 3.57 percent of total credit advanced in September 2012. The survey suggests that revival of growth will help contain NPAs, but more attention will have to be paid to whether projects are adequately capitalized up front given the risks. Expenditure on social services also increased considerably in the 12th Plan, with the education sector accounting for the largest share, followed by health. In the 11th Plan period nearly 7 lakh crore rupees has been spent on the 15 major flagshipprogrammes. A number of legislative steps have also been taken to secure the rights of people, like the RTI, MGNREGA, the Forest Rights Act, AND THE Right to Education. However, the survey notes that there are pressing governance issues like programme leakages and funds not reaching the targeted beneficiaries that need to be addressed. Direct Benefit Transfer (DBT) with the help of the Unique Identification Number (Aadhaar) can help plug some of these leakages. With the 12thPlans focus on environmental sustainability, India is on the right track. However, the challenge for India is to make the key drivers and enablers of growth-be it infrastructure, the transportation sector, housing, or sustainable agriculture-grow sustainably. Dr. Raghuram G. Rajan, Chief Economic Adviser, Ministry of Finance writes in an introduction to the Survey that these are difficult times, but India has navigated such times before, and with good policies it will come through stronger. Slowdown is a wake-up call for increasing the pace of actions and reforms. The way out lies in shifting national spending from consumption to investment, removing the bottlenecks to investment, growth, and job creation, in part through structural reforms, combating inflation both through monetary and supply side measures, reducing the costs for borrowers of raising finances and increasing the opportunities for savers to get strong real investment returns. The slowdown in Indian economy was attributed largely to weakening industrial growth growth. The industrial sector has performed poorly, retreating to a 27% share of the GDP. The services sector however continued to be a star performer as its share in GDP climbed from 58% in 2010-11 to 59% in 2011-12 with a growth rate of 9.4%. Agriculture and allied sectors were estimated to achieve a growth rate of 2.5% in 2011-12. Agriculture & allied sectors were are estimated to achieve a growth rate of 2.5% in 2011-12 with foodgrains production likely to cross 250.42 million tones as a result of increase in the production of rice in a number of states. Overall growth during AprilDecember 2011 reached 3.6% compared to 8.3% in the corresponding period of the previous year. The fiscal 2011-12 was marked by a sharp depreciation of the Indian rupee. rupee In the current fiscal 2011-12, on month-to-month basis the rupee depreciated by 12.4 per cent from 44.97 per US dollar in

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Economic Survey 2012-13: Expecting Turnaround


March 2011 to 51.34 per US dollar in January 2012. Rupee reached a peak of 43.94 on 27 July 27 2011 and lowest at 54.23 per US dollar on 15 December 2011 indicating a depreciation of 19 per cent. The RBI was required to sell dollars twice in the fiscal to help raise the value of the rupee. Also in 2011-12 Indias external debt stock increased by US $ 20.2 billion (6.6 per cent) to US $ 326.6 billion at end-September 2011 vis--vis US $ 306.4 billion at end-March 2011, primarily due to higher commercial borrowings and short-term debt. Inflation as measured by the wholesale price index (WPI) remained high during greater part of 2011-12 fiscal, though by year end a noticeable slowdown in price rise was registered. Food inflation, in particular came down significantly. RBI adopted stringent monetary policies to control inflation as well as curb inflationary pressures. The high rate of interest established by the central bank lowered growth rate of investment in the economy as the sharp increase in interest rates resulted in higher costs of borrowings and other rising costs affecting profitability. Economic Survey 2011-12 stated that Indias foreign trade performance will remain a key driver of growth in the coming fiscal 2012-13. During the first half of 201112, Indias export growth was 40.5%, but it failed to remain high for the entire fiscal. Imports grew rapidly, by 30.4% during 2011-12 (AprilDecember). Indias Balance of Payments widened to $ 32.8 billion in the first half of 2011-12, compared to $29.6 billion during the corresponding period of the earlier fiscal 2010-11. The foreign exchange reserves increased from US $ 279 billion at end March 2010 to US $ 305 billion at end March 2011. Reserves were found to vary from an all-time peak of US$ 322.2 billion at end August 2011 and a low of US $ 292.8 billion at end-January 2012. Wholesale Price Index (WPI) which remained persistently high throughout 2011 due to increasing global commodity prices and high crude prices began to moderate and it is expected to touch 6.5 to 7 percent by March 2012. Economic Survey 2011-12 observed that in 2011-12 the gap between WPI and CPI inflation narrowed due to sharp fall in food inflation. CPI-IW inflation, after remaining in single digit from August 2010 to August 2011, briefly touched double digits at 10.1 percent in September 2011. It however came down to 6.5 percent in December 2011. T h e banking sector sector- public and private showed impressive increase in priority sector lending. The Economic Survey 2011-12 underlined the fact that flow of agricultural credit was highly impressive. The Indian banking system disbursed credit of Rs 446779 crore to the agricultural sector as against a target of Rs 375000 crore in-2010-11. The Labour Bureau conducted twelve quarterly quick employment surveys to assess the impact of the economic slowdown on the employment sector sector. The surveys indicated an upward trend in employment since July 2009 was maintained. Overall employment in September 2011 over September 2010 increased by 9.11 lakh, with the highest increase recorded in IT/BPO (7.96 lakh) sector. The coverage under t h e MGNREGA consistently increased from 4.51 crore households during 2008-09 to 5.49 crore households during 2010-11 with averaged employment of 47 persondays per household. Average wage increased from Rs 65 in 200607 to Rs. 100 in 2010-11. The Survey stated that to strengthen transparency and accountability in the implementation of the MGNREGA, the Government initiated a service delivery project for Information and Communication Technology (ICT) and biometrics related works of the MGNREGA on PPP basis. The performance of broad sectors and sub sectors in key infrastructure areas in 2011-12 was both good and bad. Whereas there was improvement in growth in power, petroleum refinery, cement, railway freight traffic, passenger handled at domestic terminals and upgradation of NHAI, coal, natural gas, fertilizers, handling of export cargo at airports and number of cell phone connections show negative growth. Steel sector witnessed moderation in growth. Survey Suggestions Sustainable development and climate change were recognized by the survey as central areas of global concern. The Survey suggested need to examine the linkages and trade-offs between policy rate changes and inflation in the Indian context, for better calibration of monetary policy. The Economic Survey 2011-12 stated that it was essential to make lower carbon sustainable growth a central element of our Twelfth Five Year Plan commencing in April 2012. Cushion for lowering trade deficit to be limited Controlling subsidy expenditure remains crucial Core inflation down on rbi action, fall in global prices Future shift in RBI policy stance would be desirable Concerns that food security bill may push up subsidy Lower industrial growth due to sluggish investments

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Economic Survey 2012-13: Expecting Turnaround


Impact of policy easing may not lead to inflation surge Tax mop-up slippage can be lowered with additional efforts Inflation expectation anchored around current inflation targets The latest Survey, fortunately, neither exaggerates nor downplays the causes and consequences of the current economic problems. The slowdown, characterised by low growth and high inflation, is rooted in domestic as well as external causes. During the two years 200910 and 2010-11, the post-crisis stimulus led to strong growth and boosted consumption. That, along with supply side constraints, led to higher inflation which, in turn, produced monetary tightening and sharply lower growth. The two obvious policy measures to regain a higher growth trajectory are, therefore, a softening of monetary policy and the easing of supply bottlenecks, especially relating to infrastructure. Positing a bottoming out of the economy, the Survey optimistically predicts a growth rate of between 6.1 and 6.7 per cent during 2013-14, sharply higher than the 5 per cent during this year. It says headline inflation will fall to between 6.2 and 6.6 per cent by the end of next month. There are, however, good reasons why we may not meet those targets. Since growth is strongly correlated with investment, it is necessary to bridge the savingsinvestment gap which rose to minus 4.2 per cent of GDP at the end of last year. With savings by the government and private sector shrinking, the current account deficit i.e. the investment that cannot be financed by domestic savings and has to be financed from abroad widened. Together, the CAD and fiscal deficit threaten macroeconomic stability and are sure to figure high up in the budgets list of prime concerns. The Surveys suggestions for reining in subsidies are not new. It has emphasised the need for better targeting and reduced leakages in their delivery. These are areas which the Finance Minister will most likely address. Also certain are allocations to support the National Food Security legislation, a major socio-economic and indeed political initiative of the government in the run up to the next general election. Although the subsidy outgo might go up, the Survey is absolutely right when it calls for this important scheme to be supported. The Economic Survey in conclusion mentioned that India is more closely integrated with the world economy as its share of trade to GDP of goods and services tripled between 1990-2010. The extent of financial integration, measured by flows of capital as a share of GDP also increased leading to an expansion of Indias role in the world economy. Srishti Sinha

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From Hunger to Food Security

From Hunger to Food Security


The Union Cabinet, headed by Prime Minister Manmohan Singh, on 19 March 2013 approved the National Food Security Bill. The food security bill approved is directed towards giving the right to food to around 67 per cent of Indias 120-crore population. The amendments to the Bill will guarantee 5 kg of foodgrains per person per month, while families in the poorest of the poor will continue to get 35 kg of grains per month. As per the bill around 800 crore people will be entitled to get five kilos of subsidised grain per month. Rice will be made available at 3 Rupees per kilo; wheat will cost 2 rupees a kilo and cereal will be sold for 1 Rupees per kilo. The beneficiaries are supposed to be decided by state governments, while the criteria to exclude 33 per cent of population would be provided by the Planning Commission, Thomas said. The scheme will be linked to the Aadhar scheme which provides every citizen with a unique identification number thats linked to a database that includes the biometrics of all card-holders. It is also evident from the present year budget, that 90000 crore Rupees is allocated for spending on food subsidies with the government setting aside an extra 10 000 crore Rupees for the bill. In earlier versions, the Food Security Bill assigned subsidised grains on the basis of priority and general groups, which were demarcated on the basis of poverty levels. The Cabinet gave its nod to the 71 amendments proposed by the Food Ministry, including the one that said the 2.43 crore Antyodaya Anna Yojna beneficiary households will continue to get their quota of 35 kg grains a month under the public distribution system. Using the census data of 1982, the population was divided into 16 groups defined by age, gender and activity, with recommended calorie intakes varying from 300 calories for children below 1 year, to 3,800 calories for a young man doing heavy work. The average norm was derived as a weighted average: 2,435 and 2,095 calories per person respectively for rural and urban areas, rounded down to 2,400 and up to 2,100. These nutrition norms have since been the accepted basis for poverty studies in India. This is a minimalist definition of poverty, however, since no spending norms are set for essential non-food items such as fuel (for cooking and lighting), clothing, shelter, transport, medical care or education. A household observed to be above the so-called poverty level expenditure satisfies only the nutritional norm and may not be able to access adequate amounts of other necessary goods and services from its non-food expenditure. Highlights of the Bill The Bill proposes foodgrain entitlements for up to 75 percent of the rural and up to 50 percent of the urban population. Of these, at least 46 percent of the rural and 28 percent of the urban population will be designated as priority households. The rest will be designated as general households.

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From Hunger to Food Security


Priority households will be entitled to 7 kg of subsidised foodgrains per person per month. General households will be entitled to at least 3 kg. The central government will determine the percentage of people in each state that will belong to the priority and general groups. State governments will identify households that belong to these groups. The Bill proposes meal entitlements to specific groups. These include: pregnant women and lactating mothers, children between the ages of six months and 14 years, malnourished children, disaster affected persons, and destitute, homeless and starving persons. Grievance redressal mechanisms will be set up at the district, state, and central levels of government. The Bill proposes reforms to the Targeted Public Distribution System. Key Issues and Analysis The Bill classifies beneficiaries into three groups. The process of identifying beneficiaries and placing them into these groups may lead to large inclusion and exclusion errors. Several entitlements and the grievance redressal structure would require state legislatures to make adequate budgetary allocations. Implementation of the Bill may be affected if states do not pass requisite allocations in their budgets or do not possess adequate funds. The Bill does not provide a rationale for the cut-off numbers prescribed for entitlements to priority and general households. The grievance redressal framework may overlap with that provided in the Citizens Charter Bill that is pending in Parliament. Schedule III of the Bill specifies goals which may not be directly related to food security. It is unclear why these have been included in the Bill. The Bill provides similar definitions for starving and destitute persons. However, entitlements to the two groups differ. The year 2013 marks the 70th anniversary of the Bengal Famine which resulted in the death of an estimated 1.5 to 3 million children, women and men during 1942-43. A constellation of factors led to this mega-tragedy, such as the Japanese occupation of Burma, the damage to the aman(kharif) rice crop both due to tidal waves and a disease epidemic caused by the fungus Helminthosporium oryzae , panic purchase and hoarding by the rich, failure of governance, particularly in relation to the equitable distribution of the available food grains, disruption of communication due to World War II, and the indifference of the then U.K. government to the plight of the starving people of undivided Bengal. Famines were frequent in colonial India and some estimates indicate that 30 to 40 million died out of starvation in Tamil Nadu, Bihar and Bengal during the later half of the 19th century. This led to the formulation of elaborate Famine Codes by the then colonial government, indicating the relief measures that should be put in place when crops fail. The Bengal Famine attracted much attention both among the media and the public, since it occurred soon after Mahatma Gandhis Quit India call to the British in 1942. Agricultural stagnation and famines were regarded among the major adverse consequences of colonial rule. I wish to narrate the impact of the twin developments, namely, Bengal Famine on the one hand, and the Quit India movement on the other, on the minds of students like me. I was studying at the University College, Thiruvananthapuram, during 1940-44, when gruesome pictures of starving children, women and men on the streets of Kolkata and in other parts of Bengal appeared in The Hindu , t h e Statesman and other newspapers. The goal of my University education was to get into a medical college and equip myself to run a hospital in Kumbakonam left behind by my father, M.K. Sambasivan, who died at a young age in 1936. The transformational factor was procurement of food grains from farmers at a minimum support price fixed on the basis of the advice of the Agricultural Prices Commission. A small government programme titled High Yielding Varieties Programme became a mass movement owing to the enthusiasm generated among farm families both by the yield revolution and the opportunities for assured and remunerative marketing. Wheat production has continued to rise since 1968 and has now reached a level of 92 million tonnes. A third important factor was the synergy brought about among scientific know-how, political do-how and farmers toil, often referred to as the green-revolution symphony. While we can be legitimately proud of our progress in the production of wheat and rice and other cereals and millets leading to the commitment of government of over 60 million tonnes of foodgrains for implementing the provisions of the

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From Hunger to Food Security


Food Security Bill, there is no time to relax since dark clouds are gathering on the horizon. There would be three threats to the future of food production and our sustained capacity to implement the provisions of the Food Security Bill. First, prime farmland is going out of agriculture for non-farm purposes such as real estate and biofuels. Globally, the impact of biofuels on food security has become an increasing concern. A High Level Panel of Experts on Food Security and Nutrition (HLPE) of the World Commission on Food Security (CFS), which I chair, will be submitting a report shortly on Biofuels and Food Security. In this report, we are pointing out that if 10 per cent of all transport fuels were to be achieved through biofuels in the world, this would absorb 26 per cent of all crop production and 85 per cent of the worlds fresh water resources. Therefore, it will be prudent for all countries to accord food security the pride of place in the national land use policy. On the occasion of the 70th anniversary of the Bengal Famine, we should derive strength from the fact that we have so far proved the prophets of doom wrong. At the same time, we need to redouble our efforts to help our farmers to produce more and more food and other commodities under conditions of diminishing per capita availability of arable land and irrigation water. This will be possible if the production techniques of the evergreen revolution approach are followed and farmers are assisted with appropriate public policies to keep agriculture an economically viable occupation. This is also essential to attract and retain youth in farming. If agriculture goes wrong, nothing else will have a chance to go right. From the very beginning it has been taken for granted that industrialisation is the only panacea for development. Our economic policies were so designed that agriculture was categorised as unskilled labour. Urban areas and industrial enterprises received huge government subsidies, at the cost of agriculture. As a consequence, small farmers and rural labour suffered the inevitable impoverishment. The Green Revolution, sponsored by big industry, was imposed on India. Under the regime, improved seeds were produced that survived only on a strong dose of chemicals, fertilisers and pesticides. During a study on wheat production in five states, including Madhya Pradesh, it was revealed that the average cost of production per hectare, which was Rs 561 in the decade 19811990, has risen to a whopping Rs 7,673.70. As a result, traditional farming suffered an untimely demise; agriculture became a for markets, (controlled), by markets enterprise. Small farmers got trapped in debt, and easily cultivable and nutritious coarse pulses and oilseeds became unpopular. Modern, mechanised forms of farming made a huge population of rural labour redundant. Now there is the scourge of a Second Green Revolution in the form of contract farming and industrial-farming. In this age of biofuel, cane, corn and other such produce are being intensively cultivated for fuel purposes only. Agriculture is being controlled by MNCs and large corporations. How can food security be guaranteed by grabbing natural resources like water and land from small, vulnerable farmers for the purpose of handing them over to big industries? The National Food Security Bill serves only to register the fact that hunger is a real cause for concern, as in its present form, the bill is not adequately endowed with a vision to address the structural causes of Indias food and nutritional insecurities. Three basic issues need to be highlighted. First, the bill dwells on targeting vis--vis universalisation, re-invoking the contentious BPL-APL issue (priority and non-priority households). Intended benefits will be provided to people based on these categories. It is a well-known fact that successive governments have failed to identify the poor. As a result, a large part of the countrys population continues to struggle with hunger in various forms. In such a grim scenario, the government should be talking about universalisation, which is an integral part of the fundamental right to life. Second, the bill provides for the supply of 7 kg of subsidised foodgrain per person per month to priority households, whereas a person needs 14 kg a month to fulfil her basic food requirements. Third, the proposed entitlements do not deal with the problem of nutritional insecurity. People in India suffer undernourishment mainly due to protein and fat deficiencies. To cope with this problem, the government should have included pulses (to compensate for protein) and edible oil (to replenish fat). The preamble of the bill says: the Supreme Court of India has recognised the right to food and nutrition as integral to the right to life Today development is understood only in the narrow sense of economic growth and GDP. Successive governments have not stepped out of this familiar paradigm to address improvements in living standards and enhancement of peoples wellbeing. How can we

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From Hunger to Food Security


accept a growth trend wherein 70% of total GDP is directly under the control of 8% of Indias elite? Growth is important, as it helps create a conducive environment for people to better their living standards. But we cannot accept a growth trajectory that curtails opportunities for the common man and grabs common property and natural resources for short-term gain. While Indias economy has been growing at 6-9% in the last 12 years, undernutrition among her children has dropped a mere 1% in the eight-year period 1998-99 to 2006. Should we accept a token 0.1% decline in childhood hunger per year? We need to understand that underfed people are unable to contribute, even if provided with opportunities, because of lack of capability. We must therefore build an environment of empowerment with nutritional security. Indias growth story has a flip side. Present levels of malnutrition result in a 2-3% decline in GDP. It causes delays in education, triggers learning disabilities, affects the overall physical and cognitive development of children at an early age. Every year, India loses 1.3 million children under the age of 5 due to undernutrition and nonavailability/inaccessibility to basic healthcare. Neighbouring Bhutan measures its development according to a happiness index. With the developed world in the grip of a debilitating economic crisis and the citizens of many countries protesting against prevalent economic policies, India must decide whether peoples wellbeing takes precedence over creating a tiny island of opulence for a handful of people. We contribute 40% to the worlds overall maternal, neo-natal, infant and child deaths. We have half the worlds undernourished children. Fifty-four per cent of our women suffer from anaemia. We have to end this national variety of colonialism where corporations rule over our farmers and labourers and traders indulge in the business of education and health services and keep people deprived of the very basic services in the name of growth. The resources generated through growth should go towards the wellbeing of all people. Not to subsidise corporations. The proposed bill reposes great faith in targeting the so-called poor and non-poor (under priority and general households). Lets remind ourselves that we have been hopelessly unsuccessful in identifying the poor and continue to implement our most crucial food/ social entitlement programmes along exclusionary poverty lines. The argument further by citing the fact that over 1.6 million hectares of land have been transferred for real-estate and industrial development purposes; natural forest cover is rapidly declining; water resources are drying up and becoming polluted; agricultural production costs have gone up by 189% in the last 20 years; small and marginal farmers have seen no policy interventions aimed at structural protection against the marauders of the open market. We are talking about a growth scenario wherein India needed to create employment opportunities for 45 million people; it could provide employment to only 2.1 million. All these factors are at the root of hunger. Professor Arjun Sengupta, in his report on the unorganised sector, mentions that 77% of Indias population survives on Rs 20 a day. On the other hand, NNMB (National Nutrition Monitoring Bureau) figures show that 76.8% of the population does not receive the prescribed amounts of nutrition! In the two decades of our new economic policy, one thing emerges strongly: 90% of Indias population received no benefit from it. They manage to survive on the fringes of our political economy. Although our country is being run by economists, they sound helpless and illinformed. Has anyone from the Planning Commission, PMO or RBI ever said publicly that the government doled out almost Rs 6.22 lakh crore as tax revenue subsidy in the financial year 201112? This is registered as taxes foregone, and accounts for 65% of the governments total revenue. Last year, the figure was Rs 5.36 lakh crore. A total of Rs 23 lakh crore in six years has been stashed away in the corporate worlds coffers. No one has questioned this. Meanwhile, the agriculture subsidy has been converted into direct loans to farmers; petrol has been handed over to the market; public expenditure on basic services like health, education and access to clean water is dropping. Why the hue and cry about NFSA expenditure? We are already spending Rs 67,310 crore on food subsidies; there will be an increase of only another Rs 30,000 crore (a mere 4% of taxes being usurped by the corporate-economist-government nexus). And what will that do? It will restore the dignity of the people of India. It will help feed the 77 crore people sleeping hungry. The Government of India will only be giving a subsidy of Rs 1,188 per person per year, or Rs 3.25 a day. And still we have ministers, economists, policymakers and consultants who are unhappy with the idea! This is the outcome of welfare politics which has become imperative in the last decade or so. We have been running the Integrated Child Development

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MAY 2013

From Hunger to Food Security


Services programme with a plan to spend Rs 80,000 crore in the next five years; the midday meal scheme is already in place. We have a 17 crore under-6 child population, 45% of which is undernourished. But we barely spend Rs 1.62 per child per day on their growth and nutrition. The fact of the matter is that the private food market will lose out on profits due to this legislation, and there will be a control over inflation. The market finds this unacceptable. Take the example of the second and third quarter of 2011-12. While the growth rate came down to 6.8%, food inflation also declined from 16% to 1.7%. There is an argument that it would be better for the government to focus on productivity enhancement rather than on doling out subsidies at the expense of taxpayers. But these two things are not mutually exclusive, they are complementary. India is not a fooddeficit country; we produce surplus foodgrain, we throw it in the sea, we export it. But, for various reasons, it does not reach our hungry people. Part of this discussion is linked to public procurement and a minimum support price. If the government stops subsidising agriculture, profit-makers will benefit and consumers will have to pay high prices. Take the example of pulses. We pay Rs 36 per kg as the minimum support price to the farmer for tur dal, but the market price was Rs 110 some time ago. There is an urgent need to ensure maximum public procurement, and this can only be done and applied through the public distribution system. The second aspect deals with policy. For the last 20 years, per capita food production in India has been stagnant at around 460 grams per person per day. Although pulses are a key source of protein, their availability has gone down from 70 grams per day in the 1960s to 42 grams in recent times. We adopted new technologies hybrid seeds, chemical fertiliser and pesticides in order to increase agricultural production. Punjab sacrificed its community techniques and blindly used chemicals resulting, finally, in steep declines in soil fertility. The important point is that while our budget grew 5,000 times its inaugural size, food production grew by a measly 400% over the same period. In rural India today, 23 crore people are under-nourished, and 50% of children fall victim to malnutrition. Every third Indian in the age-group 15-49 years is feeblebodied. The government is presently grappling with the target of 22.8 crore tonnes of grain production; it needs to reach a target of 25-26 crore tonnes by the year 2015. The situation is so grim that today every fourth malnourished global citizen is an Indian. While countless Indian citizens are condemned to sleep on empty stomachs, crores of tonnes of foodgrain rot in the countrys godowns. India has the capacity to store 415 lakh tonnes of grain in its godowns, yet 190 lakh tonnes are stored outside under thin plastic sheets. Speedy distribution of this grain could feed many hungry Indians. Despite instructions from the Supreme Court to distribute 35 kg of foodgrain per person, only 2025 kg per capita is being distributed. This shortfall can be addressed by proper utilisation of grain rotting out in the open. Only lack of political and administrative will can be blamed for such debilitating ennui. Will food security bill take the targeted approach or one aimed at universalisation of food security? If food security is considered an integral part of the fundamental right to life, how can the targeted approach even be considered? When exclusion and caste/class/ gender discrimination have been key to social, political and economic structures, how can any targeted approach address the hunger and food insecurity situation in our country today? The present crisis of food insecurity is due to the consistent exploitation and negligence of agriculture and the rural sector. Even in this age of breakneck urbanisation, two-thirds of our population depend on agriculture whereas its total contribution to Indias GDP is a dismal 17%. At the other end of the spectrum, private enterprises that are a minuscule 1%, stake their claim to one-third of our GDP. Real food security can only be achieved through an entirely new form of polity. So, we can only hope that this National Food Security Bill will led us to Hunger to Food Security. Amit Kumar

MAY 2013

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From Hunger to Food Security

Is It Enough
The Union Cabinet on 14 March 2013 cleared a Bill providing for severe punishment for rape, acid attack, stalking and voyeurism more to the point reducing the age of consent for sex to 16 years. The bill which was named the Criminal Law (Amendment) Bill, 2013 l lowers the age of consent for sex from 18 to 16 years with making of rape as a gender-specific offence under which men only can be charged for it. The Bill is brought in line with the Indian Penal Code, but at variance with the Child Protection Act, 2012, which raised it to 18. The Criminal Law (Amendment) Bill, 2013 commonly known as the anti-rape bill came into force on, April 3 after President Pranab Mukherjee put his signature into the bill. The bill has been termed by the government as the single pill to address all ills (crimes) against women. But, the question is whether the bill can protect women in India. Is having a bill enough to end crimes against women? Or, better implementation of laws, more sensitive police, civil society and change in mind set can tackle the issue of crime against women? There were agreements and disagreements, but finally the Criminal Law (Amendment) Act 2013 or anti-rape law has been passed by Upper House of Parliament (Rajya Sabha) on, March 21. Earlier, the Bill was passed by the Lok Sabha (Lower House) on, March 19. Once President Pranab Mukherkee ratifies it and issues a notification, the Bill will become a law. The need for a strict law to deal with sex crimes against women was felt after the brutal gang-rape and murder of a 23-year-old Paramedical student in a moving bus in the national capital on December 16, last year. The victim died 13 days after the incident in a Singapore hospital on December 29, last year. The brutality of the crime shocked the nation. Indians protested on the streets to demand better safety measures for women and strict laws to punish the culprits. Under public pressure, Congress-led UPA government at the Centre formed Justice JS Verma panel to come up with strict laws to arrest crime against women. The Cabinet approved it, before it was put to test on the Parliament. The Bill got nod from almost all the political parties, including main opposition party Bharatiya Janata Party (BJP) with minor disagreements on some of the provisions in the Bill. We have tried to bring in a strong law, which is prowomen and will act as a deterrent, Home Minister Sushil Kumar Shinde told lawmakers in the upper house of Parliament which approved the bill Thursday. Such legislation has come to India for the first time and the parliament has given its approval. It will create a revolution in the country, he added. Some of the key points in anti-rape Bill 1. The law maintains life imprisonment for rape as the maximum sentence, yet sets down the death penalty for repeat offenders and those whose victims are left in a vegetative state. 2. It also expands the meaning of rape to include penetration of the mouth, anus, urethra or vagina with the

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MAY 2013

Is It Enough
penis or any other object without consent. 3. It also defines stalking and voyeurism as crimes with punishments up to seven years. 4. Gang rape has been recognised as an offence, while sexual harassment has been redefined to include unwelcome advances with sexual overtures and showing pornography without consent. 5. The age of consent of sex has been kept at 18. 6. The law also punishes police and hospital authorities with imprisonment of up to two years if they fail to register a complaint or treat a victim. The bill brought against the milieu of the 16 December 2012 Delhi gangrape, provides for minimum jail term of 20 years for rape which may be extended t o natural life of the convict in jail. There is also provision for death sentence if the victim dies or is left in a persistent vegetative state. Stalking, voyeurisms have been defined as criminal offences in the bill. Sustained stalking will be a nonbailable offence. As per the bill there is replacement in more general expression sexual assault used in the ordinance. It also provides for the death sentence if the rape victim dies or ends up in a vegetative state. The approval of the Cabinet paves the way for introduction of the Criminal Law (Amendment) Bill, 2013 in Parliament before it goes into recess on 22 March 2013. The bill also proposes a punishment of not less than 10 years to a maximum of life imprisonment Defining acid attack as a separate IPC offence. Repeat offences of voyeurism, inappropriate touch, gesture and remarks have been recommended as non-bailable offences. The Union Cabinet today approved the proposal for introduction of the Criminal Law (Amendment ) Bill, 2012 in the Parliament. The Law Commission of India in its 172nd Report on Review of Rape Laws as well the National Commission for Women have recommended for stringent punishment for the offence of rape. The High Powered Committee (HPC) constituted under the Chairmanship of Union Home Secretary examined the recommendations of Law Commission, NCW and suggestions various quarters on the subject submitted its Report along with the draft Criminal Law (Amendment) Bill, 2011 and recommended to the Government for its enactment. The draft was further examined in consultation with the Ministry of Women and Child Development and the Ministry of Law & Justice and the draft Criminal Law (Amendment) Bill, 2012 was prepared. The highlights of the Bill include substituting sections 375, 376, 376A and 376B by replacing the existing sections 375, 376, 376A, 376B, 376C and 376D of the Indian Penal Code,1860, replacing the word rape wherever it occurs by the words sexual assault, to make the offence of sexual assault gender neutral, and also widening the scope of the offence sexual assault. The punishment for sexual assault will be for a minimum of seven years which may extend to imprisonment for life and also fine for aggravated sexual assault, i.e., by a police officer within his jurisdiction or a public servant / manager or person talking advantage of his position of authority etc. The punishment will be rigorous imprisonment which shall not be less than ten years which may extend to life imprisonment and also fine. The age of consent has been raised from 16 years to 18 years in sexual assault. However, it is proposed that the sexual intercourse by a man with own wife being under sixteen years of age is not sexual assault. Provision for enhancement of punishment under sections 354 and 509 of IPC and insertion of sections 326A and 326B in the IPC for making acid attack a specific offence have been made. R K Seth

MAY 2013

MCQ Series

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National Issues

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UPSC Changed the Scheme of Civil Services MAIN Examination 2013 Union Public Service Commission in its latest notification released on 6 March 2013 changed the Scheme of Civil Services {MAIN (Written+Interview/Personality Test)} Examination, 2013. The commission had also made some changes in the choice of language medium in the Civil Services (Main) Examination. For the first time in the history of Civil Services the candidates planning to apply for the Civil Services Examination or Indian Forest Service Examination or both will have to fill in this common Application Form. Comparison of Changes Implemented in the Syllabus of the Examination
Previous Essay 200 Marks General Studies Paper I and II Marks carried by General Studies was 2*300=600 Optional A Paper I - 300 Marks, Paper II - 300 Marks Optional B Paper I - 300 Marks, Paper II - 300 Marks Interview/Personality Test - 300 Optional B (No more in existence) Interview/Personality Test 275 marks Present Essay 250 Marks General Studies Paper I, II, III and IV Marks carried by General Studies was 4*250=1000 Optional A Paper I - 250 Marks, Paper II - 250 Marks

New topics added to the Syllabus Include In Paper I Section 2 - English Prcis of Matriculation or 10th standard level had been added In Paper II General Studies I part the History and Geography of the World and Society had been added In Paper IV General Studies III Disaster Management had been added along with Technology, Economic Development, Bio-diversity, Environment and Security In Paper-V General Studies IV Ethics, Integrity and Aptitude has been added Analysis The weightage of marks of the interview have been kept at the same standard of 13 percent, i.e. Previously the Interview Carried: 300/2300*100=13 percent approx At Present 275/2075*100=13 percent approx Similarly the weightage of the

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MAY 2013

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Optional Paper had been reduced from 52 percent to 24 percent, i.e. Previously it was 1200/ 2300*100=52%approx And now it is 500/ 2075*100=24%approx In case of the General Studies Paper the Weightage of Marks have gone up to 48 percent from 26 percent, i.e. Previously it was 600/ 2300*100=26%; And now it is 1000/ 2075*100=48% Indias First All Women Post Office Remote Village Electrification (RVE) for a total of 6033 villages as well as hamlets was sanctioned during 11th Plan by the Ministry of New and Renewable Energy. Additionally, work on 5211 villages as well as hamlets, was in its completion stage in various states such as Odisha and Tamil Nadu. Two proposals of 61 hamlets as well as 161 hamlets of UP along with one proposal of 14 villages of Rajasthan and one proposal of 24 villages and 274 hamlets of Jammu & Kashmir, were in all received and were under initial stage of appraisal. It is important to note that the Remote Village Electrification (RVE) programme as well as projects are usually sanctioned on the case-tocase basis after these proposals are submitted by the state notified implementing agencies according to the guidelines of this scheme. The respective state notified implementing agencies carry out the monitoring of implementation of RVE projects. For the purpose of final closure of the project, it is important that the third party, i.e., agency appointed by the concerned state notified implementing agency monitors the project. Also, it is important that the implementing agencies make sure that the system Assistant Superintendent of Post Offices of the Postal Sub Division and Senior Superintendent of Post Offices of Delhi Central division of this Post Office are also women. Remote Village Electrification for 6033 Villages functions properly after installation. At present, the RVE programme was sanctioned to be continued up to 31 March 2013. However, a new scheme called Rural Area Energy Access Programme I would be developed after modification of the existing RVE scheme. Changes in Bill to Tackle Bribery by Foreigners Union Government on 18 March 2013 approved changes in a proposed legislation according to which accepting or giving bribe by foreign public officials is a criminal offence implicating imprisonment of up to seven years among others penal provisions. The bill which was named The Prevention of Bribery of Foreign Public Officials and Officials of Public International Organisations Bill, 2011 was amended officially with the approval by the Union Cabinet. It is evident that Bribery by foreign nationals is not covered under any domestic anti-corruption laws at present. So, the legislation, if passed by Parliament, will be a separate law to deal with bribery by foreign public officials. As per the proposed Bill, the government can attach, seize and confiscate property of offenders. In addition it also has a provision for extradition of an accused official. The Bill, besides having a provision to punish both bribe taker and giver, also help empowering the government to enter into agreements with other countries or contracting states for enforcing this law and for exchange of investigative information. The Bill was introduced in Lok Sabha on 25 March 2011 and referred to a Parliamentary Standing Committee in the month of April 2011. A report on the bill was given by the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice on 29 March 2012.

MAY 2013

Union Minister of Communications & IT, Kapil Sibal on 8 March 2013 inaugurated the First All Women Employees Post Office of India at Shastri Bhawan in New Delhi. The Post Office is called Project Arrow Office and consists of three counters. Two of the three counters offer Multi Purpose services such as registration, booking of money orders, booking of speed post as well as sale of IPOs. Other counter is meant to facilitate the sale of stamps. All the three counters will have only women employees. Overall, there are 1003 women employees at operative level in Delhi circle. The percentage of these women in overall workforce is around 14 percent. In administrative cadres, percentage of women employees is 22 percent. It is also important to note that the Junior Engineer [Civil] - the incharge of maintenance of the post office building, as well as the

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Electronics Project Proposal System e-PPS launched are further processed The system would create a One-Go-Dash-Board to monitor the projects from its initiation to completion Will ease the processing time of the proposal and dissemination of the project information Criminal Law (Amendment) Bill 2013 Passed in the Lok Sabha Union Minister Kapil Sibal on 6 March 2013 launched the Electronics Project Proposal System (e-PPS), developed by the Department of Electronics and Information Technology, through the Centre for Development of Advanced Computing (C-DAC) during a round table discussion with Academia, Industry and R&D Organisation. The e-PPS system will initially start as a pilot project. What is Electronic Project Proposal System (e-PPS) It is a web based system in form of solution to fund the R&D projects, which will start from online submission of the project proposal for funds and will monitor as well as manage the funded projects. Processes Supported by the e-PPS System Online submission of project proposals Evaluation of proposals by experts Project recommendations Project Monitoring Impact of the e-PPS System It will replace existing manual system of project funding in which the project investigators submit hard copies of R&D proposals, which are presented to a Working Group and based on the recommendations of the Working Group the proposals Offences Act as well as Indian Evidence Act. The bill states that offender could be given an imprisonment of not less than 20 years, extendable up to life term. The bill also includes provisions for death sentence for offenders who are convicted earlier for such crimes. This is for the first time that the bill described voyeurism and stalking as the non-bailable offences, in case repeated for the second time. Perpetrators of acid attacks would be sentenced for 10year jail term.

The Criminal Law (Amendment) Bill 2013 w a s passed in the Lok Sabha on 19 March 2013. Now the bill will be the tabled in the Rajya Sabha where the voting will take place. The bill encompasses features that will provide stringent punishment for crimes against women such as rape, acid attacks, voyeurism and stalking. The punishments range from life term to death penalty for the repeated offenders. The Bill brought out after the Delhi gangrape of the Para-medical student on 16 December 2012, also fixed the age of consensual sex to 18 years. The key features of the Criminal Law (Amendment) Bill 2013 passed in the Lok Sabha are as follows: The Criminal Law (Amendment) Bill 2013 was actually the Ordinance that was promulgated by the President of India on 3 February 2013. The bill seeks to make amendments in the Code of Criminal Procedure, Indian Penal Code, Protection of Children from Sexual

New Offences Incorporated in the Indian Penal Code (IPC)

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MAY 2013

The Criminal Law (Amendment) Bill 2013 incorporated new offences in the Indian Penal Code (IPC) which are as follows: Acid Attack Attempt to Acid Attack Sexual Harassment Public disrobing of woman Voyeurism Stalking Background In light of the gang rape of female physiotherapy student on 16 December 2012 in Delhi, the judicial committee which was headed by

National Issues
Justice J. S. Verma was appointed by the Government of India on 22 December 2012 for submitting the report, suggesting amendments in criminal law for dealing with sexual assault cases. The Justice Verma panel, which is a 3-member commission created to review the laws for sexual crimes submitted the report to the Government of India on 23 January 2013. As a result, the Cabinet Ministers approved the bringing of ordinance on 1 February 2013 for bringing into law the suggestions of Verma Committee Report. Subsequently, the President of India, Pranab Mukherjee on 3 February 2013 agreed to the Criminal Law (Amendment) Ordinance, 2013 for sharpening the laws against sexual assault. Union Cabinet approved Electronic Services Bill services will help rein in corruption. The Electronic Service Delivery bill was brought before the Cabinet to bring it in sync with Citizens Charter Bill or The Right of Citizens for Time-Bound Delivery of Goods and Services and Redressal of their Grievances Bill, 2011, and was approved by Union Cabinet on 7 March 2013. MyIndia Initiative The Information and Broadcasting Minister, Manish Tewari on 7 February 2013 launched the MyIndia Initiative-A Digital Volunteer Programme to reach out the people in the social media space. The initiative from the I&B Ministry is aimed towards disseminating and delivering the messages of development to the citizens by registering them as volunteers them on the social media platforms. The initiative is an effort to make the citizen contribute positively towards nation building and this would initiate a principle of participative governance across the nation. The I&B Ministry on 8 February 2013 also tried to reach out the citizens for the first time via Live Twitter Conference on the eve of 3rd Community Radio Conference. This was the first ever conference of such type by any of the Ministrys of Government of India. Community Radio: Road Travelled & way forward was the topic for community radio conference and it lasted for a period of 30 minutes from 4 pm to 4:30 pm. CCS approved Flexible Use of Airspace The Cabinet Committee on Security (CCS) on 8 March 2013 cleared Flexible Use of Airspace (FUA) by civil and military users, which was unsettled for last few years. There was a necessity to fulfill the demand of national security, where the requirement of airspace by the military was to be fulfilled in the fast changing environment of air warfare.

Therefore, sharing of airspace on a need basis, by civil and military users was an urgent national requisite. Ajit Singh with taking over the charge as Union Civil Aviation Minister implemented the Flexible Use of Airspace, which will result in fuel saving of 202380 kg per annum and reduction of carbon dioxide emission by 6393600 kg per annum by direct routing between seven city pairs of Delhi-Mumbai, Delhi-Kolkata, DelhiChennai, DelhiHyderabad, Delhi- Begaluru, Kolkata-Chennai and ChennaiMumbai for which the information is available. Objective of Flexible use of Airspace (FUA) The primary objective of FUA is to enhance airspace Capacity, minimize delays, fuel conservation, emission reduction and ultimate benefits to travelling public. Implementation of FUA through efficient civilian military co-ordination is an essential requirement to foster the traffic growth with ultimate benefit to the nations economy. FUA permits both military and civil user to efficiently and effectively utilize the available airspace on sharing basis to gain optimum usage, thereby enhancing its capacity, which results into efficient operations.

The Union Government on 18 March 2013 approved a bill that is directed towards providing access to all central and state government services such as passport, ration card and driving licences electronically, especially the Internet, within eight years. The bill will be of directive nature and mandate the government organisations to start providing all services for citizen within eight years time through electronic medium. The (central and state) governments will notify the service that they will provide electronically in next 5 years. They will be given extra three years after five years to ensure all services all provided electronically. The bill is supposed to bring more transparency in the system as the electronic delivery of

MAY 2013

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In this model a coordinated procedure between the civil and the military and vice versa, as per need and on a real time basis if it is not being used by the user assigned with the responsibility for its control. Working Mechanism of Flexible use of Airspace (FUA) As a first step for implementation of the FUA in India, a National High Level Airspace Policy Body (NHLAPB) for airspace use, be set up, to take up the job of strategic planning and assess/ reassess the national airspace requirements of various stakeholders. It will establish flexible airspace use structure/ committees and introduce procedures for allocation of these airspace structures. The NHLAPB will be chaired by Secretary, Ministry of Civil Aviation with representation from Ministry of Defence, Indian Air force, Indian Navy, Indian Space Research Organization, Airport Authority of India and Directorate General of Civil Aviation. It can co-opt new members in future depending upon requirement. The Ministry of Defence has agreed with the proposal for implementation of FUA, subject to ensuring adequate safeguards in the system to prevent inadvertent leak of Military information and dissemination of any information on Military Aviation activities strictly on need to know basis. National Awards for Prevention of Drug Abuse and Alcoholism The Union ministry of social justice and empowerment for the first time instituted national awards in order to recognise the efforts and encourage excellence in the field of prevention of Alcoholism and Drug abuse and rehabilitation of its victims. The awards shall be conferred on the awardees in a function to be held in New Delhi on the 26 June every year, which has been declared as the International Day against Drug Abuse and Illicit Trafficking. Rashtriya Bal Swasthya Karyakram UPA chairperson Sonia Gandhi on 6 February 2013 launched a new health initiative called Rashtriya Bal Sawsthya Karyakram at Palghar town in Thane district of Maharashtra. The Rashtriya Bal Swasthya Karyakram, is a part of the National Rural Health Mission of the Union Ministry of Health and Family Welfare.

The new initiative would assure a package of health services for all children up to

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The Awards are open to all Indian Institutions, Organisations including Gram Panchayats and Individuals without any distinction or discrimination on grounds of religion, race, sex, caste or creed. Even a former addict, who has done outstanding work in the field of awareness generation or deaddiction or rehabilitation will be recognized and awarded. In the country the problem of drug abuse and the substance abuse is on the increase and it has been felt that the victims who are falling prey to this problem are youth in the country. In some of the states the problem has become very serious like Punjab, Manipur and some of the other states. Therefore apart from the government lot of NGOs are involved in the prevention of drug abuse and alcoholism.

The Main Features of Rashtriya Bal Swasthya Karyakram are as following following: The Rashtriya Bal Swasthya Karyakram is aimed at improving overall quality of life of children through early detection of birth defects, diseases and deficiencies, which are among key factors for child mortality.

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18 years of age. The programme will also prove economical for poor and marginalized. The services will be provided through dedicated mobile health teams placed in every block. The scheme, which will be implemented in a phased manner, is expected to benefit approximately 27 crore children across the country. Birth defects account for 9.6 per cent of all new-born deaths and 4 per cent of under-five mortality. According to the programme, a set of thirty common conditions have been identified for screening and further management of child health. National Rural Health Mission (NRHM) is an Indian health program for improving health care delivery across rural India. It was launched on 12 April 2005 for a period of 7 years. JPC formed to Probe into the VVIP Helicopter Deal The Government of India on 27 February 2013 announced constitution of Joint Parliamentary Committee (JPC) to probe into the allegations in the VVIP helicopter deal from Agusta Westland and to identify the role of the middlemen in the purchase of the 12 helicopters. The motion was moved by the Parliamentary Affairs Minister Kamal Nath. The proposed JPC will constitute of 20 members from Lok Sabha and 10 from Rajya Sabha and submit the report of its findings within three months from the day of its constitution. The motion was adopted in the Rajya Sabha by Voice Vote. Joint Parliamentary Committee (JPC) Joint Parliamentary Committee is an ad hoc Parliamentary Committee that is constituted by the Indian parliament. to the minorities, various steps were undertaken by the Government. These included: Reserve Bank of India issued directions on Priority Sector Lending in order to improve credit facilities to the minorities. From 2007-2008 to 2011-2012, 5954 branches of bank were opened in those areas where there was substantial minority population. Regular monitoring of Public Sector Banks was done for checking disposal of loan applications for the minorities. 14244 awareness campaigns were organised by Public Sector Banks in 15466 towns and blocks which covered minority population. Priority Sector Lending (PSL) to Minorities in the absolute terms increased from 58662.67 crore Rupees in 2007-2008 to 171960.71crore Rupees as of September 2012. Prime Ministers New 15 Point Programme for Welfare of Minorities

J o n it

The JPC is constituted only after a motion is adopted in one house of the Parliament and accepted by the other house. A Joint Parliamentary committee can also be formed when the presiding chiefs of both houses communicates with each other in writing for the formation of the joint parliamentary committee. The strength of JPC can be different every time it is constituted but the number of members from the Lok Sabha is always double to the members from Rajya Sabha in the committee formed. PSL to Minorities Crossed 15 Percent Mark in 2012-2013 Priority Sector Lending (PSL) to Minorities increased considerably from 10.60 percent of total PSL in 2007-2008 to 15.01 percent in 20122013. Priority Sector Lending (PSL) to minorities belongs to one of the schemes which are covered under the Prime Ministers New 15 Point Programme for Welfare of Minorities. An increase was observed because of lending of 171960.71crore Rupees as on September 2012 to the minorities. Self-employment initiatives were created and sustained because of bank credit. The increase was observed because of sustained efforts of government of India. In order to increase credit flow

The President on 25 February 2005 announced that Government of India would recast the 15 Point Programme for the Welfare of Minorities for including certain programme specific interventions. The objectives of this programme were as follows: Enhancing opportunities for education.

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Ensuring an equitable share for minorities in economic activities and employment, through existing and new schemes, enhanced credit support for self-employment, and recruitment to State and Central Government jobs. Improving the conditions of living of minorities by ensuring an appropriate share for them in infrastructure development schemes. Prevention and control of communal disharmony and violence. Patiala House Court framed Charges against Irom Sharmila National Bravery Award, were shot dead in an alleged encounter with Assam Rifles personnel at Malom near Imphal Airport on 2 November 2000. She is force fed, through her nose with a food pipe for more than a decade. Armed Forces Special Powers Act, AFSPA their protests alongwith their demands by Fasting. Article 19 of the Constitution of India deals with the right of expression and speech and as fasting is a process of expressing the thoughts against the government thus it can be considered as a part of Article 19. This right cannot be denied until and unless there exist

The Patiala House Court, New Delhi on 4 March 2013 framed charges of allegedly attempting to commit suicide during her fast until death in the Capital in 2006 against Irom Sharmila Chanu, the Iron Lady from Manipur. The Court framed charges against the Iron Lady for her attempt to commit suicide. The Court also issued a show cause notice to Irom Sharmila after she refused to plead guilty. She appeared before the court under Indian Penal Code 309 (attempt to commit suicide) for fasting at Jantar Mantar in Delhi. Irom Sharmila Chanu Irom Sharmila had been fasting for more than 12 years for repealing of the Armed Forces Special Powers Actb 1958, AFSPA. Sharmila began her fast till death after ten persons, including a boy who received the

Violence became the way of life in north-eastern States of India. State administration became incapable to maintain its internal disturbance. Armed Forces (Assam and Manipur) Special Powers Ordinance was promulgated by the President on 22 May 1958. In which some special powers have been given to the members of the armed forces in disturbed areas in the State of Assam and Union Territory of Manipur. Later the Ordinance was replaced by the armed Forces Special Powers Bill. Iron Sharmila had been fasting for repealing of the armed forces Special Power Act from the North Eastern States. Her fast till death is a process of silent protest that had been in existence in the nation from the preindependence era to the post independence era. From Mahatma Gandhi, the father of the nation to Anna Hazare had carried on with

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MAY 2013

an illegality in the process. In fact, none of the Indian Courts till date have banned fasts in India and every individual have the right to go on fast to protest against the government. Under IPC 309 her indefinite fasting is Regarded as the Attempt to Commit Suicide IPC 309 Attempt to commit suicidesuicide-- Whoever attempts to commit suicide and does any act towards the commission of such offence, shall be punished with simple imprisonment for a term which may extend to one year 1 (or with fine, or with both.) Sexual Harassment of Women at Workplace Bill approved by Rajya Sabha Rajya Sabha approved the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Bill. The bill seeks

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protection for women in all type of organised, unorganized as well as Private Sectors, including the sexual harassment of domestic help as well as agricultural workers. greater level and the offence may lead to the cancellation of the licenses or registration of the business conduct. Under its list of offences, the bill covers sexual remarks, sexual favour demands, any act of unwelcome touch and physical advance and showing pornography. The Bill was passed by Lok Sabha, the lower house of the Parliament in September 2012. SC of India Directed Karnataka to Release 2.44 tmc Cauvery Water to TN The bill had made it mandatory for every organization with 10 or more employees to form an internal complaint committee to deal with the complaints of sexual offences. The committees should be disposed of within 90 days and organizations that fails to follow the guidelines, would be penalized with 50000 rupees. Organisations that repeatedly violate the provisions of the bill would be penalized to a to release 2.44 thousand million cubic feet of Cauvery water to the state of Tamil Nadu with immediate effect. The bench of Justices R M Lodha, J Chelameswar and Madan B Lokur gave the order on the basis of report submitted by the committee of Central Water Commission that was appointed on the orders of the Apex Court. Sharing Cauvery waters has remained a source of disagreement between the states of Tamil Nadu and Karnataka since 1892. The dispute is based on the agreements which were signed in 1892 and 1924 between former Madras Presidency and Princely State of Mysore. In the development of the dispute that took place in recent past, i.e., on 6 December 2012, the Apex Court had directed Karnataka to release 10000 cusecs water to Tamil Nadu. The decision came in order to save the standing crops of both Tamil Nadu and Karnataka.

The Supreme Court of India on 7 February 2013 directed Karnataka

MAY 2013

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Barack Obama Signed the Violence against Women Act Reauthorization 2013 prosecutions of abusers, but now the Act made a stricter sentence for stalking under the federal law. Female genital mutilation Gishiri cutting Infibulation Foot binding Forced abortion Forced pregnancy Forced prostitution Human trafficking Marital rape Murder of pregnant women Rape Pregnancy Sexual slavery Sexual violence Violence against prostitutes

Signing of Violence Against Women Act Reauthorization 2013 The Violence Against Women Act Reauthorization 2013 was

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The US President, Barack Obama on 7 March 2013 signed into law, the Violence Against Women Act Reauthorization 2013 in Washington. The Violence Against Women Act was first passed in 1994. Reauthorised since then, the new Act offers support to the organisations which serve to the victims of domestic violence. Usually, the local authorities are responsible for criminal

Under the original Violence Against Women Act, following issues are dealt with: Acid throwing Breast ironing Bride burning Dating abuse Domestic violence Domestic violence and pregnancy Dowry death Honor killing

Violence Against Women Act of 1994 The Violence Against Women Act of 1994 is primarily a US Federal Law which was signed in 1994 by President Bill Clinton. The Act established the Office on Violence Against Women in the Department of Justice.

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passed on the vote of 286 to 138. 199 Democrats joined 87 Republicans in the support of this reauthorization act of 1994 law. Changes Incorporated The new Act creates as well as expands the federal programs for helping local communities for the purpose of law enforcement as well as helping the victims of sexual abuse and domestic violence. The most important feature was offering protection to the transgender, bisexual and gay victims of the domestic abuse. Pakistan Parliament passed Counter Terrorism Authority Bill by several organisations. existing adequate and timely efforts to counter terrorism and extremism. The bill must be passed by the Senate or upper house of parliament to become law. NACTA will be established within 90 days of the bill receiving presidential assent. Pakistan Government Completed its Historic Five Year Term Pakistans government made history on 16 March 2013, with the parliament becoming the first democratically chosen body to complete its five-year term. Pakistan has faced three military coups and persistent political turmoil. The election will be held within 60 days as per the constitution of Pakistan. Meanwhile, there will be an interim government to manage the affairs of the country. After the assassination of Benazir Bhutto on 27 December 2007, the parliamentary elections which were scheduled to be held in January were postponed until 18 February 2013. The PPP won the considerable victory, winning 121seats from all provinces in the Parliament, whilst the centre-right, Pakistan Muslim League managed to secure 91 seats from all over the country. China Unveiled Government Restructuring Plan

MAY 2013

Pakistans parliament on 9 March 2013 passed a bill for the setting up of a new organisation that is supposed to integrate counterterrorism efforts by different bodies in the wake of criticism of civilian law enforcement agencies by the powerful army. The bill for establishing the National CounterTerrorism Authority (NACTA) was passed by the National Assembly or lower house of parliament after incorporating some amendments suggested by lawmakers. Roles and Functions of National Counter-Terrorism Authority (NACTA) NACTA will be headed by the Prime Minister and will unify and coordinate national counter-terrorism and counter-extremism measures

It would present strategic policy options to the government to be considered and implemented by stakeholders. The board of NACTA will include the Interior, Finance and Defence Ministers, the Chief Ministers of all provinces and the chiefs of the InterServices Intelligence, Intelligence Bureau, Military Intelligence and Federal Investigation Agency. The authority will be assisted by an executive committee headed by the Interior Minister, and a national coordinator and a deputy will execute the boards policies and the governments instructions NACTA will also be responsible for conducting scientific studies on extremism and terrorism. It will coordinate with law enforcement agencies for taking action against elements involved in terrorism and extremism and play a key role in preparing national counterterrorism and extremism strategies. The authority will receive information and intelligence and disseminate the data to relevant stakeholders to formulate threat assessments with periodical reviews to be presented to the federal government for making

China on 10 March 2013 unveiled its Government Restructuring Plan, according to which the most powerful Railways Ministry will be dissolved, while the National Family Planning Commission will be merged with the Ministry of Health. It is said to be

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the biggest reduction in the cabinetlevel entities since 1998. The major changes that will be seen in the Chinese Government after restructuring are as follows: The Ministry of Railways will be dissolved. The commercial functions of the Ministry of Railways will be taken over by the China Railway Corporation. The Ministry of Transport will be the in-charge of development and planning of the Chinese railways. The National Family Planning Commission will be merged with the Ministry of Health. It is important to note that National Family Planning Commission is that agency of China which controls the onechild policy. The new Government Restructuring Plan of China will have focus on boosting the food and drug safety by combining the responsibilities and duties of various agencies into the General Administration of Food and Drug. Newly formed administration will have the responsibility of taking over the duties of Food Safety Office of the State Council, State Food and Drug Administration, food supervision branch of the General Administration of Quality Supervision, Inspection and Quarantine as well as the State Administration for Industry and Commerce. There will be a merger of two main media watchdogs- the State Administration of Radio, Film and Television as well as the General Administration of Press and Publication. There will also be a reorganisation of the National Oceanic Administration. It will come under Ministry of Land and Resources. Management over the maritime enforcement efforts which were performed by various agencies such as coastguard forces and customs will be consolidated within the Public Security Ministry. Fisheries enforcement will come under Agriculture Ministry. Apart from the Ministry of Railways, the State Electricity Regulatory Commission will also be dissolved. The responsibility of State Electricity Regulatory Commission will be taken over by the reorganised National Energy Administration. National Energy Administration will in turn remain under National Development and Reform Commission. Lebanon PM Najib Mikati announced Resignation Government still awaits its acceptance by the President, Michel Suleiman. With the resignation of the Government, Lebanon has entered into the political crisis and it has been suffering from the protests in Syria. The Syrian conflict had affected Lebanon by the emigration of the refugees from Syria to Lebanon, which was also responsible in the slowdown of the countrys economy and a surge of 67 percent in its budget deficit in 2012. Eurozone and IMF Agreed For 10 Billion Euros Cyprus Bailout Deal

The Prime Minister of Lebabon, Najib Mikati on 22 March 2013 announced resignation of his Government. The decision came after the cabinet failed to approve the commission to oversee elections, scheduled in June 2013 and refusal of the cabinet in extending the tenure of the Police Chief Major General Ashraf Rifi, who will retire in April 2013. The dispute was mainly created by the Shiite militant group Hezbollah that dominates the Parliament of Lebanon. The resignation of the

The Eurozone finance ministers and the International Monetary Fund signed a deal on 16 March 2013 in Brussels to aid Cyprus with a bailout worth 10 billion Euros. It is important to note that Cyprus is the fifth country to go to Eurozone for the financial aid because of sovereign debt crisis that kicked off in 2010. Other countries that reached Eurozone for financial aid before Cyprus are Greece, Ireland, Portugal and Spain. However, the Eurozone agreed for the bailout agreement of up to 10 billion Euros, while Cyprus in 2012 had asked for around 17 billion Euros. The Eurozone Central Bank and the International Monetary Fund agreed on the terms which included one-time tax of 9.9 percent on Cypriot bank deposits of over 130000 Dollars or 100000 Euros as well as the tax of 6.75 percent on smaller deposits. Other elements of this deal demanded that Cyprus

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should raise the low corporate tax rate to 12.5 percent from its previous 10 percent apart from privatizing state assets as well as refurbishing the banks for making sure that money laundering is not done there. Major points of the deal are as follows: Under the deal, Cyprus agreed for increasing the nominal corporate tax rate to 12.5 percent, thus increasing it by 2.5 percent. An imposition of 9.9 percent one-time tax on the bank deposits above 100000 Euros in the banks will be done apart from the 6.75 percent tax on the smaller deposits. The tax on interest which will be generated by the deposits will also be levied. The tax measures taken will help in boosting the revenues of Cyprus apart from limiting the loan size which is required from Eurozone. Originally, Cyprus had estimated its requirement for 17 billion Euros, which was the amount that it required for restoration of its economy. Of this, 10 billion Euros was required for recapitalizing the banks while 7 billion Euros was required for the servicing debt as well as the operations of the government. Nicos Anastasiades Won Cyprus Presidential Elections Nicos Anastasiades, the centre-right DISY (the Democratic Rally) party leader won the presidential elections of Cyprus with 57.5 percent votes. The term of his office starts from 28 February 2013. Nicos Anastasiades had a very easy-going victory over Communist-backed Stavros Malas who secured 42.5 percent votes in the election. Major challenges to be faced by Nicos Anastasiades The major challenge that would be faced by Nicos Anastasiades is that Cyprus is standing on the verge of bankruptcy because of knock-on effect of the economic despair of Greece. Nicos Anastasiades after winning therefore declared that his first priority would be to reinstate the credibility of Cyprus. For this, he would favour deals with the foreign lenders. The economy of Cyprus is in recession. Back in July 2012, Cyprus had also asked European Union for bailout in order to shore up the banks. As a result of the bailout deal for Greece as well as restructuring of debts, private bondholders had to suffer losses, resulting in Cypruss banks losing 75 percent of the investments. New president Nicos Anastasiades would be required to finalise the deal with 16 countries which use Euro as the currency as well as with International Monetary Fund (IMF). The aim of the newly elected president would also be to exploit the immense natural gas, which in turn would bring energy as well as income. Japan and US agreed on Free Trade Auto Exception into negotiations. Both the Countries agreed in principle that the US will be able to keep tariffs on car imports 2.5 per cent for passenger cars and 25 per cent on trucks for at least five to 10 years under the Trans-Pacific Partnership (TPP). But the US auto sector is opposed to Japans entry, claiming Tokyo maintains non-tariff barriers on autos, and says a deal would give Japanese automakers unfettered access to their market, without allowing them the same chances. Japans agriculture lobby is also firmly opposed; fearing unprecedented foreign competition would devastate Japans small-scale farming sector and rural communities. Tokyo and Washington agreed in preparatory talks that there would be at least a five- to 10-year delay in the removal of import tariffs on autos the moratorium agreed in a recentlyenacted US-South Korea free trade agreement. Significance of the Free Trade Auto Exception The emerging pact could boost growth and set rules to govern trade in the dynamic but unwieldy region, which includes much of East Asia, as well as some American countries. The participation of both Japan and the US, the worlds two largest developed economies, would mean the pact covers nearly 40 per cent of the worlds economy. UAE Inaugurated Worlds Largest Solar Power Plant The oil-rich United Arab Emirates (UAE) on 17 March 2013 officially opened the worlds largest concentrated solar power plant. The solar power plant opened is the 600million dollar project which is aimed

MAY 2013

The two Pacific powers, Japan and US in the month of March 2013 agreed on exemptions for the auto industry in a thoughtful Pacific-wide free trade pact, with Japan showing its readiness to announce its entry

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at providing electricity to 20000 homes. to 285 football pitches in the desert of the Western Region, some 120 kilometres southwest of Abu Dhabi. House of Commons Approved Marriage (Same Sex Couples) Bill 2012-2013 The British House of Commons voted on 5 February 2013 to pass Marriage (Same Sex Couples) theMarriage Bill 2012-2013 2012-2013, which legalise samesex marriage in UK. The bill received votes of 400 to 175. It is important to note that the bill is strongly supported by the Prime Minister David Cameron. The Bill was presented in the UK Parliament on 24 January 2013. The legislation applied to Wales and England. This would allow civil marriage between the couples of same sex. However, the Church of England as well as certain other faiths was exempted from the obligation of performing such ceremonies. Certain faith groups such as Quakers announced that legal right was required for performing the same-sex marriages. The bill will now have to pass in House of Lords. In the House of Commons, 127 out of 303 Conservative lawmakers voted in favour of the bill while 136 voted against it. 5 remained absent while 35 did not register their vote. Majority of the votes which approved the bill came from Labour Party, which is in opposition, as well as the Liberal Democrats, the centerleft party. These two parties are in coalition with the Conservatives. If the Bill is approved, it would put Britain on path of some of the other European nations such as Denmark, Netherlands and Spain, which open the marriage to the homosexuals. Uhuru Kenyatta won Kenya Presidency Uhuru Kenyatta, the Deputy Prime Minister who faces trial for alleged crimes against humanity, clinched victory in a tightly fought race for Kenyas presidency, on 9 March 2013. Uhuru Kenyatta needed over 50% of the national vote to avoid a run-off.

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The solar power station which is named Shams 1 was inaugurated in Madinat Zayed by the President of UAE and the Ruler of Abu Dhabi, Sheikh Khalifa bin Zayed Al Nahyan. The solar power plant was constructed over a three-year period by an international conglomerate, with UAEs Masdar having 60 percent stake, Frances Total having a 20 percent interest and Spains Abengoa which has a 20 percent stake. The plant covers 2.5 sq. kilometers (0.96 sq. miles) and has 768 panels with the capacity to produce 100 MW of clean energy. UAE is now producing 68 per cent of the total renewable energy produced by the members of Gulf Cooperation Council, a political and economic union of the Arab states bordering the Persian Gulf. Use of Solar Power Project With this new solar project, Masdar will be producing 10 per cent of worlds renewable energy The construction of Shams 1, a joint venture between Masdar, a company based in Abu Dhabi and international operatives such as Total and Abengoa, started in the third quarter of 2010 and will produce 100 Megawatt of electricity. The solar park features long lines of parabolic mirrors spread over an area equivalent

He received 50.07% to win the elections but the victory is being disputed by his main rival, Prime Minister Raila Odinga, who has now unsuccessfully sought the presidency three times. Deputy Prime Minister Uhuru Kenyatta is a controversial figure as he is wanted by the International Criminal Court (ICC) on charges of crimes against humanity from his alleged role in the countrys 2007-2008 election. Kenya would become the second African country after Sudan to have a sitting president indicted by the ICC. With the win Uhuru Kenyatta will become the fourth president of Kenya. Khil Raj Regmi Sworn-In As the Prime Minister Chief Justice Khil Raj Regmi was sworn-in as the new Prime Minister of Nepal on 14 March 2013. Khil Raj Regmi will be the head of interim government which will have its elections by 21 June 2013. He took over the office from Baburam Bhattarai. Regmi will be the head of 11-member electoral government. Khil Raj Regmi, 63, took oath of the office and secrecy from the President Ram Baran Yadav after the top leaders of four main parties- the United Democratic Madhesi Front, Nepali Congress, Communist Party of Nepal (Unified Marxist Leninist) and United Communist Party of Nepal (Maoists), reached the 11-

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point understanding. In the meanwhile, Madhav Ghimire was chosen as the Home Minister as well as the External Affairs Minister. Hari Prasad Neupane was chosen as the Law and Justice and Labour Minister. The other eight ministers would be nominated by the aforementioned political parties. As per the agreement, all ministers need to be retired civil servants from special class. No active politician would be included in cabinet. It is for the first time in the political history of Nepal that any sitting Chief Justice was named as Head of the Government. Iran and Pakistan launched Gas Pipeline Project economic, political and security ties of the two nations. About the gas Pipeline Iran has constructed 900 km of the 1600-km pipeline on its soil. Both Iranian and Pakistani firms have undertaken the construction of the remaining part in Pakistan. The project is completed by mid-2014, as scheduled; Iran will export 21.5 million cubic metres of natural gas to Pakistan on daily basis. The work on the Iranian side is almost complete and on 11 March 2013 saw the construction work start on the Pakistani side. A total of 780km of pipeline is to be built in Pakistan by December 2014. Tehran has agreed to lend Islamabad 500 million, dollar a third of the estimated 1.5 billion dollar cost of the Pakistani section of the pipeline. Controversy with the Project The project provoked several warnings of sanctions from the US. Washington stated that the pipeline would enable Tehran to sell more gas, undermining efforts to step up pressure over its nuclear activities. As per US, if this deal is finalized for a proposed IranPakistan pipeline, it would raise serious concerns under our Iran Sanctions Act. US State Departments advise saying Pakistan to better look for other energy options instead of the Iran gas project. African Leaders signed UNBrokered Accord in DR Congo Regional African leaders from Mozambique, Rwanda, Tanzania, South Africa, Democratic Republic of Congo, Congo Republic and South Sudan signed UN-brokered accord which aims to bring peace to the troubled eastern region of the Democratic Republic of Congo. The deal was signed in the presence of UN Secretary General Ban Ki-moon in Addis Ababa, capital of Ethiopia. As many as 800000 people were displaced since rebel group M23 revolted against the DR Congo government in May 2012.The agreement, signed by leaders of the Great Lakes region, will result in setting up of special UN intervention brigade in eastern Congo. M23 Rebels

Iranian President Mahmoud Ahmadinejad and his Pakistani counterpart Asif Ali Zardari on 11 March 2013 launched a 7.5 billion dollar gas pipeline project which will link Irans gas pipeline to that of Pakistan. The inauguration ceremony of gas pipeline project was held in Irans Chabahar city and attended by ministers and senior officials from Iran and Pakistan. With the launch of pipeline Iranian President Mahmoud Ahmadinejad asserted that West has no right to obstruct Iran-Pakistan gas pipeline project that has nothing to do with Irans nuclear issue. Both the president mentioned that the completion of the pipeline is in the interests of peace, security and progress of the two countries and is supposed to consolidate the

As per the statement made by M23 rebels, they want to better the conditions for the people of eastern DR Cong, however UN says they are supported by Rwanda who are responsible for the countrys genocide in 1994. Bosco Ntaganda set up M23. He was an officer in the Rwandan army earlier. Afterwards, he left to join a rebel movement in DR Congo. He is accused of using child soldiers and he controls several mines in the east of the country. The M23 group briefly seized control of the city of Goma in November 2012 after carving out an area for themselves in North Kivu province. Congos government and rebels are holding talks in Uganda aimed at reaching an agreement on a range of issues. In January 2013, the rebels declared a unilateral ceasefire. An earlier attempt to reach a deal ended up in failure in December 2012 after the rebels accused President Joseph Kabila of

MAY 2013

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failing to honour a deal to integrate rebels into the army. The regions mineral resources have been exploited by numerous groups and countries over the past 15 years and little has been aimed at improving DR Congos infrastructure. Pakistan Handed over Gwadar Port to China Ahmadinejad received a red carpet welcome by the President of Egypt, Mohamed Morsi. The Presidents of the two nations discussed on the ways to improve relations between them and to resolve the Syrian crisis without resorting to military intervention. During his visit to the al-Azhar, an ancient mosque, a shoe was thrown on Ahmadinejad by a Syrian protestor after which he managed to flee from there. Tehrans 1979 Islamic Revolution Latest World Press Freedom Index India dropped nine places to 140th rank in the list of 179 countries in the latest World Press Freedom Index 2013, which is the lowest since 2002. India got this lowly rank because of increasing impunity for violence against journalists and internet censorship. Netherlands, Norway and Finland topped the list. The Press Freedom Index was released by world Press Freedom index for the year 2013. China got 173rd rank. Turkmenistan, North Korea and Eritrea were placed at the bottom of the list as has been in the last three years. As per the Press index report, there has been a decline in freedom of information in South Asia and the Indian subcontinent among Asia witnessed the sharpest deterioration in providing freedom and security for those involved in news reporting in 2012. In India considered as the worlds biggest democracy, the authorities insist on censoring the Web and impose numerous kinds of restrictions, while violence against journalists was not punished and the regions like Kashmir and Chhattisgarh are getting increasingly isolated. The Maldives crashed to 103rd place (-30) because of violence and threats against journalists in state television and private media regarded as Nasheed supporters by the coup leaders. Bangladesh more or less faces the same situation. Its journalists are targets of police violence frequently. They are not protected by authorities in case they face violence against them. Pakistan which ranked 159th is one of the worlds most dangerous nation for reporters. Nepal ranked 118th position. Reporters without Borders also published an annual global indicator of worldwide media freedom which coincided with the

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Pakistan in the last week of January 2013 approved the deal which transferred operational control of Gwadar port from Singapores PSA International to Chinese Overseas Port Holdings Ltd. Gwadar port is situated at a strategic location of the Arabian Sea and the mouth of the Persian Gulf. It is only 400 kilometres away from the Strait of Hormuz, a key global oil supply route. Pakistan decision to hand over Gwadar port to China is a serious concern for India. It can be an attempt by China to encircle India. In addition to funding ports in Sri Lanka, China has also plans to build a port in Bangladesh. Ahmadinejad visited Egypt Mahmoud Ahmadinejad, the President of Iran on 5 February 2013 became the first Iranian leader to visit Egypt after Tehrans 1979 Islamic revolution. He flew into the Egyptian capital city Cairo for attending the summit of the Organisation of Islamic Cooperation (OIC) that started on 6 Feb 2013. Ahmadinejads visit to Egypt was scheduled to improve the ties between the two countries. During this historic visit to Egypt,

The Islamic Revolution of 1979 was the series of events that took place for overthrowing the Pahlavi dynasty under Shah Mohammad Reza Pahlavi, which was then replaced by the Islamic republic under Ayatollah Ruhollah Khomeini, the leader of the revolution. Reason for Tensions between Iran and Egypt The relations between the two countries went sour since late 1970s, when Anwar Sadat (Egypt), the predecessor of Hosni Mubarak concluded a peace treaty with Israel in 1979 to became an ally with the Western Powers, namely Europe and United States. This was the time, when Iran stood against the influence of Western Power in the Middle East. The other reason for the tension is naming of a street in Tehran by the name of the Islamist, who was responsible for the assassination of Anwar Sadat in 1981.

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release of its 2013 Press Freedom Index. This new analytic tool is helpful in measuring the overall level of freedom of information in the world and the performance of the worlds governments in their response to Press freedom. China became the Worlds Fifth-Largest Arms Exporter A Swedish think tank, Stockholm International Peace Research Institute in the Month of March 2013 mentioned China as the worlds fifth largest arms exporter. The other four Arms exporter in Chronological order US-30 Percent Russia 26 Percent Germany -7 Percent France- 6 Percent The reason of China Being top most arms exporter is evident from the fact that the volume of Chinese weapons exports rose by 162 percent in the five years 2008-2012, compared to the previous five-year period. Earlier the country was eighth in ranking and it climbed to fifth with an increase in international arms exports from 2 percent to 5 percent. The report also revealed that the largest buyer of Chinese weapons was Pakistan, which accounted for 55 percent of the countrys exports, followed by Myanmar with 8 percent and Bangladesh with 7 percent. A number of recent deals indicate that China is establishing itself as a significant arms supplier to a growing number of important recipient states. Such deals include the sale of three frigates to Algeria, eight transport aircraft to Venezuela and 54 tanks to Morocco. The US with 30 percent of global export volume remains the worlds top arms exporter during the 2008-2012 periods. Russia stands in Second Position with 26 percent export while at third and fourth is Germany and France with 7 and 6 percent export volume. Another major evident as per the report is that Asia dominated the global imports of weapons, with the top five importers all located in that region. The Top 5 Arms Importers in 2008-2012 (Share of International Imports) 1. India -12 percent 2. China - 6 percent 3. Pakistan - 5 percent 4. South Korea -5 percent 5. Singapore -4 percent Hamadi Jebali Resigned office as the PM from December 2011 to 19 February 2013. He was also the Secretary-General of the Ennahda Movement which is the Islamist party in Tunisia. He belonged to the Ennahda Movement political party of Tunisia. He is a member of the Islamist Ennahda party. Court of Arbitration gave a go ahead to India on Kishanganga Project The Court of Arbitration at The Hague on 18 February 2013 allowed India to go ahead with the Construction of the Kishanganga hydro-electric project in Gurez valley near Bandipura in North Kashmir, the court rejected the plea of Pakistan that the construction was a violation of 1960 Indus Water Treaty. The Court of Arbitration, chaired by Stephen M. Schwebel in its orders stated that India can move ahead with the diversion of water plans of Kishanganga that is a tributary of Jhelum, for generation of hydro-electric power. But it restrained India from adoption of the drawdown technique of flushing for clearing the sedimentation of the run-of-the river project that had been designed and asked it to adopt a different technique for generation of 330 MW power facilities. The Court had also demanded the environmental flows statistics of the project. Bhaswati Mukherjee, Indian Ambassador and her Pakistani counterpart Fauzia Mazhar Sana received the Judgment of the Court at The Hague. Pakistan initiated the arbitration against India with a charge that India violated the provisions of the Water Treaty between the two countries. But India denied the charges forced on to it by explain that the country reserved its rights to divert the water from one of the tributaries of Jhelum to another.

MAY 2013

Hamadi Jebali resigned from the office of the Prime Minister of Tunisia on 19 February 2013 after his attempt to end a political standoff by formation of a Government of Technocrats failed. Hamadi Jebali was trying to create coalition because of the political crisis which took birth by killing of Chokri Belaid, the opposition leader. A cabinet of apolitical technocrats was proposed by Jebali to suppress the disorder created after the assassination of the secular opposition politician Chokri Belaid on 6 February 2013. Belaid, an outspoken critic of the government and a leaning lawyer was shot dead and his death created a situation of mass protests across the nation. Assassination of Chokri Belaid on 6 February 2013 led to mass protests as well as resignations from the coalition government of Tunisia. About Hamadi Jebali Hamadi Jebali is the Tunisian Islamist politician, who remained in

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Issues for Pakistan from its Perspective: Pakistan on 17 May 2010 raised objections on the making of the Kishanganga Hydro-power project for which it demanded setting up of the Court of Arbitration. The issues raised by Pakistan in the Court of Arbitration: The project is being developed at the downstreams of Kishanganga River that is known by the name Neelam in Pakistan and is a tributary of Jhelum. India is diverting the waters of the river from the dam site to Bonar Madmati Nallah that is another tributary of Jhelum. India planned to use modern drawdown flushing technique for sedimentation management in the dam. The technique requires waters to be brought below the dead storage level (as per the treaty the water can be reduced below the dead storage level only in cases of unforeseen emergency) and was this plan was accepted by the neutral expert during the Bahlihar dispute with Pakistan. In June 2011, the members from the Court of Arbitration, The Hague visited India as well as Pakistan for inspection of the site. Brief Provisions of Indus Waters Treaty 1960 Rivers (Ravi, Beas and Sutlej and their tributaries) and threes Western Rivers (Indus, Jhelum and Chenab and their tributaries). ii. The Indus Waters Treaty 1960 was signed on 19.09.1960 between India and Pakistan. It is however effective from 01.04.1960. iii. Under the Treaty, the waters of Eastern Rivers are allocated to India. India is under obligation to let flow the waters of the Western Rivers except for the following uses: (a) Domestic Use (b) Non-consumptive use (c) Agricultural use as specified (d) Generation of hydroelectric power as specified iv. The Commissioners of the Indus Waters may discuss the questions arising under the Treaty under Article IX of the Treaty related to Settlement of Differences and Disputes and in the case of non-resolution, take further action under this Article for resolution through a Neutral Expert, negotiators or Court of Arbitration. Articles under Consideration: Article III (2): Let flow all waters of the Western Rivers and not permit any interference with the water Article IV (6): Both the countries require use of the best endeavors at each others end for maintenance of natural channels of the rivers and should avoid all the steps that may obstruct the flow of these rivers creating a material damage at the end of any of the two parties. As per Pakistan, the diversion of the water of Kishanganga as well as implementation of the drawdown flushing technique at Kishanganga project as well as other hydroelectric plants were the violation of the Treat signed in 1960, named Indus Water Treaty. Kishanganga Project Kishanganga hydro-electric power project is a 330 MW project under its construction phase on the Kishanganga River and is developed by the National Power Corporation in Gurez Valley, near Bandipura in North Kashmir. The work on the project started in the year 1992. The Kishanganga hydro-electric project is a 3600 crore project. Kishanganga is called Neelam in Pakistan. Permanent Court of Arbitration The Permanent Court of Arbitration (PCA) was established during the First Hague Peace Conference 1899 by a treaty. It is an intergovernmental organization (IGO) that provides a variety of dispute resolution services to the international community. It provides resolution to the disputes related to intergovernmental organizations, states, state entities and private parties. PCA is located in The Hague, Netherland. PCA provides services for the resolution of disputes involving various combinations of states, state entities, intergovernmental organisations, and private parties. The PCA can assist in the selection of arbitrators, and may be called upon to designate or act as appointing authority. US and South Korea Started Joint Annual Military Drills

i. The Indus system of rivers comprises three Eastern

The US as well as South Korea

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MAY 2013

International Issues
started their annual military drills called Key Resolve on 11 March 2013 despite tensions with North Korea in context with the UN sanctions vote. The annual military drills came just a few days after UN approved the new sanctions on North Korea after it carried out the nuclear test in February 2013. The nuclear test in February 2013 was the third test of the communist country. It came after the successful launch of three-stage rocket in December 2012, which was actually the banned test of missile technology. The UN sanctions came after the underground nuclear test of North Korea on 12 February 2013. These were the fourth set of UN sanctions imposed since the first nuclear test of North Korea in 2006. US-South Korea joint drills The joint drills carried out by US and South Korea are called Key Resolve. These will last for two weeks and will include over 13000 troops. Apart from Key Resolve, another joint drill called Foal Eagle was on its way since the starting of March 2013. Key Resolve is primarily a computer-simulated exercise which also involves mobilisation of over 10000 South Koreans as well as 3500 US military personnel. Both these exercises take place annually which prompt strong reactions from North Korea. Nepal and United States Decided to Conduct Joint Military Exercises decided to conduct the military exercises jointly in the last week of March 2013. The joint military exercises will also include other countries such as India. The joint military exercises are called Shanti Prayas-2 or Peace Initiatives and these will be conducted in Panchkhal, 50 km east of Kathmandu from 25 March 2013 to 7 April 2013. The Armies of Nepal and the US, apart from other countries announced participating in this drill, which is said to be the latest in AsiaPacific region. This drill is designed for promotion of security as well as regional peace, while also enhancing the peacekeeping capabilities as well as capacity of the nations which participate in Global Peace Operations Initiative (GPOI). GPOI is the initiative of G8 nations for increasing the operations for peace support across the worldwide. The training which will be conducted during the joint military exercises will includevignette based staff training exercise as well as field training exercise. Vignette Based Staff Training Exercise The Staff Training Exercise will include Nepal Army officers apart from the officers from countries such as Rwanda, South Korea, Canada, Ghana, Kazakhstan, Malaysia, Australia, Bangladesh, Philippines, Tajikistan, Thailand, Vietnam, Sri Lanka, Cambodia, India, Indonesia, Mongolia, Paraguay, Japan and Jordan. The purpose of the training would be to refine the staff skills of the military officers who primarily function in UN peacekeeping missions across the world. Field Training Exercise The field training exercise on the other hand, will be conducted by the armies from Nepal, Philippines, Bangladesh, Cambodia, Kazakhstan, Mongolia, Rwanda, Paraguay, Indonesia, Japan and Jordan. This training will be offered by international cadre of instructors who have wide training experience in peacekeeping. Also the personnel from the US Pacific Command will facilitate the training. The purpose of the training would be enhancement of basic skills which are required while conducting the peacekeeping operations like convoy operations, checkpoint operations as well as patrolling. Worlds First Mercury Treaty adopted by 140 Countries An international treaty that legally binds the nation to limit the use of health hazardous mercury was adopted by 140 nations in the third week of January 2013 at Geneva. The treaty would be signed in Minamata, Japan, in October 2013 to honour the inhabitants of town who have suffered the consequences of serious mercury contamination for decades The treaty that was reached after four years of difficult negotiations will aim at Reduction of global emission levels of the toxic heavy metal or the quick silver Reduce the production and the use of mercury in industrial processes and product production To cut mercury pollution from utility plants, mining, a host of products and industrial processes, and set enforceable limits as well as to encourage alternatives where mercury in not used or released Making of the Treaty Switzerland and Norway pushed forward for making of an

MAY 2013

Nepal and United States

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International Issues
international treaty to limit the emission of Mercury in the atmosphere. The two nations came up with the plans of reducing the emission of mercury decades ago and it was finalized after a long conference in Geneva held in February 2013. Impact of Mercury on Human Being The natural element Mercury cannot be created or destroyed, but is released in air, water and land from different activities like coal powder plants, gold mining activities as well as electrical goods and other consumer products. Mercury enters the food-chain via fish and poses a threat to the living being more likely to pregnant women and children. As per the data released by the World Health Organisation intake of mercury or any of its compounds to any limit is not safe and it may lead to memory loss, language impairment and kidney damage.

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MAY 2013

India & The World

India & The World


INDIA & EGYPT MoU on Cooperation in Information and Communication Technology This MoU was signed between Indian Minister for Communications & Information Technology, Kapil Sibal and Egyptian Minister of Communications and Information Technology, Eng. Atef Helmy. In the MoU, certain core areas were identified for cooperation. These included e-education, sharing experiences in creation of Technology Parks and IT clusters, e-governance, IT and electronics hardware as well as strengthening cooperation between ICT companies in private sector. MoU on Cooperation in the area of Cyber Security This MoU was signed between Indian Minister for Communications & Information Technology, Kapil Sibal and Egyptian Minister of Communications and Information Technology, Eng. Atef Helmy. In the MoU, it was decided that expertise for exchanging the information on different aspects of cyber security would be shared. It was also decided that both the countries would support each other in undertaking right measures for preventing cyber security incidents. MoU for the establishment of a Centre for Excellence in IT (CEIT) in Egypt This MoU was signed between External Affairs Minister of India, Salman Khursid and Minister of Foreign Affairs of Egypt, Mohamed K. Amr. The MoU signed for establishing Centre for Excellence in IT (CEIT) in Al Azhar University is considered as an important step in meeting the goals of technical and development cooperation between India and Egypt.

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The President of Egypt Dr. Mohamed Morsy visited India from 18 March 2013 to 20 March 2013. He was accompanied by his senior ministers as well as business delegation. It is important to note that bilateral trade between India and Egypt increased in past few years and this stands at 5.5 billion US Dollars. India is also the seventh largest trading partner of Egypt as well as the second largest source of the exports. The cumulative investments of India in Egypt are over 2.5 billion US Dollars. During the visit of the Egypts President, certain deals were signed which are as follows:

India & The World


Under this MoU, India will facilitate human resources, hardware as well as software for setting up centre for the training of upto 500 students per year. Egypt, on the other hand, will facilitate establishment of centre including the provision of space and logistical support. MoU on Cooperation in the field of Micro and Small Enterprises This MoU was signed between Chairman cum Managing DirectorNational Small Industries Corporation (NSIC), India and Managing DirectorSocial Fund for Development (SFD), Egypt. The MoU will help in sharing information, meeting between the enterprises, technology transfers as well as provision of consultation services for enhancing abilities of business enterprises of both the countries. MoU for cooperation in the fields of Protection, Preservation, Promotion and Management of Cultural Heritage This MoU was signed between Indian National Trust for Art and Cultural Heritage and Ministry of State for Antiquities Affairs, Arab Republic of Egypt. This helps in facilitating joint activities, sharing information as well as exchange of expertise through joint projects, workshops and conferences. The MoU will also help in cooperation in the field of protection of intellectual property rights and prevention of illicit traffic of antiquities. Agreement between the Government of Egypt the Government of India for Upgradation of a Vocational Training Centre at Shourba El Kheima, Cairo, Egypt An agreement was signed between the Government of Egypt represented by Industrial Development Authority and the Government and Government of India represented by National Small Industries Corporation (NSIC), New Delhi. As part of the MoU, NSIC will be upgrading the Vocational Training Centre at Shoubra El Kheima, Cairo especially in the technological upgradation required in the area of spinning, weaving, knitting and dyeing technology. Letter of Intent on India-Egypt Solar Energy Cooperation A Letter of Intent was also signed between Ministry of New and Renewable Energy, India and Ministry of Electricity and Energy of Egypt. The letter envisages providing 8.8 kilowatt of power using solar energy to 40 households in a village in Siwa located in Martrouh Governorate of Egypt. Letter of Intent on launch services of the Egyptian Nano Satellite EGYCUBESAT-1 on board the Indian Polar Satellite Launch Vehicle (PSLV) by Antrix Cooperation Ltd This Letter of Intent was signed between Antrix Corporation Ltd., the commercial wing of Indian Space Research Organisation (ISRO) and the Egyptian National Authority for Remote Sensing and Space Sciences (NARSS). INDIA AND BRITAIN India and Britain in the Month of March 2013 signed a multimillion-pound agreement to support industry and businesses by working together on the commercialisation of research in key areas like energy and healthcare.

The deal is supposed to help build and strengthen links between countries and to build the international partnerships between businesses so vital in todays global economy. Highlights of the Deal As part of the deal, Global Innovation and Technology Alliance (GITA) sponsored by the Indian governments Department of Science and Technology and UKs Technology Strategy Board (TSB) will support UK and Indian businesses and academics in joint R&D and innovation projects over a three-year period. The deal is meant for strengthening the UK-India research and innovation partnership. The latest agreement is the first-ever international partnership the Technology Strategy Board (TSB), Britains government-sponsored innovation agency, has signed outside Europe. About GITA GITA, a not-for-profit PPP company, is promoted jointly by the Confederation of Indian Industry (CII) and the Technology Development Board of the Indian governments Department of Science and Technology.

MAY 2013

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India-United Kingdom Summit 2013 The India-UK Summit talks took place in New Delhi during the official visit of British Prime Minister, David Cameron to India. The British Prime Minister was accompanied with his Ministerial colleagues as well as delegation which included largest British trade delegation ever to visit India, i.e., the university Vice Chancellors, leaders of the UK-India CEO Forum and members of Parliament. In the official visit, the progress which was made between the two countries since previous Summit in 2010, was reviewed and discussed. The issues which were discussed included: Economic Growth and Cooperation It was found that the trade between India and UK grew at a positive pace since last Summit in 2010. The average growth of the trade in 2010 and 2011 was 23 percent. However, in 2012, the economic climate remained tougher. It was decided that trade and investment between the two countries would be increased. Two-way investment between India and UK since 2010 Summit was also reviewed. It was found that UK was 3rd largest investor in India now and India, on the other hand, was 5th largest investor in UK. It was also additionally found that signature of an Amending Protocol of their Double Taxation Avoidance Convention (DTAC) in October 2012 provided tax stability to residents of the two countries. It also led to flow of investment, services as well as technology. During the visit, the leaders also had a meeting with the members of the UK-India CEO forum. During the meeting, recommendations in context with advance manufacturing and R&D, education and skills, healthcare, and infrastructure and energy were taken. The EU-India negotiations were discussed as well. It was found that Free Trade Agreement would help in generation of jobs as well as growth of the two countries. UK extended co-operation with India for development of a new Bengaluru-Mumbai Economic Corridor (BMEC). During the visit, it was also found that co-investment made by both countries in supporting joint research activities increased from 1 million pounds in 2009 to more than 100 million pounds in 2013. It was agreed by the leaders of both the nations that energy security challenge would be faced in a co-operative manner. India and UK during the visit of the UK PM agreed to discuss between relevant agencies working in the field of petroleum conservation in the two countries. It was decided that the two countries would promote joint cooperation through activities where exchanging technology and knowledge would lead to fuel conservation. It was agreed to encourage Indian Public Sector Undertakings and UK oil and gas companies for exploring possibilities of upstream oil and gas sector investment in India, the UK and in third countries. The issue of cyber security was also discussed. The two nations also agreed to work towards security of nuclear weapons. It was agreed that regular consultations on disarmament and non-proliferation issues would be held. UK Prime Minister David Cameron committed to facilitate India with cutting edge British technology, civil and military, in accordance with the international obligations. International security matters such as conflict in Syria and Irans nuclear programme were also discussed during the visit. Both the nations agreed to deepen the existing India-UK strategic consultations on developments in West Asia / Middle East. Establishing a new Joint Working Group was also agreed upon. This was done for regular bilateral dialogue on peace, security and development in Afghanistan. Other Discussions and Dialogues The two nations considered the results of India-UK Education Forum meeting which took place on 30 January 2013 in London. India welcomed the British Councils programme for providing digital English language materials for Indian learners. Both India and UK affirmed welcoming legitimate travellers, including students, tourists, visitors, business people or qualified workers. INDIA AND UK

A Memorandum of Understanding (MoU) was signed between India and UK to strengthen their cooperation in Earth Sciences and environmental research on 1 March 2013 in New Delhi. The MoU will allow the two countries to share information on meteorology, hydrology and climate variability. Major points of the MoU signed: The MoU inked between India and UK will allow the two to share information on meteorology, hydrology and climate variability. The MoU will also help in promoting exchange of

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India & The World


scientific and technical capabilities. The MoU will facilitate India and UK to identify new opportunities for collaborative activities as well as co-funding new environmental research. The MoU was signed between the Earth System Science Organisation of the Ministry of Earth Sciences and Natural Environment Research Council of UK. Science and Technology Minister of India, S Jaipal Reddy was also present. The Memorandum of Understanding will help India in improving the forecasting capability of various weather and climaterelated phenomena by sharing the expertise and knowledge. This advance forecasting will help people associated with the agriculture sector, which is the main sector of the Indias economy. INDIA AND SRI LANKA cooperation on various areas such as civil nuclear energy and many more. External Affairs Minister led the Indian side in the meeting, while the Sri Lankan side was led by G L Peiris. Issue of the fishermen as well as rehabilitation process of the Tamils in Sri Lanka was also discussed during the meeting. Apart from this, 13th Amendment of the Lankan constitution which provides autonomy to the provinces was also discussed. It is important to note that India and Sri Lanka are the largest trade partners of each other in South Asia. After the meeting, it was agreed that a dialogue between the Commerce Secretary of India and Secretary of the Ministry of Finance and Economic Development of Sri Lanka would be initiated to progress the framework for special economic partnership between these two nations.
INDIA AND REPUBLIC OF PORTUGAL

India and Sri Lanka signed two agreements for fighting against international terrorism as well as avoiding double taxation. The agreements were signed after 8th India-Sri Lanka Joint Commission meeting which was held in New Delhi. Discussions held during 8th IndiaSri Lanka Joint Commission meeting The agreements were signed after discussions on

A Social Security Agreement (SSA) was signed between India and Republic of Portugal on 4 March 2013 at New Delhi. The agreement was signed by Vayalar Ravi, the Minister of Overseas Indian Affairs and Paulo Sacadura Cabral Portas, Minister of State of Foreign Affairs of Portugal. The bilateral social security agreement would help in taking advantage of the emerging

employment opportunities and strengthening the trade and investments between the two countries. At present about 75000 Indians are living in Portugal and it includes self-employed people as well as working professionals. Benefits that Indian nationals working in Portugal will get with the Social Security Agreement For short term contract of up to 5 year, no social security contribution should be paid under the Portuguese law by the detached workers, in case they are making their contribution of the social security payment in India. In case an employee is sent to Republic of Portugal by an Indian Company from a third company then also the benefits of the agreement will be available to the Indian worker. Indian workers shall be entitled to the export of the social security benefit if they relocate to India after the completion of their service in Republic of Portugal. The self-employed Indians in Republic of Portugal would also be entitled to export of social security benefit on their relocation to India. The period of contribution in one contracting state will be added to the period of contribution in the second contracting state for determining the eligibility for social security benefits. India has signed the Social Security Agreement with 17 countries of the world and they are Belgium, Germany (Social Insurance), Hungary, Switzerland, France, The Czech Republic, Republic of Korea, Germany (Comprehensive SSA), Luxemburg, The Netherlands, Japan, Denmark,

MAY 2013

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Norway, Finland, Canada, Sweden and Austria. INDIA AND THE UAE arrangement was signed between the Reserve Bank of India and the Royal Monetary Authority of Bhutan (RMAB). Joint Working Group agreed upon in 2011. The Joint Working Group also continued in-depth consultations on UN peacekeeping issues, and explored an agreement on a set of Principles of India-U.S.

India and the UAE agreed to improve their trade and investment relations during the first meeting o f India-UAE High Level Task Force on Investment in Abu Dhabi. UAE decided to invest 2 billion dollars in Infrastructure sector projects in India and the two countries decided to work for and support Strategic Oil Reserve in India. The meeting was co-chaired by the Union Minister of Commerce, Industry and Textiles, Anand Sharma and Sheikh Hamid Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince Court. As a part of the bilateral agreement, Five high level sub committees will be set up to promote investment in infrastructure and energy, trade and investment, manufacturing and technology, Information and communications technology and aviation sectors. India and UAE also decided to work together for third country projects, including Africa aimed at collaborating in the infrastructure sector and oil and gas exploration. The two countries also agreed to put in place Bilateral Investment Promotion and Protection Agreement(BIPA). INDIA AND BHUTAN India and Bhutan on 8 March 2013 signed a currency swap agreement for up to 100 million US dollars to strengthen economic cooperation between both the countries. The currency swap

Effects of the Agreement signed It enables RMAB (Royal Monetary Authority of Bhutan to make withdrawals of US dollar, euro or Indian rupee in multiple tranches up to a maximum of 100 million dollars or its equivalent. The swap agreement is intended to provide a precaution line of funding for SAARC member countries to meet any balance of payments and liquidity crisis till longer term arrangements are made or if there is need for shortterm liquidity due to market turbulence. The arrangement would be for a three-year period and would help bring financial stability in the region. Earlier, In May 2012, RBI had announced it would offer swap facilities aggregating 2 billion dollars, both in foreign currency and Indian rupee, to SAARC member countries Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. INDIA-US The India-U.S.Joint Working Group on UN Peacekeeping held its 10th meeting in Washington. At the meeting, India and the United States advanced a number of goals laid out in the Declaration of Principles the Cooperation in the Area of Training UN Peacekeepers and institutional arrangements between their peacekeeping institutions. India and USA welcomed the open and comprehensive nature of the discussions, and agreed the talks helped advance their shared commitment to supporting and strengthening United Nations peacekeeping operations, and their mutual interest in assuring the success of UN peacekeeping missions. Both nations agreed that the 11th meeting of the Working Group will be held in New Delhi in 2014. First Triangular India-US-Africa Partnership at Hyderabad India and the United States inaugurated the first triangular India-US-Africa partnership in agricultural training at the National Institute of Agricultural Extension Management (MANAGE), Hyderabad, for 30 trainees from three African countries Kenya, Liberia and Malawi. The three-year triangular partnership program aims to improve agricultural productivity, strengthen agricultural value chains, and support market institutions in Kenya, Liberia, and Malawi. Supported by the U.S. Government through the United States Agency for

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India & The World


International Development (USAID), by the Ministry of External Affairs and the Ministry of Agriculture of India, and implemented by two of Indias leading agricultural training institutes - National Institute of Agricultural Extension Management (MANAGE), Hyderabad, and the Chaudhary Charan Singh National Institute of Agricultural Marketing (NIAM), Jaipur, the program will train 180 mid-level African Government and private sector agriculture professionals from Kenya, Malawi, and Liberia in agricultural extension practices, agri-business, and agricultural marketing. The training will include classroom sessions, group work, field trips, and interaction with industry experts. After their training, these professionals will go home with new knowledge, skills, and potential innovations to address their domestic challenges in food and nutrition security. INDIA AND BANGLADESH Foundation. The India-Bangladesh border conflict was a brief armed conflict between India and Bangladesh which took place in April 2011 over the poorly marked international border between the countries. The conflict happened around the village of Padua (known as Pyrdiwah in India), which adjoins the Indian state of Meghalaya and the Timbil area of the Bangladesh border in the Sylhet district. In that area, 6.5 kilometres of the border have remained in dispute for the past 30 years. The India-Bangladesh Joint Consultative Commission is an inter-ministerial body of the two countries headed by the Minister of External Affairs of India and Foreign Minister of Bangladesh. The Commission was established under t h e Framework Agreement on Cooperation for Development signed by the Prime Ministers of the two countries in September 2011. The Joint Consultative Commission will also the review progress in various sectors of the bilateral relationship, identify thrust areas and give directions for further growth of the bilateral partnership. The President of India Pranab Mukherjee and the Prime Minister of Bangladesh Sheikh Hasina on 5 March 2013 jointly inaugurated the locomotives and tank wagons being supplied to Bangladesh under the 800 million US Dollar line of credit that was provided by India. The freight train was inaugurated at Dhaka cantonment railway station. The freight train comprised of twenty broad gauge tank wagons, two locomotives and one brake van. Inauguration of the railway wagons as well as locomotives in Dhaka was a part of the implementation of 14 projects which were approved under the 800 million US dollar credit line provided by India to Bangladesh. Out of the total of 14 projects, 12 are the railway projects which encompass four infrastructure development projects as well as eight rolling stock projects, which in turn will be implemented at an overall cost of 629 million US dollars approximately. Bangladesh Railway on the other hand, is making use of the funds for revamping the rolling stock with the purchase of broad gauge latest locomotives, broad gauge tank wagons, brake vans as well as AC coaches. It is important to note that the President of India, Pranab Mukherjee was on a three-day visit to Bangladesh and returned back on 5 March 2013. The Health Ministers of India and Bangladesh signed a MoU on Health in New Delhi.The salient features of the MoU between India and Bangladesh are as following: The main areas of cooperation between the two Governments will include the following following: Exchange of medical doctors, other health professionals and experts: Development of human resources. Exchange of information on health. Medical and health research development. Regulations of pharmaceuticals, medical devices and cosmetics. Health promotion and disease prevention. Fostering cooperation for the development of culturally sensitive and effective public and professional awareness campaign including clinical are practices and best practices guidelines for healthcare providers and caretakers to benefit individuals and families touched by Autism Spectrum

MAY 2013

India and Bangladesh held the second Joint Consultative Commission meeting in Dhaka. At the end of the meeting, both countries exchanged one strip map as part of the process of the implementation of the agreement signed to resolve land boundary issues between them. In addition, two MOUs were also signed for the construction of a rail link to connect Akhaura in Bangladesh to Agartala in India and for setting up a thinktank to be called Bangladesh-India

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Disorders and Developmental Disabilities Any other area of cooperation as may be mutually decided upon. Moreover, the cooperation between India and Bangladesh in the fields of health and medical sciences will be promoted through the following means: Exchange of scientific materials and information. Joint collaboration in the area of research in medical science. Institution level cooperation in the field of medical treatment, scientific research and training. Exchange of health specialists and professionals. Participation of specialists / professionals in seminars, workshops, conferences and meetings to be organized by both the parties. Training for doctors and health workers by both the parties in the areas where they have relevant expertise and excellence. Other areas of cooperation in the fields of health and medical sciences as mutually agreed upon. INDIA & KAZAKHSTAN could be in future extended to Russia. Officials said currently most hydrocarbon pipelines from Central Asia are on an east-west axis. This pipeline will, like TAPI, be on a north-south axis, providing a new route to South Asia for hydrocarbons extracted from Central Asia. Significance of the Proposed Pipeline The proposed pipeline would cover about 1500 kms (no study has yet been done), thus making it longer than the planned TurkmenistanAfghanistan-Pakistan-India (TAPI) pipeline which will serve as the role model. It will head from the former Silk Road caravanserai city of Shymkent, known today for oil refining, and enter Uzbekistan. From there it will go to Afghanistan and then follow the route to be taken by the TAPI pipeline into India via Pakistan. It has the potential to be extended to Russia resolving the headache of transportation that has vexed Indian energy security managers when they scout for hydrocarbon collaboration with Moscow. India and Kazakhstan also plan to cooperate closely in Afghanistan where New Delhis aid model has been appreciated by the Central Asian countries all of whom have a vital stake in stabilising the country. INDIA & JAPAN The first India-Japan Maritime Affairs Dialogue was held in New Delhi. Issues of mutual interest were discussed, inter alia, maritime security including non-traditional threats, cooperation in shipping, marine sciences and technology, marine biodiversity and cooperation at various multilateral forums.

The Indian delegation was led by DB Venkatesh Varma, Joint Secretary (Disarmament and International Security Affairs), in the Ministry of External Affairs and the Japanese delegation by Mr. Kazuyuki Yamazaki, Deputy Director General (Ambassador), Foreign Policy Bureau, Ministry of Foreign Affairs of Japan. INDIA & MAURITIUS

India in the month of March 2013 proposed the idea of a hydrocarbon pipeline with Kazakhstan that is intended to bring fuel through a five-nation route. The concept of the pipeline, unveiled

Mauritius celebrated its 45th Independence Day on 12 March 2013. The President of India, Pranab Mukherjee was the chief guest at the 45th Independence Day celebrations of Mauritius. It is important to note that 12 March 2013 is also iconic for India because it is the anniversary of Dandi March as well. Apart from being the Chief Guest at the 45th Independence Day of Mauritius, Pranab Mukherjee also visited the World Heritage Site, the Aapravasi Ghat, where Indian labourers first landed. India as well as Mauritius share a mutual interest in various sectors such as science and technology, renewable energy, investment, education, culture and trade.

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Mauritius Independence DayThe Origin Mauritius was first settled in 1638 by the Dutch. Later, it was overtaken by the French in 1715. Even later, it was taken over by the British. Mauritius finally achieved its Independence on 12 March 1968. Celebrations of the Mauritius Independence Day Mauritius Independence Day is celebrated with flag hoisting at Champ-de-Mars in Port-Louis, which is followed by speeches of the Government leaders. At the 45th Independence Day of Mauritius, the President of India is the Chief Guest. INDIA AND AUSTRIA contribution in Austria if they continue making the payments in India. If any Indian worker is sent to Austria by an Indian company from a third country then also he can avail the relief. Export of the benefits of social security would be offered to the Indian worker, who relocates to India once his/her service term in Austria ends. The self employed Indians can also carry on the same benefits on relocation to India India already have inked similar types of agreements with countries like Czech Republic, Belgium, Germany, France, The Netherlands, Switzerland, Hungary, Luxembourg, Denmark, South Korea, Finland, Canada, Norway and Japan. As per the Indian Labour Law, every employer and employee who falls under the umbrella of Employees Provident Fund Act 1952 needs to make contribution towards provident fund. Similarly the mandatory contribution fund in Austria is known as Social Security. Before signing of these agreements, the Indian professionals posted in foreign countries paid social security tax in the countries of their stay although they contributed there part in India. INDIA & SYRIA Syria continues to face acute crisis as the impasse has become explosive and could engulf the region. India has strongly expressed its concern on the steep escalation of violence and has called upon all sides in Syria particularly the Syrian leadership to abjure violence and resolve all issues peacefully through discussions taking into account the aspirations of the people of Syria. India is extremely concerned about the security situation in Syria and the increasing violence. India considers that the only acceptable way to resolve the internal crisis in Syria is through urgent peaceful negotiations with participation of all parties taking into account the legitimate aspirations of all Syrians. INDIA AND FRANCE

MAY 2013

India and Austria on 5 February 2013 inked a social security pact at Vienna, under which the Indian professionals working in Austria would be exempted from paying the social security contribution of the country, if such payments are already made in India. Overseas Indian Affairs Minister Vayalar Ravi and Austrian Minister for Labour and Social Security, Rudoulf Hundstorfer signed the pact. The pact of social security between the two countries would also boost cooperation of the labour market expansion in Austria, the country that is a home for more than 17000 Indian professionals. Provisions of the Agreement: Indians working in the country on short-term contracts of up to five years are exempted from making social security

India announced an assistance of 2.5 million US dollars to Syria on 30 January 2013 at the High-level International Humanitarian Pledging Conference for Syria held in Kuwait.

India and France on 14 February 2013 agreed to strengthen counter terrorism and intelligence cooperation between the two countries during the visit of French President Francois Holllande to India. Both nations exchanged views on a number of bi-lateral, regional and multilateral issues. India and France also reviewed progress on the Jaitapur Nuclear Power Project and reiterated our commitment to its early implementation as soon as the commercial and technical negotiations, which have made good progress, are completed. Both the nations also concluded negotiations on the short range surface to Air missile to be coproduced in India. They also agreed

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India & The World


on the need to reinvigorate economic engagement between the two countries. Moreover, they had in-depth discussion on the defence cooperation issue including submarines and missiles. Other Important India-France Agreements Both the nations agreed to strengthen cooperation in the fields of the modernisation of the railway, high speed corridors and network upgradation of railway stations. Indian Space Research Organisation (ISRO) and Frances CNES under the space cooperation programme, jointly identified the means to pursue further cooperation. A pact was changed to increase exchanges between the sportspersons, artists, architects, researchers, teachers, students to improve people-to-people contacts. The cooperation between various Indian and French educational institutions was finalised. MoU was signed between Indian Institute of Science, Bangalore and Frances CNRS (Centre National de la Recherche Scientifique) CFA(Credit Facility Agreement) was signed for the Bangalore Metro Rail Project, Phase-1 between Department of Economic Affairs, Ministry of Finance and the French Development Agency(AFD).

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Economy

Economy
CCI approves Five Oil, Gas Blocks Operations Force. An approval for eight blocks, was Sought by the Petroleum and Natural Gas Ministry of which one was already renounced by the contractor, Reliance Industries Ltd. Out of the remaining seven, conditional clearance for four blocks two of Reliance Industries, one each of ONGC consortium and Cairn India were sought. The Ministry had also sought CCI approval to declare three blocks as no go areas. Two blocks belonged to the ONGC-led consortium and one to the Oil India Ltd-led consortium. The CCI, headed by Prime Minister Manmohan Singh, was set up to fast-track clearances to infrastructure projects involving investments of over 1000 crore rupees. Authorized Capital of NABARD Raised The Union Cabinet of India approved raise in the authorized capital of National Bank for Agriculture and Rural Development, Nabard to 20000 crore rupees from 5000 crore rupees.

The Cabinet Committee on Investment (CCI) on 21 March 2013 cleared Reliance Industries (RIL) KG-D6 and NEC-25 blocks for oil and gas exploration along with three other areas. The work on these blocks, which has an investment close to 10.7 billion has dollars, was having difficulties because of interministerial differences, particularly relating to Defence issues. Eight blocks, including RILs Krishna Godavari basin KG-D6 block and gas discovery area of NEC-25 in the North East Coast (NEC) region, were declared No-Go zones for reasons relating to defence issues raised by the Indian Navy, and the Indian Air

The authorized capital was increased with the aim to enlarge the operations and broadening the activities of NABARD. 10 Rupees Plastic Notes in 5 Cities The Union Government and RBI on 12 March 2013 decided to introduce one billion pieces of 10 Rupees bank notes made of plastic on a field trial basis in five. A 10 Rupees note in polymer/plastic on a field trial basis will be introduced first; Minister of State for Finance Namo Narain Meena said it in a written reply to the Rajya. The field trail is supposed to be conducted in five cities of Kochi, Mysore, Jaipur, Bhubhaneswar and Shimla

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Economy
with varied geographical locations and climatic. As per the RBI, the primary objective of introduction of polymer notes is to increase its life, it could also help in combating counterfeiting. Various agencies such as the RBI, Ministry of Finance, Ministry of Home Affairs, Security and Intelligence Agencies of the Centre and States, Central Bureau of Investigation are already working in tandem to thwart the illegal activities related to Fake Indian Currency Notes (FICN). The work of these agencies is periodically reviewed by a nodal group set up for this purpose. RBI Cuts Repo Rate by 25 Base Points actively manage liquidity through various instruments, including open market operations, so as to ensure adequate flow of credit to productive sectors of the economy. With the change in Repo rate, the Reserve Bank of India also announced infusion of 10000 crore rupees into the financial system by purchasing government securities as part of its liquidity injection measure. The Indian economy expanded at a 25-quarter low of 4.5% in October-December 2012 quarter, and the 2.4% rise in industrial production in January 2013 after two months of contraction suggests the recovery is still weak. The current account deficit hit a record-high 5.4 per cent in the September quarter and is expected to end the 2012/13 fiscal year at its highest level ever. What is Repo Rate? The rate at which the RBI lends money to commercial banks is called repo rate. It is an instrument of monetary policy. Whenever banks have any shortage of funds they can borrow from the RBI. A reduction in the repo rate helps banks get money at a cheaper rate and vice versa. What is Reverse Repo rate? Reverse Repo rate is the rate at which the RBI borrows money from commercial banks. An increase in reverse repo rate can prompt banks to park more funds with the RBI to earn higher returns on idle cash. It is also a tool which can be used by the RBI to drain excess money out of the banking system. What is cash Reserve Ratio? Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system. Highlights of the RBI Quarterly Monetary Policy Review: Repo rate changed to 7.5 Percent from 7.75 Percent CRR Remain Unchanged at 4 Percent Reverse repo rate changed to 6.75 percent from earlier 6.5 Percent Marginal standing facility (MSF) rate 8.5 Percent Bank Rate to 8.5 per cent CCEA approved Increase of MSP of Copra

The Reserve Bank of India (RBI) on 19 March 2013 cut the repo rate by 25 basis points to 7.5 per cent from 7.75 percent in its mid-quarter review of the monetary policy. The change of the Repo rate is aimed to prompt growth and revive investment. Consequently, the reverse repo rate under the LAF stands adjusted to 6.5per cent from the earlier 6.75 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 8.5 per cent with immediate effect. The Cash Reserve Ratio (CRR) has been retained at 4 per cent. It is for the second time since the start of the year RBI has cut down the repo rate in a bid to help revive flagging growth in Asias third-largest economy. RBI has also warned that its scope for further policy easing is limited. The RBI will continue to

Exports of India Increased By 0.8 Per Cent The exports of India increased

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The Cabinet Committee on Economic Affairs approved increase in the Minimum Support Price (MSP) for 2013 season of both Milling and Ball Copra by 150 rupees per quintal over the MSP that was regulated in 2012. The MSP for the Fair Average Quality (FAQ) of Milling Copra is fixed at 5250 rupees per quintal, and for the Ball Copra it is 5500 rupees per quintal. The decision from government of India may ignite the interests of the farmers to invest in cultivation of coconut to increase its productivity. Government also cleared that National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) is the body that will act as the nodal agency for undertaking the price support operation at the minimum support prices in the coconut growing states.

Economy
by 0.8 percent in the month of January 2013 to 25.58 billion US dollars. Comparatively, exports in January 2012 were 25.37 billion US dollars. Imports on the other hand, increased by 6.12 percent to 45.5 billion US dollars. During April to January 2012-2013, the overseas shipments of India dropped by 4.86 percent to 239.6 billion US dollars. The main concern for the country is however to widen the trade deficit. As a cumulative result, the exports depicted an arrest in decreasing exports. Now, the result is -4.9 percent. Import of crude oil was growing at a faster pace. Oil imports in January 2013 increased by 6.91 percent to 15.89 billion US dollars in comparison to 14.87 billion US dollars in January 2012. BHEL and GAIL Granted Maharatna Status their Maharatna powers. Even though all other conditions of Maharatna status were met by both these PSUs but their boards do not have requisite number of board members. While GAIL is short of 4 independent directors, BHEL, on the other hand is short of 6 nonofficial directors. In terms of turnover, networth as well as net profit, both these companies meet all the eligibility criterions. Eligibility of a Company to get a Maharatna Status For any company to qualify for Maharatna status, the annual turnover should be over 25000 crore Rupees in past three years, as per the guidelines issued by Department of Public Enterprises. The net worth of the PSU should be more than 15000 crore Rupees in past three years. The net profit should be over 5000 crore Rupees during past three years. At present, there are seven Maharatna companies, after inclusion of BHEL and GAIL and these companies are - ONGC, Indian Oil, SAIL, NTPC and CIL. Also, there are 14 Navratna companies, including Rashtriya Ispat Nigam Limited and NMDC. Price Pooling Mechanism on Coal The Cabinet Committee on Economic Affairs (CCEA) gave its principle approval for the price pooling mechanism of coal. The mechanism includes cost blending of the domestic coal with the imported one to counterbalance price hike. Basic principles and parameters of the price pooling mechanism have been identified and a specific data on the same would be created by the Power and Coal Ministries. The mechanism has been created before government decided to put on sale the 9.5 percent stake of the National Thermal Power Corporation (NTPC) from its present holding of 84.50 percent. The sale of the stake was approved by the Empowered Group of Ministers on disinvestment chaired by Finance Minister P Chidambaram on 5 February 2013. This disinvestment of NTPC would fetch about 12000 crore rupees for the exchequer. World Bank Estimated a growth of over 6 Percent

The Union Government of India gave the Maharatna status to two PSUs- BHEL and GAIL on 1 February 2013. Granting Maharatna status to BHEL and GAIL will provide them with better functional and financial freedom and will also guarantee them with better valuation of the shares. Ideally any Maharatna firm has a capacity to take investment decision of around 5000 crore Rupees without taking assistance from the government. On the other hand, forms with Navratna status have the capability of 1000 crore Rupees. However, both BHEL and GAIL do not have enough nonofficial directors on the board, which is why they cannot exercise

The World Bank in the month of March 2013 forecasted that the Indian economy is estimated to grow over 6 per cent during 201314. World Bank Chief Jim Young Kim, who is on a three-day visit to India asserted that India is estimated to have grown 5 percent in the current fiscal and the growth rate is likely to improve to 6.1-6.7 percent in 2013-14. The Indian economy, like any other economy, is subject to global slowdown. It has effect here and at the same time, the export market has started doing better. On the positive node, it also had be seen that share of India in global economy almost doubled in five years between 2005 and 2010. Kim is on his first visit to India after taking over as President of World Bank Group in July 2012. Penalty on Rajasthan Royals The Enforcement Directorate (ED) slapped the IPL team Rajasthan Royals with a penalty notice of around 100 crore Rupees for

MAY 2013

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Economy
violating the Forex laws. ED issued this penalty notice after investigating the matter for 2 years under the Foreign Exchange Management Act (FEMA). Pratik Prakashbapu Patil in his written reply to Lok Sabha mentioned that, Coal India Ltd has signed 56 fuel supply agreements (FSAs) with the power plants as on 2 March 2013. It is important to note that the deadline set by the Prime Ministers Office (PMO) for signing of FSAs between CIL and power producers expired in January 2013. Chief vigilance officer replying to a question regarding CILs highlighted irregularities in awarding of FSAs. Union Ministry of Commerce and Industry on 13 February 2013, Indias performance in export and import are as following: Exports Exports during January, 2013 were valued at 25587.24 million US dollars. (138981.70 crore rupees) which was 0.82 per cent higher in Dollar terms (6.67 per cent higher in Rupee terms) than the level of 25379.05 million US dollars (130294.02 crore rupees) during January 2012. Cumulative value of exports for the period April-January 2012 -13 was 239687.01 million US dollars (1305420.39 rupees) as against 251930.14 million US dollars (1196962.33 crore rupees) registering a negative growth of 4.86 per cent in Dollar terms and growth of 9.06 per cent in Rupee terms over the same period 201112. Imports Imports during January, 2013 were valued at 45583.25 million US dollars (247593.63 crore rupees) representing a growth of 6.12 per cent in Dollar terms and 12.28 per cent in Rupee terms over the level of imports valued at 42952.47 million US Dollars ( 220514.54 crore rupees) in January 2012. Cumulative value of imports for the period AprilJanuary 2012-13 was 406855.13 million US dollars (2215115.46 crore rupees) as against 406820.28 million US dollars (1934946.96 crore rupees) registering a positive growth of 0.01 per cent in Dollar terms and growth of 14.48 per cent in Rupee terms over the same period 201112. Crude Oil and Non-oil Imports Oil imports during January, 2013 were valued at 15899.3 million US dollars which was 6.91 per cent higher than oil imports valued at 14871.2 million US Dollars in the

Three notices in all were sent across to the IPL franchise which totaled to 98.5 crore Rupees. The Jaipur IPL Cricket Private Limited (JIPL) as well as its directors was sent a penalty notice of 50 crore Rupees. Apart from this, 34 crore Rupees penalty notice was issued against EM Sporting Holding, Mauritius and its directors for evading the Forex duties. A notice of 14.5 crore Rupees was also issued additionally against the Ms ND Investments, United Kingdom and its directors. All these three parties are free to appeal against the penalty order in appellate authority of FEMA. According to the order, IPL team needs to make the payment in 45 days. This is said to be the first biggest order against any team issued by the ED. According to the penalty order, it was found that the foreign investment in JIPL was conducted in flagrant contravention of FEMA. The first penalty order was issued by ED against the Rajasthan Royals in mid-2011. Now, it issued the final orders after it moved to FEMA Adjudicating Authority in Delhi in order to examine investigations in the case. Coal India signed Fuel Supply Pacts with 56 Power Plants The Union government on 12 March 2013 informed that staterun Coal India Ltd. (CIL) (CIL)signed fuel supply pacts with 56 power plants so far. Minister of state for coal,

CIL observed certain inadequacies in the documents of 11 cases, during verification of the documents in respect of milestone achievement of LoAs (letter of assurance). It was also affirmed by the minister that appropriate action would be taken in this regard by CILs subsidiaries to ensure that all due procedures are observed. Minister of state for coal stated that there is a proposal to engage an independent third party sampling agency by CIL for consumers having FSAs. Indias Trade Deficit was estimated at 167168.12 Million US Dollars

As per the data released by

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Economy
corresponding period last year. Oil imports during April-January, 201213 were valued at 140420.1 million US dollars which was 11.56 per cent higher than the oil imports of 125874.2 million US dollars in the corresponding period last year. Non-oil imports during January 2013 were estimated at 29684.0 million US dollars which was 5.71 per cent higher than non-oil imports of US 28081.3 million in January 2012. Non-oil imports during April January 2012-13 were valued at 266435.0 million US dollars which was 5.17 per cent lower than the level of such imports valued at 280946.1 million US dollars in April - January 2011-12. Trade Finance The trade deficit for April January 2012-13 was estimated at 167168.12 million US dollars which was higher than the deficit of 154890.14 million US dollars during April -January 2011-12. Economic Growth of India Estimated to Fall To 5 Percent in 2012-2013 FY The Central Statistics Office (CSO) on 7 February 2013 revealed that the economic growth of India is estimated to fall to 5 percent in 2012-2013 financial year, which is a lowest figure in 10 years. A fall in the economic growth is because of the poor performance of the services, agriculture and manufacturing sectors. The Central Statistics Office (CSO) in its advance forecast of the national income chopped off the gross domestic product (GDP) growth estimate to 5 percent for financial year which will end on 31 March 2013. This is much less than the GDP of 6.2 percent in 2011-2012 financial year. This is said to be the worst performance of economy of India since 2002-2003 when the economic growth was 4 percent. The major share of Indias GDP comes from the services sector. The services sector is estimated to record a growth of 5.2 percent in 2012-2013 fiscal year against 7 percent of 2011-2012 fiscal year. As far as the industry sector is concerned, it is expected that the growth would decrease to 1.9 percent in 2012-2013 FY. The farm sector growth will fall down to 1.8 percent. It is important to note that the official projection of the economic growth of India is much lower than budgetary estimate as well as projections of the central bank of India and other organisations. In the union budget for financial year 2012-2013 which was presented in March 2012, the government pegged Indias economic growth at 7.6 percent. Also in the quarterly monetary policy review which took place in the first week of February 2013, the Reserve Bank of India projected the growth of 5.5 percent for 2012-2013 financial year. In the meanwhile, Finance Minister P. Chidambaram had projected the economic growth of 5.7 percent. In first half of 20122013 FY, the economy of India grew by 5.4 percent. However, as per the latest estimate, the growth would be around 4.6 percent in second half of 2012-2013. Industry bodies in the meanwhile asked the government to press for the reform process in order to revive the economic growth. Memu Coaches Manufacturing Facility at Bhilwara Memorandum of Understanding (MoU) was signed on 25 February 2013 between Indian Railways and Bharat Heavy Electricals Ltd (BHEL) for setting up of Greenfield MEMU coaches manufacturing facility by BHEL at Bhilwara in Rajasthan. Main Line Electric Multiple Unit Trains, popularly known as MEMU trains were first introduced in Indian Railways in the Year 1994-95, as a mode of rapid transit system, to cater to non-suburban passengers, residing in small towns and villages surrounding urban and industrial centres.

MAY 2013

MEMU trains have higher passenger carrying capacity and higher average speed as compared to conventional loco hauled passenger trains due to faster acceleration and braking characteristics. These rakes are now being manufactured with toilet facilities to take care of passenger needs. MEMU trains increase the line capacity utilisation, and therefore are more suitable for running on high traffic density routes. These MEMU trains have gained rapid popularity over the years. Currently, there are about 160 MEMU services running. There are demands coming from all over the country for running more and more MEMU trains. The demand for these coaches will further increase as Indian Railways have plans to Electrify approximately 15000 route kilometre during the next 10 years, in addition to the existing 22000 route kilometre of electrified track. There was a shortfall in acquisition of 800 MEMU coaches during XIth Plan Period due to capacity constraints at Rail Coach Factory, Kapurthala, where these MEMU coaches are produced. Overall it is expected that the requirement of MEMU coaches will grow to nearly 9000 coaches during the next 10

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Economy
year period. Setting up of factory for conventional MEMU coaches will go a long way in meeting this demand. Bharat Heavy Electricals Limited (BHEL) is a Maharatna Central Public Sector Unit (CPSU) company, which is a partner of Indian Railways for a period spanning more than 40 years. It has been manufacturing and supplying electric rolling stock including EMUs and MEMUs; as well as subassembly and equipment for rolling stock being manufactured at IRs own production units. The proposed facility for production of MEMU coaches will be set up by Bharat Heavy Electricals Limited (BHEL) at Bhilwara in the State of Rajasthan. The entire cost will be borne by BHEL. Government of Rajasthan will provide land to Railways, for setting up the project. In order to make the project viable, Ministry of Railways will give Assured Off- Take orders to BHEL. Railway Revenue Earnings Increased by 20.38 Per Cent The total passenger revenue earnings during 1 April 2012 31 January 2013 were 25924.29 crore rupees compared to 23344.42 crore rupees during the same period last year, registering an increase of 11.05 per cent. The revenue earnings from other coaching amounted to 2617.19 crore rupees during April 2012 - January 2013 compared to 2353.54 crore rupees during the same period last year, an increase of 11.20 per cent. The total approximate numbers of passengers booked during 1st April 2012 31st January 2013 were 7150.60 million compared to 6910.00 million during the same period last year, showing an increase of 3.48 per cent. In the suburban and non-suburban sectors, the numbers of passengers booked during April 2012 January 2013 were 3753.32 million and 3397.28 million compared to 3651.70 million and 3258.30 million during the same period last year, showing an increase of 2.78 per cent 3.48 per cent respectively. Indian Financial Regulators signed pact to Monitor Conglomerates The countrys top four financial regulators on 8 March 2013 signed an agreement among each other for co-operation on consolidated supervision and monitoring of financial groups identified as financial conglomerates- large banks and other key players. The decisivenesses were taken at a subcommittee meeting of the Financial Stability and Development Council (FSDC) held in the Reserve Bank. The regulators who signed the pact were the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority and Pension Fund Regulatory and Development Authority. The FSDC (Financial Stability and Development Council) meeting, chaired by RBI Governor D Subbarao also approved formulating a national strategy for financial education by incorporating the feedback received from public consultations and from a global peer review, RBI said without providing details. RBI had on 22 February 2013 released rules on allowing companies to start banks in India and such coordination among regulators is needed for effective supervision. Inflation goes Down to Three Years Low

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The total approximate earnings of Indian Railways on originating basis during 1 April 2012 to 31 January 2013 were 101223.95 crore rupees compared to 84083.74 crore rupees during the same period last year, registering an increase of 20.38 per cent, as per the data released by Ministry of Railways. The total goods earnings have gone up from 56163.30 crore rupees during 1 April 2011 31st January 2012 to 70067.36 crore rupees during 1 April 2012 31 January 2013, registering an increase of 24.76 per cent.

The inflation rate of India dropped down to the three year low in the chart to 6.62 percent in January 2013 from the 7.18 percent, measured in December 2012. The inflation was measured based upon monthly Wholesale Price Index. The official Wholesale Price Index for All Commodities (Base: 2004-05 = 100) in January, 2013 rose by 0.4 percent to 169.2 (Provisional) from 168.6 (Provisional) for the previous month. Slowing exports and decline in investments and low demand in the domestic market have been a major factor in slipping down the growth rate of India. The two factors have affected the manufatruing as

Economy
well as service sectors of India. The growth forecast for the running fiscal year that would end on 31 March 2013 was lowered by the Indias Statistical Office to 5 percent. The Reserve Bank of India also changed its forecast from 5.8 percent to 5.5 percent. To revive a fresh air in the slowing down economic conditions of India, the Reserve Bank took a major step of lowering the key interest rate from 8 percent to 7.75 percent; this was the first step in nine months. The Policy makers have also taken afresh steps to revive the slowing economic conditions of the nation. Teledensity declined by 25.97 Million As cellphone operators continued disconnecting inactive SIM cards, Indias total telecom subscriber base declined by 25.97 million to 895.51 million in December. In November, the country had 921.47 million telecom subscribers. Telecom Regulatory Authority of India(TRAI) stated that total wireless subscriber base decreased from 890.60 million in November 2012 to 864.72 million at the end of December 2012. TRAI reasoned that this decline is majorly due to large scale disconnections of inactive SIMs by some of the service providers. With this, the overall teledensity in India decreased to 73.34 per cent at the end of December, 2012 from 75.55 per cent in the previous month. Export of Additional 5 Million Tonnes of Wheat approved The Union Government of India on 7 March 2013 approved export of extra five million tonnes of Wheat from its Godowns. The group of ministers in its meeting also decided that the added quantity of 5 million tonnes of wheat shall be exported by the private traders. It also cleared that the public sector trading firms will not be a participant in export of the additional quantity of wheat.

The GoM (Group of Ministers) have also decided that bidding process would be used by the Private traders to export the 201112 crop and the floor price decided for per quintal is 1480 rupees. For the present fiscal, the permitted export of wheat from the godowns of the Food Corporation of India now stands at 9.5 million tonnes.

MAY 2013

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Science & Technology

Science & Technology


DNA as an Information Storage Device the binary code of combining zeros and ones (0,1) for alphabets and other such symbols, and reading them using the on-off electrical signals, which has made electronic storage possible, cutting down the size and space for hard copies. Integrated circuits, processors and related electronic wizardry have shrunk the size of computers and storage devices from room-size to finger nail size. But even so, the amount of information storable in a given hard drive (from a printed book to an Amazon or Kindle ebook, or the Encyclopaedia Britannica to Google) is growing exponentially. That means the cost of storage is rising but our budgets are not, as Dr. Nick Goldman of the European Bioinformatics Institute at Hinxton, UK told The Economist (in its January 26, 2013 issue). Goldman (together with 4 colleagues at Hinxton and 2 from Agilent Technologies, California, U.S.) decided to use DNA (yes, the molecule which stores the code to make life possible) as the information storage device, rather than electronics. Their paper titled Towards practical, high-capacity, low maintenance information storage in synthesized DNA has just been published in the journal Nature two weeks ago (doi:10.1038/nature 11875). Why DNA? Indeed the question should be why not DNA. It is a long chain, consisting of 4 alphabets (chemical units called bases and referred to as A, G, C and T) put together in a string of sequence similar to what the English language does with its 26 alphabets and punctuation marks, or digital computers with the combination of zeros and ones in chosen sequences. DNA has been used since life was born over 2 billion years ago to store and transfer information right through evolution. It is small in size the entire information content of a human is stored in a 3 billion long sequence of A, G, C and T, and packed into the nucleus of a cell smaller than a micron (thousandth of a millimetre). It is stable and has an admirable shelf life. People have

Since time immemorial, mankind has wanted to share and use information for later use. First, it was through the caveman paintings and symbols. Then we invented the alphabets, ideograms, numbers and other symbols. Using these, books were written and stored for future generations, in palm leaves, papyrus sheets or paper. The invention of printing brought the Gutenberg revolution, making multiple copies easily and spreading education to millions of people. Printed books occupy space. Libraries and archives are bursting at the seams. Enter the computer age and digitization using

MAY 2013

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isolated DNA from the bones of dinosaurs dead about 65 millions ago, read the sequence of bases in it and understood much information about the animal. The animal (shall we say the host of the DNA) is long since dead but the information lives on. DNA is thus a long-lived, stable and easily synthesized storage hard drive. While the current electronic storage devices require active and continued maintenance and regular transferring between storage media (punched cards to magnetic tapes to floppy disks to CD...), DNA based storage needs no active maintenance. Just store in a cool, dark and dry place! The Goldman group is not the first one to think of DNA as a storage device. Dr E.B. Baum tried building an associative memory vastly larger than the brain in 1995, Dr C.T. Clelland and others hid messages in DNA microdots in 1999, JPL Cox wrote in 2001 on longterm data storage in DNA, Allenberg and Rotstein came up with a coding method for archiving text, images and music characters in DNA, and in 2012 Church, Gao and Kosuri have discussed the next-generation digital information storage in DNA. What is novel in the Hinxton method is that they moved away from the conventional binary (0 and 1) code and used a ternary code system (three numerals 0, 1 and 2 using combinations of the bases A, G, C and T) and encode the information into DNA. This novelty avoids any reading errors, particularly when encountering repetitive base sequences. Also, rather than synthesize one long string of DNA to code for an entire item of information, they broke the file down to smaller chunks, so that no errors occur during synthesis or read-out. These chunks are then read in an appropriate manner or protocol, providing for 100 per cent accuracy. How much information can be stored in DNA? Goldman and co have been able to store 2.2 petabytes (a peta is a million billion or 10 raised to power 15) in one gram of DNA (and as The Economist says enough, in other words, to fit all of the worlds digital information into the back of a lorry). What about the speed? And how does one read the files? Today, the speed is slow and the reading using DNA sequencers is expensive, but in time both the speed will improve and the cost come down considerably. Recall that it took $3 billion to read out the entire human genome a decade ago, and months to do so. Today, the speed has improved, and it is predicted that in a couple of years, the human genome can be read for $1000. But even today, DNAbased information storage is a realistic option to archive long-term, infrequently accessed material. What did Goldman and group store in DNA? For starters, they stored all 154 sonnets of Shakespeare (in ASCII text), the 1953 Watson-Crick paper on the DNA double helix (in PDF format), a colour photograph of Hinxton (in JPEG) and a clip from the I have a Dream speech of Martin Luther King (in MP3 format). Natural selection and evolution have used DNA to store and read out to make our bodies. And we are now using DNA to store and archive the products of our brains. What a twist! India Ranked Third on the List of Spam Spewing Nation in the World India ranked third on list of countries which distribute spam all over the world, after US and China, as per the new report of SophosLabs. SophosLabs is the Sophoss global network of threat analysis centres. In the study, US was single highest ranking country, but Asia ranked at number 1 position in the list of the continents with 36.6 percent of overall spam of the world.

US sent 18.3 percent of the junk emails overall in the world. In last few months of 2012, India topped the spam spewing nations list, but eventually fell back to the third position. Second position was held by China. In the study, the spam sent from December 2012 to February 2013 was tracked. China and India took second and third positions respectively with 8.2 percent and 4.2 percent of the spam of the world. Uterine Contractions Explained through a Physical Model Synchronised oscillations that take place in biological systems have elicited a lot of interest and study. In this context, the behaviour of the uterus towards late pregnancy and close to labour, when it goes into sychronised oscillations seeks to be understood. A paper published in February 2012 in the journal, Physical Review Letters , by a group of scientists from India and France, which includes Rajeev Singh and Sitabhra Sinha of the Institute of Mathematical Sciences, Chennai, gives an theoretical explanation for the observed rhythmic contractions of the uterus during and just before labour. The paper provides the understanding that these synchronised oscillations in the uterus do not arise from any central agency (like the pacemaker cells do for the heart). Instead they emerge due to some

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electrophysiological changes that take place in the uterus. What these electrophysiological changes are and how they affect the uterus can be understood by considering the structure of the uterine tissue. It consists of electrically excitable smooth muscle cells as well as electrically passive cells. In the tissue, cells are coupled by gap junctions that serve as electrical conductors. These gap junctions have been studied and are found to increase, both in number and value of electrical conductance, markedly during late pregnancy. The correlation between this electrophysiological change and the corresponding tendency of the uterus to go into rhythmic contractions strongly suggests a prominent role of the coupling between the cells. Hence the group has modelled the uterus as a two-dimensional grid occupied by electrically excitable cells, each of which is coupled to one or more passive cells and to its neighbouring excitable cells with a particular strength of intercellular interaction. Solving the emerging equations they find that when this strength is increased step by step, the system goes through wavelike excitations that lead to coherent periodic activity, exhibiting cluster, local and global synchronisation under different conditions. Namely, as the strength of intercellular interaction increases, localised regions oscillating at different frequencies tune in to a single frequency but with a few local regions of inactivity. Further increasing the strength cause the whole system to oscillate in a single wave. Jeff Bezos Recovered Two Apollo Rocket Engines In the privately-funded expedition, a recovery team which was funded by Amazon founder Jeff Bezos, recovered two Saturn V rocket engines from beneath the Atlantic Ocean. Announcement of the recovery was made on 20 March 2013. Saturn V rocket engines are the ones which were used to send human beings to Moon from 1967 until 1973. Rocketdyne. These engines were used in Saturn V. First F-1 engines were made use in S-IC first stage of each Saturn V, which was in turn used as the launch vehicle in Apollo Program. F-1 is the most powerful single-chamber liquid-fueled rocket engine. Natural Gas from Methane Hydrate

Jeff Bezos, chief executive of Amazon, in the year 2012 announced about his plans of searching the sea floor of Atlantic Ocean for the rocket motors which plunged back into the Ocean after the Saturn 5 launches to the moon during Apollo 11 moon mission. Two Saturn V first-stage engines were recovered by the Bezos Expeditions from 3 miles beneath Atlantic Ocean. Saturn V First-stage Rocket Engines Saturn V was the American human-rated expendable rocket which was used by Apollo of NASA and Skylab from 1967 until 1973. NASA launched a total of 13 Saturn Vs from Kennedy Space Center, Florida. It is said to be the heaviest, tallest as well as the most powerful rocket ever brought to the operational status. It holds a record of heaviest launch vehicle payload ever. Up to date, Saturn V is only launch vehicle that transported humans beyond low Earth orbit. The Saturn V first-stage rocket engines were developed by

Japan on 12 March 2013 announced that it had extracted the natural gas from frozen methane hydrate successfully off the central coast. With this, Japan became the first country to do so in the world. A Japan official from Economy, Trade and Industry Ministry announced that this was the first offshore experiment of producing natural gas from methane hydrate in the world. Methane Hydrate, also known as clathrates are a kind of frozen confinements of molecules of water and methane. The gas field where the natural gas was extracted from methane hydrate is situated 50 km away from the main island of Japan in Nankai Trough. How was the natural gas from methane hydrate extracted? The engineers made use of the depressurisation method which converts the methane hydrate into the methane gas. The production tests will continue till the end of March 2013. The government officials of Japan announced that now their aim was establishment of methane hydrate production

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technologies for the purpose of practical use by 2018. How will this extraction benefit Japan? According to the Japanese study, it was estimated that around 1.1tn cubic metres of methane hydrate existed in the offshore deposits. This is equal to the gas consumption of Japan in more than 10 years. According to the researchers, this extraction can prove to be very beneficial because it could facilitate as an alternative source of energy for Japan. It is important to note that Japan as of now imports all the energy needs. Japan has limited natural resources. After the nuclear disaster of Fukushima plant in 2011, cost of importing the fuel has also increased. The extraction of natural gas from methane hydrate will therefore help Japan in reducing the pressure on natural resources as well as bringing down the cost of import of fuel. Huge Radio Galaxy Discovered analysis of the MSSS images. The radio emission was observed, which is associated with the material that is ejected from one of the members of interacting galaxy triplet system. Physical extent of this material is said to be much larger than system of galaxy, which actually extends millions of light years across the intergalactic space. It is important to note that the MSSS is still under process. What is ASTRON? ASTRON stands for Dutch Stichting ASTRonomisch Onderzoek in Nederland. It is actually the Dutch foundation that conducts research in radio astronomy. Radio astronomy is basically the subfield of astronomy which conducts study of the celestial objects located at the radio frequencies. What is LOFAR? LOFAR stands for LowFrequency Array for radio astronomy. It was built as well as designed by Netherlands astronomical foundation called ASTRON. Its operations are managed by the ASTRONs radio observatory. LOFAR is basically the largest connected radio telescope built by making use of the new concept based on range of omnidirectional antennas. What is Multi-frequency Snapshot Sky Survey (MSSS)? The MSSS conducted by LOFAR is determined effort to analyse the northern sky at extremely low radio frequencies, between wavelengths varying from 2m to 10m. Primarily, the aim of this survey is performing the initial scan of sky for creating the all-sky model which will in turn help in deeper observations. Web Observatory for Cybergazing How right is it to put your content on the Web behind paywalls when there is no fee for posting information on the Web? Sir Tim Berners-Lees [inventor of the World Wide Web] thesis is Web has to be free either everybody uses it or nobody uses it, said Prof. Dame Wendy Hall, Dean of Physical and Applied Sciences at the University of Southampton. Because the Web is free, people are using it. Prof. Hall was recently in Chennai to attend the Association for Computing Machinery (ACM) conference. After all, the world would have been very different today had Sir. Berners-Lee tried making money out of the Web. We cant revisit his experiment. We cant rerun it. But we can kill the way it works at the moment, she said emphatically. After all, the Web can work efficiently only if many use it and in order to make that happen, it has to be given free.

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An international team of astronomers led by ASTRON astronomer Dr. George Heald, in the third week of March 2013 discovered an unknown huge radio galaxy, by making use of the powerful International LOFAR Telescope (ILT), built by ASTRON. The galaxy was discovered in the LOFARs first all-sky imaging survey called Multi-frequency Snapshot Sky Survey (MSSS). The new source which was equivalent to the size of full Moon was identified while

She cites the example of the Times which went behind paywall in mid 2010. It does make money from the sizeable subscribers. But the consequence is that the number of people reading it is very limited. The model is wrong, Prof. Hall said. It doesnt mean there arent ways of making money. To me, having a newspaper behind paywall is just nonsense, she said. Prof. Hall must know best as she has been a part of the Web revolution. She was a member of the team that digitised photos, videos and audio content. She was at the centre of the multimedia and hypermedia revolution. She is also the President of the Association for Computing

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Machinery (ACM), the first person to become one outside North America. One of her pet projects is the Web observatory. According to her, it is akin to astronomers looking at the sky to understand how the universe started and how the planets evolved. The Web Observatory is a big analytics platform. It is not about data, but how people are using the data and behaving on the Web, she explained. Our thesis is, in order to study the Web, you need to observe what happens on the Web. To do this one has to study it every day to understand the dynamics of the Web and the interaction with technology, and what people do with it. It is basically to do with analysing the data to find out how things evolve. The classic example is the twitter on who is influencing who and how things evolve in the microblog. We have found some interesting similarities and differences of how twitter is evolving in different regions, Prof. Hall revealed. It reflects to some extent the culture. ISRO Launched SARAL and Six Other Satellites Indian Space Research Organizations (ISRO) flew from first launch pad of Satish Dhawan Space Centre and was successfully put into the orbit. The President of India, Pranab Mukherjee witnessed this launch from mission control centre at Sriharikota. Satellites Launched by PSLV-C20 Rocket 410-kg SARAL with payloads - Argos and Altika Two micro-satellites UniBRITE and BRITE from Austria AAUSAT3 from Denmark STRaND from United Kingdom Micro-satellite (NEOSSat) Mini-satellite (SAPPHIRE) from Canada These seven satellites were launched successfully by PSLV which depicted its versatility and recorded 22nd successful flight consecutive. ISRO also has plans to launch the Geo-Synchronous Satellite Launch Vehicle that has indigenous cryogenic engine, along with the Indias mission to Mars, both of which are scheduled for 2013. SARAL, the Unique Satellite SARAL is said to be a very unique satellite which serves the research community. This satellite will assist the researchers in oceanographic studies. SARAL will study the sea surface heights and ocean currents. ARGOS-2 will help in collecting the data, while Altikameter will be responsible for measuring the height of sea surface. SARAL will also assist researchers in studying about the climatic developments. Its practical applications include study of migration of the marine animals, continental ice studies, protection of biodiversity and coastal erosion. A Submerged Continent Found A group of scientists from Norway, Germany, South Africa and the U. K. have discovered a submerged continent in the Indian Ocean. Their measurements predict that the continent, which they have named Mauritia, lies under Mauritius and extends more than 1,000 km northwards till Seychelles. The discovery was sparked when they found crystals called zircons on Mauritian beaches. Zircons are resistant to erosion or chemical change and some of the ones they found were almost two billion years old, much older than any of the regular soil or sand samples found on nearby islands. Such old crystals, they thought, could only belong to a submerged continent, and may have perhaps been pushed up on the surface by underwater volcanoes. To confirm whether these zircons indeed belonged to such a continent, they consulted satellite data which can help detect submerged land masses. But underneath Mauritius and leading to Seychelles, which is more than 1,000 kilometers away, there were large chunks of the crust that were as thick as 30 km. Moles Sniff in Stereo, Experiment Shows Moles need both nostrils to locate food underground, in the way that humans see and hear in stereo, according to research reported on Tuesday. The common mole ( Scalopus aquaticus) has tiny eyes tucked between fur and skin and is nearly blind, with small ears attuned only to low frequency sounds. Curious to understand how the little creature finds food in the dark, biologist Kenneth Catania at

Six foreign micro and mini spacecrafts as well as the IndoFrench oceanographic study satellite, SARAL (Satellite for Argos3 and Altika) were launched successfully by ISROs PSLV-C20 rocket on 25 February 2013 from the spaceport at Sriharikota. The Polar Satellite Launch Vehicle (PSLV) of

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Vanderbilt University in Nashville, Tennessee, created a plexiglass chamber in his lab. The box had 15 holes arranged in a semi-circle in the floor, a different one of which was randomly filled with a tempting piece of earthworm. The chamber was sealed so that Catania could detect, by minute changes in air pressure, every time the mole sniffed. He also filmed the creatures movements with a high-speed camera. It was amazing, Catania said. They found the food in less than five seconds and went directly to the right food well almost every time. They have a hyper-sensitive sense of smell. In the next step, the scientist blocked one of each moles nostrils with a small polyethylene tube. The animals veered off to the opposite side of whichever nostril was obscured, but eventually found the food. Finally, Catania inserted small plastic tubes in both nostrils but crossed them over, so that the right nostril was smelling air on the animals left and the left nostril was smelling air on the animals right. With nostrils crossed, the moles crawled backwards and forth, searching for a reward they could smell but, bafflingly, could not locate. The fact that moles use stereo odour cues to locate food suggests others mammals that rely heavily on their sense of smell, like dogs and pigs, might also have this ability, Catania said. Middle East has lost 144 Cubic km of Sater The Middle East has lost 144 cubic km of water between 2003 and 2010, nearly equal to the staggering volume of the Dead Sea, show data provided by NASA satellites. Four countries of the region along the Tigris and Euphrates Turkey upstream to Syria, Iran and Iraq below alone account for the unprecedented loss. heart and its components such as the ventricles and the atrium look, Corne Hoogendoorn, researcher at Pompeu Fabra Universitys CISTIB centre, told SINC, the news agency of the Spanish Foundation for Science and Technology FECYT. The study can be applied to medical imaging, especially when segmenting, or in other words, properly differentiating a structure to be analysed from the rest of the image, the journal IEEE Transactions on Medical Imaging , reports. The level of detail and the possibility to extend the atlas give it an advantage over the majority of cardiac models present to date, adds Hoogendoorn, according to a Pompeu Fabra statement. Pompeu Fabra scientists have managed to create a representation of the average shape of the heart and its variations with images from 138 fully functioning hearts taken using multislice computed tomography. This technique offers both 3D and high resolution X-ray. To create this cardiac map, researchers developed a statistical model capable of managing high quantities of information provided by individual images. It can also collect temporary variations, given that the heart is never motionless. Bhabha Atomic Research Centre Developing Largest Magnet of the World Bhabha Atomic Research Centre, which is the state-owned centre of India, announced that it was developing the largest magnet of the world. This largest magnet would weigh 50000 tons. The magnet is said to be much bigger than the one which is found at Compact Muon Solenoid detector at CERN in Geneva. This magnet will play a crucial role in the India-based Neutrino Observatory which will come up almost 4300 feet below the

University of California-Irvine scientists and colleagues say the Tigris-Euphrates watershed is drying up at a pace second only to that in India. This rate is among the largest liquid freshwater losses on the continents, they say, the j o u r n a l Water Resources Research reports. Water management is a complex issue in the Middle East, a region that is dealing with limited water resources and competing stakeholders, says Katalyn Voss, water policy fellow with the Californias Centre for Hydrologic Modeling at Irvine, who led the study, according to a California statement. Turkey has jurisdiction over the Tigris and Euphrates headwaters, as well as the reservoirs and infrastructure of its Southeastern Anatolia Project, which dictates how much water flows downstream into Syria, Iran and Iraq. Detailed Heart Atlas Created

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Researchers from the Pompeu Fabra University in Spain have created a high resolution atlas of the heart based on 3D images taken from 138 people. This atlas is a statistical description of how the

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cave in the mountain in Tamil Nadu. The Head of the atomic research centres nuclear physics division announced that the magnet to be developed by the Bhabha Atomic Research Centre would be the largest in the world in terms of its dimensions. The magnet will be iron-based and will weigh 50000 tons. The weight of the magnet at CERN ranges somewhere between 4000 and 5000 tons. 15 New Very Young Stars Named as Protostars Discovered understood phases of star formation and it can be a witnessing moment of the phases when a star begins to form. Astronomers long had investigated the stellar nursery in the Orion Molecular Cloud Complex, a vast collection of star-forming clouds, but had not seen the newly identified protostars until Herschel observed the region. A brief insight of the Observation made by Herschel Space Observatory Herschel spied the protostars in far-infrared, or longwavelength, light, which can shine through the dense clouds around burgeoning stars that block out higherenergy, shorter wavelengths, including the light our eyes see. The Herschel Photodetector Array Camera and Spectrometer (PACS) instrument collected infrared light at 70 and 160 micrometers in wavelength, comparable to the width of a human hair. Researchers compared these observations to previous scans of the starforming regions in Orion taken by Spitzer. Extremely young protostars identified in the Herschel views but too cold to be picked up in most of the Spitzer data were further verified with radio wave observations from the APEX ground telescope. Of the 15 newly discovered protostars, 11 possess very red colors, meaning their light output trends toward the lowenergy end of the electromagnetic spectrum. This output indicates the stars are still embedded deeply in a gaseous envelope, meaning they are very young. Antarctica needs MPAs The Commission for Conservation of Antarctic Marine Living Resources (CCAMLR) in its meeting from October 23 to November 1, 2012, failed to deliver any agreement on marine protected areas (MPAs) for Antarcticas Southern Ocean. CCAMLR, made up of 24 countries and the European Union, had been considering proposals for turning two critical areas in Antarcticas Southern Ocean into MPAs at the meeting, including 1.6 million square kilometres of the Ross Sea, the worlds most intact marine ecosystem, and 1.9 million square kilometres of coastal area in the East Antarctic. Initially there were two proposals for the Ross Sea, one submitted by the US and one by New Zealand. At the 2012 meeting, Russia, China and the Ukraine blocked efforts to put conservation in place. Previously, CCAMLR members committed to beginning to establish a network of MPAs in the Southern Ocean in 2012. There was no good scientific reason for not meeting that commitment. The CCAMLR process requires the Science Committee to first review all proposals before bringing them for discussion and approval by the Commission members who take the policy decisions. In the case of the two recent marine protection proposals for the Ross Sea and East Antarctica, the Science Committee had reviewed the science and passed them to the Commission for decisions. However, the nations that opposed the MPAs China, Russia and the Ukraine, claimed that amendments in those proposals meant that they should be resubmitted to the Science Committee. How is the meeting in Germany going to be different from what has been discussed in previous

Astronomers at the Herschel space observatory in the Month of March 2013 found some of the youngest stars ever seen in the Universe. The findings of new stars which is known by protostars was also contributed by Observations from NASAs Spitzer Space Telescope and the Atacama Pathfinder Experiment (APEX) telescope in Chile, a collaboration involving the Max Planck Institute for Radio Astronomy in Germany, the Onsala Space Observatory in Sweden, and the European Southern Observatory in Germany. It has been observed that dense envelopes of gas and dust surround the fledging stars known as protostars, making their detection difficult. The 15 newly observed protostars turned up by surprise in a survey of the biggest site of star formation near our solar system, located in the constellation Orion. The finding of these new stars is giving scientists a glance into one of the earliest and least

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meetings, including the last one in Hobart, Australia? And if so, what are they? Ms. Mattfield, notes: There is a chance that the proposals will again be amended as part of this process and the Antarctic Ocean Alliance urges member nations to remember the conservation objective of the Commission and ensure that the proposals offer the protection needed. Higgs Boson Closer than Ever properties of the new particle appear to be very close to the ones predicted for the SM Higgs, I have personally no further doubts, Dr. Guido Tonelli, former spokesperson of the CMS detector at CERN, told The Hindu . Interesting results from searches for other particles, as well as the speculated nature of fundamental physics beyond the SM, were also presented at the forum, which runs from March 2-16. A Precise Hunt A key goal of the latest results has been to predict the strength with which the Higgs couples to other elementary particles, in the process giving them mass. This is done by analysing the data to infer the rates at which the Higgs-like particle decays into known lighter particles: W and Z bosons, photons, bottom quarks, tau leptons, electrons, and muons. These particles signatures are then picked up by detectors to infer that a Higgs-like boson decayed into them. The SM predicts these rates with good precision. Thus, any deviation from the expected values could be the first evidence of new, unknown particles. By extension, it would also be the first sighting of new physics. Good and Bad News After analysis, the results were found to be consistent with a Higgs boson of mass near 125-126 GeV, measured at both 7- and 8-TeV collision energies through 2011 and 2012. The CMS detector observed that there was fairly strong agreement between how often the particle decayed into W bosons and how often it ought to happen according to theory. The ratio between the two was pinned at 0.76 +/- 0.21. Dr. Tonelli said, For the moment, we have been able to see that the signal is getting stronger and even the difficult-to-measure decays into bottom quarks and tau-leptons are beginning to appear at about the expected frequency. The ATLAS detector, parallely, was able to observe with 99.73 per cent confidence-level that the analysed particle had zero-spin, which is another property that brings it closer to the predicted SM Higgs boson. At the same time, the detector also observed that the particles decay to two photons was 2.3 standarddeviations higher than the SM prediction. Dr. Pauline Gagnon, a scientist with the ATLAS collaboration, told this Correspondent via email, We need to asses all its properties in great detail and extreme rigour, adding that for some aspects they would need more data. Even so, the developments rule out signs of any new physics around the corner until 2015, when the LHC will reopen after a two-year shutdown and multiple upgrades to smash protons at doubled energy. As for the search for Super symmetry, a favoured theoretical concept among physicists to accommodate phenomena that havent yet found definition in the Standard Model: Dr. Pierluigi Campana, LHCb detector spokesperson, told The Hindu that there have been only negative searches so far. Supervolcano Forming under the Pacific

Ever since CERN announced that it had spotted a Higgs bosonlike particle on July 4, 2012, their flagship Large Hadron Collider (LHC), apart from similar colliders around the world, has continued running experiments to gather more data on the elusive particle. The latest analysis of the results from these runs was presented at a conference now underway in Italy. While it is still too soon to tell if the one spotted in July 2012 was the Higgs boson as predicted in 1964, the data is convergent toward the conclusion that the long-sought particle does exist and with the expected properties. More results will be presented over the upcoming weeks. In time, particle physicists hope that it will once and for all close an important chapter in physics called the Standard Model (SM). The announcements were made by more than 15 scientists from CERN on March 6 via a live webcast from the Rencontres de Moriond, an annual particle physics forum that has been held in La Thuile, Italy, since 1966. Since the

Life on Earth could be facing threat from a catastrophic supervolcano which seismologists

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believe is due to erupt in 200 million years time. At least two piles of rock the size of continents are crashing together as they shift at the bottom of Earths mantle, 2,900 km beneath the Pacific Ocean, researchers say. What we may be detecting is the start of one of these large eruptive events that if it ever happens could cause very massive destruction on Earth, said seismologist Michael Thorne, the studys principal author and an assistant professor of geology and geophysics at the University of Utah. However, disaster is not imminent. This is the type of mechanism that may generate massive plume eruptions, he adds. The new study, published in the journal Earth and Planetary Science Letters , said the activity is creating a Florida-sized zone of partly molten rock that may be the root of either of two kinds of massive eruptions far in the future. Hotspot plume supervolcano eruptions have caused huge landforms. Gargantuan flood basalt eruptions that created large igneous provinces like the Pacific Northwests Columbia River basalts 17 million to 15 million years ago, Indias Deccan Traps some 65 million years ago and the Pacifics huge Ontong Java Plateau basalts, which buried an Alaska-sized area 125-199 million years ago. Since the early 1990s, scientists have known of the existence of two continent-sized thermochemical piles sitting atop Earths core and beneath most of Earths volcanic hotspots one under much of the South Pacific and extending up to 20 degrees north latitude, and the other under volcanically active Africa. Using the highest-resolution method yet to make seismic images of the core-mantle boundary, the team found evidence the pile under the Pacific actually is the result of an ongoing collision between two or more piles. Where they are merging is a spongy blob of partly molten rock the size of Florida, Wisconsin or Missouri beneath the volcanically active Samoan hotspot. The studys computer simulations show that when these piles merge together, they may trigger the earliest stages of a massive plume eruption, Thorne said. ISRO Plans a New Highresolution Earth Satellite Department of Space, which forms part of the budget documents presented to Parliament recently, Cartosat-3 figures as a separate item with an allocation of Rs. 10 crores. Cartosat-3 is an advanced remote sensing satellite with enhanced resolution of 0.25 metre for cartographic applications and highresolution mapping, the document said. IN 1988, ISRO launched Indias first operational remote-sensing satellite, IRS-1A. The best resolution its cameras could provide was about 36 metres. Seven years later, IRS-1C went into space, with a panchromatic camera that had a resolution of 5.8 metres. It supplied the highest resolution images available from any civilian satellite in the world till Ikonos, an American satellite launched in 1999, began taking images with better than onemetre resolution. India launched the Technology Experiment Satellite in 2001, followed some years later by the Cartosat-2 series of satellites that could take images with 0.8 metre resolution. Researchers Calculated Exact Distance to Our Closest Neighbouring Galaxy Researchers working on the accurate calculation of the distance of Milky Way to the nearest galaxy, led by Grzegorz Pietrzynski of the Universidad de Concepcion in Chile and Warsaw University Observatory in Poland, found the exact distance to our nearest galaxy. The nearest galaxy to Milky Way is called Large Magellanic Cloud (LMC) and it was found that it lies at a distance of 163000 light years away or exactly 49.97 kiloparsecs. Large Magellanic Cloud (LMC) Large Magellanic Cloud (LMC) is the dwarf galaxy which floats in the space around our galaxy, Milky Way. It floats in a similar trend like that

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The Indian Space Research Organisation is to build a remote sensing satellite, Cartosat-3, capable of taking images of the earth with a resolution of 0.25 metres. Currently, GeoEye-1 produces the highest resolution earth images taken by a commercial satellite. The American spacecraft, launched in September 2008, is capable of taking panchromatic images with 0.41 metre resolution. WorldView-2, another satellite operated by the same company, DigitalGlobe, offers a best resolution of 0.46 metres. However, in accordance with U.S. regulations, commercially released images from these satellites are degraded to 0.5 metre resolution. DigitalGlobe plans to launch WorldView-3 next year, which will supply images with a resolution of 0.31 metres. Cartosat-3s camera would better that performance. In the words of one expert, this satellites images could allow a scooter to be distinguished from a car. In the Notes on Demands for Grants, 2013-2014 from the

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between the Earth and the Moon. Large Magellanic Cloud (LMC) encompasses huge clouds of gas in it, which gradually collapse, thereby forming new stars. These new stars are brightened in the colours which are actually visible in the images that are taken by Hubble Space Telescope. LMC also includes Tarantula Nebula which is the brightest stellar nursery in the cosmic neighbourhood. Milky Way to LMC has always remained one of the hugest uncertainties which affected the past measurements. How was the research made? Lead researcher Grzegorz Pietrzynski declared that they would now work on improving the accuracy of the measurements even more. The calculations of the distance were made by observation of the rare close pairs of stars which are called eclipsing binaries. Eclipsing binaries are actually bound to each other gravitationally. distances. New measurements are useful for decreasing the uncertainty of calculating Hubble Constant to 3 percent while improving it to uncertainty of 2 percent in years to come. A Trial Drug Raises hope to Eradicate Malaria

Importance of the Findings The findings about the distance of LMC from Milky Way are crucial because they can help in determining the scale of our universe, which has remained a mystery ever since its inception. These findings could also be used for determining the rate of expansion of the universe. This rate of expansion of the universe is called Hubble Constant, which is named after an astronomer Edwin P Hubble who discovered in 1929 that the Universe was growing continuously. Determination of the Hubble Constant is highly important for finding out the age as well as size of the universe. Exact distance of

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Once per orbit, the overall brightness from this system of stars drops as one of these stars eclipses its partner. It is possible to find out the hugeness of the stars as well as information of their orbits by tracking changes in the brightness carefully as well as by measuring orbital speeds of stars. By combining this with the measurement of apparent brightness, it is possible to determine absolutely accurate distances. In the study, a sample of stars that had extremely long orbital periods was observed for 16 long years. These extremely long orbital periods are absolutely perfect in order to calculate the precise

A candidate drug (ELQ-300) was found capable of treating and preventing malaria infection, and even blocking transmission during a trial on mice. While the currently available drugs target the parasite at the blood stage of infection, the candidate drug was able to target both the liver and blood stages. Going beyond destroying the parasite in the body, the drug (quinolone-3-diaryether) was found to be effective in preventing infection by attacking the parasite forms that are crucial to disease transmission (gametocytes, and the vector stages zygote, ookinete and oocyst). ELQ-300 has potential as a new drug for the treatment, prevention, and, ultimately, eradication of human malaria, notes a paper published today (March 21) i n t h e Science Translational Medicine journal. The Editors summary also underlines the same message: ELQ-300[can] prevent and treat malaria, with the potential to aid in eradication of the disease. Any drug that does even half of what ELQ-300 is capable of will be a boon nearly 200 million people in the world suffer from malaria every year, and the mortality is as high as 1.2 million. To make matters worse,

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resistance to currently available drugs is emerging. Two candidate drugs ELQ-300 and P4Q-391 were tested against both Plasmodium falciparum and Plasmodiumvivax species . Isolates of P. falciparum a n d P.vivax taken from patients infected with malaria in southern Papua, Indonesia were tested using both the drug candidates. ELQ-300 was found to be superior against both drugresistant species. Abundant Active Bacteria Community Discovered A team of researchers, led by Ronnie Glud of University of Southern Denmark discovered that a huge community of bacteria grows in depths of the Mariana Trench off the coast of the Pacific Oceans Mariana Islands. It was found that the organisms live at the densities ten times higher than shallower ocean floor at rim of trench. The deepest point on entire seafloor is called The Challenger Deep and it is situated in Mariana Trench off the coast of the Pacific Oceans Mariana Islands. This point is 36000 feet or 7.8 miles below the surface of the ocean. How was the research done? In order to explore the ecosystem that exists ultra-deep, the international team of researchers sent the specially-designed 1300 pound robot in the depth of the Mariana Trench in 2010. This robot was facilitated with thin sensors which could enter into the seafloor sediments in order to measure organic consumption of oxygen. Because all living organisms consume oxygen while respiration, therefore it is possible to find out the amount of microorganisms living in an area by checking the tallies on what quantity of ambient oxygen is missing from the sediments. The team of researchers used the device for sampling the sediments at two sites with depths of 35476 and 35488 feet. It was found that large quantity of oxygen consumption took place. This indicated that there were ten times more bacteria at the ultra-deep site than the shallower site which was sampled just for reference around 37 miles away, at a depth of merely 19626 feet. What did the speciallydesigned 1300 pound robot explore? The robot brought out an overall 21 sediment cores from these two deep sites. The sediment cores were kept for analysis in the lab. Even though a lot of microorganisms died after being brought out to the surface, but it confirmed the finding that cores from Mariana Trench were habitat to higher densities of bacterial cells than the ones which existed in the reference site. Also, the video recording of the ocean floor was done by making use of the lights for illuminating the dark environment. It was also discovered that certain life forms which were larger than the bacteria on the top of the sediment, existed. It was determined that these life forms were Hirondellea gigas, a species of amphipods. Amphipods are the small crustaceans which are just less than one inch in terms of length. Importance of the Research The finding of abundant bacterial life at such a depth is very surprising because it was believed that at such depths, not enough nutrients can be found. The Photosynthetic plankton can act as a nutrient base for almost all the ocean food chain, but even these planktons are unable to survive in lightless seafloor. But this research has amused the scientists because ultra-deep trench was found to be the abode of so much bacterial activity than the shallower reference site just nearby. Since 2010 exploration, the team of researchers has also sent this robot to sample Japan Trench which is roughly 29500 feet deep. The researchers now plan to sample the KermadecTonga Trench which is 35430 feet deep. First Smartphone into Space Launched Successfully From India The Surrey Space Centre (SSC) of the University of Surrey on 26 February 2013 announced that STRaND-1, a nano-satellite carrying a smartphone was launched successfully into space from India. With this launch, India became the first country to successfully launch the first smartphone of the world. About STRaND-1 and Apps on Board STRaND-1 is the training and demonstration mission which is designed in order to test the commercial shelf technology in space. There are certain applications on board STRaND-1. These applications were designed by the winners of social networking site, Facebook competition which was organised in 2012. STRaND-1 mission weighs 4.3 kg and was launched in 785km Sunsynchronous orbit on the PSLV launcher of ISRO. For example, iTesa will help in recording the magnitude of the magnetic field which surrounds the smartphone during its orbit. The app called iTesa will in turn also help in detection of magnetic oscillations in the upper atmosphere, called Alfven waves. Another app called Scream in Space was designed by the Cambridge University Space Flight. This application will be making use of the speakers of smartphones.

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Yet another app is called STRAND Data. This application will help in showing the satellite telemetry on the display of the smartphone. This in turn would be visible on the additional camera on-board. This eventually will allow new graphical telemetry for interpreting the trends. 360 app allows taking images with the help of camera of smartphone. This application will also help in using the technology on-board for establishing the position of STRaND-1. Raising the Bogey of Radiation accepted the guidelines of the International Commission on Non Ionizing Radiation Protection (ICNIRP), India enforced one tenth of the ICNIRP guidelines from Sept 1, 2012, based on the advice from an Inter Ministerial Committee. Indias guidelines have a safety factor of 500. An agent claimed that Mumbai with too many cell towers is like an open microwave oven. He claimed that by accepting the ICNIRP guidelines we are accepting that a child can be safely kept in a microwave oven for 19 minutes a day! Actually, the possible temperature increase of a human body at ICNIRP level will be 0.1Deg C; at DOT levels, 0.01 Deg C. They claimed that Specific Absorption Rate (SAR) limit for cell phones a safety standard of 1.6 W per kg is actually for six minutes per-day usage! So do not use phones for more than 18-20 minutes daily, they asserted . Many reporters publicized these scary sound bites. A cell phone kept near the ear will cause a small increase in temperature in regions close to the phone. The more regulatory mechanisms such as blood flow remove the heat establishing equilibrium in about six minutes. Thereafter, there will not be any increase in temperature. The six-minute interval is the time the bodys defence takes to reach equilibrium temperature. NASAs Swift Satellite Discovered one of the Youngestknown Supernova Remnants NASAs Swift satellite in the Month of March 2013 discovered one of the youngest-known supernova remnants which is believed to be less than 2500 years old - in our Milky Way galaxy. The Supernova Remnants were discovered while performing an extensive X-ray survey of our galaxys central region. Looking after the coordinates of its sky position it has been designated G306.3-0.9. As per the analysis by the scientist it was indicated that G306.3-0.9 is likely less than 2500 years old, making it one of the 20 youngest remnants identified.

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The cell phone industry has registered phenomenal growth in India. Cell towers have mushroomed all over the country and led to growing concerns about the health effects of radiofrequency radiation. Agents who masqueraded as experts and started selling radiation protective screens, fanned the fire. They told that cell tower radiation can cause sleep disturbances, headaches, fatigue, joint pains, memory loss, increased heart rate. ...Prolonged exposure to cell tower radiation increases the risk of neurological disorders and cancer, they said, creating a phobia among the public. They did not agree that since the energy of RF radiation from cell phone towers is not enough to break chemical bonds in DNA molecules, it cannot cause cancer. While most countries

It has been estimated that Astronomers have previously catalogued more than 300 supernova remnants in the galaxy. To further investigate the object, the team followed up with an 83-minute exposure using NASAs Chandra Xray Observatory and additional radio observations from the Australia Telescope Compact Array (ATCA), located near the town of Narrabri in New South Wales. Using an estimated distance of 26,000 light-years for G306.3-0.9, the scientists determined that the explosions shock wave is racing through space at about 2.4 million km/h. The Chandra observations reveal the presence of iron, neon, silicon and sulfur at temperatures exceeding 28 million C, a reminder not only of the energies involved but of the role supernovae play in seeding the galaxy with heavy elements produced in the hearts of massive stars. About Supernova Explosion A supernova explosion occurs once or twice a century in the Milky Way. The expanding blast wave and hot stellar debris slowly dissipate over hundreds of thousands of years, eventually mixing with and becoming indistinguishable from interstellar gas. Earlier in 2011, Swift imaged a survey field near the

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southern border of the constellation Centaurus. Although nothing unusual appeared in the ultraviolet exposure, the X-ray image revealed an extended, semi-circular source reminiscent of a supernova remnant. A search of archival data revealed counterparts in Spitzer infrared imagery and in radio data from the Molonglo Observatory Synthesis Telescope in Australia. Path-breaking Move Call it by whatever name innovation, revolution or evolution PeerJ , the new Open Access journal, which published the first 30 peer-reviewed papers on February 12, is breaking new grounds in academic publishing. Hold your breath, a scientific paper in the field of biology and medical sciences can be published for as little as $99. The low publication fee removes one of the last barriers in making OA publishing the most successful model. The concept of charging a small amount is based on the premise that if society can set a goal to sequence a human genome for just $99 then why shouldnt academics be given the opportunity to openly publish their research for a similar amount? To publish a paper, each author has to be a member. However, when a paper contains 13 or more authors, only 12 authors need to pay the fee. Three membership options are made available $99 for one publication a year, $199 for two publications a year and $299 for unlimited publications a year. Compare this with other models: subscription journals are behind paywalls and require readers to pay a huge price to read the content. Open Access journals, in general, require authors to pay a certain amount. In the case o f PLoS ONE , authors are charged about $1,400 per paper, which is waived in deserving cases. So, compared with these two models, the PeerJ model offers the best of both worlds Open Access plus very low publication fee. If the Open Access model is experimenting with several options, this one for now, takes the cake. True, only time will tell if this model will survive and serve the interests of the scientific community and go on to becoming a benchmark for low-cost OA models. According to Nature , every PeerJ member is required to peer review at least one paper a year. By adopting this model, the journal effectively tackles the problem of shortage of peer reviewers. PeerJ has been launched by Jason Hoyt (formerly at Medeley) and Peter Binford (formerly at PLoS ONE ). It has an Editorial Board comprising 800 academics and 20 Advisory Board members. Sharing his experience i n The Guardian blog, Micheal Taylor, the author of one of the 30 papers in PeerJ, notes: In a move towards increasing transparency, the peer reviews, our response letters and the handling editors comments are all online alongside the paper [https://peerj.com/ articles/36/]. This is good not only because it shows that no corners were cut, but also because the reviewers can receive the credit they deserve for their contributions. Gases Work with Particles to Promote Cloud Formation

Researchers have published a study in PNAS showing for the first time that certain volatile organic gases can promote cloud formation in a way never considered before by atmospheric scientists.

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CRICKET India won Border Gavaskar Trophy 2013 match, Cheteswar Pujara scored an unbeaten 82 runs while chasing the wicket of Pattinson to seal the second innings of Australia at 155 runs. Man of the Match: Ravindra Jadeja for his all-round performance Man of the Series: Ravichandran Ashwin for claiming 29 wickets in the four-Test Series Results of the Tests 1st Test: 22-26 February 2013 - India vs Australia at Chennai Australia 380 and 241; India 572 and 50/2. India won the match by 8 wickets remaining. 2nd Test: 2-5 March 2013 India vs Australia at Hyderabad (Deccan) - Australia declared its innings 237 at the fall of 9 wickets and 131; India 503. India won by an innings and 135 runs. 3rd Test: 14-18 March, 2013 India vs Australia at Mohali Australia 408 and 223; India 499 and 136/4. India won the match by 6 wickets. 4th Test: 22-24 March 2013 India v Australia at Delhi - Australia

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India on 24 March 2013 won the fourth and the final test with 6 wickets remaining against Australia in the Alan Border Series Australia Tour to India, at Feroz Shah Kotla Stadium, Delhi. India won the series 4-0. In the second innings of the final

155 run target set by team Australia on the third day of the match. Before this Jadejas 5 wicket haul for 58 runs in 16 over limited Australia to a lead score of 155 runs. R Ashwin, P Ojha took 2 wickets each and Ishant Sharma booked the last

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262 and 164; India 272 and 158/4. India won the match by 6 wickets. Important Records of the Series Prgyan Ojha, the left arm spinner from India completed his haul of 100 wickets in Test Cricket on second day of fourth test against Australia and became the third fastest Indian to achieve the milestone. Ojha reached the milestone, in 22nd test and is placed in the list after Erapalli Prasanna (who did this in 20 test matches) and Anil Kumble (who achieved the sport in 21 test matches) Off-Spinner from India, R Ashwin became the leading wicket-taker for India in a series of four test matches; he finished with 29 wickets in this series. To make this record Ashwin surpassed the former Indian Captain Anil Kumble, who took 27 wickets in a series of four test matches. India never in the 81 year test history won more than two matches against Australia in a single series, but with this clean sweep India secured wrote a new history in test cricket Shikhar Dhawan slammed fastest hundred by a debutant in test cricket, by scoring a century in 85 balls Australia Clinched ICC Womens World Cup Trophy Womens World Cup Trophy after defeating West-Indies by 114-runs at Brabourne Stadium in Mumbai. Australia clinched the title for the sixth time in the history of womens cricket World Cup it last won the title in 2005. Australia scored 259 runs (this is the highest score in Womens World Cup Final) at the loss of 7 wickets in 50 overs and West Indies lost all its wickets at the score of 145. Tournament Report Player of the tournament New Zealands Suzie Bates for scoring 407 runs with three halfcenturies and a ton at an average of 67.83 in the series. The Australian, all-rounder Lisa Sthalekar announced her retirement from International cricket after the Australian womens cricket team won the world cup title 2013. She made her debut in the international cricket in 2001 in an ODI match against England till her retirement she managed to play 125 one day internationals, 8 tests and 54 women T20 international matches. Womens World Cup History First World Cup was played in the year 1973 at England, the final was played between England and Australia and England won the match by 92 runs Second World Cup was played in India in the year 1978 India, England and Australia were the teams in the final, Australia won the match by 8 wickets Third World Cup was played in 1982 at New Zealand. England and Australia were the team in the final match; Australia won it by 3 wickets In 1988 venue for the fourth World Cup was played in Australia. The final was played between Australia and England; Australia won it by 3 wickets The sixth World Cup was played in England in the year 1993. The final was played between New Zealand and England; England won it by 67 runs The seventh World Cup was played in 1997 in India, Australia and New Zealand were the two teams in the final; Australia won it by 5 wickets Eighth World Cup was played at New Zealand in the year 2000. The final was played between, Australia and New Zealand; New Zealand won it by 4 runs The ninth World Cup was held in South Africa in the year 2005, Australia and India were the two teams in final; Australia won it by 98 runs The tenth World Cup was held in Australia and the final was played between England and New Zealand, England won it by 4 wickets 2013 the tournament was played in India, West Indies and Australia were the two teams in final; Australia won the match with 114 runs Captain of England Womens Cricket team, Charlotte Edwards became the first women to pass 5000 runs in one-day international after hitting 121 runs of 106 balls in the semi-final match against New Zealand. India failed to make its path into the quarterfinals and had never won any world cup trophy till date. England won the Twenty20 Cricket Series against New Zealand England defeated host New Zealand in the third and last Twenty20 Cricket match played at Wellington on 15 Feb 2013 to win

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Australia

won

the

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the series 2-1. England bowled first and they restricted the Kiwis to 1398 and later achieved the winning target with 44 balls remaining. The Second Twenty20 was played at Hamilton on 12 February 2013 in which New Zealand defeated England by 55 runs to level the three match Twenty20 international series at 1-1. number three followed closely by the skipper Mahendra Singh Dhoni. Among the bowlers, Pakistan off spinner Saeed Ajmal maintains his top billing followed by Mohammad Hafeez. In the All rounders category, Pakistan skipper Mohammed Hafeez is the leader followed by Bangladeshs Shakib Al Hasan. Angelo Mathews appointed Captain of the Sri Lankan who made his debut in the international cricket in a One Day International match against Zimbabwe in November 2008. In 31 test matches Mathews have scored 1668 runs since making his debut in 2009 and recorded his first and only test century against Australia Sachin Tendulkar Equaled Sunil Gavaskars Record Sachin Tendulkar on 8 February 2013 equaled the record of Sunil Gavaskar of 81 first class hundreds in first class cricket at Mumbai. He managed to equal Gavaskars record after scoring an unbeaten 140 runs in Irani Trophy against Rest of India in the first innings of the tournament of Mumbai team.

The First Twenty20 was played at Auckland on 9 February 2013 which was won by England. It defeated New Zealand by 40 runs. India Maintained their Number One Spot in the ICC ODI Championship Table India maintained their number one spot in the ICC ODI Championship table in the latest rankings issued in Dubai on 11 February 2013. Both India and England have same 119 rating points, but England lags behind on the basis of decimal points. Australia and South Africa follow the top two teams closely with 116 and 112 points respectively. Among the batsmen, South African run machine Hashim Amla is at number one followed by fellow countryman AB Devilliers. Indias Virat Kohli is at

Angelo Mathews, the Sri Lankan all-rounder cricketer was appointed the Captain of the test and one-day cricket team of Sri Lanka for a period of one year. Mathews replaced Mahela Jayawardene, who announced to quit captaincy after Sri Lankas tour of Australia. Dinesh Chandimal, the wicket-keeper batsman was appointed as the vice-captain in the test and one-day format of the game and will lead the country as a captain in the T20 format of the game. Lasith Malinga was appointed as the vice-captain for the T20 team. Angelo Mathews Angelo Mathews is a Sri Lankan all-rounder cricketer, TENNIS

Centuries of Sachin in first class cricket 51 in Test matches 18 in Ranji Trophy 2 in Irani Cup 3 in Duleep Trophy 1 in county cricket for Yorkshire 6 in other games

ATP Dubai Open Tennis title 2013 World Number one Novak Djokovic on 2 March 2013 won the ATP Dubai Open Tennis title 2013. He defeated third seed Czech Republics Tomas Berdych 7-5, 6-3 in the finals in Dubai.

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Indias Mahesh Bhupathi and his French partner Michael Lloldra bagged the doubles crown defeating Serbian-Swedish duo of Nenad Zimonjic and Robert Lindstedt 7-6, 7-6 in straight sets.

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ATP Mexican Open 2013 Tennis Tournament Rafael Nadal defeated top seed and defending champion David Ferrer 6-0, 6-2 on 2 March 2013 in the final match of the ATP Mexican Open 2013 tennis tournament. David Ferrer was the 3time defending champion, who had also won 19 straight matches in the event. But eventually in the final of ATP Mexican Open 2013, he lost to Spanish compatriot Nadal. On the other hand, in the womens final, Italys Sara Errani defeated Carla Suarez-Navarro of Spain 60, 6-4. Rafael Nadal won ATP Mexican Open tournament for the second time. Earlier he had won this title in 2005. This is the second title for Nadal in 2013. Prior to this, he had won Brazil Open Tennis Tournament 2013 on 17 February 2013. This is the 38th clay court title of Nadal. Dubai Tennis Championship 2013 Meanwhile, Czech Republics Petra Kvitova yesterday clinched the Womens Singles trophy. In the finals, she defeated Sara Errani of Italy, 6-2, 1-6, 6-1 to win her careers 10th title. Brazil Open 2013 Indian Wells BNP Paribas Open 2013 on 17 March 2013. Nadal defeated Argentine Juan Martin del Potro 46, 6-3, 6-4 in the final. After winning Tokyo Open in October 2010, this is the first hard court victory of Nadal. With this, Nadal became number 4 in the world ranking. Apart from this, Maria Sharapova won the first title of 2013 in womens final of the tournament by defeating Caroline Wozniacki 6-2, 6-2. Serena Williams Became the New World Number One Womens Tennis Player

Rafael Nadal on 17 February 2013 won the finals of Brazil Open 2013 by defeating Argentinean David Nalbandian in straight sets by 6-2, 6-3 in Sao Paolo. He won the tournament for the second time; he won it for the first time in 2005. This was the second tournament for the former world number 1 Spanish tennis star after returning back from to the game after seven months. He was absent from the game due to the knee injury that he suffered from. His next event is Mexican Open that is scheduled to start on 25 February in Acapulco. Indian Wells BNP Paribas Open 2013 Titles

Indias Sania Mirza and her American partner Bethanie-Mattek Sands won the Dubai Tennis Championship on 23 February 2013. The Indo-American duo defeated the second seeded RussianSlovenian combination of Nadia Petrova and Katarina Srebotnik, 64, 2-6, 10-7. Sania bagged her second Doubles title of the season.

Rafael Nadal of Spain won HOCKEY

Serena Williams became the new World number one womens tennis player. Serena Williams who is aged 31 years thrashed Petra Kvitova of Czech Republic 6-3,3-6,75 and reached Semifinals of Qatar Open Tennis Championship in Doha. On entering the semi-finals, she achieved the top position after a period of two and a half years. Serena Williams will compete against Maria Sharapova in the Semifinals on 16 February 2013. Maria Sharapova reached semifinals after defeating Samantha Stosur 6-2,6-4. Serena Williams (31 years, 4 months, 24 days) is now the oldest woman tennis player to hold number 1 ranking. She broke the record of Chris Evert (30 years, 11 months, 3 days) of USA.

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Sultan Azlan Shah Hockey Tournament 2013 Australia, the World

Champions won the Sultan Azlan Shah Hockey Tournament title for the seventh time on 17 March 2013.

Australia defeated Malaysia 3-2 in the final match in Malaysia. South Korea came at the third position. It

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is important to note that Malaysia came at the runner-ups position for the fourth time. South Korea won bronze after defeating 2012 winnerNew Zealand 2-1. king of Malaysia- Sultan Azlan Shah. It is important to note that India won its first Sultan Azlan Shah Hockey Tournament in 1985. Hockey India League Hero Goal of the Day: Manpreet Singh Man-ofthe-Match: Mauritz Furtse Winners (Prize Money Rs. 25000000): Ranchi Rhinos Runners-Up (Prize Money: Rs. 12500000): Delhi Waveriders Third Place (Prize Money: Rs. 7500000): Uttar Pradesh Wizards Fair-Play Award: Ranchi Rhinos Hero Player of the Tournament (Rs. 2500000): Sardar Singh Ponty Chadha Trophy for Upcoming Player of the Tournament (Rs. 2000000): Mandeep Singh Airtel Award for Most Goals in the Tournament (Rs. 1000000): Delhi Waveriders About Hockey India League (HIL): Hockey India League (HIL) was played from 14 January 2013 to 10 February 2013 in which 5 teams Delhi Waveriders, Jaypee Punjab Riders, Sahara India Uttar Pradesh Wizards, Dabur Mumbai Magicians and PatelUnion Ranchi Rhinos participated. The tournament was played at 5 places- Delhi, Jalandhar, Lucknow, Mumbai and Ranchi. Renowned hockey players of the world participated in the Hockey India League (HIL). 34 matches in all were played during the tournament. bagged their third Santosh Trophy title. About the Santosh Trophy Santosh Trophy is the yearly Indian football tournament that is played among states and government institutions. This

At the fifth position was India which defeated Pakistan 4-2. Trent Mitton was declared as the man-ofthe-match for final match. The top scorers of the tournaments were Indias Rupinder Pal Singh and Malaysias Faizal with six goals each. Earlier, Australia had won the Sultan Azlan Shah Hockey Tournament in 1983, 1996, 2004, 2005, 2007 and 2011. About Sultan Azlan Shah Hockey Tournament The Sultan Azlan Shah Hockey Tournament is held in Malaysia every year. The first tournament took place in 1983. After 1998, the tournament started taking place every year. The tournament is named after the ninth

Ranchi Rhinos beat Delhi Waveriders 2-1 to win the inaugural Hockey India League (HIL) in the match at Astroturf Hockey Stadium on 10 February 2013. Apart from winning the trophy, Ranchi Rhinos took away 2.5 crore Rupees. Runners-up Delhi Waveriders on the other hand, pocketed 1.25 crore Rupees. Uttar Pradesh Wizards that completed in the third place took away 75 lakh Rupees. Uttar Pradesh Wizards defeated Punjab Warriors 43 to claim third position. Mumbai Magicians player Sandeep Singh hit maximum goals (11) in the tournament. The awards given away in the Hockey India League (HIL) were as follows: FOOTBALL

67th Santosh Trophy

In the final of the 67th Santosh Trophy on 3 March 2013, Services won the soccer contest by defeating hosts Kerala 4-3 on penalties at the Jawaharlal Nehru Stadium in Kochi. The Man of the Match title was clinched by Services striker Lalian Mawia. The Services team

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tournament was initiated in 1941. The Santosh Trophy is named after late Maharaja Sir Manmatha Nath Roy Chowdhary of Santosh. David Beckham Named Richest Footballer of the World Ronaldo and Lionel Messi. In 2012, Beckham earned more than 20 million pound from wages as well as endorsement. The Goal Rich List 2013 revealed that the worth of Beckham is 60 million pound more than Messi. At the third position is Ronaldo, aged 28 years. He earned a total of 112 million pound in his career. Wayne Rooney, the Manchester United and England striker made it to the list of Top Ten with a total of 50 million pound. Goal-Line Technology at the 2014 World Cup Fdration Internationale de Football Association (FIFA) on 19 February 2013 confirmed the use of goal-line technology during the 2014 FIFA World Cup to be organised in Brazil. It also stated that the technology could be introduced in the next seasons Premier league. FIFA had invited tenders from more service providers of the technology F1/MOTOR SPORTS Marussia F1 Team Unveiled Their New Formula 1 Car, MR02 Marussia F1 team unveiled their new Formula 1 car called MR02 on 5 February 2013. The specialty of this car is that it equips the KERS (the kinetic energy recovery system) power-boost system which is not found in any other existing teams. KERS was legalised since 2011. The benefit of KERS is that enables 0.3 seconds per lap. New driver of the Marussia F1 team, Max Chilton drove this car on first day of the F1 pre-season testing at Jerez in Spain ON 5 February 2013. Marussia F1 team described this car as an all-inclusive evolution of older 2012 model. MR02 is first of its kind car that is designed using the technique of CFD complementing wind tunnel. Australian Grand Prix 2013 Kimi Raikkonen, the Australian driver of Formula One team Lotus Grand Prix 2013 opening season, Ferraris Fernando Alonso and Red Bulls Sebastian Vettel finished at the second and third position respectively. Brazilian Felipe Massa, the Ferrari driver and Britains Lewis Hamilton, the Mercedes driver finished at the fourth and fifth positions respectively. About Kimi Raikkonen K i m i Raikkonen won 2007 World Championship with Ferrari. 33-year-old Kimi Raikkonen won a total of 20 titles in Formula One. He started his career as a driver in Formula One in 2001. to conduct an official bidding ahead of the Confederations Cup to be held in June 2013. Introduction of the technology in football is being insisted to provide a high-tech aid to the World Cup referees to rule on the disputed incidents. IFAB, the rule making panel of FIFA in July 2012 decided to approve the goalline technology for the competitive matches after it passed an extensive test conducted by the body. The decision by FIFA was expected once its rule-making panel, known as IFAB, decided last July to approve goal-line technology at competitive matches after two systems passed extensive tests. Goal-Line Technology (GLT) Goal-line Technology is a technology that is used to determine the fact that has the ball passed the goal-line or not with the support of an electronic-device to help the referee decided to take a call that either it was a goal or not.

David Beckham was named as the richest footballer of the world, according to the Goal Rich List 2013. David Beckham has a total income of 175 million pound. 37-year-old Beckham is the biggest brand in the world now, leaving behind Cristiano

won the season-opening Australian Grand Prix 2013 on 17 March 2013. Kimi Raikkonen started at the seventh spot in Finland and adopted just two pit stops technique for winning the race. In the Australian

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CHESS Grenke Chess Classic Trophy February 2013. To secure his win in the Grenke Chess Classic, Anand also defeated Fabiano Caruana from Italy. This was his first title of the year. The 43 years old Anand, managed to take a 49 move win against Arkadij with his black pieces to claim the title for his all-play-all tournament title in five years. Anand last won a title in March 2008 at Linares, when he topped the field with 8.5 points in the eight player field. In January 2013, Anand finished at third position in the Tata Steel at Wijk aan Zee in although he GOLF PGTI Players Championship Title 2013 ninth. He made his approach shot from 115 yards to within a foot of the pin on the ninth. The 34-year-old reigning Rolex Rankings champion Afterwards, he went two-under for the day with a birdie on the 14th after landing his chip within three feet of the hole. Shamim Kahn is 34 years old. BT Pro Am of Champions Golf Tournament 2013 Neha Tripathi defeated Thailands Pennapa Pulsawath to win BT Pro Am of Champions golf tournament 2013 in Manesar on 10 March 2013. After initially tying up at a score of 141, Neha won the match in second playoff on 18th hole. At the third position was golfer Smriti Mehra from India who got the total score of 142. Thai golfer Tiranan Yoopan finished at the fourth position with a score of 143. Tang Ni Nhung of Vietnam came at the fifth position with an overall score of 148. It is important to note that Neha Tripathi had won the first tournament of Hero Women Professional Golf Tour on 31 January 2013. This is her third title in the Women Tour. Hero Womens Pro Golf Tour 2013 Smriti Mehra, the veteran golfer, on 6 March 2013 won her second title in the fourth leg of Hero Womens pro golf tour 2013 in Mumbai. Smriti played a round of one under 64 and finished with an overall score of 194 at the Willingdon Sports Club. At the second position was Neha Tripathi who completed with the final round score of one over 66 and an overall score of 200. Sharmila Nicollet achieved third position with lowly six over 71 and a total score of 202. Pallavi Jain came at the fourth position with par 65 and an overall score of 205. At the fifth position were Vani Kapoor and Saaniya Sharma who tied at a total score of 209. The winners were as follows: Smriti Mehra-194 (67, 63, 64) Neha Tripathi-200 (70, 64, 66) Sharmila Nicollet-202 (63, 68, 71) Pallavi Jain-205 (65, 75, 65) Vani Kapoor - 209 (73, 68, 68) Saaniya Sharma- 209 (74, 67, 68) lost the first round to Wang Hao from China. Standings of Players Point wise: 1. Viswanathan Anand from India (6.5/10) 2. Fabiano Caruana from Italy (6/ 10) 3. Michael Adams from England (5/10) 4. Georg Meier from Germany (5/ 10) 5. Arkadij Naiditsch from Germany (4/10) 6. Daniel Fridman from Germany (3.5/10)

Viswanathan Anand, the World Champion in Chess from India won the Grenke Chess Classic trophy of 2013 after defeating Arkadij Naiditsch from Germany on 17

Shamim Khan of Delhi on 1 March 2013 defeated Mukesh Kumar of Mhow in the playoff to win the PGTI Players Championship title at the Classic Golf Resort. S Chikkarangappa of Bangalore came third with an aggregate of 11-under277. Both Shamim and Mukesh finished the regulation 72 holes with matching totals of 12-under-276. Shamim (66-70-70-70) was in third position earlier. However, he placed three strokes behind Mukesh and made a solid start to the day with pars on the first eight holes and followed that up with a birdie on the

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Eighth NCR Cup Golf Tournament Vijitha Bandara of Sri Lanka won Eighth NCR Cup Golf Tournament at Delhi Golf Club on 1 March 2013. Vijitha Bandara shot four-over 76 for a total of 293 in order to win the tournament. With the victory of this tournament, Bandara became the second Sri Lankan to clinch this title. The first one to win this title was N Thangaraja in 2012. Prince Kajotia of Indian Navy finished at the runner-up position with three-over 295. The third position was clinched by Samarth Dwivedi, the India-born Thai golfer who scored a total of 300. Indian Lakhan Singh and Amit Kumar tied at the fourth position at 303. Devendra Singh achieved hole-in-one on seventh hole and finished at 22nd position. Lakhan Singh, on the other hand won longest drive challenge prize on the sixth hole. Sunny Nagar grabbed straightest drive on 10th hole. Avantha Masters Golf Tournament 2013 In the Avantha Masters golf tournament at Jaypee Greens course in Greater Noida on 17 March 2013, Indias Gaganjeet Bhullar finished at the runners-up position. Thomas Aiken of South Africa won the BADMINTON All England Open Badminton Championships 2013 Tine Baun won the womens singles title in the All England Open Badminton Championships 2013 at the National Indoor Arena, Birmingham, England on 10 March 2013. With this victory, the 33-year-old Baun became the oldest AllEngland womens singles champion of Open Era. She defeated three-time world junior champion Ratchanok Intanon of Thailand 21-14, 16-21, 21-10. This was the last tournament of Tine Bauns career. Earlier, she had won the same title in 2008 and 2010. About Tine Baun Tine Baun is the female badminton player. She is from Denmark. The most important highlight of her career is winning the All England Open Badminton Championship womens singles three times in 2008, 2010 and most recently, in 2013. This was the last tournament of her career. About All England Open All England Open Badminton Championships tournament is played annually. The first tournament was held in 1898 in Guildford. Earlier, the All England Open Badminton Championships was held in only three categories- Mens Doubles, Womens Doubles and Mixed Doubles. Mens Singles and Womens Singles titles were added to the tournament in 1900. ARCHERY/SHOOTING Asian Grand Prix Archery Championship Avantha Masters golf tournament. At the third position was Chinas Liang Wen-Chong who finished two spots behind Bhullar. Gaganjeet Bhullar won a total prize money of 2 lakh Euros or 1 crore 34 lakh Rupees. Thomas Aiken won by three-stroke margin, claiming 3 lakh Euros or 2 crore Rupees. The score of Gaganjeet Bhullar was 20 under 268. On the other hand, Thomas Aiken scored 23under 265. Among other Indians who gained good position was, Himmat Rai who finished at ninth spot. His tally was 14-under 274. Jeev Milkha Singh also claimed limelight in the event with 23rd position in the tournament.

MAY 2013

Badminton Championships All England Open Badminton Championships is also known as All England. It is one of the oldest as well as the prestigious badminton tournaments of the world.

India won a total of eight medals in the inaugural Asian Grand Prix Archery Championship at

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Bangkok on 14 March 2013. India won two gold, two Silver and four bronze. In the category of compound Mens individual, Ch. Jignas clinched the Gold after he defeated Chinas He Ying 145-142. In the Compound Mens trio category, Ch. Jignas, Abhishek Verma and Ritul Chatterjee won the Gold, registering a victory over Vietnam, 226-218. Silver was won by Rahul Banerjee in Recurve Men and Anjali Kumari in Compound Women in the individual categories. In the Recurve Mens event, Atanu Das clinched the Bronze. Recurve Womens team of Bombayala Devi, Dola Banerjee and Rimil Biruli defeated Indonesia to win a Bronze. In the same section, Bombayla Devi won a Bronze in individual category. Atanu and Bombayala also defeated opponent team in Mixed team event to win fourth Bronze for India. India Clinched a Gold and a Bronze Medal in Asian Archery Grand Prix In the Asian Archery Grand Prix, the mens compound team of India won a gold medal while mens recurve trio won a bronze in Bangkok on 12 March 2013. The VARIOUS Hero Asian Cycling Championships qualified with better timings (38.848 secs) as compared to the Indian pair (39.245 secs). General Sparrow Centenary Polo Cup-2013 Sona Polo Team won the General Sparrow Centenary Polo Cup-2013 played at Jaipur Polo Ground on 2 March 2013 by defeating Sailors team.The Vice President of India, M. Hamid Ansari on 2 March 2013 presented prizes to the winners of the General Sparrow Centenary Polo Cup-2013 at Jaipur Polo Ground. Sona Polo Team won the Centenary Polo Cup after defeating Sailors team in the final game. 42nd Senior National and InterState Carrom Championship Mens Title Shrinivas won 42nd Senior National and Inter-State Carrom Championship at Akola. He defeated world no. 3 Yogesh Pardeshi in the mens final 8-25, 2518, 25-4. In the womens final, Rashmi Kumari defeated I Ilavazhaki 25-9, 25-18 to win the womens title. This was the fifth title of her career. The nationals ended on 10 March 2013. These nationals were organised at the Desai Stadium by Vidarbha Carrom Association and All India Carrom Federation. Maharaja Jiwaji Rao Scindia Gold Cup 2013 61st Cavalry defeated IPG 9-5 in the M3M Maharaja Jiwaji Rao Scindia Gold Cup 2013 to lift the trophy. Major Ravi Rathore scored five goals in the Jaipur Polo Ground, New Delhi, thereby giving a comfortable lead to the Cavalry men. Bhawani Kalvi of IPG managed to score four goals, but could not close the gap, thus losing to the 61st Cavalry in the M3M Maharaja Jiwaji Rao Scindia Gold Cup 2013. About M3M Maharaja Jiwaji Rao Scindia Gold Cup 2013 M3M Maharaja Jiwaji Rao Scindia Gold Cup 2013 was the 16th edition of the tournament in which a total of 8 teams participated. The teams which participated in the tournament include Jindal Steel & Power, Elevation, Action Polo, 61st Cavalry, IPG mens compound team comprised of Jignas Chittibomma, Sandeep Kumar and Abhishek Verma. It defeated Vietnam team 226-218 to clinch gold. The recurve trio mens team comprised of Binod Swansi, Rahul Banerjee and Atanu Das. It defeated Russia 217-201 to win the bronze medal. India won 55-51, 53-47, 5553, 54-50. In the meanwhile, the womens recurve team of India comprising of L Bombayla Devi, Dola Banerjee and Rimil Buriuly missed their bronze after losing 202203 to Indonesia. India lost 48-52, 52-52, 53-51, 49-48.

Indias Deborah and Manorama Devi on 10 March 2013 won a bronze in the team sprint on the second to last day of the Hero Asian Cycling Championships in New Delhi. The pair came just 0.148 secs ahead by defeating Malaysias Faihah Shahwati Mohd Adnan and Nurul Alissa Mohamad Azman. Manorama, was little slow as she completed the first lap in 22.243 secs as compared to Malaysias rider (21.527). in contrary Deborah, wrested back the advantage and completed the race with an aggregate of 38.645 secs to bag a podium finish in the junior category while the Malaysian duo took 38.793 secs to finsh the two-lap race. Earlier in the day, Faihah and Nurul had

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9-5 , Jindal Power, Sahara Warriors and ASC-RVC. M3M India is the luxury real estate property developer that associated with exclusive sports events such as polo as a part of its marketing strategy. M3M is the sponsor of this Maharaja Jiwaji Rao Scindia Gold Cup 2013 tournament. Proceeds of the tournament were given to Rajmata Shrimant Vijaya Raje Scindia Centre for Development, which is an NGO that works towards hunger eradication, primary health care, water management, women empowerment and primary education. witnessed the games in venuesPyeongchang and Gangneung. India returned with 46 medals in 2013 Special Olympics World Winter Games at Pyeong Chang, South Korea.

Maharaja Jiwaji Rao Scindia Gold Cup was instituted by late Rajmata Vijaya Raje Scindia of Gwalior, to commemorate Maharaja Jiwaji Rao Scindia. The Maharaja Jiwaji Rao Scindia Gold Cup is patronized by Royal Scindia Family of Gwalior.

Pyeongchang Special Olympics World Winter Games The 2013 Pyeongchang Special Olympics World Winter Games finished after a week of competition among differently-abled athletes. The games took place from 29 January 2013 to 5 February 2013. Almost 200000 spectators

The differently-abled athletes of India won 46 medals in all- 13 gold, 17 silver and 16 bronze from mentally-challenged 2200 athletes participating from more than 120 nations in the games. The medal tally of India doubled from World Winter Games 2009. These games were completed in eight categories of sports- alpine skiing, cross-country skiing, snowboarding, snowshoeing, figure skating, short track speed skating, floor hockey and floorball. Various celebrities participated in the games to support these athletes. Some of the popular faces were former NBA All-Star Yao Ming and Chinese actress Zhang Ziyi. In its closing ceremony, figure skating superstars Kim Yu-na and Michelle Kwan were also present.

MAY 2013

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Award & Prizes


Saraswati Samman 2012 About Saraswati Samman Saraswati Samman is constituted by K. K. Birla Foundation. The award carries cash prize of 10 lakh Rupees, a plaque as well as a citation. This award is given every year to the literary work in any Indian language which is the part of Eighth Schedule of the Constitution. Apart from this award, K. K. Birla Foundation also constituted other two awards which include Bihari Puraskar for Hindi and Rajasthani writers and Vyas Samman for Hindi. Bihari Puraskar For 2012 Rajasthani author Hariram Meena was selected for the Bihari Puraskar for 2012 for Hindi novel Dhooni Tape Teer. The novel was published in 2008. Dhooni Tape Teer is a novel based on the deaths of tribal people in Banswara in Rajasthan on 17 November 1913.

Sugathakumari, the Malayalam poetess in the third week of March 2013 was chosen for the Saraswati Samman 2012 for the poetry collection Manalezhuthu , which means The Writing on the Sand i n English. The Saraswati Samman is constituted by K. K. Birla Foundation. 79-year-old Sugatha kumari was selected for Saraswati Samman by the 13-member jury. The head of this jury was former Chief Justice of India R. C. Lahoti. The jury considered works of the artists published in 22 different languages from 2002 to 2011. Saraswati Samman is awarded annually for outstanding literary work in any Indian language in past 10 years.

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The Bihari Puraskar is selected annually by a panel, which at present is headed by Nand Kishore Acharya. About the Bihari Puraskar Bihari Puraskar was instituted by K K Birla Foundation in 1991. It is given on a yearly basis to the Rajasthani writers for their literary works in Rajasthani or Hindi published in last 10 years. The award includes a citation along with a cash prize of 1 lakh Rupees. 85th Academy Awards (Oscars 2013) The Oscars 2013 or the 85th

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Academy Awards ceremony took place on 24 February 2013. The annual Academy Awards were presented by the Academy of Motion Picture Arts and Sciences (AMPAS) in order to honour the best films of the previous years, i.e., 2012. The Oscars 2013 ceremony was held at Dolby Theatre in Hollywood, California. Best Costume Design: Anna Karenina Best Directing: Ang Lee for Life of Pi Best Film Editing: William Goldenberg for Argo Best Foreign Language Film: Amour (Austria) Music-Original Best Score: Mychael Danna for Life of Pi Music-Original Best Song: Skyfall from Skyfall (Music and Lyric by Adele Adkins and Paul Epworth) Writing-Original Best Screenplay: Quentin Tarantino for Django Unchained 60th National Film Awards Best film on social issues: Spirit (Malayalam) Best Supporting Actress: Dolly Ahluwalia for Vicky Donor Best supporting actor: Annu Kapoor Best original screenplay: Sujoy Ghosh for Kahaani Best actress: Usha Jadhav for Marathi film Dhaag Best actor: Irrfan Khan for Paan Singh Tomar Best Playback Singer - Male: Shankar Mahadevan for Bolo Na from the film Chittagong Best Playback Singer Female: Aarti Anklekar Tikekar for Marathi film Samhita Best Choreography: Pandit Birju Maharaj for Vishwaroopam (Tamil) About National Film Awards The National Film Awards are most prominent awards given away to the film fraternity. These awards were established in 1954. Annually, the national panel is appointed by Government of India which selects the winner. The awards are presented by the President of India in the official ceremony. Women of Courage Award The US State Department awarded one of the 2013 International Women of Courage Awards to 23-year-old paramedical student who was gangraped in a moving bus in New Delhi on 16 December 2012. She died after just two weeks in Singapore after being raped in the capital. The award would be given away posthumously on 8 March 2013. Popularly the paramedical student is also called Nirbhaya. The Secretary of State John Kerry will give away the US awards. The ceremony will also be attended by the First Lady Michelle Obama.

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The awards were hosted by Seth MacFarlane. This is said to be the most viewed ceremony since Academy Awards 2004. The main winners of the Oscars 2013 were Life of Pi, with four awards;Argo with three awards; Les Miserables with three awards andDjango Unchained, Lincoln, Skyfall with two awards each. The list of the awardees of 85th Academy Awards is as follows: List of the awardees of 85th Academy Awards: Best Picture: Argo Best Actor in a Leading Role: Daniel Day-Lewis for Lincoln Best Actress in a Leading Role: Jennifer Lawrence for Silver Linings Playbook Best Actor in a Supporting Role: Christoph Waltz for Django Unchained Best Actress in a Supporting Role: Anne Hathaway for Les Misrables Best Animated Feature Film: Brave Cinemato Best graphy: Claudio Miranda for Life of Pi

The 60th National Film Awards were announced on 18 March 2013. Films such as Kahaani a n d Paan Singh Tomarwere given some of the big awards at National Film Awards which are said to be the most popular film honours in Indian Cinema. The artists who gave benchmark performances in acting and film making in the year 2012 were rewarded in the National Film Awards 2013. The list of winners chosen by the jury in National Film Awards 2013 is as follows: Best actor: Irrfan Khan for Paan Singh Tomar and Vikram Gokhale for Marathi film Anumati Best film - wholesome entertainment: Vicky Donor

Award & Prizes


The other women who will also receive the award are: Tsering Woeser, the Tibetan blogger and activist Elena Milashina and Razan Zeitunah, the Russian journalist and rights activists National Bioscience Award for 2012 Council of Scientific and Industrial Research of India. Man Asian Literary Prize 2012 titles announced in December, which is then followed by the shortlist of 5 to 6 titles. The winner of the award is declared in March every year. The winner is given 30000 US Dollars. The translator, if exists, is given 5000 US Dollars. The submissions for the best novels are invited by the jury through publishers in any country. 5th CIDC Vishwakarma Award 2013 Tan Twan Eng on 14 March 2013 was announced as a winner of the 2012 Man Asian Literary Prize. With this, he became the first Malaysian author to win the most prestigious literary prize of Asia. Tan Twan Eng won the 2012 Man Asian Literary Prize for his novel The Garden of Evening Mists. This is only a second time that the prize has been given to the novel written originally in English. The previous winners had won the award as English translations. The Garden of Evening Mists set during aftermath of the Japanese occupation of Malaya won 30000 US Dollars from the shortlist of five novels which spanned over the Asian continent. Previous Years Winners The previous years winners are as follows: South Korean writer Kyungsook Shin- 2011 Bi Feiyu- 2010 Su Tong-2009 Miguel Syjuco-2008 Jiang Rong-2007 About Man Asian Literary Prize The Man Asian Literary Prize laid its foundation in 2007. The literary award is given annually to best novel by an Asian writer. The novel can be written in English or translated into English. It should have been published in previous year. For selecting the winner, the judges select the longlist of 10 to 15

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S. Venkata Mohan a scientist of the Indian Institute of Chemical Technology, on 19 March 2013 won the National Bioscience Award for 2012 in Hyderabad. S. Venkata Mohan who is from the Bioengineering and environmental centre of the Institute won the prize for his contributions towards developing technologies for production of clean bio-fuels from waste. About National Bioscience Award The National Bio-science Award which is also called by NBIOS Prize is an honour of high importance conferred by the Federal Government of India to the select young Indian bio-scientists of less than 45 years of age. The award is given every year for distinctive contributions made towards the development of state of art in basic and applied areas of biological sciences through demonstrated activity in the form of publication in reputed journals and or patents. The award recognizes research and development work carried out in India during the last 5 years of the career. The award is considered almost equivalent to the Shanti Swarup Bhatnagar Prize given by the

At the 5th CIDC Vishwakarma Award 2013, Tapas Kumar Lahirythe chairman-cum-managing director (CMD) of Northern Coalfields Limited (NCL) and Bharat Cooking Coal Limited (BCCL) won the Achievement award for Public Officer on 7 March 2013 in New Delhi. At the function organised by Construction Industry Development Council (CIDC), Lahiry received this award. Lahiry is a mining engineer as well as administrator with leadership qualities. BCCLs turnover is 6952 crore Rupees with a profitability of 1093.69 crore Rupees in 2010-11. Lahiry has also remained associated with mining industry of America, China and Australia. CIDC Vishwakarma Awards are held annually for recognising the achievements as well as work of the organisations and individuals. SAARC Literature Award 2013 SAARC Literature Award was presented to five writers at Agra during the two days SAARC Festival of Literature on 10 March 2013. A

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poet-diplomat from India Abhay K was among the five writers to be honoured with the prestigious Literature Award. Other writers to be honoured with this award were Farheen Chaudhary (Pakistan), Abdul Khaliq Rashid (Afghanistan), Suman Pokhrel (Nepal) and novelist Daya Dissanayake (Sri Lanka). The award is annually presented to the eminent writers of the South Asian region for their contribution in the promotion of literature through their writings as well as literary initiatives. The SAARC Literature Festival 2013 focused on environment, literature and cultural connectivity. The FirstEver SAARC Writers Conference was organized in April 2000. Life Time Achievement Award 2012 by Ernst & Young and Onkar S Kanwar, Chairman and Managing Director, Apollo Tyres. Liberation War Honour Award Navneet Kaur belongs to Punjab and is a media student at present. Navneet Kaur was also given the title Miss Glowing Skin. Sobhita Dhulipala and Zoya Afroz were the first and second runners-up respectively. The trio of Navneet Kaur, Sobhita Dhulipala and Zoya Afroz were selected from a total of 23 finalists. The winner of Femina Miss India will now go for international contest Miss Universe. The first and second runners-up will compete in Miss World and Miss Asia Pacific respectively. 11th Golden City Gate Awards India Tourism Film, Find What You Seek claimed First Prize at 11th Golden City Gate Awards. Ministry of Tourisms new film Find What You Seek received first prize at the 11th Golden City Gate Tourism Media Awards Ceremony held in Berlin on 8 March 2013. About Golden city Gate Awards The Golden City Gate is an international film, print and media contest for the tourism industry. The Awards ceremony is held every year at ITB Berlin, the worlds leading travel trade show. The competition provides all tourism advertisers to participate in the contest for presenting their new creatives. All entries are assessed by 45 independent international expert jurors with strong industry background. About the campaign Find What You Seek Union Minister for Tourism K Chiranjeevi had launched the new campaign Find What You Seek, the second phase of Incredible India Campaign at WTM 2012 in November 2012

Ratan Tata, the former head of Tata Group was awarded the life time achievement award 2012 by Ernst & Young on 21 February 2013. He was given away the award for displaying great role for the Indian businessmen on global business level. The entrepreneur of the year (2012) award was given away to Adi Godrej, Godrej Group Chairman. It is important to note that entrepreneur of the year award is an only business award which is based on self-nomination. Also, Ernst & Young announced names of successful entrepreneurs in various categories and these awards were given away to TT Jagannathan, Chairman, TTK Group; Francisco DSouza, Chief Executive Officer, Cognizant Technology Solutions; Cyrus S Poonawalla, Managing Director, Serum Institute of India

The President of India, Pranab Mukherjee was on 4 March 2013 conferred with the Liberation War Honour Award by the President of Bangladesh, Zillur Rahman. The award was conferred upon him for his contribution to 1971 war. The award was given away to Pranab Mukherjee for contributions to the Liberation War. Earlier, the top most honour of Bangladesh, the Bangladesh Freedom Honour was conferred upon former Indian Prime Minister Indira Gandhi posthumously in 2011 for contributing towards creation of Bangladesh. Liberation War Honour Awards is the second highest honour of Bangladesh. Ponds Femina Miss India 2013

Navneet Kaur Dhillon w a s crowned Ponds Femina Miss India 2013 on 24 March 2013 in the grand finale of 50th edition of the beauty pageant in Mumbai. 20-year-old

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along with the new Domestic Campaign Go Beyond. By launching new campaign, the Ministry of Tourism has made a paradigm shift by shifting the focus from destinations and products to consumers (travellers). Healthcare Businessman of the theHealthcare Year Award 2013 at the Asian Business Awards ceremony in Central London on 23 March 2013. The honour was given by UKs Home Secretary Theresa May. On behalf of Kartar Lalvani, founderchairman of Vitabiotics received this Rich List highlights achievements of the entrepreneurs over last one year. Indira Gandhi Prize for Peace, Disarmament and Development Award 2011

The new campaign emphasizes that there is something for every traveller in India and every traveller can find what he or she is seeking while travelling in our incredible country. Domestic campaign Go Beyond urges travellers to travel beyond the obvious, the known destinations to the lesser known destinations. Healthcare Businessman of the Year

MAY 2013

Kartar Lalvani Lalvani, the NRI entrepreneur was conferred with

honour. Vitabiotics is the largest supplier of vitamin supplements as well as minerals in UK. In the same event, Amit Bhatia Bhatia, son-in-law of Lakshmi Mittal, was declared as t h e Young Entrepreneur of the Year 2013 2013. T h e Lifetime Achievement Award 2013 w a s given to Sudhir Choudhrie Choudhrie, the Indian origin entrepreneur. About Asian Business Awards Asian Business Awards 2013 were the 16th edition of Asian Business Awards. The event celebrates the acumen, achievement and excellence of the Asian business. The event encapsulates diversity as well as range of Asian businesses in UK. The Asian Business Awards also launched 2013 Asian Rich List which is said to be the definitive index of Asian wealth in UK. This 2013 Asian

The President of India Pranab Mukherjee on 18 February 2013 conferred 2011 Indira Gandhi Prize for Peace, Disarmament and Development Award to Ela Ramesh Bhatt, a renowned Women social worker. The award was given away at Rashtrapati Bhavan, New Delhi. Ela Bhatt was given away the award for life time achievements in women empowerment, promotion of grassroot level entrepreneurship as well as contribution towards promotion of equitable development and peace. Ela Bhatt has her organisation SEWA (SelfEmployed Womens Association). President Pranab Mukherjee while giving away the award announced that SEWA was a vehicle of self employment and self reliance for the Indian women, while at the same time being synonymous with the rural inclusiveness. Ela Bhatt Ela Bhatt is the founder of more than 1 million SEWAs in India. Since years, Ela Bhatt has been working for women empowerment and bringing women out of poverty through promotion of Self Help Groups.

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SEWA has empowered women with freedom as well as financial self- reliance. Nagpur is the Most Liveable Indian City well as identified cities that have a population of more than 10 lakh. These cities were adjudged on 13 main parameters which are as follows: Affordable Housing Public Transport Roads Power Availability Efficient Traffic Management Health Care Services Cleanliness & Sanitation Law & Order Green City Primary Education Women Safety Tourist Friendly City Overall Best City to live in The Awards given were as follows:
Name of the Indian City Nagpur Delhi Award Most Liveable Indian City Best City For Primary Education And Roads

At the ABP News-IPSOS Best City Survey and Awards 2013 event in New Delhi on 6 March 2013, Nagpur won the award for most liveable Indian city. Delhi was declared as the best city for primary education and roads. Nagpur won the award for most liveable Indian city for top health care services, green cover as well as best public transport. Rajkot was declared as the city with the best law and order. This city also ranked at the top most position in terms of cleanliness and sanitation as well as women safety. The city with best traffic management was Pune. Madurai was adjudged the city with most affordable housing. Nashik became the best tourist-friendly city while Mumbai was adjudged as the city with best power availability. Indias 20 most Liveable Cities In the list, the most liveable cities were Nagpur, Bhopal, Varanasi, Rajkot, Agra, Madurai, Bangalore, Hyderabad, Mumbai, Delhi, Surat, Pune, Patna, Nashik, Amritsar, Jaipur, Kanpur, Ahmedabad, Chennai and Kolkata. About The ABP News-IPSOS Best City Survey and Awards The awards were given for the first time. These awards were based on the surveys which evaluated as

Rajkot City With The Best Law And Order Pune City With Best Traffic Management City With Most Affordable Housing Best Tourist-Friendly City The Greenest City Best City for Women Safety Madurai Nashik Nagpur Rajkot

Mumbai City With Best Power Availability

Pritzker Architecture Prize 2013

Allan Border Medal 2013 Toyo Ito, the Japanese architect was declared as the winner Michael Clarke, the Australian cricket captain won the fourth Allan

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of 2013 Pritzker Architecture Prize on 18 March 2013. The Pritzker Architecture Prize is said to be the most prestigious and richest award of architecture. Often, this prize is also referred as the Nobel Prize of Architecture. 71-year-old Toyo Ito is the sixth Japanese architect to win this prize. Others who won the prize include late Kenzo Tange, the designer of the Hiroshima Peace Memorial (in 1987), Fumihiko Maki (in 1993), Tadao Ando, the designer of Church of the Light (in 1995) and team of Kazuyo Sejima and Ryue Nishizawa (in 2010). He will win 100000 US Dollars as well as a bronze medal at the official Pritzker ceremony will take place on 29 May 2013 at John F Kennedy Presidential Library and Museum in Boston. About the Pritzker Architecture Prize Pritzker Architecture Prize is awarded annually in the month of May. Pritzker Architecture Prize was established back in 1979 in order to honour the best living architect who contributed towards the art of architecture. Late Philip Johnson won the first Pritzker Laureate in 1979. The prize is sponsored by Hyatt Foundation. This prize was established by late entrepreneur Jay A Pritzker along with his wife Cindy. The business interests of the Pritzker family were headquartered in Chicago. The winner receives an amount of 100000 US Dollars as well as a bronze medallion. The bronze medallion is based on the designs of Louis Sullivan.

Award & Prizes


Border Medal in Melbourne on 4 February 2013. 31-year old Clarke had won the medal earlier in 2005, 2009 and 2012. Apart from Clarke, the only other player to win this medal four times is Captain Ricky Ponting. Michael Clarke also won the Test cricketer of the year award for the second consecutive time after he scored 1080 runs in nine tests from 25 February 2012 to January 28 2013. Janeiro on 11 March 2013. Prestigious awards were claimed by sports stars- Jessica Ennis, Andy Murray and Sebastian Coe. Laureus World Sportsman of the Year- Usain Bolt Laureus World Sportswoman of the Year- Jessica Ennis Laureus World Team of the Year- European Ryder Cup Team Laureus World Breakthrough of the Year- Andy Murray Laureus World Comeback of the Year- Feliz Sanchez Laureus World Action Sportsperson of the YearFelix Baumgartner Laureus World Sportsperson of the Year with a DisabilityDaniel Dias About the Laureus World Sports Awards Laureus World Sports Awards are the global sports awards which honour the sportsmen and sportswomen for all kinds of sports every year. The Laureus Media Selection Panel gives away the awards in six different categories: Laureus World Sportsman of the Year, Laureus World Sportswoman of the Year, Laureus World Team of the Year, Laureus World Breakthrough of the Year, Laureus World Comeback of the Year and Laureus World Action Sportsperson of the Year. The Laureus Specialist Panel gives the award in the categories: Laureus World Sportsperson of the Year with a Disability. This award is overseen by Executive Committee of the International Paralympic Committee. Laureus is basically the Latin word for laurel, which means universal symbol for victory in sport. The winner of the Laureus World Sports Awards receives Laureus statuette, which is 30

List of Awardees of Allan Medal in different Border categories: Domestic Player of the Year Year: Phil Hughes Bradman Young Cricketer of the Year Year: Joe Burns Year Shane T20 Player of the Year: Watson ODI Player of the Yea Year: Clint McKay Test Player of the Year Year: Michael Clarke Womens International Player of the Year Year: Jessica Cameron Border Medal Allan Medal: Michael Clarke About Allan Border Medal Allan Border Medal is a prestigious award given away in the Australian cricket. It was first awarded in 2000. The Allan Border Medal is named after the former captain of Australia, Allan Border.

MAY 2013

Laureus World Sports Awards 2013 Laureus World Sports Awards 2013 were organised in Rio de

Jessica Ennis who won heptathlon gold in London 2012 Olympics was awarded the Laureus World Sportswoman of the Year award at the Theatro Municipal. Andy Murray won the Laureus World Breakthrough of the Year award. Andy Murray had won Olympic gold in the singles as well as silver in mixed doubles before winning grand slam title at the US Open in 2012. Sebastian Coe, the Chairman of the London 2012 organising committee acclaimed Laureus Lifetime Achievement Award. Usain Bolt, the Jamaican sprinter won the World Sportsman of the Year award for third time. Feliz Sanchez, the Dominican athlete won the World Comeback of the Year Award. Daniel Dias, the multiple Paralympic champion swimmer of Brazil was awarded with the title of World Sportsperson of the Year with a Disability. This was the second time he won the award. Felix Baumgartner, the Austrian skydiver was named as the World Action Sportsperson of the Year Award. Michael Phelps, the American swimmer won the Laureus Academy Exceptional Achievement Award. The Laureus World Team of the Year title was acclaimed by the European Ryder Cup Team which featured 7 UK golfers. The list of the awardees is as follows:

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cms high as well as 2.5 kg in weight. Every Laureus statuette consists of 670g of solid silver as well as 650g of gold finish base. Golden Bear Prize Outstanding Parliamentarian Award Prize is co-sponsored by the Science and Technology Facilities Council (STFC) and the Institute of Physics (IOP). The article written by Anil Ananthaswamy, Hip Hip Array lays emphasis on Square Kilometre Array which is an international project for building and designing largest radio telescope.

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The Romanian film Childs Pose on 16 February 2013 bagged the covetedGolden Bear prize for best film at the 63rd Berlin film festival. The Romanian drama is about a dominating mother using her social position to try to save her son from jail. The awards ceremony brought to a close the 11-day cinema showcase, where hundreds of movies were screened across Berlin. US independent director David Gordon Green won the Silver Bear best director award for his movie Prince Avalanche. The movie, the only comedy movie among the 19 contenders at the festival, features Paul Rudd and Emile Hirsch in the lead roles as highway maintenance workers in Texas at a crossroads in their lives. The Silver Bear for best actress was won by Chiles Paulina Garcia for her role in Gloria. The movie is a feel-good movie about a middle-aged divorcee who refuses to give up her search for happiness. Best screenplay was picked up by Closed Curtain. It was directed by Iranian dissident director Jafar Panahi and his longtime collaborator Kambuzia Partovi, a film made in defiance of a ban by authorities in Tehran.

The Parliamentary Award Committee selected BJP leader Arun Jaitley, Congress MP Karan Singh and JD(U) MP Sharad Yadav for Outstanding Parliamentarian Award for 2010, 2011 and 2012 respectively. Arun Jaitley and Karan Singh are the members of Rajya Sabha from Gujarat and Delhi respectively. Sharad Yadav, on the other hand is a member of Lok Sabha from Madhepura, Bihar. The Award Committee which was headed by the Speaker of Lok Sabha, Meira Kumar, recommended these names, which were accepted by executive committee of the Indian Parliamentary Group on 6 March 2013. Outstanding Parliamentarian Award was instituted by the Indian Parliamentary Group in 1994. This award is conferred every year on the outstanding parliamentarian, who is recommended by award committee as well as approved by executive committee of the Indian Parliamentary Group. Inaugural Physics Journalism Prize The London based Indian origin writer, Anil Ananthaswamy won inaugural Physics Journalism Prize for the article Hip Hip Array on 28 February 2013 in central London. The Physics Journalism

About Physics Journalism Prize Physics Journalism Prize is the inaugural prize which is sponsored by the Science and Technology Facilities Council (STFC) and the Institute of Physics (IOP). On winning the prize, the winner is offered an expensespaid trip to Japan for visiting the world-leading facilities in order to perform research in arena of Physics. The purpose of the prize is to inspire physicists by encouraging the journalists for tackling the complex topics. Lifetime Achievement Grammy Award

Pandit Ravi Shankar, the sitar legend was honoured with the posthumous Lifetime Achievement Grammy award. His daughter sitarist Anoushka Shankar accepted the award on his behalf on 9 February

Award & Prizes


2013 ahead of the Grammys show that took place in Los Angeles on 10 February 2013. Anoushka Shankar and Norah Jones attended the preGrammy ceremony at the Wilshire Ebell Theatre for accepting the honour which was given to their deceased father. Pandit Ravi Shankar died on 11 December 2012 at 92 years of age. Pandit Ravi Shankar was in the list of seven other artistes named for Lifetime Achievement Award honourees and this also included Carole King and the Temptations. The Indian sitar legend also won best world music album Grammy for The Living Room Sessions Part 1. Pandit Ravi Shankars daughter Anoushka Shankar was also nominated in this category for album Traveller.

MAY 2013

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APPOINTED Ashwani Kumar remainder of his tenure. 72-year-old Nikhil Kumar is a 1963-batch IPS officer, who was appointed as Governor of Nagaland on 15 October 2009. Jorge Bergoglio Francis of Assisi. Saint Francis of Assisi was the reformer of 13th Century, who lived in extreme poverty and preached his followers to preach the Gospel always, if necessary use words. After being elected as the Pope, Pope Francis waved his hands to the huge crowd gathered at St. Peters Square. The cardinals elected Jorge Bergoglio as the new pope after completion of the fifth ballot, but in all these ballots there existed no clear front-runner into the vote. For being elected to the position of the Pope, a winner must secure 77 votes or two-thirds of the 115 votes. Before this in the year 2005, Pope Benedict XVI was the front-runner in the fourth ballot. In 1978 Pope John Paul II was elected after eighth ballot and was the first non-Italian Pope in 455 years. Pope Benedict XVI, who was appointed pope in the year 2005 resigned from his position in February 2013 claiming that he was infirm to carry. He was the first pope

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62 year old Former CBI Director, Ashwani Kumar on 9 March 2013 appointed as Governor of Nagaland. Ashwani Kumar was the Director of the agency from August 2008 to November 2010. He will be the first head of the agency to be appointed as a Governor. With the appointment of Ashwani Kumar Former Delhi Police Commissioner Nikhil Kumar, who was serving as Governor of Nagaland, has been transferred and appointed as Governor of Kerala for the

The cardinals of the Roman Catholic Church chose Argentine Jorge Bergoglio on 13 March 2013 as the new Pope. The new pope chose Francis as his Papal Name. He is the first non-European pope in almost 1300 years and first pontiff from the Americas. A Pope sits in the Vatican City. Before Jorge Bergoglio, no other Pope took the Papal Name Francis after Saint

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in past 600 years to resign after Pope Gregory XII, who resigned from the position in 1415 to put an end to the Great Western Split among competing papal claimants. Importance of the Chimney Smoke in completion of the election process The colour of the smoke from chimney plays a vital role in indicating the completion of election process of a Pope. When the process of election of a Pope is completed and he accepts his position, the ballots are burnt immediately. Traditionally, these ballots are burnt dry or with the help of chemical additives. When a pope is elected, white smoke appears from the chimney. On the other hand, appearance of the black smoke indicates that voting has remained inconclusive. After the election of the Pope, white smoke appeared from Sistine Chapel chimney on 13 March 2013, which indicated that a Pope was elected and he also accepted his position. What is Papal Name? Papal Name is the name used by the Popes at the time, when they are in the office. This activity of choosing a name first started in sixth century and became a custom in the 10th Century. Since 16th Century every pope had been choosing the papal name. Election Process of the Pope The process of electing a new pope is called conclave and a college of cardinals is responsible for his election. Conclave is the process of seizing the members of the college in the Vatican City, authorized to vote, leaving them in no-contact with the outside world. During the voting process the Cardinals are locked inside the Sistine Chapel in the Apostolic Palace. The Conclave is initiated after 15 days and before 20 days of Popes death or resignation. During this complete process the cardinals are made to stay in the hospital inside the Vatican called as St. Marthas House that has 130 rooms. All the arrangements are made to make sure that no one from the outside world is able to get in touch with any of the cardinals or viceversa, when they are transported from the St. Marthas and the Sistine Chapel. Rules laid down for Election of a New Pope The number of electors from the College of Cardinals is 120 may be whatever is the number of Cardinals in the college. A Cardnal, who had attended the age of 80 years before the Papacy day is not allowed to participate in the Conclave. Any contestant, who is able to win more than two-third of the votes is elected as the Pope The ballot is conducted twice in morning and afternoon continuously for four days, before declaring the result In case, the cardinals fail to elect a Pope with 12 or 13 days, they can impose a majority vote and select the new Pope with simple majority Park Geun-Hye nuclearised North Korea as well as economic prosperity of the country. Park Geun-hye took charge of the office of the President of South Korea just a little over 50 years after Park Chung-hee, her father had taken over the office in 1961. Mohan Parasaran

Mohan Parasaran, the Additional Solicitor General was appointed as the Solicitor General of India after senior advocate Rohinton Nariman resigned from his designation. Mohan Parasaran will serve as the Solicitor General of India for a term of three years. The Appointments Committee of the Cabinet (ACC) cleared his name for Solicitor General of India. Rohinton Nariman resigned from his post in Early February 2013. Mohan Parasaran is a senior advocate of the Supreme Court. He was appointed by first UPA Government as Additional Solicitor General (ASG) in July 2004.
Solicitor General of India The Solicitor General of India is the second highest law officer of India and a subordinate to the Attorney General for India, who is the Indian governments chief legal advisor. Neiphiu Rio Neiphiu Rio 63, of Naga Peoples Front (NPF) party was sworn in as Chief Minister of Nagaland for the third straight term on 5 March 2013 along with 11 ministers by the Governor Nikhil

MAY 2013

Park Geun-hye sworn-in as the first woman President of South Korea. After swearing-in, she vowed for zero tolerance against

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Kumar at the Raj Bhavan in Kohima. The other eleven ministers who had taken oath for the office were from his own party, the Naga Peoples Front (NPF), which had won 38 seats in the 60-member house. The Naga Peoples Front (NPF), is supported by two alliance partners, BJP and JD(U) with one MLA each, also with an unconditional support of 7 Independents. Nations. Mukerji replaced Hardeep Singh Puri who retired in February 2013 after the tenure of two years. Asoke Kumar Mukerji was chosen by the Ministry of External Affairs of the Union Government of India. elections scheduled on 11 May 2013. The earlier five caretaker Prime Ministers of Pakistan wereGhulam Mustafa Khan Jatoi (6 August 1990-6 November 1990), Mir Balakh Sher Mazari (18 April 199326 May 1993), Moin Qureshi (8 July 1993-19 October 1993), Malik Meraj Khalid (6 October 1996-17 February 1997) and Muhammad Mian Soomro (16 November 2007-24 March 2008). Nicolas Maduro

Asoke Kumar Mukerji Asoke Kumar Mukerji was appointed as the next Permanent Representative of India to the United

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The other 11 ministers who took oath are, Noke Konyak, T. R. Zeliang, G. Kaito Aye, Imkong L. Imchen, Kuzholuzo Nienu, Kiyaneilie Peseyie, Yanthungo Patton, C M Chang, E E Pangteang, S Pangyuh Phom and R Merentoshi Jamir. Neiphiu Rio is the only leader to have led the regional party to victory in the assembly elections for the third time in the 50-year history of Nagaland statehood. Neiphiu Rio was Chief Minister from 6 March 2003 to 3 January 2008, and has been Chief Minister again since 12 March 2008. Rio was dismissed as Chief Minister when Presidents Rule was imposed on Nagaland on 3 January 2008. His party emerged as the single largest party in the ensuing elections and Rio, as the leader of DAN, was invited by the state Governor to form the government on 12 March, 2008.

At present, Mukerji is Special Secretary in the External Affairs Ministry. He also served as the Consul General in Dubai as well as the Deputy High Commissioner in London. Asoke Kumar Mukerji was the private secretary to External Affairs Minister Salman Khurshid. Justice Retd. Mir Hazar Khan Khoso

Justice Retd. Mir Hazar Khan Khoso took oath as the sixth caretaker Prime Minister of Pakistan on 25 March 2013 in Islamabad. The oath was administered by President Asif Ali Zardari at the ceremony which was held at Aiwan-e-Sadr. Important Facts It is important to note that Justice Retd. Mir Hazar Khan Khoso is the sixth caretaker PM of Pakistan. He will lead Pakistan in the general

Venezuelan Vice-President Nicolas Maduro on 8 March 2013 was sworn in as Venezuelas acting president, despite the Opposition resistance as it is being considered to the violation of the countrys constitution. Late President Hugo Chavez who died on 5 March 2013 after two year long fight against cancer named Maduro as his successor before undergoing the latest surgery in December 2012. He picked Nicolas Maduro as the presidential candidate of Chavezs socialist party. As per the countrys 1999 constitution, the National Assembly speaker becomes interim president in the event of a presidentelects death or inability to be sworn in. The constitution also says new elections should be called within 30 days. Leader of opposition Angel Medina boycotted the swearing-in ceremony, with the vast majority of opposition legislators who havent attended the ceremony. The earlier interim president of Venezuela was Ramn Jos Velsquez who served as acting president of Venezuela

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between 1993 and 1994 as a result of the crisis produced by the impeachment of president Carlos Andrs Prez. B Ashok Reddy designation of Secretary to Government of India. Kalyan Kumar Chakravarty will retain his position till 31 December 2017. Chakravarty also served in Madhya Pradesh government. He had also remained member-secretary of Indira Gandhi National Centre for the Arts and director general of the National Museum, New Delhi apart from vice chancellor of the National Museum Institute. Lalit Kala Akademi Lalit Kala Akademi or the National Academy of Fine Art is fine art institution of Government of India with an objective to promote, develop as well as spread the culture of Indian fine art. It receives funds from Ministry of Culture. Xi Jinping Mukul Manda Sangma of Congress was sworn-in as the Chief Minister of Meghalaya for the second term on 5 March 2013. He took oath for the second term as 26th Chief Minister of the state. The Governor, R.S. Mooshahary administered him the oath of office and secrecy at the Raj Bhavan premises in Shillong. 47-year old Mukul Sangma led the Congress with 29 seats, merely two seats short of the majority in a house of 60. He was sworn-in without the Council of Ministers. Announcement of the list of Council of Ministers will be made by Mukul Manda Sangma in the second week of March 2013. Prahlad Joshi Jinping. Only one vote was cast against him, while three representatives did not vote. Politburo member Li Yuanchao (63) was also chosen as the Vice President of Xi Jinping on the same day with 2839 votes in favour of him. Li Keqiang, 57, was appointed as the Prime Minister of China. He replaced Wen Jiabao. Mukul Manda Sangma

B Ashok Reddy, the Infotech Enterprises President (Human Resources and Corporate Affairs), was elected as the new chairman of Confederation of Indian Industry (CII), Andhra Pradesh, for 2013-14. C Suresh Rayudu, the Srinivasa Hatcheries Group Managing Director was elected as the vicechairman of CII, AP. Both of them were elected on 16 March 2013 in Hyderabad. Earlier, B Ashok Reddy served as the Vice-Chairman, CII Andhra Pradesh. CII-AP also commemorated the annual day on 16 March 2013. The acting chief justice of Andhra Pradesh High Court Justice N V Ramana, in the meanwhile, also released the Feasibility Study Reports of CII on the potential of industries in Khammam district on this day. In the report, it was suggested that six main sectors- chillies processing units, cold storage, cotton ginning, poultry farming and cotton spinning would be useful in boosting the growth prospects of Khammam district. Kalyan Kumar Chakravarty The President of India, Pranab Mukherjee appointed Kalyan Kumar Chakravarty as the chairman of Lalit Kala Akademi. Kalyan Kumar Chakravarty is the IAS officer of 1970 batch and retired from the

The new leader of the Communist Party of China (CPC), Xi Jinping on 14 March 2013 was appointed as the President of China. It is important to note that Xi Jinping, 59, was also chosen as the General Secretary of CPC in November 2012. He overtook the office from Hu Jintao. On 14 March 2013, Xi Jinping was approved by National Peoples Congress (NPC), the Parliament of China, in the comprehensive election process at Great Hall of the People. Out of 2963 delegates of NPC, there were 2956 delegates present. Out of the present delegates, 2952 voted for Xi

MAY 2013

Lok Sabha member Prahlad

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Joshi on 21 March 2013 appointed state ruling BJP chief by national President Rajnath Singh to lead the 5 May 2013 Assembly polls. The appointment of Joshi, representing Dharwad, was announced by Karnataka BJP just a day prior, after the Election Commission declared the poll schedule. Prahlad Joshi defeated other contenders as he has a relatively wider appeal and hails from north Karnataka which the party considers as stronghold but where it is facing a threat to its prospects from former BJP strongman B S Yeddyurappa. Numerically powerful Lingayat community to which Yeddyurappa belongs has a strong presence in north Karnataka. A second time Lok Sabha member from Dharwad, from where Chief Minister Jagadish Shettar also hails, 50-year-old Joshi, eclipsed former Chief Minister D V Sadananda Gowda, Mangalore Lok Sabha member Nalin Kumar Kateel and Minister Govind M Karjol who were also in the race. T. S. Vijayan taking the insurance industry to rural areas as well as simplifying the insurance products. Khil Raj Regmi replacing D M Mulay. At present, Shahare is a Joint Secretary in the West Asia North Africa division of Ministry of External Affairs. D M Mulay, on the other hand, has now been appointed as the Indias Consul General in New York. He would take up office in March 2013. The appointment of Rajeev Shahare came at a time when bilateral relations between India and Maldives are suffering because of termination of contract to GMR for Male International Airport modernisation. P.R. Vasudeva Rao P.R. Vasudeva Rao became the Director of the Indira Gandhi Centre for Atomic Research (IGCAR) at Kalpakkam. He succeeded S.C Chetal, who has now retired. Dr. Rao was earlier the Director, Chemistry Group in IGCAR and is also a specialist in the field of actinide chemistry as well as a few areas of chemistry of nuclear fuel cycle. In IGCAR, Dr. Rao led various R&D programmes related to the field of chemistry. Bobby Ghosh

Chief Justice Khil Raj Regmi was sworn-in as the new Prime Minister of Nepal on 14 March 2013. Khil Raj Regmi will be the head of interim government which will have its elections by 21 June 2013. He took over the office from Baburam Bhattarai. Khil Raj Regmi, 63, took oath of the office and secrecy from the President Ram Baran Yadav. In the meanwhile, Madhav Ghimire was chosen as the Home Minister as well as the External Affairs Minister. Hari Prasad Neupane was chosen as the Law Minister as well as Labour Minister. Regmi will head the 11-member interim government. Rajeev Shahare

Rajeev Shahare was appointed as the new High Commissioner to Maldives on 28 February 2013,

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T. S. Vijayan, the former LIC chief took over as the Chairman of the Insurance Regulatory and Development Authority (IRDA). Vijayan will succeed J. Hari Narayan. J. Hari Narayan completed the fiveyear term on 20 February 2013. The tenure for IRDA chairman is five years or till 65 years. T. S. Vijayan will take over as the Chairman of IRDA when the entire industry is facing meltdown. The challenges which will be faced by him include

Bobby Ghosh, the eminent Indian Journalist was appointed as the editor of Time International on 16 March 2013. He is the first nonAmerican World Editor in the history of the Times. His appointment to the post was confirmed by the editor in Chief, Martha Nelson and Managing Editor Rick Stengel in a joint email.

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DEATH Hugo Chavez Fifth Republic Movement political party from its foundation in 1997 until 2007 He led a coup attempt in 1992 and landed in jail for his act and was further he launched his political career Served as the President of Venezuela for three times A coup attempt was made in Venezuela in April 2002 to overthrow Hugo Chavez from his office. During this coup attempt, Hugo was ousted from his office for 47 hours and further the situation was restored by the support of public that was seeking his government and the military loyalists. 86 years old Former West Bengal Governor and industrialist Viren J Shah died in Jordan on 9 March 2013 after a heart attack. Viren Shah went on for holiday to Jordan with his wife where suffered the heart attack. Viren Shah was born in Calcutta on 12 May 1926 and was educated at Bombay University. Lilian Davies Sweden in 1976 as well as the duchess of the southern province of Halland at Drottningholm Palace Chapel in Stockholm. Kallam Anji Reddy

MAY 2013

Venezuelan President Hugo Chavez died on 5 March 2013 at a military hospital in Caracas at the age of 58 due to Cancer. He died after battling from cancer for two years during which he underwent several surgeries and chemotherapy in Cuba. With his death his 14 year rule of Venezuela came to an end and bringing a challenge of electing a new President for the country within 30 days as per Constitution of Venezuela. Till then the Presidency will be assumed by the Vice-President of the country, Nicolas Maduro. The Foreign Minister of Venezuela Elias Jose Jaua Milano announced seven days mourning for the country. Hugo Chavez was the President of Venezuela from 1999 till his death in 2013 He was the leader of the United Socialist Party of Venezuela He was responsible for the promotion of the Bolivarian cause of social revolution and started the secretive Revolutionary Bolivarian Movement-200 (MBR-200) in early 1980s He served the Venezuelan army as a officer before entering into politics and initiation the secretive Revolutionary Bolivarian Movement-200 (MBR-200) He was a former leader of the

Swedish Princess Lilian Davies died in Stockholm on 10 March 2013. She was aged 97 years. Swedish Princess Lilian was married to Prince Bertil. The Swedish Princess Lilian Davies was born in Swansea, Wales in August 1915 in a working class family. The cause of her death is unknown, but she suffered from Alzheimers disease. Lilian Davies became the princess of

Kallam Anji Reddy, the main behind Dr Reddys Laboratories Ltd (DRL), the second-largest drugmaker of India died on 15 March 2013 at Hyderabads Apollo Hospital. Anji Reddy was the founder and chairman of DRL. He was aged 72 years. He died because of liver cancer. He is survived by his wife, daughter and son. About Kallam Anji Reddy Anji Reddy was a chemical engineer. He served as the member on Prime Ministers Council on Trade & Industry. Anji Reddy was honoured with Padma Bhushan, the highest Civilian Award in India, in April 2011. He was awarded for distinguished service in Trade and Industry field. He also founded Neo-natal Intensive Care and Emergencies called NICE Foundation, which is the only institute for new-borns in Asia. In 1998, he also established Naandi Foundation which provided safe drinking water in rural areas. This foundation also provides the midday meals to 1.3 million children as well as farmers.

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About Dr Reddys Laboratories Ltd (DRL) Dr Reddys Laboratories is the second-largest pharmaceutical company of India, in terms of market capitalization with 31000 crore Rupees. It was also the first pharmaceutical company of India that was listed on the New York Stock Exchange in 2001. Zillur Rahman Article 54 of the Constitution of Bangladesh: Speaker to act as President during absence Speaker Abdul Hamid became acting President of Bangladesh now. According to the Article 54 of the Constitution of Bangladesh, if a vacancy occurs in the office of President or if the President is unable to discharge the functions of his office on account of absence, illness or any other cause the Speaker shall discharge those functions until a President is elected or until the President resumes the functions of his office, as the case may be. Executive powers vest in the Prime Minister of Bangladesh Presidents death does not affect the Government of Bangladesh because ever since the parliamentary democracy in Bangladesh was restored in 1991, the President has remained just a ceremonial post. The executive powers vest in the Prime Minister of Bangladesh. Prof Veer Bhadra Mishra Prof Veer Bhadra Mishra, the noted environmentalist as well as the acclaimed Hero of the Planet of TIME Magazine in 1999, died at Sir Sundarlal Hospital of Banaras Hindu University on 13 March 2013. He was aged 75 years. About Prof Veer Bhadra Mishra Prof Veer Bhadra Mishra was given the title of Hero of the Planet by the TIME magazine in 1999. He was the founder of Sankat Mochan Foundation. He founded Sankat Mochan Foundation in 1982.

The President of Bangladesh, Zillur Rahman passed away on 20 March 2013 at Mount Elizabeth Hospital in Singapore. He was 84 years of age. The Government of Bangladesh announced three-day mourning in the country. Zillur Rahman was undergoing treatment for kidney as well as respiratory complications.

He was also the former professor of Hydraulic engineering, apart from being the former Head of the Civil Engineering Department at the Institute of Technology. Mishra was also recognised on United Nations Environment Programmes (UNEP) Global 500 Roll of Honour in 1992. Prof Veer Bhadra Mishra was among the various expert members of National Ganga River Basin Authority (NGRBA). years for designating a lawyer as a senior advocate. In the history of last four decades, only three Solicitor Generals have been successful in completing his five year term in the office and they are L N Sinha from 1972-77, Dipankar Gupta from 1992-97 and G E Vahanvati from 2004-09. Pope Benedict XVI Pope Benedict XVI announced on 11 February 2013 that he would resign at the end of the month. He

ACCUSED/RESIGNED/CONTROVERSY Rohinton F Nariman Rohinton F Nariman, the Solicitor-General of India resigned from his office. He was appointed at the second highest law official of India on 23 July 2011 after Gopal Subramanium resigned from his office on 14 July 2011 following the issues with Government in context to the 2G Spectrum Allocation Scam. Nariman was designated as a senior advocate at the age of 37, when M.N. Venkatachaliah, the Chief Justice of India amended the rules and reduced the age from 45

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reasoned that he was too infirm to carry on. He is the first pontiff to do so in nearly 600 years. Sanjay Dutt The Supreme Court of India, on 21 March 2013 sentenced Bollywood star Sanjay Dutt to a sentence of 5 years in jail because of his association with the 1993 bombings in Mumbai. The decision was given by a bench of Justice PS Sathasivam and BS Chauhan. Sanjay Dutt, 53, was held for acquiring illegal weapons for Mumbai bombings in 1993 which killed 257 people. and 1993. Because of allegations of abuse of TADA, the Act was lapsed in 1995. Giuseppe Orsi Giuseppe Orsi, head of an Italian defence and aerospace giant Finmeccanica was arrested in Milan on the charges of his alleged involvement in the bribery activity to secure an Indian defence helicopter deal of 3600 crore rupees. He was arrested in relation to the probe of the international corruption. The Deal The contract signed with Italian defence giant Finmeccanica in February 2010 involved supply of 12 VVIP three-engine AW-101 choppers from Agusta Westland for the Indian Air Forces elite Communication Sqadron. By now, three choppers have already been delivered to India. As per the reports on the bribe scam, its expected that about 362 crore rupees that is equivalent to about 10 percent of the final deal was given back to help the Italian firm in winning the contract. About Finmeccanica The Finmeccanica is an Italian defence Giant company that entered into a deal to supply 12 three-engine AW-101 helicopters to India in February 2010. Giuseppe Orsi, now the CEO of Finmeccanica and the then head of its Helicopter Unit was arrested on the charges of the bribe scandal that surfaced. Agusta Westland AgustaWestland is an AngloItalian helicopter company that is owned by Italys Finmeccanica. The company is a total capability provider in the vertical lift market. Afzal Guru Mohamammed Afzal Guru, the convict of 2001 Parliament attack

The decision set the stage for the election of a new Pope before the end of March 2013. Pope Benedict XVI is 85 years old. He had become the Pope in 2005. The last Pope to resign was Pope Gregory XII, who took this step in 1415 to put an end to the Great Western Split among competing papal claimants. Doraemon Bangladesh banned the Japanese cartoon Doraemon in the third week of February 2013 because of the fears that children watching the Hindi-dubbed version were struggling to cope up with their native language- Bangla. Information Minister of Bangladesh Hasanul Haque Inu declared that all television channels which screened Doraemon were sent official notifications in which it was ordered that all the series should be taken off-air. The minister declared that the Government of Bangladesh did not want the educational atmosphere of the children to be disturbed by this Japanese cartoon. It was demanded by the lawmakers that television channels should be permitted to air only those foreign cartoons which were dubbed in Bengali. Doraemon is a Japanese cartoon character created by manga artist Fujiko F. Fujio. The character is actually a robotic cat to help preteen boy named Nobita.

MAY 2013

The Apex Court upheld his conviction under the Arms Act, but brought down the 6-year imprisonment given by TADA (Terrorist and Disruptive Activities (Prevention) Act) court to 5 years. He has already served 18 months in a jail in Pune, which means that he will have to serve remaining threeand-a-half year sentence. In 2007, he was found guilty of acquiring AK-56 rifle as well as a pistol illegally. He was one of the high profile people among 100 who were found associated with the bombing trial. Mumbai bombings took place in 1993. Indias most wanted Dawood Ibrahim was responsible for the bombings. About Terrorist and Disruptive Activities (Prevention) Act(TADA) The TADA was an active Indian Law from 1985 to 1995. The aim of the Act was to prevent the terrorist activities primarily taking place in Punjab. The Act came into force in 1985 and was renewed in 1989, 1991

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was hanged on 9 February 2013 at 8 AM in Tihar Jail, New Delhi. The Supreme Court of India pronounced the death Sentence for Afzal Guru in 2004 for masterminding the terrorist attack on Indian Parliament on 13 December 2001. The decision of hanging him came after the mercy petition filed was cancelled by the President of India, Pranab Mukherjee on 23 January 2013. BOOKS Reinventing Leadership Hamid Ansari released a book titled Walking with Lions: Tales from a Diplomatic Past, written by K. Natwar Singh, the former Union Minister for External Affairs on 1 March 2013. In the book, experiences of Natwar Singh have been described in interesting approach. The book will enlighten the readers. In the book, K. Natwar Singh ha Indian Saga of Steel The Union Minister for Steel, Beni Prasad Verma released a Coffee Table Book titled Indian Saga of Steel in New Delhi on 4 March 2013. The book which is brought out by the Ministry of Steel depicts about the progress of the Indian Steel Industry as well as its milestones from initial years to the present. The book- Indian Saga of Steel includes nine chapters. Apart from the milestones and development of the steel industry, names as well as brief profiles of some of the major steel companies in India can also be found. Areas of R&D, New Technologies, Environment and CSR can also be found in the book. Other details of VARIOUS John Kerry John Kerry was sworn-in as the 68th Secretary of State of the United States. With the consent of the Senate, John Kerry was appointed as the Chief Foreign Affairs Adviser of the President. John Kerry succeeded Hillary Rodham Clinton. The Secretary of State has the role of carrying out the foreign policies of the President through the State Department that encompasses Civil Service, Foreign Service and U.S. Agency for International Development. Under the Article II of US Constitution, the President has an authority to nominate any the book include photos of various units of plants. On the release occasion of the book, a film based on Indian Steel Industry was screened as well. On the occasion of release of the book, Member of Parliament and Chairman, JSPL Naveen Jindal; the Secretary, Ministry of Steel, D.R.S. Chaudhary and certain senior officials from Ministry of Steel were also present. Netaji Subhash Chandra Bose and Germany First copy of the book titled Netaji Subhash Chandra Bose and Germany by Professor Anita B. Pfaff was given to the President of India Pranab Mukherjee at Rashtrapati Bhavan on 6 February 2013. The book was brought out by the Federation of Indo-German Societies in India. The book is a collection of the records shared by Professor Anita Pfaff as well as other known biographers and writers. The book depicts interesting facts about the life of Netaji and his contribution to freedom struggle of India. The President described the book as a tribute to Netaji. The 2001 Parliament Attack The terrorist of Lashkar-e-Toiba and Jaish-e-Mohammad managed to attack on the Parliament of India, leading to the death of about a dozen of people including the security persons as well as civilians.

The First Woman President of India, Reinventing leadership, Smt. Pratibha Devisingh Patil written by Professor Sunaina Singh. The Vice President of India, Hamid Ansari on 19 March 2013 released a book titled The First Woman President of India, Reinventing leadership, Smt. Pratibha Devisingh Patil. The book is written on the former President of India, Pratibha Devisingh Patil by Professor Sunaina Singh. The book is not just a biography of the former President, Pratibha Devisingh Patil but also highlights various kinds of issues in India. Walking With Lions: Tales from a Diplomatic Past The Vice President of India, M.

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candidate for the Cabinet posts. The Senate thereafter, accepts or rejects the candidate. John Kerry was appointed with the consent of the Senate. About John Kerry John Kerry was born in Colorado on 11 December 1943. He was elected as the Lieutenant Governor in 1982. In 1984, he was elected to the United States Senate. He won re-election for four times since then. At present, John Kerry is the 10th most senior Senator in US as well as the second longest serving Senator in the office. He held senior positions in the Senate in Commerce, Finance as well as Small Business Committees. In 2004, John Kerry contested in the Presidential elections against George Bush. John Kerry was the nominee of the Democratic Party and he lost closely in the Presidential Elections. David Cameron Agreement on more cooperation to combat with the cyber attacks, which included police training exchanges and research into online security, was reached between the two nations Agreement on doubling the overall trade to 23 billion Euros by 2015 was reached David Cameron promised that his country will respond to any request for information in relation to the corruption allegations over Indias procurement of helicopters from the Anglo-Italian company AgustaWestland Cameron outlined a same-day visa scheme to make the process easier for Indias business community in his country Cameron invited the Indian students to come up the United Kingdom to pursue higher studies in the country During his stay in India, David Cameron visited the Golden Temple, Amritsar and the Jallianwala Bagh Public Gardens. He described the shootings as a Deeply Shameful event, but defended to deliver a formal British apology for the event, where more than 379 innocent Indians were killed at the orders of the then Brigadier-General Reginald E.H. Dyer. He is the first serving British prime minister to visit the site of 1919 Jallianwala Bagh shootings. Lyonchhen Jigmi Y. Thinley Prime Minister of Bhutan, Lyonchhen Jigmi Y. Thinley was on the home visit to India. During his visit to India he met with President of Indian Union-Pranab Mukherjee at Rashtrapati Bhavan, VicePresident of India-Hamid Ansari, Prime Minister-Manmohan Singh, Minister of Finance-P Chidambaram and Foreign Secretary-Ranjan Mathai. His visit was aimed at improving India-Bhutan bilateral relationship.

MAY 2013

David Cameron, the Prime Minister of the United Kingdom of Great Britain and Northern Ireland was on a visit to India. During his three day visit to India, the Prime Minister met the President of India Pranab Mukherjee as well as the Prime Minister Manmohan Singh. Major Agreements Reached and Announced

He is the Prime Minister of the Royal Government of Bhutan from 2008, after Bhutan became a democratic country. Bhutan became the youngest democracy of the world on 6 November 2008. He was the secretary in the Ministry of Home Affairs in 1992 In 1994 was appointed as the Deputy Minister of Home Affairs In 1994 he became Bhutans Permanent Representative to the office of United Nations and other international organizations in Geneva Lyonchhen served as the Prime Minister of Bhutan twice before introduction of Democracy in the nation and the period included July 1998 to July 1999 and August 2003 to August 2004. Delhi Counted Among Five Indian Hotspots of Illegal Trade of Tigers As per the joint report by Global wildlife trade monitoring Network TRAFFIC and WWF Tigers Alive Initiative, titled Reduced to Skin and Bones Revisited, Delhi, Sunderbans and the Western Ghats emerged as the hotspots of illegal trade of tigers their parts and products. The report which was released in Bangkok in Second week of March 2013 laid claim that tigers were being poached in most of the

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13 tiger range countries including China, India, Indonesia, Malaysia and Thailand. Based on the information with regard to India, five hotspot locations have been identified. The other four hotspots were close to protected areas in different parts of the country Ramnagar in Uttar Pradesh which lies along to the entrance of Corbett National Park, the towns of Balgahat and Jabalpur in Madhya Pradesh where the Kanha and Pench National Park is located, Kolkata and areas spanning south to the edge of the Sunderbans in Bengal and Sathyamangalam Tiger Reserve in the Western Ghats. Also as per the report, the National Capital Region is an exception among the hot spots as it is not located in or near to any tiger landscapes. The shocking part of the report concluded after an examination on trade of leopard parts and products is that Delhi accounts for more than 26 per cent of all leopards seized, making it the most important hub of illegal trade in the country. The Other major outcome of the Reports On Sundarbans hotspot, the report says that seizures on the Bangladeshi side have been at a much lower rate in comparison to India, the most recent seizure there was in 2011 when a suspect was found in possession of three tiger heads, four tiger skins, and 24 kg of bones. As per the report Corbett and the adjacent Ramnagar Forest division have healthy tiger populations, they remain a prime target for poachers and in 2012 a poaching group was found hiding out in the protected zone of the park with traps. As per the latest analysis of arrogations, which includes new data for 2010-2012, it aws revealed that parts of more than 1400 tigers have been seized across Asia in the past 13 years. The report has also arrived at a conclusion with its finding that parts of at least 1425 tigers had been seized from twelve of 13 tiger range countries between 2000 and 2012. Cambodia was the only exception from where no seizures were recorded at all during the period. A Prominent finding in the report was the high rate of seizures of live tigers . 61 individuals were seized in the three-year period since the last full CITES meeting took place in 2010, representing 50 per cent of overall numbers (123) recorded since 2000, it says. Thailand was the most significant location for interdiction of live tiger trade (30), followed by Lao PDR (11) and Indonesia (9) and Vietnam (4). A total of 654 seizures of tiger parts ranging from skin to bones, to teeth, claws and skulls took place during this period, an average of 110 tigers killed for trade per year or just over two per week. The report was launched on 8 March 2013 at the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) in Bangkok. The Prime Minister of India Visited South Africa The Prime Minister of India, Dr. Manmohan Singh visited Durban, South Africa for the 5th BRICS Summit which took place from 25 March 2013 to 28 March 2013. The central area of discussion was under the overarching theme, BRICS and Africa: Partnership for Development, Integration and Industrialisation. As the current BRICS Chair, India received the unstinted support of its partners in successfully implementing the ambitious agenda adopted at the New Delhi Summit in March 2012.

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The 5th BRICS Summit in Durban gave an opportunity to India for making progress on initiatives which were launched in Delhi. This would enable deepening of intraBRICS cooperation. During the visit, the PM held bilateral meetings with other BRICS leaders. During his visit, the PM met with the leaders of BRICS nations, i.e., leaders from Brazil, Russia, China and South Africa. Retd. Justice Bhatt to Conduct Judicial Probe in Allahabad Railway Station Stampede The State Government of Uttar Pradesh appointed Onkareshwar Bhatt, the retired Justice of Allahabad High Court to conduct Judicial Probe into the Allahabad Railway Station Stampede that occurred during Kumbh Mela. The constituted committee that will probe into the matter is a one-man committee and was directed to submit its report in two months. The State Government ordered a Judicial Probe into the incident that occurred on the day of Mauni Amawasya 10 February 2013 at the Allahabad Railway Station during Kumbh Mela. Other Two Committees conducting Inquiry on the Case Earlier, the state Government

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appointed Jagan Mathuews, Chairman of the UP Board of Revenue to conduct an inquiry and submit its report within one month. Railways have also appointed an Inquiry Committee being headed by the Additional member traffic Railway Board, to look into the matter An inquiry committee that was constituted by the Railways to look into the matter; the committee is being headed by the Additional member traffic Railway Board. Justice Usha Mehra Commission Justice Usha Mehra Commission submitted its report to on the 16 December 2012 Delhi gang-rape incident to the Union Government of India. The report was received by the Union Minister of Law and Justice Ashwani Kumar and the Union Home Secretary R.K. Singh. Major findings of the Usha Mehra Commission Lack of Coordination between the Police and the transport department Lack of cooperation between the police of National Capital Territory and National Capital Region plays a great role in escape of the criminals from one place to another Lack of PCR vans and public transport facility in Delhi Usha Mehra Commission The Usha Mehra Commission was constituted by the Union Government on 26 December 2012 to inquire into the different aspects of the brutal rape and assault incident of the girl on 16 December 2012 on the streets of Delhi. The commission was asked to submit the report within three months. Retired Delhi High Court Judge, Usha Mehra was the head of this commission. UN Human Development Report 2013 The UN Human Development Report 2013 was released on 14 March 2013, according to which India has poor Gender Inequality Index, apart from the overall poor Human Development Index (HDI). Apart from Afghanistan that got a rank of 147 in comparison to 132 of India, all the countries in the region of South Asia were ranked higher on Gender Inequality Index. China was also ranked very high on Gender Inequality Index. This Gender Inequality Index measures the inequality in terms of achievements between males and females in three main aspects namely, labour market, reproductive health and empowerment. Women Representation in Parliament Women representation in Parliament in India is only 10.9 percent. The only worse country than India is Iran with 3.1 percent. The country that has best representation of women in Parliament is Nepal with 33.2 percent. Maternal Mortality Ratio India ranks badly on the Maternal Mortality Ratio as well. Maternal Mortality Ratio measures the ratio of the number of maternal deaths to the number of live births in a given year. It is expressed per 100000 live births. In India, for every 100000 births, 200 women die during the childbirth or due to complications in childbearing. The only countries to have higher Maternal Mortality Ratio than India are Bangladesh (240), Pakistan (260) and Afghanistan (460). The countries with lowest Maternal Mortality Ratio are Sri Lanka (35) and Iran (21). What is Human Development Index (HDI)? The Human Development Index (HDI) is a combined index which measures the average achievements of the countries in three main human development dimensions. These dimensions are decent standard of living, knowledge and long and healthy life. In the 2013 Human Development Index (HDI) report, analysis of the 40 developing countries in South Asia was done. Mukesh Ambani

Mukesh Ambani retained his title as the richest person of India for the sixth consecutive year with the net worth of 21.5 billion US Dollars, according to the annual rankings published by Forbes on 4 March 2013. The richest man in the world for fourth time in a row was Mexican business tycoon Carlos Slim with the net worth of 73 billion US Dollars. In the overall list of the billionaires of the world, Mukesh Ambani was ranked at number 22. Lakshmi Mittal, on the other hand was ranked at 41st position with the net worth of 16.5 billion US Dollars. The first in the list was Carlos Slim, followed by Bill Gates with the net worth of 67 billion US Dollars, Spains Amancio Ortega with net worth of 57 billion US Dollars, Warren Buffett with the net worth of 53.5 billion US Dollars and Larry Ellison with the net worth of 43 billion US Dollars. A total of 55 billionaires from India appeared on

MAY 2013

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the list of 1426 people from the world who have a minimum net worth of 1 billion US Dollars. Among Indians, Mukesh Ambani as well as Lakshmi Mittal were followed by Azim Premji, Dilip Shanghvi, Shashi & Ravi Ruia, Kumar Mangalam Birla, Savitri Jindal, Sunil Mittal, Shiv Nadar, K P Singh and Anil Ambani. Durban, South Africa Environmental Performance Index The National Capital of India, Delhi emerged as worst place in terms of key parameters of environment in the Environmental Performance Index (EPI). The Environmental Performance Index (EPI) was started by the Planning Commission. In 2011, Delhi ranked at number 26 and now slipped down to number 32 in 2012. EPI Project was started three years ago, but its results were published for the first time as per the analysis of data which was supplied by 35 states as well as union territories. EPI was developed to measure the environmental well being of states. The rankings of EPI reflect the performance of the states depending upon 16 green indicators which are divided under five main categories- water quality, air quality, waste management, measures undertaken for climate change adaptation as well as state of the forests. All the states in India were asked to submit their detailed report on these parameters. Delhis cumulative score was 0.4246 in comparison to 0.7696 of the top ranker, Andhra Pradesh. Delhis rank was 32 among various states and union territories. The state that achieves the score 1 reflects cleaner environment, adherence to environmental standards, implementation of necessary legislation as well as conduction of efforts for the conservation of natural resources. The best performing states with their scores are as follows: Andhra Pradesh: 0.7696 Sikkim: 0.7478 Himachal Pradesh: 0.7414 Madhya Pradesh: 0.7334 Maharashtra: 0.7167 UNDP Report The United Development National Programme (UNDP) on 14 March 2013 at Georgetown Club, United States released its UNDP Human Development Report 2013. The report in its findings revealed that South Asia leads the world in improvements in human development. The report clarified that the South Asian Countries achieved widespread gains in terms of human development across the developing world from 2000 to 2012. The report titled The Rise of the South Human Progress in a Diverse World also identified investment in Education and taking care of the environment as the two key factors that can contribute in the making of the healthy development. It also indicated that although Afghanistan experienced several rapid gains but it lagged far behind in the race of development. The progress in human development in context of India, Bangladesh and the other South Asian nation helped in driving a historic shift in global dynamics due to which millions of people have raised themselves out of poverty and billions are at the edge of joining the fast growing middle class. The growth in Human Development achieved by different Nations Afghanistan and it was 3.9 percent (fastest) Pakistan achieved 1.7 percent Indian 1.7 percent Sri Lanka 0.7 percent (least growth achieved) The findings of the report are based on the analysis of more than 40 developing countries that achieved striking human development gains in recent past. The term South and North in the report is used to denote developing countries and developed countries respectively. National Commitments that are attributed to be the reason for the

The fifth BRICS Summit took place in Durban, South Africa from 25 March 2013 to 28 March 2013. This was the first time that BRICS Summit took place in South Africa. The most important theme for Durban Summit was Partnership for Development, Integration and Industrialization between the BRICS (Brazil, Russia, India, China and South Africa). Heads of these five countries along with around 2000 conference delegates, international media-persons and international and South African business people attended the fifth BRICS Summit in Durban. Universal Periodic Review Report on Human Rights in Lanka adopted by UNHRC The Universal Periodic Review Report on Human Rights in Sri Lanka was unanimously adopted by the United Nations Human Rights Council (UNHRC) in Geneva after a short debate on 15 March 2013. The report was prepared by a group of three countries that was chaired by the India. Serious concerns were expressed by the international fraternity including United States and United Kingdom for nonimplementation of the Lessons Learnt and Reconciliation Commission Report in true spirit.

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achievements made by the developing countries included Better public health and education services Innovative poverty eradication programs Strategic engagement with the world economy The report in its findings also defined that the speed and scale with which the South had risen was dramatic and stressed that never in the history, living conditions of the people changed in such a dramatic condition and have driven the global economic growth and societal change for the first time in centuries. Significance of the Changes The economic take-offs of China and India started with about 1 billion people in each of these countries and within 20 years the output per capita of these doubled, which means that an economic force have affected a much larger section of the population, than that happened after the industrial revolution The report also summed up that the combined economic output of the three nations namely Brazil, India and China will cross the aggregate production of Canada, France, Germany, Italy, the United Kingdom and the United States Report Findings in Context of India Indias investments on the world-class tertiary education, openness to trade and investments, building of human capabilities allowed India to develop technology enabled industries that are supported by a huge support of its skilled labour. The automobile, pharmaceutical, chemical and service industry of India also grew at a fast pace and allowed it to tap into thje world market. Results of such Policies for India Indias trade output ratio increased to 46.3 percent in 2010 from 15.7 percent in 1990 FDI in GDP went up to 3.6 percent from 0.1 percent in 1990 Eight Worlds largest fortune 500 listed corporations were Indian in 2011 Indias stand to offer affordable capital goods that suits to the requirements of the people in south than form the goods from the west also offered India a chance to be a global economic power Lolong The largest saltwater crocodile of the world, named Lolong died in Philippines, just 17 months after it was captured and put for tourists on display. Lolong measured 6.17 metres or 20.24 feet. The largest crocodile of the world died because of illness that is not known. It is believed that Lolong was over 50 years old. A hunting party that was sanctioned by the government captured Lolong in September 2011. The largest crocodile of the world became a source of tourist attraction. Lolong was declared officially as the largest crocodile of its kind in captivity by the Guinness Book of World Records in 2012. It beat the record of 5.48-metre crocodile named Cassius which was kept in park in an island off Queensland, Australia. Lolong belonged to the family of species called Crocodylus Porosus, or the Indo-Pacific crocodile, which is said to be the largest reptile of the world. King of Bhutan The King and Queen of Bhutan, Jigme Khesar Namgyel Wangchuck and Jetsun Pema respectively visited India. King of Bhutan, Jigme Khesar Namgyel Wangchuck was invited by the Indian President to be the Chief Guest for the Republic Day Celebrations of India.

The visit of the King of Bhutan and his acceptance to be the chief guest for the Republic Day celebration would contribute to further strengthening and expansion of the bilateral relation and ties between Bhutan and India. During his visit, the King of Bhutan met with President of India, the VicePresident, Prime Minister, UPA Chairperson, Leader of Opposition in Lok sabha, Foreign Secretary, National Security Advisor. Rajiv Gandhi Equity Savings Scheme Finance Minister P Chidambaram launched the muchawaited Rajiv Gandhi Equity Savings Scheme in Mumbai. The move will encourage new investors to put their money in the stock market. The scheme, which was announced in the Budget 2011-12, seeks to provide tax benefits to first-time investors in stock market. Under the scheme, an individual with an income of less than 10 lakh rupees would get tax incentives for investing up to 50000 rupees in the stock market. As per the notification issued by the Securities and Exchange Board of India on the scheme, there would be a lock-in period of one year on investments made under the scheme.

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Hyderabad the Commemorative Postage Stamp on Sahir Ludhianvi on occasion of his birth anniversary at Rashtrapati Bhavan in New Delhi. Sahir Ludhianvi died on 25 October 1980 and was a renowned Urdu poet. He was known among the young for his poetry on beauty and love. Sahir Ludhianvi had converged Urdu poetry into the film songs as well. Also, he fought for recognition of lyric writers through the Film Writers Association. During the release of the stamp, various dignitaries were present and these included Union Minister for Communications and Information Technology as well as Union Minister of Information and Broadcasting. Rajkeswur Purryag Patna, Tirupati as well as Kochi during the visit. He visited ancestral village, Bojeetpore near Patna in Bihar. Commemorative Postal Stamp at XXXIII Convocation of PGIMER The President of India, Pranab Mukherjee on 15 March 2013 released a commemorative postal stamp at XXXIII Convocation of Postgraduate Institute of Medical Education & Research (PGIMER) at Chandigarh. The President attended the 33rd Convocation of PGIMER. The President announced that for the future of India, progress in health sector was crucial. The stamp was released as the part of Golden Jubilee Celebrations of PGIMER. It is important to note that PGIMER includes doctors, students, facultuy members as well as officials of UT Administration, Punjab and Haryana. Shubh Yatra Ministry of Civil Aviation released Shubh Yatra, an exclusive monthly bi-lingual (Hindi & English) inflight magazine of Air India. It covers travel, lifestyle, culture and entertainment in all colour and spice. This is the new name of the inflight magazine. NIPFP Report

Two bomb blasts took place in Dilsukhnagar, the busy shopping area of Hyderabad, the Capital City of Andhra Pradesh. 14 people were reported dead and 119 were critically injured in the serial blasts that rocked the city around 6:50 pm. Investigations were ordered by both the Central Government and the State Government to find out the group involved in the blast. The State Government of Andhra Pradesh appointed a probe team into the matter. The blasts were triggered using the Improvised Explosive Devices (IED), which were placed on two different bicycles at a distance of 100 meters from each other near Konark and Venkatadri theatres. The area of blasts lie on the HyderabadVijaywada National Highway within Cyberabad police limits. Dilsukhnagar Dilsukhnagar is a commercial and educational hub of Hyderabad. The market of Dilsukhnagar is packed with shops, restaurants, educational institutions, exam preparation centers and theaters. Blasts in recent past in Hyderabad A bomb blast occurred at the Mecca Masjid in Hyderabad in May 2007 claiming lives of 9 people. Commemorative Postage Stamp on Sahir Ludhianvi The President of India, Pranab Mukherjee on 8 March 2013 released

Rajkeswur Purryag, President of Republic of Mauritius visited India. He was accompanied by Aneetah Purryag as well as the Ministers of Arts & Culture and of Social Integration and Economic Empowerment, and senior officials. Key highlights of his visit: Rajkeswur Purryag was the Chief Guest at the Pravasi Bharatiya Divas 2013 from 8 January 2013 to 9 January 2013. President Purryag was honoured with the Pravasi Bharatiya Samman Award. President Purryag met President Pranab Mukherjee and also held talks with PM Manmohan Singh in New Delhi on 4 January 2013. President Purryag also visited

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A 1000 page report submitted by the National Institute of Public Finance and Policy (NIPFP) to the finance ministry estimated that unlawful wealth would exceed 10 percent or more of GDP, i.e., above

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10 lakh crore Rupees as per the size of the economy. The study was commissioned by NIPFP in last week of December 2012 in order to quantify the black money that was generated in India. The study conducted by NIPFP was headed by the head of NIPFPs tax policy and research and also included former director general of income tax investigation. The report presented a sector-wise division of the scope of black money in India, for example, telecom sector, mining sector and real estate sector. A similar study like this was conducted last time by NIPFP in 1984 where it was estimated that black money generated in India was 19 percent to 21 percent of GDP, i.e., up to 36000 crore Rupees. The government, in order to combat this had also selected three thinking tanks in March 2011 in order to estimate the quantum of black money. These three thinking tanks were- National Institute of Financial Management (NIFM), National Council for Applied Economic Research (NCEAR) and National Institute of Public Finance and Policy (NIPFP). Before this, NIPFP had also carried out the studies in 1976 and 1981 where it was estimated that black money in India was around 15-18 percent of GDP and 18-21 percent of GDP respectively. The previous estimated of black money generated in India, as per the study of NIPFP are as follows: 1975-76: 15-18 percent of GDP, i.e., 9958 to 11870 crore Rupees 1980-81: 18-21 percent of GDP, i.e., 20362 to 23678 crore Rupees 1983-84: 19-21 percent of GDP, i.e., 31584 to 36784 crore Rupees About National Institute of Public Finance and Policy (NIPFP) National Institute of Public Finance and Policy (NIPFP) is the centre for research in public finance and public policy. It was established in 1976. Primary aim of NIPFP is contributing to policy making in areas which are related to public economics. The annual grant-in-aid is received by NIPFP from Ministry of Finance, Government of India and from various State Governments.

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Selected Articles from Various Newspapers & Journals

Selected Articles from Various Newspapers & Journals


For the Women of India, Parliament Must Speak
A brave young woman died a brutal death in the heart of the nations capital. And Parliament must speak. Today. Tomorrow. Or, the day after. But speak it must. And in a unified voice of conviction and certitude, rising above the cacophony of political difference say No to violence against women. Not in mere words, howsoever strong and impassioned, but in deeds, in crafting into our statute books laws on fighting sexual violence that are overdue, that the nation demands, and that are truly just to women. After decades of slow momentum on womens rights, India is poised on a cusp of change. It is now in the hands of parliamentarians to make that a reality. Let a voice reverberate from the halls of Parliament, sending a signal to India and to the world that our democracy is alive, that our democracy is good for women, and that this time the ramparts of patriarchy shall give. History is littered with lost opportunities for change. Let this not be one of them. Today, scores of women across India, protesting on the streets, watching from their homes, writing in their blogs, alert with angry chatter on e-groups, speaking loudly in press conferences, strategising in quiet huddles are saying the same thing uphold the Justice Verma Committee (JVC) Report! The task before Parliament is not simple. First there was the Criminal Law Amendment Bill 2012 (CLB), tabled in the Lok Sabha on December 4, 2012, and sent to the Parliamentary Standing Committee. The CLB 2012, crafted before the JVC was even constituted, was flawed and reactionary, flying in the face of repeated demands by women rights groups across the country. It was soundly opposed through scores of submissions to the Parliamentary Standing Committee. But even as the Standing Committee was considering its response, it was overtaken by events the brutal gang-rape of the young woman on December 16, 2012, the constitution of the JVC on December 23, 2013, the quick submission of its report on January 23, 2013, and then, ostensibly, in response to national sentiment, in an act of haste and stealth an Ordinance which was signed into law on February 5, 2013. Now the Parliamentary Standing Committee, which officially considered the Criminal Law (Amendment) Bill, 2012, (and the Ordinance, 2013 as well), has submitted its report. And the Government of India is poised to craft a new Bill to replace the Ordinance. Sadly, the Standing Committee report does little to push the boundaries of our collective conscience, and one only hopes that the new Bill will. While both the SC report and the Ordinance 2013 can claim to have incorporated parts of the JVC recommendations on points of law, the question Parliament must ask is, as it considers any new Bill, is: which key JVC recommendations got left out? The list of omissions is illuminating. Both the Ordinance 2013 and the SC Recommendations not only retain the core of impunity for sexual crimes, they actually add to it.

Accountability
What is impunity? A simple Thesaurus search will show up the following words license, exemption, freedom, liberty, latitude and immunity. Centuries of impunity emboldens those who commit violence. It emboldened the men who mauled a young womans body. Yet, the Ordinance 2013, which is today the law of the land, has created laws on sexual assault, harassment and rape in which the accused is gender neutral, i.e. both women and men can be accused of these crimes. Does this sound right? Can we sweep away the

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painful, historical and contemporary reality of masculine violence against women in India of women, stalked and raped by men in fields, homes and streets? Yes, in custodial situations, women can be perpetrators of sexual violence no one who has seen images of Abu Ghraib should believe otherwise. But not across the board. Given the brute nature of gender-based inequities in India, the huge imbalance of power between men and women, the realities of rape across our towns and villages, is this the law that the women of India deserve? For every complaint made against an offender, there now arises a real possibility of counter-complaints that will silence women even more than they are today. Which woman will brave the sceptical stance of the police and judiciary to seek justice when she herself stands to be in the dock, accused of the same crime as the offender? These are the questions Parliament must ask. The SC report and Ordinance also uphold impunity of the police, keeping intact their licence to refuse to lodge FIRs, to smirk and scorn women who seek its help. The JVC report had recommended creating a new offence (166A) for public servants who disobey the law and proposing a mandatory minimum sentence. The Standing Committee supports inclusion of this offence but says no to a minimum sentence. So, a rap on the knuckles is the only real deterrent we offer erring police. Parliament must demand full accountability from the public servants of this country to ensure that they provide protection and ensure prosecution if women are violated; and Parliament must ensure that any new Bill on sexual assault and rape proposes a minimum sentence for erring public officials. years a statutory offence, as the Ordinance 2013 does and the Standing Committee upholds? Statutory offence means any third party can threaten young people with jail-time; it means a judge must convict them, even though the couple may beg and plead and say this was not a crime; it means harassment by police in inter-caste relationships; it means a powerful tool in the hands of the wrong people. If Parliament passes a Bill that criminalises consensual sexual contact with anyone between 16-18, Indias portrait will hang in the international gallery of shame. There is more at stake will the new Bill recognise marital rape? Or, make it obligatory on the State to provide reparations for victims? At the time of writing we do not know what the provisions of the Governments new Bill will be. If it upholds the provisions and spirit of the Justice Verma Committee report, Parliamentarians must pass it into law, and as you thump your tables in approval, women outside will celebrate with you. This time, in memory of a young woman who died as no woman should, Parliament must speak for all the women of India. And this time the ramparts of patriarchy must give. Courtesy-The Hindu priced at Rs. 2.8 lakh and Rs. 8,800 respectively for one months dosage, a staggering differential. Although the licence given in the Natco case resulted in voluntary price cuts on other cancer drugs by some companies, several key branded drugs remain unaffordable in India. This is partly due to the failure of States to centrally procure and distribute them. Where such procurement exists, manufacturers are ready to sell to official agencies, such as the Tamil Nadu Medical Services Corporation, for a fraction of the retail price. The Twelfth Plan points out that availability of essential medicines in public sector health facilities free of cost is critical today. Equally, the list of essential medicines should be expanded, and States must set up special stores to make the drugs prescribed in the private sector available at low cost. What stands in the way of people benefiting from availability of new medicines in cancer treatment, among other areas, is the post-2005 product patent dispensation which has created manufacturer monopolies. This can be mitigated through compulsory licensing and that too by facilitating large scale manufacture in the public sector. Indias pharmaceutical market based on private sector care is worth about Rs. 56,000 crore annually, the major part being spent on non-essential medicines. The High Level Expert Group on Universal Health Coverage points out that the industry spent over a quarter of its annual turnover on sales promotion and a mere seven per cent on research and development. It is disingenuous, therefore, to argue that compulsory licensing will affect innovation. The Centre must persist with compulsory licensing and aggressive drug price controls. Favourable patent provisions must be protected and used without hesitation to advance universal health coverage. Courtesy-The Hindu

Patently Just
The Intellectual Property Appellate Board order upholding the compulsory licence granted to Natco Pharma to produce a generic version of Nexavar, or Sorafenib, a cancer drug patented by Bayer Corporation, is a strong endorsement of lawful action taken in public interest. Access to essential medicines is fundamental to the human right to good health. Indias amended Patent law and the Trade Related Aspects of Intellectual Property Rights clarified by the Doha declaration are unambiguous when it comes to invoking compulsory licensing provisions to benefit people who cannot otherwise afford treatment. The pharmaceutical industry has done itself a disservice by pricing essential drugs beyond the reach of the average citizen. The phenomenon is graphically illustrated by the Nexavar case: the patented and generic equivalent are

Age of Consent
And where will Parliament stand on age of consent? Will it stand up for the rights of the young men and women of India, who deserve the right to be young, and to not be criminalised? Or should we make them even more vulnerable to self-appointed moral guardians with medieval mindsets, to t h e khappanchayats, by making sexual contact with anyone between 16-18

The Dragon Gets a Bear Hug


Russia is resuming the supply of advanced weapon platforms to China in a move that may have implications for India. At the end of last year, Russia concluded a framework agreement with

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China for the sale of four Amur-1650 diesel submarines. In January it signed another intergovernmental agreement for the supply of Russias latest Su-35 long-range fighter planes. If the deals go through, it will be for the first time in a decade that Russia has delivered offensive weapons to China. It will also mark the first time that Russia has supplied China with more powerful weapon platforms compared with Russian-built systems India has in its arsenals. In the past, the opposite was the rule. For example, the Su-30MKK jet fighters Russia sold to China were no match for the Su-30MKIs supplied to India at about the same time. The Chinese planes had an inferior radar and without the thrust vectoring engines the Indian version had. This time the situation looks reversed. The Amur-1650 submarine is far more silent and powerful than the Kilo-class submarines the Indian Navy has in its inventory. Indias Su-30MKI will be no match for Chinas Su-35 which is powered by a higher thrust engine and boasts a more sophisticated radar, avionics and weapons, according to a leading Russian military expert, Konstantin Makienko. Chinas acquisition of the Su-35 will also question the wisdom of Indias plan to buy the French Rafale, the expert said. The sale of Su-35s to China will shoot down the value of the Rafale for India, Mr. Makienko, who is deputy head of Russias top defence think tank, Centre for Analysis of Strategies and Technologies, told The Hindu . The Rafale will stand no chance against Chinas Su-35, the expert explained. The Su-35s Irbis radar has more than twice the detection range of the Rafales Thales RBE2, and will lock onto its target well before the Russian plane becomes visible for a retaliatory strike. The 117S engines of the Su-35 are also far more powerful than the Rafales Snecma M88. The Russian Air Force is just beginning to take delivery of the new aircraft and China may become the first country to import it. The relatively small number of Su-35s China plans to buy, 24, should not deceive anyone, Mr. Makienko said. China followed the same buying pattern for the Su-27, initially ordering 24 planes and ending up with more than 200 Su-27s and its licencebuilt version, the J-11. The supply to China of more advanced weapon platforms than those available to India appears to contradict some basic geopolitical realities. India remains Russias most trusted partner whose defence requirements have never been refused. By contrast, Russia has always been apprehensive of the Chinese dragon and suspicious of its intentions towards resource-rich and population-poor Siberia. context of geopolitical games in the China-U.S.-Russia triangle. The balance of power between America and China will to a large extend depend on whether and on which side Russia will play, said Fyodor Lukyanov, foreign policy analyst. Russia and China are revitalising defence ties at a time when their relations with the U.S. have run into rough waters. Moscow is deeply disappointed with Mr. Obamas policy of reset, which is seen in Moscow as a U.S. instrument of winning unilateral concessions from Russia, while Beijing views Mr. Obamas strategic redeployment in the Asia-Pacific region as aimed at containing China.

Calls for Restraint


There is consensus in the Russian strategic community that Moscow should exercise maximum restraint in providing China with advanced military technologies. Experts were shocked to find out that Chinese engineers had mastered the production of clones of most weapon systems cash-strapped Russia supplied to China in the 1990s and early 2000s. Russian arms sales to China plummeted in recent years as China switched to domestic production, while Moscow became more cautious in offering Beijing cutting-edge technologies. Not only did China illegally copy Russian weapon systems, but it also began to export those undercutting Russian sales of higherpriced original platforms. Some experts even called for a complete halt to arms sales to China, arguing that demographic pressures and a growing need of resources may one day push China to turn Russian weapons against Russia. We should stop selling them the rope to hang us with, warned Alexander Khramchikhin of the Institute for Political and Military Analysis. However, the risks of selling advanced weapons to China took a back seat in Moscows calculations after Vladimir Putin returned to the Kremlin for a third term a year ago. Last year, Russias state arms exporter, Rosoboronexport, signed contracts with China worth $2.1-billion, the companys head Anatoly Isaikin said recently. The renewal of sophisticated weapon supplies to China should be seen in the

Profit Motives
Russian defence sales to China are also driven by profit motives as arms manufacturers seek to compensate for the recent loss of several lucrative contracts in India, where they face growing competition from the U.S., Europe and Israel. Also, Moscow seems to be less concerned today about the so-called reverse engineering of Russian weapons in China as the ability of the Chinese industry to copy critical technologies appears to have been overrated. Chinas programme of developing the J-11B family of aircraft based on the Su-27 platform has run into problems, said Vasily Kashin, expert on China. Chinas aircraft engines, which are essentially modified version of Russian engines, are way too inferior to the originals and China continues to depend on the supply of Russian engines. In the past three-four years, China has bought over 1,000 aircraft engines from Russia and is expected to place more orders in coming years. When and if China succeeds in copying Russias new weapon platforms the Russian industry will hopefully move ahead with new technologies, Mr. Kashin said. India can also easily offset the advantage that new Russian arms supplies may give China, experts said. To retain its edge in military aviation, India needs to speed up the development of a 5th-generation fighter plane with Russia and go for in-depth

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upgrade of its fleet of Su-30MKI fighters, Mr. Makienko said. specific resolutions, it also hoped this would be no more than a one-time exception. However, with Sri Lanka having done precious little since last years vote to address the rights abuses and push for reconciliation, India cannot be expected to dilute its stand now. Ever since the war ended and allegations of large-scale atrocities began to surface, it has been obvious to friends of Sri Lanka that the only way Colombo can ride the tide of rights charges is by delivering the political package it had itself once promised. Speaking on the matter in the Rajya Sabha on Friday, Prime Minister Manmohan Singh steered clear of recent allegations that the Sri Lankan army killed LTTE supremo Prabakarans 12year-old son in cold blood and instead emphasised the need for Sri Lankan national reconciliation. This was his way of showing the Rajapaksa government how it must deal with the upcoming resolution. Dr. Singhs dilemma is unenviable. His diplomats have told him Indias 2012 vote did not push Colombo to do the right thing as some had hoped. On the other hand, Congress ally DMK wants a further toughening of stand. The party unwisely raised the stakes last year by reviving the Tamil Eelam Supporters Organisation. TESO meetings have so far stopped short of advocating a separate state for Sri Lankan Tamils but the outfits revival has itself allowed hardliners in Sri Lanka to argue that the grant of rights to the Tamils is a slippery slope to their secession. Difficult though this may sound, New Delhi must craft a Lanka policy that includes a case for the islands Tamils free of the opportunistic imprint of Tamil Nadus competitive politics. The more its policies towards Colombo are seen as the product of political pressure from the State, the less effective those policies will be. Courtesy-The Hindu mind when we think of the forthcoming withdrawal of the American-led military forces from Afghanistan.

Trade Differences
However, the resumption of massive Russian arms supplies to China could still be a cause for concern in India. Closer defence ties between Moscow and Beijing are an offshoot of strong dynamics of their overall relations. China is Russias top commercial partner, with bilateral trade expected to touch $90 billion this year and soar to $200 billion by 2020. Mr. Putin has described Chinas rise as a chance to catch the Chinese wind in the sails of our economy. This contrasts with sluggish trade between India and Russia, which stood at $11 billion last year; even the target of $20 billion the two governments set for 2015 falls short on ambition. India risks being eclipsed by China on the Russian radar screens. As Russias top business daily Kommersant noted recently, even today, Russian officials from top to bottom tend to look at India with drowsy apathy, while Mr. Putins visit to India last year was long on meaningless protocol and short on time and substance. Courtesy-The Hindu

Whistling in the Dark


The Obama Administration is putting it out as though the withdrawal is a great achievement, since it will pull it out of the quagmire that it has been stuck in ever since George Bush declared a global war on terror. But the reality is shoddier we are witnessing yet another western retreat from Afghanistan, one that can have baleful consequences for others. No matter what the Americans say or do officially, they are, essentially, whistling in the dark. The departure of the Americans and their allies even though reports suggest that a small force will remain is a fraught moment for the Afghans, the United States and neighbouring countries. Last month, representatives of India, Russia and China met in Moscow. According to an official in the know, the discussion was businesslike and devoid of the double-speak that often marks the occasion. The subject was Afghanistan. Faced with the withdrawal of the American-led alliance from the country, the three regional powers are scrambling to see how they can stabilise the situation. Each of them has interests there, and none of these really clash. But all three have an interest in ensuring that Afghanistan is stable and secure, witnesses economic growth and reconstruction, and is integrated into the regional economy. India and China are interested in ensuring that a war-ravaged Afghanistan does not once again become a place where militants are able to establish training camps freely. Both have important investments Indias $ 2 billion are spread in development projects to promote Afghan stability, while Chinas $ 3 billion could aid in its prosperity. As for Russia, it is the primary security provider to the Central Asian states and has an interest in preventing the return of a situation of civil war. It is important that the post-U.S. situation does not degenerate into an India-Pakistan battlefield. The responsibility here lies heavier with New Delhi, since Pakistan can be trusted to follow its baser instincts. Indeed, New

Take Tamil Nadu out of Lanka Policy


Domestic politics will tell on external affairs as much as fine principles and strategic interests. In the context of the draft resolution on human rights violations in Sri Lanka now before the United Nations Human Rights Council in Geneva, India will have to factor in domestic political exigencies alongside long-held principles and longterm interests while firming up its stand. Last year, India voted for a resolution asking Sri Lanka to investigate abuses by its military during the final phase of the war with the separatist LTTE. But it did so after making efforts to water down the resolution. Though appearing to have been taken under pressure from the DMK, Indias decision to vote against Sri Lanka last year was intended to tell President Mahinda Rajapaksa that his failure to move towards a settlement of the Tamil question could no longer be glossed over. If New Delhi went beyond its own norm of not voting for country-

The Great American Betrayal


It is well known that of all military operations, retreat is the most difficult and complicated. A victorious march that takes a wrong turn can end in a stalemate, but a retreat gone wrong will most likely turn into a disaster. These are the grim forebodings that come to

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Delhis strategy must be to prevent Islamabad from trying to turn the Afghan clock back to the pre-American days. In this, it can fruitfully use the dialogue processes it has established with Russia and China and, separately, the U.S. Interestingly, in the recent India-ChinaRussia talks, the Chinese pointedly avoided projecting Islamabads case and spoke for their own interests, just as the other interlocutors did. But for things to work, there is need for both Washington and Islamabad to confront the hard realities. As for the U.S., writing in Foreign Policy , Vali Nasr wrote America has not won this war on the battlefield, nor has the country ended it at the negotiating table. America is just washing its hands of this war. According to Mr. Nasr, who worked in Richard Holbrookes AfPak team in the U.S. State Department, President Obamas attitude to the American commitment in Afghanistan has been dictated by domestic politics when it was popular back home he backed it, and when it became unpopular, he pushed for terminating the U.S. commitment. The American withdrawal, Mr. Nasr argues, is without any concern for the fate of Afghanistan itself, or for the possible chaos that may follow in the region. As for Pakistan, the belief among some key players, notably in the Army, that there can once again be Fateh (Victory) in Kabul is delusional. Nothing in the ground situation suggests that the writ of the Taliban will run across Afghanistan again, at least not the Taliban that Pakistan so effectively aided and controlled in the 1990s. Indeed, the most unstable part of the country will be the eastern region bordering Pakistan, whose own border with Afghanistan is the site of an insurgency led by the Tehreek-e-Taliban, Pakistan (TTP). If anything, the TTP could be the principal beneficiary of the withdrawal, since it will find it easier to get sanctuary and arms from the Taliban. As of now, in the international process, we have the western countries trying to work out a negotiated settlement that will bring elements of the Taliban into the governance of the country, based on the constitution of the Loya Jirga of 2003. This Doha process has been a slow-moving affair with the Taliban delegation in the Qatari capital twiddling its thumbs most of the time. One problem is no one is really clear as to whether they are dealing with the genuine representatives of Mullah Omar. The bigger problem is that both Islamabad and the Taliban are merely hedging in their responses to the West and they are waiting to see how precipitous the American retreat is, and what happens in the run-up to the Afghan elections of 2014. Even today, the Talibans supreme leader, Mullah Omar, and several of its top leaders live in Pakistan. Though Islamabad says it is supporting the Doha process, there are doubts as to whether or not Pakistan can actually deliver the Taliban to the U.S. and its allies. But there can be few doubts about Islamabads ability to play the spoiler. This is what countries like the U.S., India, Russia and China need to prevent through coordinated diplomacy. And talking of elections, we have to see just how the election in Pakistan expected in a few months will play out. Since 2002, a set of new facts has been created on the ground. Foremost among these have been the presence of an elected Afghan government and, now, a substantial Afghan National Security Force. This will continue to get the support of the international community and the ANSF will also have the ability to control the key parts of the country, as long as it gets external support. On the other hand, the Taliban has suffered considerable attrition and the relations between Pakistan and the Taliban have been conditioned by the emergence of the Tehreek-e-Taliban, Pakistan (TTP) as well as the unhappy experience of the Taliban at the hands of the ISI. There is one important, and indeed overriding, consideration in the manner in which we deal with Afghanistan. Both the U.S. and India need to recognise that they have far greater security interests in Pakistan than in benighted Afghanistan. The victor of Kabul will inherit a war-torn and ravaged country without the basics of schools, hospitals and transportation systems. But should the Afghan situation catalyse the rise of Islamists in Pakistan, India will be in for trouble. It does not need to be repeated that Pakistan is a country with some industrial capacity, nuclear weapons and a powerful military. Its capacity for mischief would go up by orders of magnitude, were the Islamists gathered by Hafiz Muhammad Saeed in the Difa-e-Pakistan Council to become even more central to the countrys politics.

AfPak to PakAf
For this reason, it is important to reverse the appellation AfPak to PakAf, at least mentally. We need to ensure that a solution in Afghanistan has a collateral beneficial effect in Pakistan. Or, at least, it should not affect Pakistan negatively. This is not, of course, a call for pandering to Islamabads Afghan fantasies. The presence of U.S.-led forces has played a stabilising role in Afghanistan. But now they are going and leaving fear in their wake. The Afghans are petrified at the prospect of a renewed civil war and the return of the Taliban, the Pakistanis, or at least the sensible ones, are scared of the threat from the TTP. India, Russia and China are worried about the possible spill-over effects of a civil war in the country. As for the U.S., its fear is that its retreat could, through some missteps, become a rout. Courtesy-The Hindu

The Long and Short of Open Defecation


You can learn a lot from measuring childrens height. How tall a child has grown by the time she is a few years old is one of the most important indicators of her well-being. This is not because height is important in itself, but because height reflects a childs early-life health, absorbed nutrition and experience of disease. Because health problems that prevent children from growing tall also prevent them from growing into healthy, productive, smart adults, height predicts adult mortality, economic outcomes and cognitive achievement. The first few years of life have critical life-long consequences. Physical or cognitive development that does not happen in these first years is unlikely to be made

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up later. So it is entirely appropriate that news reports in India frequently mention child stunting or malnutrition. Indian children are among the shortest in the world. Such widespread stunting is both an emergency for human welfare and a puzzle. Why are Indian children so short? Stunting is often considered an indicator of malnutrition, which sometimes suggests that the problem is that children dont have enough food. Although it is surely a tragedy that so many people in India are hungry, and it is certainly the case that many families follow poor infant feeding practices, food appears to be unable to explain away the puzzle of Indian stunting. Open defecation is not so common elsewhere. The list of African countries with lower percentage rates of open defecation than India includes Angola, Burundi, Cameroon, Democratic Republic of the Congo, Ethiopia, Ghana, Kenya, Liberia, Malawi, Rwanda, Senegal, Sierra Leone, South Africa, Tanzania, Uganda, Zambia, and more. In 2008, only 32 per cent of Nigerians defecated in the open; in 2005, only 30 per cent of people in Zimbabwe did. No country measured in the last 10 years has a higher rate of open defecation than Bihar. Twelve per cent of all people worldwide who openly defecate live in Uttar Pradesh. So, can high rates of open defecation in India statistically account for high rates of stunting? Yes, according to data from the highly-regarded Demographic and Health Surveys, an international effort to collect comparable health data in poor and middle-income countries. International differences in open defecation can statistically account for over half of the variation across countries in child height. Indeed, once open defecation is taken into consideration, Indian stunting is not exceptional at all: Indian children are just about exactly as short as would be expected given sanitation here and the international trend. In contrast, although it is only one example, open defecation is much less common in China, where children are much taller than in India. Further analysis in the paper suggests that the association between child height and open defecation is not merely due to some other coincidental factor. It is not accounted for by GDP or differences in food availability, governance, female literacy, breastfeeding, immunisation, or other forms of infrastructure such as availability of water or electrification. Because changes over time within countries have an effect on height similar to the effect of differences across countries, it is safe to conclude that the effect is not a coincidental reflection of fixed genetic or cultural differences. I do not have space here to report all of the details of the study, nor to properly acknowledge the many other scholars whose work I draw upon; I hope interested readers will download the full paper at http://goo.gl/PFy43.

Double threat
Of course, poor sanitation is not the only threat to Indian childrens health, nor the only cause of stunting. Sadly, height reflects many dimensions of inequality within India: caste, birth order, womens status. But evidence suggests that socially privileged and disadvantaged children alike are shorter than they would be in the absence of open defecation. Indeed, the situation is even worse for Indian children than the simple percentage rate of open defecation suggests. Living near neighbours who defecate outside is more threatening than living in the same country as people who openly defecate but live far away. This means that height is even more strongly associated with the density of open defecation: the average number of people per square kilometre who do not use latrines. Thus, stunting among Indian children is no surprise: they face a double threat of widespread open defecation and high population density. The importance of population density demonstrates a simple fact: Open defecation is everybodys problem. It is the quintessential public bad with negative spillover effects even on households that do not practise it. Even the richest 2.5 per cent of children all in urban households with educated mothers and indoor toilets are shorter, on average, than healthy norms recommend. They do not openly defecate, but some of their neighbours do. These privileged children are almost exactly as short as children in other countries who are exposed to a similar amount of nearby open defecation. If open defecation indeed causes stunting in India, then sanitation reflects an emergency not only for health, but also for the economy. After all, stunted children grow into less productive adults. It is time for communities, leaders, and organisations throughout India to make eliminating open defecation a top priority. This means much more than merely building latrines; it means achieving widespread latrine use. Latrines only make people healthier if they are used for defecation. They do not if they are used to store

Asian enigma
One difficult fact to explain is that children in India are shorter, on average, than children in Africa, even though people are poorer, on average, in Africa. This surprising fact has been called the Asian enigma. The enigma is not resolved by genetic differences between the Indian population and others. Babies adopted very early in life from India into developing countries grow much taller. Indeed, history is full of examples of populations that were deemed genetically short but eventually grew as tall as any other when the environment improved. So, what input into child health and growth is especially poor in India? One answer that I explore in a recent research paper is widespread open defecation, without using a toilet or latrine. Faeces contain germs that, when released into the environment, make their way onto childrens fingers and feet, into their food and water, and wherever flies take them. Exposure to these germs not only gives children diarrhoea, but over the long term, also can cause changes in the tissues of their intestines that prevent the absorption and use of nutrients in food, even when the child does not seem sick. More than half of all people in the world who defecate in the open live in India. According to the 2011 Indian census, 53 per cent of households do not use any kind of toilet or latrine. This essentially matches the 55 per cent found by the National Family Health Survey in 2005.

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tools or grain, or provide homes for the family goats, or are taken apart for their building materials. Any response to open defecation must take seriously the thousands of publicly funded latrines that sit unused (at least as toilets) in rural India. Perhaps surprisingly, giving people latrines is not enough. Ending a behaviour as widespread as open defecation is an immense task. To its considerable credit, the Indian government has committed itself to the work, and has been increasing funding for sanitation. Such a big job will depend on the collaboration of many people, and the solutions that work in different places may prove complex. The assistant responsible for rural sanitation at your local Block Development Office may well have one of the most important jobs in India. Any progress he makes could be a step towards taller children who become healthier adults and a more productive workforce. Courtesy-The Hindu (MDGs), will have a key role to play in the agreement over a relevant development framework for post-2015. External Affairs Minister Salman Khurshid recently made a statement on what the new framework might look like. Indias views are still evolving and the public debate on the likely new framework has gained prominence only in recent months. Prime Minister David Cameron spoke of the MDGs being a fantastic innovation that got the world to focus on really important things. With three years to go before the 2015 deadline we cant lose momentum. After 2015 we need to finish the job and eradicate extreme poverty. This is the most urgent moral problem facing the world today. The present goals set out in 2000 helped nations focus on addressing poverty but they were adopted with very little consultation. This time around, inclusive broad-based consultations have started in over 100 countries to discuss the new goals. Based on extensive civil society consultations in India, it is becoming clear that the new goals would need to take into account a few key principles: Universal, rights-based goals: A universal set of goals based on principles of human rights should be applicable to all countries. The world is no longer divided into north-south, or east-west. The world order has moved from a G7 world to a G20 world, with the poor living largely in middle-income rather than low-income countries and with aid no longer being the main way out of poverty. In such a world, we cannot have one set of goals for the developing world and another one for the developed world, whose only responsibility in the old world order was to provide aid. We need to ensure that we live in a more equal and sustainable world, adopting principles of equity and common good but with differentiated responsibilities to attain that. Tackling social exclusion: Eradication of extreme poverty would mean focusing on the one-third of worlds people with daily income below $1.25 who live in India. However, we need sharper focus on the bottom 20 per cent of the population and at the root causes of poverty and inequality. In India, and elsewhere, this group would consist of groups socially excluded because of discrimination on the basis of caste, religion, ethnicity, or gender. This needs to be tackled at the policy level, rather than just focusing on secular economic growth as the sole means to eliminate poverty. Combating inequality: We also need to look at inequality and the relationship between the rich and the poor say the ratio between the income and wealth of the top 20 per cent and the bottom 20 per cent of the population. This would focus attention on correcting and adjusting the pattern of development during the last decade that has led to widening inequalities worldwide, with the rich enjoying a disproportionate share of the gains from development, and very slow progress in poverty reduction. Promoting gender equality and womens rights: We need much stronger emphasis on gender equality compared to the last round of MDGs. A strong goal building on the commitments already made under the Beijing Platform in 1995 and the Convention on the Elimination of All Forms of Discrimination Against Women (Cedaw) ensuring womens economic, social and political rights is essential. This could be translated into targets on equal ownership of property, including land, a violence-free life, and equitable representation in law-making bodies. Combining inclusiveness and sustainability: The Rio+20 Conference in June 2012 established an Open Working Group of 30 members to propose sustainable development goals (SDGs) for presentation to the U.N. General Assembly. The new MDGs and the SDGs need to be combined into one set of goals that have both inclusiveness and sustainability. Introducing monitoring and accountability: The current MDGs have no monitoring mechanism, eliminating accountability. Once the new goals are adopted, each country needs to set up a tripartite mechanism including the government, civil society, and the private sector to monitor progress in the attainment of the new MDGs. Courtesy-The Hindu

Putting Bharat on an Equal Footing with India


British Prime Minister David Cameron was here recently to drum up trade between his country and India. The visit made big news in the media. A little-covered part of the visit was Mr. Cameron taking time to focus on the other India, the Bharat, and what India would want to look like in 2030. Mr. Cameron is co-chair, along with Indonesian President Susilo Bambang Yudhoyono and Liberian President Ellen Johnson Sirleaf, of a 27member High Level Panel of Eminent Persons (HLP) to make recommendations regarding the vision and shape of a post-2015 development agenda. The Panel was set up by United Nations Secretary-General Ban Ki-moon and has met three times till now, most recently in Monrovia on February 1. The Panel will present its recommendations at the end of May 2013. The intergovernmental process of negotiating and adopting new goals will start with the U.N. General Assembly in September 2013 and will conclude by 2015. India, home to a large segment of humanity and quite far from meeting the present Millennium Development Goals

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Solidarity Sri Lankas Tamils can do without
If the pressure being brought to bear by the Dravida Munnetra Kazhagam (DMK) and other Tamil political parties and groups on the United Progressive Alliance (UPA) government to take a strong stand against Sri Lanka in the Human Rights Council (HRC) is aimed at helping the Tamil minority in that country, it is unlikely to achieve that objective. In fact, it is quite likely to have the opposite effect of painting Sri Lankan Tamils as a fifth column for Tamil nationalist or Eelamist designs emanating from Tamil Nadu, and increasing the political polarisation in that country. This is not to say that the Rajapaksa government is blameless in the way it has treated the violations of human rights against Tamil civilians by Sri Lankan forces and of international laws of conduct by soldiers in combat. political solution to Tamil aspirations is hardly adequate, especially as reports by previous committees have been unceremoniously shelved. From the pronouncements of those close to Mr. Rajapaksa, the future of what little devolution now exists in Sri Lanka is uncertain. By the time the much-delayed elections to the Tamil-dominated Northern Province are held, as stated by him in September this year, it is not clear how much power will be devolved. Lanka views resolutions against it in the HRC as driven by lobbies with agendas against the country, especially when sponsored by a country accused of rights violations across the globe, and is able to find enough political support within for this view. In any case, the HRC resolutions are not binding. How then to get Sri Lanka to take the right steps towards national reconciliation? The answer lies in India, but it is located in New Delhi, not in Chennai. On Tuesday, UPA chairperson Sonia Gandhi took the extraordinary step at the Congress Parliamentary Party meeting, of expressing her partys concern for Sri Lankan Tamils. The plight of Tamils in Sri Lanka is close to our hearts. Our support for equal rights and equal protection of the laws to them has been unwavering since the days of Indiraji and Rajivji. We are most pained at the manner in which their legitimate political rights continue to be denied to them. We are anguished by reports of unspeakable atrocities on innocent civilians and children, especially during the last days of the conflict in 2009, she said. This should have been New Delhis line from the start, one that it should have used in hard-edged, but quiet diplomacy with Sri Lanka. But it allowed itself to be scared by the China card, real or not, being waved at it by Sri Lanka, and by our own strategic thinkers. New Delhi does itself and Sri Lankan Tamils a big disfavour by shaking the dust off its Sri Lanka policy from March to March, HRC session to HRC session, crisis to crisis for the UPA coalition from its Tamil Nadu partner, instead of framing one that is confident, non-reactive and long term. Mrs Gandhis statement on the Sri Lankan Tamil issue was the strongest from any Indian leader in more than two decades. And it is all the more remarkable for one who has suffered personal loss at the hands of the LTTE. Unfortunately, it will not carry the moral edge that it should, likely as it is to be seen as nothing more than a plunge by the Congress leader into Tamil Nadus competitive Eelamist politics, a move to save her party from a total eclipse in the State, made under the assumption that this is an issue that will sway voters one year from now. Courtesy-The Hindu

The protests
So it will not be wrong to say that Sri Lankas obstinate reluctance to deal with its national question is squarely to blame for the churning in Tamil Nadu today. But protests in Tamil Nadu by political parties and students are hardly going to push Colombo to take the right steps. Indeed, all this only makes it easier for the Sri Lankan government to dismiss any Indian effort to make it do the right thing as inspired by the Tamil Nadu factor, and therefore, not take it seriously. Even Sri Lankan Tamils are not convinced that Dravidian political parties take up their cause for anything other than their own political gains. The half-day Marina hunger strike by DMK leader M. Karunanidhi in the closing stages of the war against the LTTE in 2009, still evokes much derisive laughter among Sri Lankan Tamils, and has also gone down as a lasting symbol of the cynical use that Tamil Nadu parties make of the Eelam Tamil cause. Sri Lankan Tamils also know more than anyone else that such shows by Tamil Nadu politicians only heighten the siege mentality of the Sinhalese, who have always regarded Tamil Nadu with suspicion, and the islands once secessionist Tamil politics and militancy as not just influenced, but directed by Tamil leaders in the southern Indian state.

Where Sri Lanka erred


It would have been the easiest thing for President Mahinda Rajapaksa to be magnanimous in victory. Admitting in 2009 that Tamil civilians had been killed in the fighting; apologising for those killings; immediately investigating reports of violations by the Sri Lankan Army of the No Fire Zone and probing the cases of missing people. This would have been the most politically graceful, as well as effortless, way forward. Mr. Rajapaksa could have even gone as far as make a national apology for the 1983 anti-Tamil riots, the turning point of the conflict in Sri Lanka, and he would have gone down in history as a different sort of leader, as a statesman. Instead, he allowed narrow triumphalism to set the national agenda, to the point where resolving the Tamil question is now seen by Sinhala nationalists as unnecessary. Since the end of the war, revisionists have ensured that the Sinhalese majority thinks of the conflict only as a series of atrocities committed by the LTTE, and the LTTE as a group created by India, while the Sri Lankan military remains stationed all across northern Sri Lanka, as if in readiness for another war.

View on resolutions
Any move by New Delhi to strengthen the U.S-sponsored resolution before the HRC at the behest of the DMK is hardly going to persuade Sri Lanka to do what is right and just. If the Rajapaksa regime did not feel pushed by the 2012 resolution, in many ways the real wakeup call, it is hardly worried by the 2013 one. As India did not so long ago, Sri

MAY 2013

Devolution
The governments decision to set up a parliamentary committee to find a

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Dangerous for Democracy
The counter-affidavit submitted by the Union government to the Supreme Court in the Ashok Chavan case is a scandal. Simply put, it argues that the Election Commission of India has no power to disqualify a candidate on the basis of his or her poll expenditure accounts, even if those have been falsified. It holds that the ECIs power to disqualify a candidate arises only in the event of failure to lodge an account of expenses and not for any other reason The government is, in the process, calling for a radical and dangerous change in the way polls are conducted in India. If there is one issue on which there is a consensus in the country, it is on the damage inflicted on free and fair elections by the unbridled rise of money power. Now the government argues that the correctness or otherwise of the accounts is no concern of the body that conducts and regulates elections. The United Progressive Alliance government is behaving with the ECI the way it has with the Comptroller & Auditor General. It is trying to bat its way out of ugly scams and scandals by seeking to curb the independence of these constitutional bodies. This is dangerous for accountability and for democracy, given the signal role assigned to the Election Commission in our political system. The fact that this affidavit has been filed in the Ashok Chavan case notoriously known as the paid news case makes things worse. Mr. Chavan was facing a rough time in the Election Commissions inquiry into his poll expenses in the 2009 election campaign especially the money he allegedly spent for paid news in his favour in several newspapers. He has challenged the jurisdiction of the ECI on this matter in the Supreme Court. Though the Supreme Court is still seized of the matter and has made no ruling in the matter yet, the Centres affidavit raises troubling questions about the governments motives. Why is it challenging the jurisdiction of the Election Commission over elections? Why is it taking such a blatantly unscrupulous stand, and to help whom? Yet, the damage this would do goes far beyond even the pernicious realm of paid news. If the government has its way, it would mean there is no institution or body that is empowered to regulate poll expenditures in the country. It would also mean the serious erosion of the powers of constitutional bodies like the ECI and the CAG that have performed their duties with diligence and integrity. Over a decade ago, a full bench of the Supreme Court held that the Election Commission had the power to disqualify a candidate whose accounts were not filed in a true and correct manner. That is the way to go. The government should withdraw its ill-advised affidavit at once and not stand in the way of the ECI doing what it is constitutionally mandated to do. Courtesy-The Hindu autonomy in the north and east. At the same time, as the International Crisis Group detailed in our February report on Sri Lankas Authoritarian Turn, there has been a sharp deterioration in democracy and the rule of law and no accountability for human rights violations at the end of the civil war. The risks of eventual political instability and a return to violence are growing. The Indian government finds itself in a challenging position. India has wisely tried to remain engaged in Sri Lanka and avoid inflaming Sinhala nationalist sentiments. Sinhalese fears about the role of Indias 70 million Tamils are being stirred by increasingly bellicose, at times irresponsible, rhetoric from politicians in Tamil Nadu, as well as violent attacks on visiting Sri Lankans. The active and emotional support of politicians and activists in Tamil Nadu for the HRC resolution, including the current intense pressure from the ruling United Progressive Alliances coalition partner, the Dravida Munnetra Kazhagam, for the central government to support a resolution denouncing genocide in Sri Lanka, and the apparent effect this pressure has had on policy-makers in Delhi has led some analysts to argue that India risks having its foreign policy hijacked by regional interests. Such arguments are exaggerated. Action on Sri Lankas human rights and governance crisis isnt only in the interest of Tamils and Tamil Nadu. The Indian nation as a whole has every reason to prevent the further entrenchment of authoritarian rule in Sri Lanka, where Tamils and Tamil-speaking Muslims are being increasingly marginalised politically and the rights of all Sri Lankans are being undermined.

Why India needs to vote for U.N. resolution on Sri Lanka


With a vote due soon on a U.S.sponsored resolution at the U.N. Human Rights Council (HRC), the Indian government has a chance to strongly encourage sustainable peace and political reform in Sri Lanka. Policymakers in Delhi are clearly disturbed by the Sri Lankan governments backsliding on promises of devolution of power to Tamil-speaking areas, its politically motivated impeachment of the Chief Justice there and its refusal to comply with last years HRC resolution on Reconciliation and Accountability in Sri Lanka. To maximise its ability to influence Sri Lanka towards a lasting resolution of its ethnic conflicts and a restoration of its democratic institutions, India should take the lead in developing a forceful, international strategy, first at the HRC, then through other multilateral bodies, to be able to hold Colombo to its promises.

Consensus and persuasion


Beginning at the HRC, Delhi should lead in forging a strong international coalition to pressure the Rajapaksa government into reversing its most dangerous policies. This will require India modifying its long-standing reluctance to support country-specific resolutions at the U.N. and its preference for working through bilateral engagement. Indias endorsement of a forceful HRC resolution, especially if it includes

Risks of instability
Some argue that India should avoid supporting the HRC resolution in order not to lose leverage with the Sri Lankan government. Unfortunately, the limits of Indias bilateral influence have long since been reached. Despite Indias unprecedented financial assistance to Sri Lanka over the past four years, the Rajapaksa government has made no genuine effort to treat Tamils as equal citizens, or to recognise their right to

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a call for an international war crimes inquiry, will send an important message to the Sri Lankan government that it cannot break promises, to India and its own people, and violate its international obligations without consequences. Strong Indian action would also encourage other governments to toughen their own policies towards Sri Lanka. U.S. and European diplomats make it clear that they look to India as the key part of an effective international coalition, and India wields great influence among nations of the global south. In addition to voting for a strong U.N. resolution, India should actively seek to bring others, particularly fellow Asian governments, on board. This includes supporting efforts of other Commonwealth members to ensure that its next heads of government meeting, currently scheduled for Colombo in November, is hosted by a government that respects Commonwealth values of democracy and the rule of law. India should also work to persuade Japan, the World Bank and the Asian Development Bank to use their considerable collective financial leverage to reverse Sri Lankas dangerously militarised development policies in the northern and eastern provinces. All major donors should press for a return to civil administration and for fair elections to the northern provincial council. Without these minimal conditions in place, development assistance risks supporting an unjust, and eventually unstable, political order in traditionally Tamil areas and an unreliable authoritarian regime in Colombo. Until India begins actively helping set the agenda for multilateral action on Sri Lanka, even its strongest messages to the Rajapaksa government will continue to be ignored. Voting for a strong U.N. resolution, including an international investigation, will be an important step in India assuming a real leadership role in international policy on Sri Lanka. Courtesy-The Hindu death of two Indian fishermen off the Kerala coast has taken the hard edge off the legal-diplomatic war which broke out between Rome and New Delhi in the aftermath of the February 15, 2012 incident. But the questions thrown up by the case will continue to be furiously debated. The marines were part of an Italian Navy Vessel Protection Detachment on board the oil tankerEnrica Lexie and the shooting occurred within Indias contiguous zone which extends 24 nautical miles (NM) into the sea from the coastline. Italy, which contested Indias right to put the men on trial, decided earlier this month to violate the assurance its ambassador provided the Indian Supreme Court by declaring that the marines who had been allowed to return home temporarily to vote would not be sent back to India. On Thursday, however, the Italian government wisely reversed itself. The case has visited the Supreme Court at least four times since May 2012, and has had both criminal and civil dimensions before the Kerala High Court. The criminal proceedings have revolved around the jurisdiction of the Indian courts to try the case and I will examine this issue primarily from the vantage point of the Indian law against the background of international law. on the Law of the Sea stands out for its functionalist approach to law of the sea issues, particularly to issues of state jurisdiction in diverse maritime zones. Section 5 of the Maritime Zones Act establishes a 24 NM Contiguous Zone of India and empowers the Central Government to exercise such powers and take such measures in or in relation to the contiguous zone as it may consider necessary with respect to,- (a) the security of India, and (b) immigration, sanitation, customs and other fiscal matters. It also empowers the government to extend to the Contiguous Zone any law in respect of (a) and (b). There is evidently no reference to extension of coastal criminal jurisdiction to the Contiguous Zone. However, quite interestingly, Section 7 of the Act establishes the Exclusive Economic Zone of India as an area beyond and adjacent to the territorial waters, and the limit of such zone is 200 nautical miles, in other words encompassing the Contiguous Zone. In the result, the Section further provides that the Central Government may, by notification in the official Gazette,- (a) extend, with such restrictions and modifications as it thinks fit, any enactment for the time being in force in India or any part thereof to the exclusive economic zone or any part thereof; and (b) make such provisions as it may consider necessary for facilitation of the enforcement of such enactment, and any enactment so extended shall have effect as if the exclusive economic zone or the part thereof to which it has been extended is a part of the territory of India. This omnibus clause obviously empowers the government to extend criminal jurisdiction to EEZ, at least for the reason that with increasing economic and mining activities in EEZ, there is bound to be scope for criminal jurisdiction. However, application of various laws into the coastal zones (other than the Territorial Waters) is still found wanting as highlighted by the case ofLarson and Toubro v. Commissioner Commercial Taxes (in which the Gujarat High Court found in 2011 that the Central Sales Tax Act had not been extended to the Continental

Contiguous zone jurisdiction


Indias legal claim to jurisdiction over its maritime zones flows from Article 297 of the Constitution of India. It is amazing to note that Article 297 does not (and did never in the past, whether in 1950 or after the amendment of 1963) specifically refer to the Contiguous Zone of India, but to other maritime zones. This provision, as it stands today, was substituted by the 40th Amendment Act, 1976, in order to take advantage of the third U.N. Conference on the Law of the Sea, and was immediately followed by the adoption by Parliament of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (the Maritime Zones Act, for short). This was probably encouraged by the development of new concepts like the EEZ and overwhelming state practice in favour of a 12 nautical mile (NM) territorial sea. Needless to say, the 1982 Convention

MAY 2013

Its our Boat, our Courts


The return to India of two Italian marines charged with the shooting

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Shelf and that therefore Larson and Toubro were not liable to pay tax on goods dispatched to the Bombay High. This certainly resulted in a heavy revenue loss to the Central Government). Would such an extension of criminal jurisdiction to EEZ be contrary to the U.N. Law of the Sea Convention, 1982? I would submit that it would not be, for two reasons. One, Article 97 (1) of the Convention provides: In the event of a collision or any other incident of navigation concerning a ship on the high seas, involving the penal or disciplinary responsibility of the master or of any other person in the service of the ship, no penal or disciplinary proceedings may be instituted against such person except before the judicial or administrative authorities either of the flag State or of the State of which such person is a national. This provision was enacted for the first time in Article 11(1) of 1958 Convention on the High Seas in order to overrule a decision of the Permanent Court of International Justice in the SS Lotus case (1927) which involved a collision of a French vessel with a Turkish one on the high seas resulting in the sinking of the latter, and in which Turkey exercised penal jurisdiction on both the French and Turkish officers on watch over their respective vessels. Evidently, Article 97(1) of the 1982 convention cannot apply to any situation of crime other than those related to collision or any other incident of navigation. Firing at and killing of two Indian fishermen can by no stretch of imagination be relatable to collision or any other incident of navigation. In other words, Article 97(1) of the Law of the Sea Convention, 1982 has no application to the case of Enrica Lexie , given its legislative history. Two, since the evolution of the 1958 Flag State rule, many changes have taken place in respect of application of coastal state laws to the adjacent maritime zones. Flags of convenience have made it difficult for the so-called flag state to exercise jurisdiction over the foreign owned ships in its registry. There has been a sudden spurt of leisure cruise liners, some vessels carrying even 2,500 to 3,000 people of different nationalities, usually sailing on routes not far away from the coasts. Further, mining and other economic activities, including erection of offshore platforms, have also increased by leaps and bounds. All this points to the legitimate interest of the coastal state in crime prevention and maintenance of law and order in the waters nearby, taking into account the intense human activity in the area. There is an increasing number of countries which have begun exercising criminal jurisdiction in extended coastal waters under the protective principle (protection of the legal and economic systems of the coastal state) or under the principle of passive personality (protection of nationals or property of the coastal state being victims/target of crime from a foreign vessel passing by). The Australian Criminal Code Act 1995 (after the 2002 amendment) applies passive personality principle quite bluntly in favour of Australian victims of crime, regardless of the place of commission of the crime outside Australia. This reflected the Australian response to the Bali bombing in which several Australians were victims. The U.S. Code and the French Law have analogous provisions. Article 245 (2) of the Constitution of India permits extraterritorial application of laws, if a reasonable nexus is established between the subject matter of the law and the Indian coast. Thus for instance Article 6(2) of the Convention for the Suppression of Unlawful Acts Against the Safety of Maritime Navigation, 1988, permits a state to claim jurisdiction if its national is a victim, or the state itself is a target of an unlawful act under the convention. Incorporating the convention into national law, the Indian Parliament enacted the Suppression of Unlawful Acts against Safety of Maritime Navigation and Fixed Platforms on Continental Shelf Act, 2002 conferring on the Designated Court jurisdiction if the target of the crime is an Indian vessel or a platform on the Indian Continental Shelf. Similarly, the Weapons of Mass Destruction and Their Delivery Systems (Prohibition of Unlawful Acts) Act, 2005 has application to the whole of India, including its EEZ. It may be noted that under Section 14 of the Coast Guards Act, 1978 the Coast Guard has jurisdiction over all maritime zones of India. Additionally, Section 4 of the Indian Penal Code, 1860 provides for extra-territorial application of the code to any Indian citizen in any place without and beyond India and to any person on any ship or aircraft registered in India wherever it may be. However, this reflects the nationality principle of exercise of State jurisdiction under international law, rather than passive personality or protective principle.

No need for special court


In the Italian marines case, the Supreme Court suggested creation of a special court. I submit that this is not necessary. Acting under the Maritime Zones Act, the Government of India should extend the criminal law of the land to the entire EEZ to all cases in which: (1) the victim is an Indian national, (2) the consequences of the crime extend to the coastal State; (3) the crime is of a kind to disturb the peace of the country or the good order of the maritime zones of India; (4) the assistance of the local authorities has been requested by the master of the ship or by a diplomatic agent or consular officer of the flag State; or (5) such measures are necessary for the enforcement of other laws of India such as those relating to suppression of illicit traffic in narcotic drugs or psychotropic substances, organised crimes, and WMD Act. Nos (2) to (5) are analogous to the provisions of Article 27 of the U.N. Law of the Sea Convention 1982 relating to the Territorial Sea. The notification should also embody a provision enabling designation of Sessions Courts to take cognisance of offences. Perhaps, the High Courts may be enabled to designate appropriate lower courts for the purpose. Since the Supreme Court ruling in the M.V. Elizabeth case(1992), it is now well settled that all High Courts have legitimate Admiralty Jurisdiction under the Constitution of India. Courtesy-The Hindu

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Italy redeems itself
In the end, the Italian government did what was right and sensible by sending back the marines accused of killing two fishermen off the Kerala coast to face trial here in India. Not doing so would have only led to an upward spiral of political and diplomatic tensions between the two countries, with repercussions that neither side wants. Undoubtedly it was the firm stand taken by India that influenced the Italian decision. The Supreme Court restrained Ambassador Daniele Mancini from leaving the country for violating the undertaking he had given that the two marines would come back after voting in their countrys elections. New Delhi held back its newly appointed Ambassador to Italy. Most importantly, the political leadership was unequivocal in its condemnation of Italys conduct. Prime Minister Manmohan Singh was emphatic that Romes refusal last week to send back the two was unacceptable. Congress leader Sonia Gandhi described it as a betrayal. National outrage, and quick, decisive diplomacy when the Italians sought some basic assurances in the eleventh hour helped Rome to make a controversial U-turn. For Italy, the decision must have been difficult given the high national sentiment there on the issue. From the time of the incident, the Italian government had been under fire for not doing enough to get the two marines out of India. Both times when they went home with court permission, first for Christmas, and then to vote, they were received like national heroes. External Affairs Minister Salman Khurshid told Parliament that Rome had sought the assurance that the marines would not be arrested on their return to India, and that they would not be given the death sentence if found guilty; India has given those assurances. Anyway, it was always highly unlikely that the court would hand out the maximum sentence for the crime with which the two marines are charged. What New Delhi has done is to help the Italian government make its latest decision more palatable to the families of the marines and to its people. The families of the dead fishermen will now expect an expeditious trial. So too the international community, for how the Indian judicial system deals with the case will have ramifications for the U.N. Convention on the Law of Seas. That is why it is puzzling and more than a little disconcerting that for all the sound and fury emanating from the Centre last week, it has yet to act on the Supreme Courts January order that a special court be set up for the trial of the marines. There must be no more delay in setting up the court, and proceeding with the trial. Courtesy-The Hindu address the inequalities and the mass and multiple deprivations that plague the lives of hundreds of millions of our people. The mission of The Hindu Centre for Politics and Public Policy will be to provide intellectual ballast and substance to our, and the reading publics, understanding of selected political subjects, challenges, and issues. It has become a fashion in some quarters to decry politics, to depict it as nothing but a cynical game, to treat it, at best, as some kind of necessary evil. We firmly disagree with such perceptions and attitudes. We take democratic politics seriously, regard it as having much potential for good notwithstanding its seamy side. We regard public policies, their orientation, content, and impact, as vital to how a society fares.

Public policy is Vital to how Society Fares


The Hindu Centre for Politics and Public Policy is a newborn venture associated with a 134-year-old newspaper and it is an honour for us that the Honourable President of India has consented to inaugurate it. The Hindu , founded on September 20, 1878, is the oldest surviving major daily newspaper of Indian nationalism, by which we mean the great socio-political movement that won freedom for India from colonial bondage and helped consolidate the gains of independence in every sphere of national life. We think that setting up a serious intellectual niche or division within Kasturi & Sons Limited, the company that publishes our newspapers, is an idea whose time has come. There is a great deal of superficiality and dilettantism not just in mainstream Indian journalism, but also in public discourse, on key issues that matter. Alongside this, we note a widespread disenchantment with policies and institutions, which have clearly performed below par and let the people of India down. Recently published opinion polls testify to this mood of popular disenchantment. There are many things going for democratic India, above all the abiding strengths of our ancient, living historical civilization, our sound constitutional balances and safeguards, and the good sense, wisdom, and resilience of our people. But recent events remind us that we face tough challenges such as massive corruption and misgovernance, assaults on democratic values from within and without, and violations of womens rights, dignity, and lives. As costly are the grievous failures to

Guiding principles
The core values The Hindu h a s been committed to over the long term will be the bedrock of the Centres orientation and activities. Truth-telling, freedom and independence, fairness and justice, secularism, respect for diversity and pluralism, humaneness, and contributing to the social good we take these guiding principles seriously. They are not motherhood and apple pie sentiments (as Americans would say). We do not see The Hindu Centre as being in competition with our universities and other academic research centres. The political studies we will fund, support, and help to bring to public light will be focussed, close to the ground, and of demonstrable public and policy interest. We envisage this research, as well as its publication and dissemination, to be fast-tracked, at least in comparison with what universities and other academic institutions are used to. The way the Justice J.S. Verma committee went about its work, and came up with what could be a game-changing contribution, within the 30-day deadline it set for itself is an inspiration and a model for all of us. While the studies will be selective and focussed, we expect the discourse organised or enabled by the Centre to range far and wide in the spirit of intellectual curiosity. Courtesy-The Hindu

MAY 2013

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Lesson on diplomacy, From an Iranian
Track II meetings can be useful when participants express their views candidly, without worrying about offending the sensitivities of others. When the event is held in India, visiting think tankers take pain not to upset their hosts. Since most foreigners have rightly concluded that Indians are not only flattery prone but credulous as well, they are usually complimentary about Indias role in various situations such as in Afghanistan, Syria, Middle East, etc. It is therefore refreshing when a visiting participant in a Track II meeting gives free rein to his views about Indias foreign policy as was the case when an Iranian expert, familiar with the official thinking of his government, spoke his mind at an event in Delhi some time ago. Other Iranian participants at the same meeting spoke in a similar vein. not willing to buy it from India, that Iran was spreading radicalisation among the Shia community in India, that India says Iran is important for India but Iran never says India is important for Iran, etc. Someone pointed out that Shiite Iran supported the Taliban in Afghanistan, which was a diehard Sunni movement. The Iranian friend we have to describe him as a friend since friends are supposed to talk frankly without worrying about offending anyone was not nonplussed. It was not Iran which placed obstacles for Indian wheat sales in Iran; this was a matter of business considerations. He added that India could not have an unfriendly attitude towards Iran and, at the same time, expect special consideration. Iran was a land of moderation, not a land of extremism; it never exported Shia extremism to India. If there is Shia extremism in India, there is also Hindu extremism, he added for good measure. As for supporting Pakistan, he said Iran had to, since Pakistan was a neighbour and a friendly country, but Iran had never done anything against India and wanted to be helpful to both. He rubbished the reports about supporting the Taliban and added that India had been in touch with the Taliban. On the nuclear issue, the Iranian expert said Iran was not asking for anything more or less than the rights and obligations under the nuclear NonProliferation Treaty. Iran had always been in full compliance with its treaty obligations. No section of Iranian society saw nuclear weapons as a matter of privilege or security. Islamic jurisprudence specifically forbade intentionally polluting the atmosphere. Nuclear weapons did not provide security to nuclear weapon states; the U.S. and Nato had nukes but of what use had they been in Afghanistan? Had India been able to use them against Pakistan? As for some evidence contained in a laptop revealed in Vienna, it was fabricated and a cheap argument. The friend used the very point raised by the Saudis and others; India, he pointed out, could easily get oil from other sources, Iran was not really important for India as an energy source. Instead of taking offence at his remarks, we ought to draw some lessons from them. Unlike Iran, which never says India is important for it, Indian strategic community never tires of repeating how crucial Iran is to us for its energy resources, for alternative access to Afghanistan and for the northern corridor to Central Asia. For good measure, we often remind ourselves of the fact that there is a large Shia community in India, the assumption being that the Shias in India expect the government to be mindful of their religious sentiments while deciding on the policy towards Iran. Such talk only strengthens Irans attitude of being somewhat contemptuous or dismissive of India. It further makes people in Iran and India conclude that India needs Iran much more than Iran needs India, if at all. As of today and this must be emphasised Iran certainly needs Indias friendship. It is true that our antiIran vote in IAEA has harmed our relations with Tehran, but international relations cannot forever be held hostage to past actions. We ourselves have long forgotten even the fact that many countries had voted against us in the United Nations at the time of Bangladeshs war for independence in 1971. The Iranian friend was right; there are other sources from where India can buy oil. Saudi Arabia would be delighted if we were to turn to it to make up the shortfall, since it would clearly be interpreted as India siding with it in the undeclared politico-sectarian war against Iran. (This is one reason why India would not want to do so.) But the number of buyers of Iranian oil is dwindling fast and Iran is hard put to find alternative buyers, even at discounted prices. Contrary to what our friend said, his Oil Minister has publicly acknowledged that Irans oil exports fell by 40 per cent last year.

Inclined towards U.S.


India, he said, was anxious not to make the United States unhappy. Your qibla, he said, is Washington. India was much inclined towards the U.S. and should reconsider striking a balance in its foreign policy; India had some shortcomings and should reconsider its relations with Iran; India was not being pragmatic but opportunistic. Traditionally, India enjoyed huge social capital in Iran; it was hugely popular with the Iranian people. All that had been destroyed for generations in one stroke because of Indias anti-Iran vote in the International Atomic Energy Agency. India could not vote against Iran and claim, at the same time, that Iran was important for India; it just did not make sense. A little later in the interactive session, he reiterated his view that India could not vote against Iran and, at the same time, say it wanted to work with Iran. I repeat this because it was a very harmful act and it is very hard for any friend of India in Iran to accept this. Some Indian participants, evidently upset and taking advantage of this candour, reminded the Iranian gentleman that Iran had always sided with Pakistan and asked him what it was that Iran had done for India, that Iran was buying wheat from the U.S. but was

Iran needs Indias friendship


The Prime Minister paid an official visit to Iran last year for the non-aligned summit, no doubt upsetting the Americans. The fact that he was granted an audience by the supreme leader should not flatter us. Iran certainly needs friends like India. Would the supreme leader have received the Prime Minister if his country did not face sanctions? Iran

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surely knows that India has not joined in the unilateral sanctions imposed by the West. If Iran, in the face of these facts, has convinced itself that Indias qibla is in the direction of Washington, there is nothing we can do to disabuse it of its thinking. The above analysis is not an argument for downgrading Irans importance for us and for the region of which it is a part. Rather, it is meant to keep in mind what Harish Khare, the respected columnist, recently observed: Appeasement policy does not serve national interest, in domestic politics or in international relations. His advice is aimed at the government but is equally true at the non-governmental level. International relations must be conducted on the basis of reciprocity and mutuality of interests. We also have to keep in mind that countries which at present have strained, even hostile relations with Iran, can and will change their policy at a time of their choosing; we should not be left surprised. Courtesy-The Hindu

Towards regional consensus


Communist Cuba was simultaneously hosting peace talks between the conservative government of Colombia and the ultra-left guerrilla force, the Revolutionary Armed Forces of Colombia or FARC. Its President, Ral Castro took over the Presidency of CELAC for 2013 in Santiago. Cuba remains outside the Organisation of American States, which includes all CELAC members, plus the United States and Canada, since its expulsion in 1962. Bolivia, which does not have diplomatic relations with host Chile on account of an ongoing territorial claim by the former, was represented by its President. The commitment to democracy was emphasised. Paraguay did not attend the summit, under pressure from the five-nation MERCOSUR, and the 12-nation UNASUR (The Union for South American Nations) the sub-regional South American organisations from which it was suspended after a legislative coup deposing former Paraguayan President Lugo in June 2012. The deliberations and ancillary events revealed fundamental differences in political and economic orientation, principally between the leftleaning regimes and the hosts and their supporters. The CELAC-EU Declaration maintains a balance between the EUs insistence on protection of investment and the assertion of overriding sovereign policy by the left in Latin America. Mr. Piera admitted that within CELAC we have learnt to live with our differences. The Santiago Declaration, adopted by the CELAC Summit, orchestrates regional consensus on incandescent issues such as security, narco-trafficking, multilateral negotiations on disarmament, sustainable development, etc. and reveals the regions collective determination to make up for lost time. The stakes for India are high in this region five times its territory, with a population of 600 million producing over $10,000 on average annually per capita. Political relations are cordial, while bilateral trade crossed $32 billion in 2011-12 (30 per cent compound growth over the past decade). The Commerce Ministry has negotiated an amplification of a preferential tariff

agreement with Chile and is preparing to negotiate similar agreements with other LAC countries. Indian enterprise is increasingly aware of, and present across, the region.

Focus on India
August 2012 saw the most significant development in Indias relations with LAC countries. The Chilean presidency, clearly with the tacit approval of the entire region, identified India as its first port of call, followed by China. The Ministry of External Affairs (MEA) reciprocated the initiative with alacrity. The Joint Declaration issued after the meeting of the External Affairs Minister with his counterparts from Chile, Venezuela and Cuba (the Troika of CELAC) signalled the start or at least the definition of a new era. Mr. Khurshids visit should largely fulfil the commitment to annual meetings, even though Chile has handed over the presidency. The identification of specific areas for collaboration business, science and technology, agriculture, energy, culture and education on separate platforms, provides a road map. Steps to implement these have been initiated by the MEA and should find resonance among stakeholders on both sides. A worthwhile return on diplomatic investment is guaranteed. In the 1990s, the MEA convinced the Government of India of the need to Look East, after having virtually ignored Asean and our relations with that vital part of the world. A similar exercise was carried out the following decade with Africa. Both were focused programmes, funded and executed with determination by the ministry in concert with other stakeholders. The results and benefits are evident. The time has now come to carry out a similar exercise with the 33 nations of Latin America and the Caribbean. The complexity of the diplomatic challenge cannot be underestimated. To the geographic distance and magnitude, we must add the difficulties of communication, a lack of cultural appreciation, historic proclivities to Europe and the U.S., and the deep inroads already made by others, notably China. A CELAC-China Cooperation Forum finds mention in the Santiago Declaration.

For a Firmer Handshake with Latin America


External Affairs Minister Salman Khurshid began an official visit to Chile and Argentina on Tuesday night. This is the first ever visit of an Indian Foreign Minister to Santiago. The fact that Mr. Khurshid will be there less than four months since taking charge is hopefully a sign of evolving priorities towards the region. On January 27-28, Chilean President Sebastin Piera, pro tempore President of the Community of Latin American and Caribbean States CELAC hosted leaders from the region in Chile. This was preceded by the First CELAC Summit planned biennially with the 27 nations of the European Union. Mr. Piera welcomed Prime Minister Mariano Rajoy of Spain, struggling with 25 per cent unemployment, and a mountain of debt, to a better world. The irony, accentuated by the self-confidence of the Latin American and Caribbean leaders, was not lost on the former colonial power. The CELAC Summit, aiming to unite our continent as never before, revealed the distance the region has come from its troubled past.

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Mr. Khurshids visit comes at a crucial juncture. It must be utilised to emphasise our determination to engage Latin America in all aspects of the relationship. An important catalyst will be the business community, which will require official patronage to elevate the economic relationship to the next level. India needs to accelerate and upgrade its political and diplomatic exchanges with the region. More frequent visits at all levels, including by the Prime Minister, and a conscious effort to invite more leaders from Latin America, will help convince our friends across the South Atlantic of our sincerity. Courtesy-The Hindu From September 2004 through October 2007, says the suit, S&P knowingly and with the intent to defraud, devised, participated in, and executed a scheme to defraud investors in certain mortgage-related securities. S&P, the suit says, falsely claimed its ratings were objective, independent, uninfluenced by any conflicts of interest. At the height of the sub-prime loans frenzy, ratings agencies merrily dished out top-notch scores to esoteric financial instruments such as collateralised debt obligations (CDO) which were nothing but a bundle of mortgage-backed securities made up of dubious housing loans. Emails accessed by the DoJ clearly show that ratings analysts in S&P were uncomfortable at rating substandard loans as prime but had to submit to business pressures. The evidence clearly points to intentional fraud. Interestingly, though Moodys and Fitch, the other two of the Big Three, were equally guilty of assigning dubious ratings, the U.S. government has gone after S&P alone for now, prompting talk that it is revenge for the downgrade of the U.S. from its stellar AAA by S&P in August 2011. Maybe so, but it still cannot detract from the merits of the case. S&P played a pivotal role in precipitating the sub-prime crisis and it needs to be called to account. Courtesy-The Hindu The draft plan document settled for an average annual growth rate of 8 per cent, which, in the light of the latest projections, is going to be challenging. The low estimate for the current year is way below most other official and nonofficial forecasts. The Finance Ministrys mid-year economic analysis (December 2012) sharply lowered the Economic Surveys exaggerated estimate of 7.6 per cent to between 5.7 and 5.9 per cent but even that as well as the usually more conservative Reserve Bank of Indias revised forecast of 5.5 per cent look overly optimistic. The slowdown is widespread with only a few sectors construction, community personal and social services, and mining showing increases over last year. Manufacturing has been a laggard but that was well known. A slower than expected growth rate makes the task of reining in the fiscal deficit harder and reduces the space for badly needed public investment. There is a faint hope that future revisions in the statistics will show the economy in better light. The 5 per cent growth rate is based on economic activities during the first eight months when they were at a low ebb. According to this view, the environment has improved considerably from November and the next round of data revisions, covering the whole year, will see a mark up in the growth rates over what has now been arrived at through extrapolation. This might well be true but on the eve of the budget it would be prudent to not depend upon possible data revisions which, in any case, will occur well into the future. Another optimistic view is that the economy has bottomed out and from here a recovery is imminent. Is the glass half full or half empty? Have we really hit rock bottom or is there scope for the growth rate to fall further? One awaits the forthcoming Economic Survey and the budget for a clearer, official view of the economy. Courtesy-The Hindu

From Standard to Poor


All those associated with the subprime loans scandal that led to the global financial crisis of 2008 have paid the price one way or another. Banks and financial institutions have taken large write-offs on their balance-sheets, causing valuations to fall. Investment banks either went belly up or accepted ignominious lifelines from healthier peers. Investors have seen their lifetime savings wiped out and governments have been voted out of power. Indeed, the global economy including the economies of countries which were in no way involved with the misdemeanours of the U.S. housing and financial sector is still paying the price. Yet, ratings agencies, one of the primary villains of the sub-prime loansdriven financial crisis, had largely escaped punishment. That was until Monday when the U.S. government slapped a lawsuit against the foremost of the Big Three ratings agencies Standard & Poors seeking $5 billion in punitive damages for defrauding investors. More than the financial damage that this lawsuit will cause and it is potentially serious, given that the revenues of The McGraw-Hill Companies, of which Standard & Poors is a division, were just $6.24 billion in 2011 it is the blow to S&Ps reputation that will hurt more. From the suit filed by the Department of Justice (DoJ) it is clear, despite protestations from S&P, that the agency assigned dubious ratings to complex financial instruments with the outright intent to defraud investors.

Growing at five per cent


There are many ways of looking at the Central Statistical Organisations latest GDP forecast which pegs growth at just 5 per cent for the current year (2012-13). The decade-low growth figure, based on an advance estimate of national income, is obviously a cause for concern. During the first half of the year, the economy grew by 5.4 per cent, which implies that growth during the second half will be below 5 per cent. If it stays below 5 per cent, even for two or three quarters, it will dampen sentiment and increase the odds for a return to a higher growth trajectory. Time was when Indias policymakers were looking at growth rates of 9 per cent, with the more optimistic ones visualising double digit growth during the last few years of the Twelfth Five Year Plan, which has begun this year.

Welcome to Closet Illiberalism


Caste is the most overwhelming factor in Indian life. Those who deny it in principle also accept it in practice. Life moves within the frontiers of caste and cultured men speak in soft tones against the system of caste, while its

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rejection in action just does not occur to them... Socialist thinker Ram Manohar Lohia said this in 1964 but the words might be as relevant today as they were five decades ago. The Ashis Nandy controversy illustrates the paradox of Indias opinion makers preaching caste equality while instinctively, reflexively, articulating positions that bunch them up on one side of the caste divide, thus reinforcing the very order that they have rejected. K. Satyanarayana exposes this contradiction with devastating examples in his article in The Hindu (editorial page, The question of casteism still remains, February 5, 2013). Mr. Nandys defenders have made the untenable legal claim that he should be judged not by what he said at the Jaipur Literature Festival but by his past record and scholarship. But worse, gradually the defence, which was originally grounded in Mr. Nandys right to free expression, has deteriorated into a free-for-all against Dalits and Other Backward Classes (OBC) who are presumed to have become sacred cows protected by draconian laws. If to question Mr. Nandy is intolerance, what does one call this rant? Mr. Nandys initial statement was a qualified one: he said the Indian Republic was saved because the corrupt of today were from the Scheduled castes, OBCs and now the tribals. But the nuances went for a toss with his stunning insistence that West Bengal was free from corruption because in the last hundred years, nobody from the OBCs, SCs and STs has come to power there. It is an absolutely clean State. Forget the backhanded compliment to the Left Front leadership which has been deemed to be clean for being upper caste. The inescapable inference from this is that upper caste means no corruption regardless of the period of reference today or a 100 years ago. long. To quote Mr. Nandy: What I meant was that most of the people getting caught for corruption are people from OBC, SC and ST communities, as they dont have the means to save themselves unlike people from upper castes who can hide their corruption. The Nandy episode would have been well served if this statement had become the peg on which to examine the persisting caste prejudices and double standards that allow one kind of corruption to be exposed and the other to be hidden. However, it is important to understand that exposs and blackouts happen not only because one section is smarter than the other, which surely it is, but because the dominant discourse in India as is evident from laffaire Nandy itself continues to be shaped by the socially advantaged classes. The media, as surveys have established, are a classic example of this stranglehold but upper caste dominance is as much a reality in academia and other key policymaking institutions. This collective is superficially progressive. Yet at a subconscious level, its members harbour all the entrenched biases, resulting in the backward castes being censured far more severely than their twice-born counterparts for the same alleged crime be it ostentation, selfpromotion, a specific legal violation or patronage of a particular caste group. Compare the relentless focus on Ms Mayawatis financial assets with the easy ride given to Robert Vadra. The Vadra real estate papers were avidly consumed in private, they had been available for years with the principal Opposition party, but the veil on the Gandhi son-in-laws vast business empire was lifted only after Arvind Kejriwal made bold to mention the unmentionable. Today, while Ms Mayawati finds the law chasing her, there seem to be no such anxieties for Mr. Vadra. In Prime Minister Vajpayees time, similar deference was shown to his foster son-in-law Ranjan Bhattacharya.

Tracking the BSP


I had my first real brush with deepseated caste attitudes in 1988 when I was in Allahabad for a Lok Sabha byelection contested by Rajiv (Gandhi) challenger V.P. Singh. His opponents were Sunil Shastri from the Congress and Kanshi Ram from the BSP. Singh was the media darling and Mr. Shastri derived his importance from being his principal opponent. The BSP faced a near media blackout, and as it turned out, the party was equally contemptuous of the manuwadi press. BSP volunteers blocked me off from their meetings, saying they knew what I would write. Over the years, as I tracked the BSPs astonishing growth, I could not help but notice the unfailingly skewed media coverage of the party, whose rallies would be reported, not for their content but for the traffic chaos they caused. As a part-time journalism teacher in 2005, I would discover the same unconscious bias in the essays turned in by my students. Writing on Ms Mayawatis birthday, they left out the political aspects of the event, concentrating instead on her diamonds, her flashy clothes and the size of the cake she cut. They would accept later that diamonds and silks were worn by other women politicians too but that somehow, these outward manifestations hit the eye more in the BSP chiefs case. There is an ironic reality here that must be understood in its proper context. What people saw as distasteful flamboyance was a political tool that Ms Mayawati consciously

Mayawati and the Gandhis


A case in point is the differential treatment extended to Mayawati and the Nehru-Gandhis. This difference endures despite xenophobic intolerance of the First family by right-wing sections of the middle class. The Bahujan Samaj Party (BSP) chiefs wealth and her selfprojection creating parks and monuments, naming projects after herself and celebrating lavish birthdays have been obsessively written about by a media that ignored her political achievements until she compelled attention by forming in 2007 the first majority government in Uttar Pradesh in 17 years. The star of that watershed election was Ms Mayawati but the media ignored her, choosing instead to be embedded with Rahul Gandhi whose party finished last and is still stuck there.

Nandys statement as peg


Per se this is indefensible. Yet if for no other reason than to make the caste debate meaningful, we also need to look at Mr. Nandys subsequent clarification more so because contained in the clarification is an uncomfortable truth that the Indian intelligentsia has tiptoed around for too

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employed, especially in the formative years when it was important for her to raise the self-esteem of her constituency. This was explained to me by the part Hindutva, part OBC Uma Bharti. The Dalit girls in her village were forbidden from crossing the threshold into even OBC homes. But they would rebel in their own way, wearing Mayawati hair clutches and imitating her mannerisms, thereby signalling that they would not be kept down by force. The handbag, symbolising status and accomplishment, is similarly a deliberate presence in the muchcriticised Mayawati statues. Admittedly, the showmanship can get excessive, as it did in 2010 when the then Uttar Pradesh Chief Minister wore a gigantic garland of currency notes, estimated to add up to several crores of rupees. This kind of extravagant cash display undoubtedly raises questions about source and accountability. However, in all the outrage over this incident, the media missed mentioning that Indian politicians have traditionally been weighed against coins. At election time this becomes a means of adding to the party coffers without the bother of disclosing the source. There is equal duplicity around the perceived caste consciousness of parties such as the BSP and the Samajwadi Party (SP). As a journalist posted in Lucknow in the late 1980s, I was witness to the transfer of power in Uttar Pradesh from the Congresss Narain Dutt Tiwari to the Janata Dals Mulayam Singh Yadav (now with the SP.) The latter took charge to immediate accusations of Yadavisation of government and bureaucracy. Nobody cared to find out which castes ruled in the previous regime. In 1984, 93.8 per cent of the principal secretaries and secretaries to the U.P. government were from the upper castes and 78.6 per cent of the District Magistrates were from the upper castes, including 41 per cent of Brahmins (Christophe Jaffrelot, Indias Silent Revolution ) . Political empowerment of the backward castes is a dramatic reality today. But social attitudes have stayed frozen. Why else would 50 per cent of all Central schemes and projects be named after the Nehru-Gandhis? Why would there be a chorus of protests over Mayawati statues but not over the renaming of the Borivali National Park after that champion of democracy, Sanjay Gandhi? In her outstanding book, The Grammar of Caste , Ashwini Deshpande cites evidence from four pioneering studies on the Indian urban labour market to conclude that employers discriminate between equally meritorious candidates on the basis of their caste identities. Employers talk the language of merit and confess a deep faith solely in the merit of the applicant. However, they also believe that merit is distributed along lines of caste, religious and gender divisions. Nowhere do employers see this as discrimination. It is as if they were describing a neutral and unbiased state of the world. Back to 1964 and Ram Manohar Lohia? Courtesy-The Hindu refused to publish the Reddy Committees report or even table it in Parliament eight years after it was submitted. It remains accessible on The Hindus website [www.hindu.com/ nic.afa], the place where the report was first leaked and published verbatim in 2005. It is not that the question is simple, stark and frightening: who runs the north-east or Jammu & Kashmir or any area that is affected by insurgency? AFSPA is put in place after the area has been declared disturbed under the Disturbed Areas Act, the enabling provision of law, which facilitates the summoning of the Army to the aid of civil authorities who are unable to control armed insurrection. This is the call of the State government or the Centre.

No prosecution in over 50 years


Passed in 1958 when the Naga movement for independence had just taken off, AFSPA is a bare law with just six sections. The most damning are those in the fourth and sixth sections: the former enables security forces to fire upon or otherwise use force, even to the causing of death where laws are being violated. The latter says no criminal prosecution will lie against any person who has taken action under this act. In 54 years, not a single army, or paramilitary officer or soldier has been prosecuted for murder, rape, destruction of property (including the burning of villages in the 1960s in Nagaland and Mizoram). In the discussions over the past days, no one has even mentioned the regrouping of villages in both places: villagers were forced to leave their homes at gunpoint, throw their belongings onto the back of a truck and move to a common site where they were herded together with strangers and formed new villages. It is a shameful and horrific history, which India knows little about and has cared even less for.

An abomination called AFSPA


At an institute that is virtually owned, funded and run by the Ministry of Defence (MoD), Union Finance Minister P. Chidambaram did the unthinkable the other day. He virtually attacked the Army for refusing to review and amend the draconian Armed Forces (Special Powers) Act (AFSPA), if not repeal it altogether. Like a clever politician, he tossed the issue squarely into the lap of the Army and the MoD, saying they were unambiguously opposed to any change and that you should ask the question to the armed forces and ask why are they so opposed to even some amendment to AFSPA which will make [it] more humanitarian. We have [the] Jeevan Reddy Committee report but yet if the Army takes a very strong stand against any dilution or any amendment to AFSPA, it is difficult for a civil government to move forward. This raises a startling issue about democracy, the rule of law and of civilian control over the military. Now that the most powerful figure in the Cabinet after the Prime Minister has spoken, perhaps someone will take notice. But the problem is far more complex than it appears to be. After all, the Minister did not say why the Government of India has

Impact of Verma report


A year ago, two judges of the Supreme Court, intervening in a case where the Central Bureau of Investigation was seeking to prosecute army officers accused of murdering five villagers in Jammu & Kashmir, in what

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is known as the Pathribal incident, declared clearly that AFSPAs protection was limited to acts conducted in the line of duty. You go to a place in exercise of AFSPA, you commit rape, you commit murder, then where is the question of sanction? It is a normal crime which needs to be prosecuted, and that is our stand, declared the bench of Justices Swatanter Kumar and B.S. Chauhan. Its simple: you dont rape or murder in the line of duty. These are aberrations to the law of military conduct with civilians. And the Army is upset that the Justice J.S. Verma Committee even suggested that military men accused of sexual assault should be tried under normal law and not be protected by the law that guarantees absolute protection: Immunity. A retired general came on a TV programme the other day and fumed that reviewing AFSPA was not the mandate of the Verma Committee. Sorry sir, youve got it completely wrong. The question of life and death in a disturbed area where, according to a case now before the Supreme Court 15,000 people (men, women and children) have disappeared from the killing fields of Manipur is everyones concern. Army circles are worried that soldiers and officers will be dragged to civilian courts and that frivolous cases will be filed against them. This is a real matter of concern but it cannot be the rationale for blocking efforts to repeal or amend AFSPA. Come up with an alternative instead. But the MoD has not or is perhaps unable to do so. A former general even said publicly that 97 per cent of all cases against army men were found to be false. The question I will put is simple: how far back are you going? Do you forget those murdered, raped and tortured, their homes and granaries burned and their places of worship desecrated? Should these crimes go unpunished? Remember too that the Indian Air Force, in March 1966, bombed Aizawl and civilian targets in the Lushai Hills (now Mizoram) to repulse an insurgent attack that had almost overrun the district headquarters. Many in Mizoram do not even talk about those days. They are simply spoken of as the troubles and no discussion takes place, such is the trauma that has been inflicted on people. And are we merely supposed to forget all this, to sweep it under the carpet and move on? Why should the victims continue to pay the price? Why not those who inflicted the devastation, who gave the orders and who carried them out? courage to act in 2005 when the Reddy Committee gave its report, which not only recommended AFSPAs repeal but also proposed a legal mechanism by which the Army could be used in extraordinary situations involving national security? Our essential recommendation was that no one could be above the law; everyone must be equal before and under it.

Nagaland is peaceful now


We need to remember two points here about AFSPA and the place where it all began Nagaland, in 1958. Nagaland today is peaceful. It is not free of intimidation, extortion or factional killings, but not a single Indian solider has fallen in combat here for the past five years. The State government has been asking, since 2005, for the removal of the Disturbed Areas Act. The Government of India refuses to listen. What is the greater abomination then? Is it that the Army, which is easy to blame and always in the line of fire, is stuck in a thankless task? Or is it that the civilian government which first sent them there is unable to take the political decision that will bring the boys home? Fifty-four years is a long time to have a law as revoltingly brutal and obscure as AFSPA. Now, both sides are stuck. The army says it is like its Bible and that if the Act is removed it will face the prospect of fighting with one hand tied. The central government says that it cant persuade the Army to back down. What will it take to close this sad, ignominious and bloody chapter in our nations history? We will need to go beyond Mr. Chidambarams remarks for what he was doing is to lay the blame at the door of the Army. That is not right for the civilian government is equally complicit in this. He is seeking to show that the civilian government is opposed to a doctrinaire securitised approach and that the MoD and the Army are isolated. But this approach doesnt work. Instead, it shows that the two, even when isolated, are more powerful than the rest of the government put together. They have, after all, successfully stalled any effort to dilute or amend the Act. Why did the civilian government not have the

Display statesmanship
The Centre has lost more than seven years in coming to no decision on the recommendations. Yes, internal wrangling is difficult to resolve but how long should anyone have to wait for a resolution? Today, the situation has become much more complex because the window of opportunity provided by the Reddy Committee has virtually closed. The Army has bolted it because it does not want to be seen as the villain of the piece. It did not ask to go anywhere. It was sent to Nagaland and Manipur. But now it must, in its own interests and that of the country, get out of places where threats to national security simply do not exist, and when the central government thinks it should leave. After all, if required, the security forces can always be summoned again. The situation calls for statesmanship of a very high order. Atal Bihari Vajpayee showed this in 2003 on his maiden visit to Kohima when he reflected, as Prime Minister, on the suffering that both sides had faced and sought to reach out and seek reconciliation: Let us leave behind all the unfortunate things that happened in the past. For too long this fair land has been scarred and seared by violence. It has been bled by the orgy of the killings of human beings by human beings Each death diminishes us The past cannot be rewritten. But we can write our common future with our collective, cooperative efforts. The present situation demands measures no less significant from the current Prime Minister, who decided that AFSPA must be reviewed. But he did not follow this up because the opposition from the Defence Ministry was just too strong. So, we must ask, as we rest and wrestle with this tortuous story: how many more deaths, how many more naked protests, how many

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more hunger strikes, how many more committees, how many more editorials and articles and broadcasts before AFSPA goes? Courtesy-The Hindu This is because the Railways reckon punctuality based on the right time of arrival at the destination, irrespective of how late a train is in between, whereas the website shows the actual instantaneous position. To achieve destination punctuality, the running schedule is often padded up with extra time towards the end of the journey. This in effect eats into line capacity. Railways in general and Indian Railways (IR) in particular, because of its large public service footprint and load of unremunerative projects, are inherently unbalanced financially. Long gestation periods of projects, their capital intensive nature and time lag between investment and generation of revenue make substantial budgetary support from the government unavoidable. The usual advice to IR to generate revenues by monetising surplus land or selling off scrap is that much pie in the sky the revenue inflow from such sources is at best sporadic, unpredictable, processridden, and, ultimately, self-limiting. Whereas the main items of expenditure staff and fuel/energy costs often vary almost instantaneously, the only immediate means available to even partially offset them is an increase in fares or freight tariff. population. It is this shifting of the burden from the actual rail users to the society at large that is applauded in Parliament with loud thumping of desks whenever a Railway Minister heroically announces no fare increase. While some cross-subsidisation is unavoidable in the Indian context, prolonged suppression of passenger fares also imposes costs on the society. The setting up of an independent Railway Tariff Regulatory Authority, hinted at in the last budget, should hopefully free the Railways from the politics of fare and freight tariff fixing, pun unintended.

Saving the Railways, for the Aam Aadmi


A Railway Minister is sacked midway through the budget session of Parliament, a rather bizarre first even for the 160-year-old rail network. An information website, http:// railradar.trainenquiry.com/ shows that at any given moment, not more than 60 per cent of the trains are running on time. These two seemingly related, yet unconnected, scenarios have one common factor: the aam aadmi . In the first case, the Ministers well intentioned move to raise lower class passenger fares was seen by the powers that be as blatantly anti- aam aadmi . The second is the ultimate manifestation of a policy of relentless proliferation of train services each year in the name of helping the aam aadmi , without adequate line and terminal capacity and supporting infrastructure, leading to an overstrained system. During the last decade, the number of new train services announced during each budget varied from 46 to 105 under four different Railway Ministers. This excludes frequencies of trains which were increased, and extensions of existing services.

Administrative costs
The unbalance is also systemic. IR is perhaps the only railway system in the world that still has its own fullfledged medical, security and manufacturing establishments. Consequently, it carries a disproportionately heavy burden of administrative costs. There are more security personnel (60,000) and medical staff (57,000) than train drivers (36,000) apart from 44,000 in the Railways functioning production units. This is not to belittle the contributions of these sectors but to stress that with its present organisational structure, the staff costs are disproportionately high. Added to this is the decadal onslaught of the Pay Commission that delivers a virtual body blow to Railway finances. The last (Sixth) Pay Commission added about Rs.13,000 crore to the annual wage bill, representing a 50 per cent hike during 2008-09. Fine. So, why dont the Railways shed the off-line activities and get out of the ambit of the Pay Commission by appropriate restructuring? More easily said than done. At least four Expert Committees in the last two decades have recommended some form of reorganisation, away from the monolithic bureaucracy of today. But to expect the Railways themselves to initiate any basic structural change is like asking a man to voluntarily jump off a cliff. The initiative or push for such change has to come from outside. And any such change is bound to be painful and even disruptive for a period, and a major political gamble. But given the realities of coalition politics of the day, it is highly unlikely that any government

Behind no fare increase


No one asks a fruit seller whether an apple that cost only Rs.20 till yesterday and now being sold at Rs.30 will taste sweeter. No one expects the duration of power cuts to reduce even if the power tariff is doubled overnight. Such increases are taken in their stride as the natural consequence of inflation, rise in input costs or market forces. But the moment the Railways increase the fares even nominally, the demand or expectation is for additional facilities. The Railways themselves are to blame to a large extent for nurturing such unreasonable expectations, keeping fares unchanged over long periods, ostensibly in the interest of the aam aadmi . Instead, freight tariffs are increased, either directly or by indirect levies, to compensate the loss on the passenger front. This increases transportation costs of essential commodities, pushing up prices affecting the aam aadmi over a wider

Calculating punctuality
More than most other sectors, many initiatives and decisions taken (or not taken) by the Railways are supposedly for the benefit of theaam aadmi , the proverbial common man. This focus is unavoidable as the Railways remain the cheapest, yet fastest, mode of travel for the countrys millions. However some of these measures have exactly the opposite effect in the long run. In the case of the burgeoning additional train services, even a minor incident has a cascading effect on the punctuality of a large number of trains, inconveniencing tens of thousands of passengers. Punctuality at intermediate stations is almost non-existent. The Railways own statistics of punctuality put the figure usually above 90 per cent.

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at the centre in the foreseeable future will have the stomach to even attempt such a major initiative. What are the implications of the status quo to the aam aadmi ? First, there is only so much that one can expect, in terms of quality of service, from a monolithic bureaucratically structured entity operating as a virtual monopoly in the railway sector. This is not a reflection on the quality or commitment of a majority of railway personnel but has a lot to do with the incentives driving a form of organisation that is designed for stability, is precedent-driven, risk-averse and focused on vertical, functional silos. For the Railways it is back to basics. While it is necessary to dream about and plan for bullet trains whizzing past at over 300 km/hour, it is useful to remember the lament of an aam aadmi almost a century ago: During the whole journey, not once was the compartment swept or cleaned. The closet was also not cleaned during the journey. No water in tank. The return journey was no better. The compartment itself was evil looking..It was pestilentially dirty Mohandas Karamchand Gandhi, describing a train journey in September 1917. The daily concerns of todays aam aadmi remain unchanged. The period of moratorium on additional passenger train services should be utilised to pull up the quality of basic services offered to the aam aadmi in terms of safety, punctuality, cleanliness and courtesy. As for the political establishment in general and the highest levels of the government in particular, here are a few suggestions: Stop tinkering with the Railways in the name of coalition dharma ; treat it on a par with the Big Four Home, Finance, Defence and External Affairs; evolve a National Railway Policy with consensus across the political spectrum and a longterm common minimum growth plan spanning at least 10 to 15 years, that will be binding irrespective of who or which party or combination is in power. A climate of drift, sudden policy switches and adhocism only serve to keep a great institution far below its true potential. And that perhaps is the biggest disservice that can be meted out to the nations aam aadmi . Courtesy-The Hindu the relationship. The visit gains further significance in the light of the violence in 2012 between tribals and Muslims in Assam, which is rooted in the issue of illegal migration from Bangladesh. Bangladesh is crucial to Indias Look East policy as New Delhi seeks to foster closer cooperation with its neighbours to bring about economic development and prosperity in its long-neglected north-east region. Further, Indias foreign policy has a growing regional perspective, of which Bangladesh is an important component. The visit could also lay the groundwork for a landmark visit by President Pranab Mukherjee to Dhaka in March. The relationship has been a priority for both the Congress-led United Progressive Alliance government and the Awami League government in Bangladesh, with a host of high-level visits in the past two years. Bangladesh Prime Minister Sheikh Hasina visited New Delhi in January 2010. Under her regime, Bangladesh has also handed over key United Liberation Front of Asom (ULFA) militants in its territory to India. Prime Minister Manmohan Singh paid a historic visit to Dhaka in September 2011. The visit, the first by an Indian leader in 12 years, resulted in the signing of a crucial boundary swap agreement allowing about 50 Bangladeshi enclaves inside India to be integrated within Bangladesh and about 100 Indian areas inside Bangladesh to become a part of India. Other agreements included promoting trade, investment and economic cooperation; boosting regional connectivity and people-to-people contacts; transmission and distribution of electricity; promotion of educational and cultural cooperation and environmental protection among others.

Freight corridor opportunity


Second, as structured at present, heavy staff costs buck the generation of internal resources. The Railway Budget 2012-13 proposed an outlay of Rs.7.35 lakh crore during the 12th Five Year Plan (2012-2017) of which the major share of funding of Rs.2.5 lakh crore (34 per cent) is through gross budgetary support (GBS), followed by Rs.2.18 lakh crore through Extra Budgetary Resources (mainly commercial borrowings), Rs.1.99 lakh crore through internal resource generation (IRG) and the balance from other sources. The Plan is thus heavily dependent on GBS and costly commercial borrowings. Under the circumstances, adequate and consistent budgetary support becomes a necessity, not an option. It however needs to be remembered that this funding source (GBS) has myriad alternative uses in other crucial sectors affecting the aam aadmi , such as health and education. What are the immediate prospects? There is a window of opportunity presented by the two Dedicated Freight Corridor (DFC) projects which are already in progress, that can boost the freight earnings substantially and release capacity in the existing trunk routes. It is of utmost importance to complete these projects and make them operational before the effects of the next Pay Commission deal a near-fatal blow to the Railways finances around 2017-18. In the interim, no additional passenger train services should be introduced.

Looking East, First in the Line of Sight


Union External Affairs Minister Salman Khurshids upcoming visit to Bangladesh on February 16-17 is significant on several counts. It will be his first visit since assuming office in 2012, and comes weeks after the two countries signed an extradition treaty. While there, he is expected to chair a meeting of the India Bangladesh Joint Consultative Commission and review the gamut of

Findings from a youth summit


In this context, a relevant development took place in Guwahati on February 1 in the form of the Maitree Summit, a track-II dialogue between India and Bangladesh. The summit gains significance on account of some of its important observations and recommendations.

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Organised by the Youth Forum on Foreign Policy (YFFP), a Delhi-based think tank and the British Deputy High Commission in Kolkata, the dialogue brought together Indian and Bangladeshi speakers from academia, media, business and politics and held out the promise of stronger cooperation between the two neighbours. The broad message was the need for India and Bangladesh to cooperate in as many areas as possible including the development of infrastructure, labour and skills, mitigating environmental disasters and diplomacy. Joint academic cooperation as a means to address issues complicating the India-Bangladesh relationship could focus on research on illegal migration, the enclaves, arms proliferation, drug trafficking, transition rights, watersharing, terrorism and fundamentalism. Assam Chief Minister Tarun Gogoi made a strong pitch for boosting trade, cultural and transport links between north-east India and Bangladesh as it would benefit the entire region. He also alluded to the common destiny of the two regions Assam and Bangladesh face climate change, floods, soil erosion, a porous border and smuggling and called for joint efforts to tackle them. The future of north-east India also depended on relationships with neighbours such as Bangladesh, Nepal, Bhutan and Myanmar. The Bangladeshi delegates expressed disappointment over the failure to reach an agreement regarding the sharing of Teesta waters when Dr. Singh visited in 2011. There was also a sense that Bangladesh sought an equal standing in its relationship with India. While acknowledging that Dhaka needs New Delhi, it was pointed out that China and Myanmar were also helping Bangladesh in several areas. It was also in Indias interests to see a stable and prosperous Bangladesh because of the inextricable ties between the two countries. A survey conducted by YFFP in January showed that young Indians did not appear to give much importance to their immediate neighbours, other than China and Pakistan. Only three per cent of the respondents felt Bangladesh is important while 43 per cent said relations with the United States are the most significant, followed by China and Pakistan. While the summit stressed the importance of people-to-people contacts in enhancing India-Bangladesh ties, the survey points to the need for more young people to be involved in such contacts. Courtesy-The Hindu of technology. The $11 billion aircraft deal is still being negotiated and the French are eager to see it concluded soon, as expressed in the joint statement during the visit. The traditional good relations between the two countries have been driven by the need to build a robust multilateralism. France supports Indias candidature for a permanent seat in an expanded Security Council. It was the first country to sign a civilian nuclear deal with India, and supports New Delhis pursuit of membership in the four WMD-related multilateral export groups. Next week will see the launch of SARAL, a satellite to study oceans and seas, a product of long-standing scientific collaboration between the two countries. With so much going for bilateral ties, it seems odd that economic ties lag below potential. Twoway trade and investment are yet to touch the 12 bn target set in 2008. An annual dialogue on economic and financial issues that the two sides agreed to during President Hollandes visit will hopefully help. Courtesy-The Hindu

Moving beyond Defence


Freshly confident from an effective intervention in Mali, President Francois Hollande arrived in India liberated from the shadow of his predecessor Nicolas Sarkozy, a favourite in New Delhi and with Indias business leaders, but ready to build on his legacy. The two countries have established strong diplomatic, political and strategic ties over the years, and the Hollande visit reaffirmed that both are eager to take this engagement to a new level. That keenness was already evident in Indias backing to the French decision in January to send troops to oust Islamist rebels who had taken over parts of Mali, which New Delhi viewed as an effort against a terrorist takeover of that country. As part of the Support and Follow-Up Group for Mali, New Delhi has made a $1million pledge for building the countrys army, with the promise of $100 million more later. These steps complement both Indias burgeoning interest in Africa, particularly in the uranium and oil-rich Francophone countries of West Africa, as well as Frances plans to secure the region from Islamist militancy and splinter groups of the al Qaeda as it safeguards its own interests in those countries. It is no coincidence, then, that India and France have been moving towards greater naval co-operation, an important aspect of that being combating sea piracy. In general, defence ties have gained momentum in recent years, with France assiduously trying to combat the impression that it sees India just as a market for its hardware. The Scorpene project, under which the manufacture of the submarine has been sub-contracted to India, and Dassaults Rafale fighters for the Indian Air Force, include significant transfers

A model for the rest of India


It comes as no surprise that Tamil Nadu has once again been applauded for its excellent maternal and childcare services by the Common Review Mission of the National Rural Health Mission (NRHM). Suffice it to say that at a time when 99 per cent of global maternal mortality occurs in developing regions of the world, Tamil Nadu, Kerala and Maharashtra have become pockets that have bucked the trend. Even as India has been reducing its maternal mortality ratio defined as the number of maternal deaths per 100,000 live births the rate of reduction, from 380 in 1993 to 97 during 2007-2009, has been rapid in the case of Tamil Nadu. So much so that Tamil Nadu, along with Kerala (81) and Maharashtra (104), has already achieved the Millennium Development Goal of 109 maternal deaths per 100,000 live births by 2015. Compare this with the national average an MMR of 212 for 2007-2009, which is more than double the MDG target. The State has been able to accomplish this by taking up a multi-pronged approach. First, it has equipped all health-care

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settings, starting with the 1,612 primary health-care centres, with trained staff nurses available round the clock and all essentials required for safe deliveries. Second, it has through innovative and women-friendly initiatives ensured that most deliveries take place in health-care settings. According to a recent survey by the University of Delhi, institutional deliveries are as high as 99 per cent in Tamil Nadu. The national average is about 73 per cent. More than the very high percentage of institutional deliveries, what is more significant is the percentage of deliveries taking place in government-run institutions. Nearly 67 per cent of deliveries take place in government institutions, compared to 33 per cent in the private sector. The PHCs alone account for 27 per cent; it was about seven per cent in 2005. In fact, today, PHCs face a demand-side pressure. Compare this with Kerala where the private sector accounts for roughly 60 per cent of deliveries. The primary reason why women in Tamil Nadu are flocking to government facilities is the changed nature of healthcare services being provided. As many as 105 PHCs in the State have the facilities to conduct C-sections and store blood, and their main focus is maternal and child heath care. Women-friendly services like screening and appropriate intervention for gestational diabetes, hypertension and anaemia have had a magnetic effect. But the most critical contributor has been the strong and continued importance accorded to health-care services by whichever political party is in power. Courtesy-The Hindu because the Rana wanted Nepals Gurkha troops to join the Second World War on the side of Britain. After an unsuccessful attempt at dislodging the Rana regime, Tribhuvan sought refuge in India House in Kathmandu in November 1950. Jawaharlal Nehru ordered that Tribhuvan, his son, Mahendra and eldest grandson, Birendra be given protection under the Indian flag. After a week, they were flown into exile in New Delhi and put up at Hyderabad House. Huge antiRana demonstrations broke out in Nepal, forcing Mohan Shamsher, the last Rana Prime Minister, to negotiate with Tribhuvan. The victorious King returned home after two months. So when Mohamed Nasheed, the first democratically elected President of the Maldives, walked into the Indian High Commission a week ago, the alarm bell rang out in Delhi even though this was no repeat of the Nepal experience. One year later, Indias understanding of the troubles in the Maldivian paradise seems to have been significantly transformed. There is some acceptance that Waheed is really the mukhauta or mask of former dictator Maumoon Abdul Gayoom, who is running the show from behind the scenes. So Nasheed was invited to an official visit to Delhi in early February, when he met National Security Adviser Shivshankar Menon. Union External Affairs Minister Salman Khurshid has been in touch with him and all the other actors in the Maldives. India showed some spine when it told Waheed that Nasheed should be allowed to participate in the elections on September 7, implying that he shouldnt be arrested when he leaves the high commission. So far, though, both Waheed and Gayoom arent biting. A second arrest warrant has been issued for Nasheed, with the court also asking what hes doing inside the Indian High Commission. Meanwhile, efforts to impress upon Gayoom that India means business havent made much headway; it seems the ex-President just laughed it off.

The hand of Gayoom


The Indian government has made it clear to the Maldivian government of Mohamed Waheed that Nasheed will stay inside the High Commission premises as long as he likes. Thats the first difference not only from 1950, but also from 2012, when Delhi declared that the transfer of power from Nasheed to Waheed Nasheed called it a coup was legitimate. One year later, Delhi is being forced to reckon with the series of miscalculations it made last February. Clearly, Indias poor judgment calls and tearing hurry to recognise Waheed were the combined outcome of misreporting from the ground by its man in Male, as well as the fear that a power vacuum would have the Chinese rushing into the Maldives. The threat of Islamist resurgence was always at hand. But Waheed turned out to be the man who bit the hand that fed it. Not only did he throw out GMR, the Indian infrastructure company that had already spent half of the $500 million that would cost to build a spanking new airport in Male, the Maldivian capital. It has now come to light that Waheed has also allowed Chinese tour operators to buy into 18 resorts in the Maldivian atoll, which has given India the jitters.

Voting and sanctions


Officials in Delhi say they are waiting and watching, although its not clear for how long they can afford to do that. Certainly, the Indian government is not in favour of being seen to be exercising power in favour of the democratically elected Nasheed unlike 1971, when it helped in the creation of Bangladesh, or in 1987 when it signed an accord to push for greater rights for the Sri Lankan Tamils, or even in 1988, when it intervened to prevent a coup against the selfsame Gayoom and is hoping that events will play themselves out. There is some talk of imposing economic sanctions on the Maldives, especially since the islands have a months supply left of food and other commodities but that talk is contextualised in the long term. The most immediate aspiration is to hope that the Maldivian Parliament will soon decide whether it can vote, by secret ballot, so that some of Waheeds allies will, perhaps, turn against him.

A swim test in the Indian Ocean


The situation in the Maldives today former President Mohamed Nasheed is holed up inside the Indian High Commission seeking protection from what he believes are trumped up charges against him by a kangaroo court is quite different from what happened in 1950 in Nepal, but it is worthwhile recalling the similarities. All through the 1940s, tension between King Tribhuvan of Nepal and his Prime Minister, Mohan Shamsher Jang Bahadur Rana, had escalated

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Clearly, the governments fear and nervousness stem from the criticism the rest of the region has often heaped upon it, as being a Big Brother. But the fact remains that much greater engagement with South Asia must become the byword for Indias foreign policy. India must constantly push the envelope in favour of each democratic player in every country in the region, whether it is Bangladesh, Sri Lanka, Nepal, Pakistan or the Maldives. The problem is Delhi still seems unaware of the fundamental restructuring taking place in the Maldives, or if it is, it doesnt seem to know how to leverage it. At the parliamentary oversight committee in Male in January, then head of military intelligence Brig. Gen. Ahmed Nilam described Nasheeds ouster last year as a coup 10 days later, he was relieved of his duties. The same fate befell the chief of police intelligence, Mohamed Hameed, after he criticised Waheed. How can India arrest the deteriorating situation in the Maldives? Elections are in September, until which Nasheed certainly cant stay inside its high commission premises. One way would be to have Waheed defer the court order against Nasheed until elections are held let all Maldivians decide whether Nasheed deserves to be thrown into jail or not. Another would be to persuade Waheed to step down, thereby paving the way for a transitional government headed by the Speaker who also oversees a free and fair election. The current crisis in the Maldives is also about the way India chooses to assert its own interest as well as the interest of the region. This is another test for a country who wants to be its leader. Courtesy-The Hindu nuclear deterrence. In both countries, national security is equated primarily with strong economies and domestic cohesion. Chinese and Indian leaders value nuclear weapons primarily as expressions of national will and power, rather than as military instruments. In Pakistan, the situation is different. Economic growth is hobbled and the country is plagued by bloodletting. Decisions about nuclear requirements are made by a few individuals with military backgrounds who view these weapons as having both political and military value. deny India victory and to destroy it as a functioning society in the event of a complete breakdown in deterrence.

Pivot for change


Altering Pakistans near-term, nuclear growth trajectory will be difficult. Nuclear weapons are widely perceived as the nations Crown jewels. Most Pakistanis who bemoan the problems they face in every day life feel pride in their countrys accomplishments related to nuclear weapons. They begrudge governmental corruption and incompetence, but not money spent on the Bomb. At the national level, nuclear weapons have been imbued with great powers, including the power to keep India at bay and to lift Pakistan onto the worlds stage. What might change Rawalpindis calculation that more nuclear weapons equates to more security? One way is for New Delhi to take dramatic steps to improve relations with its neighbour and to take away the enemy image, similar to what Mikhail Gorbachev did to the United States after becoming leader of the Soviet Union. New leaders can be capable of surprising shifts in long-standing nuclear and national security policies, as exemplified by Gorbachev, Ronald Reagan, and Deng Xiaoping. Gamechanging leaders are, however, a rare breed for Pakistan and elsewhere. Besides, there seems to be little appetite within India for bold steps that have the potential to alter civil-military relations in Pakistan and to reinforce the Pakistan Armys obvious need to focus on internal security threats. Another potential game-changer is severe perturbations in Pakistans economy. An even more accelerated decline in Pakistans economic fortunes might affect budgetary choices. Gamechanging events could, however, have negative as well as positive effects. Growing economic travails within Pakistan are likely to create even more domestic instability. The safest route to reduce nuclear dangers on the subcontinent is through concerted, persistent, top-down efforts to improve relations between Pakistan and India. Success in this pursuit is dependent on the recognition by Pakistans military leaders that their

The face-off
There is rough parity between India and Pakistan in nuclear weaponrelated capabilities. By some indicators, India is ahead; in others, Pakistan leads. Both arsenals appear to have doubled in size over the past decade. Pakistan is the hare in this competition, while India is the tortoise. The tortoise will win this race because of its significantly larger industrial capacity and economy. But the hare continues to run fast, in part because nuclear weapons are a sign of strength amidst growing weaknesses. Rawalpindis nuclear requirements were set high initially, and appear to have grown higher still after the U.S.-India civil nuclear agreement. Growing disparity in conventional military capabilities on the subcontinent has also fuelled Pakistans nuclear programmes. Initially, Pakistani authorities embraced a doctrine of minimal, credible deterrence. Presently, Rawalpindis nuclear posture emphasises credibility rather than minimalism. Current and prospective production rates in Pakistan are sized to support ambitious nuclear targeting objectives that are set with minimal civilian oversight. At the low end of these requirements, Rawalpindi can warn New Delhi and the international community of the necessity to prevent or to end hostilities promptly. One means to do so is by moving shortrange, nuclear-capable missiles toward lines of military confrontation. It is not yet clear what Pakistans warhead requirements are for short-range systems. At the high end of the targeting spectrum, Rawalpindi appears intent to

Getting Ahead of the Sum of All Fears


While India focuses on Chinas strategic modernisation programmes, Pakistan competes with India. This triangular nuclear interaction is too complex for traditional arms control and too dynamic for laissez-faire policies. Beijing and New Delhi have adopted a relatively relaxed approach to implementing the requirements for

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current path does not strengthen or stabilise deterrence, and that economic growth requires more normal economic ties with India. At present, there is evidence of Rawalpindis recognition of the second proposition, but not the first. The leaders of major political parties in Pakistan have vocalised their interest in improving relations with India not just with respect to trade but follow-up steps are moving slowly in the run-up to national elections. Progress can be stopped short by another masscasualty attack on Indian soil designed to disrupt improved ties. Deterrence built on very weak economic foundations is inherently unstable, which is reason enough for India to pursue sustained and accelerated trade and investment opportunities with Pakistan. These methods, which have dampened tensions between China and Taiwan, could also serve a similar purpose on the subcontinent. Courtesy-The Hindu comments on Gandhi. Che and his delegation met Nehru in his office in New Delhi. Che later said Nehru met them with the amiable familiarity of a patriarchal grandfather. That comment on Nehrus demeanour perhaps bordered on sarcasm. However, Che is said to have had an admiration for Nehru. Jon Lee Anderson wrote in his book Che Guevara: A Revolutionary Life that Che read The Discovery of India with interest, underlining and scribbling comments about passages he found thought-provoking. Anderson unfortunately did not furnish us with those passages. But it is possible to imagine Che being impressed by Nehrus zeal for industrialisation within a socialist mode of state-controlled productivity. In his recorded impressions of India, Che had approvingly observed that India had to be industrialised as a base for future economic development. people that they did not use it even in the tensest moments of their struggle for independence. This observation can serve to illuminate Ches admiration for Gandhis method of resistance that was largely responsible for Indias nonmilitaristic struggle during the anticolonial movement. Che called Gandhi a mystic figure but did not elaborate on that description. In an interview on All India Radio to journalist K.P. Bhanumathy, Che said, You have Gandhi and an old philosophical heritage; in our Latin America we have neither. That is why our mindset has developed differently. The mindset of politics, in Ches inference, depends on the presence or absence of an old culture of thought. By that statement, Che endorses the crucial importance of a tradition of contemplation prior to modernity. Che perhaps also implied that without such a tradition, a figure like Gandhi was impossible. For it was Gandhi alone who had challenged the ideology of modernity and churned out a political response against it.

Picture of contrast
But Che contrasted these welcoming signs with the most abject misery, which he observed during his visit to Calcutta. It opened his eyes to Indias stark social inequalities. In his impressions, Che began by comparing Indias soil with the soil of Egypt which he had recently visited finding Indias soil superior to that of the desert country. However, he proceeded to point out that social injustice has resulted in an arbitrary distribution of land where a few have a lot and many have nothing. Though Che put the problem of economic disparities on record, he subtly avoided being judgemental about Nehruvian India. Ches overall tone was optimistic rather than harsh. He was probably following Fidel Castros directives to get friendly with countries close to the socialist bloc. Che also offered to help the brother people of Kashmir when an earthquake struck the place near the end of his two-week visit. Even though it was about a non-political event, Ches desire to help Kashmir and his use of the endearing phrase brother people evoke a sense of comradeship in the thick of calamity. Perhaps the most significant remark Che made in his impressions was this: In India, the word war is so distant from the spirit of the

Gandhi and the guerilla


Jean-Paul Sartre was impressed enough by Ernesto Che Guevara (19281967) to call him the most complete human being of our age after Ches death. It was a reference to the Renaissance man, who Sartre exhorted for possessing fraternal as well as revolutionary ideals. Che, the Marxist revolutionary from Argentina, who became the major figure of the Cuban Revolution, had also spoken of the New Man, who would be a gender-blind, anti-imperialist, selfless worker of the people. He contrasted this to the American penchant for producing the safe subject, who is geared towards ushering the revolution of the toilets. Che battled hard to restore his social and political optimism by upturning Americas hegemony in Cuba. Soon after the revolution was successful, Fidel Castro sent Che as an emissary to a number of countries including India. In this 45th year of Ches death, which occurred on the October 9, I give here a recollection of Ches visit to India in 1959, dwelling briefly on his interest in Nehru, noting his remarks on India and more emphatically, drawing out the significance of his brief

Of merit
Even as Che asserted to Bhanumathy that the practical revolutionary initiates his own struggle simply fulfilling laws foreseen by Marx, he conceded that Gandhis struggle had merit. For a man following the laws of revolution, Ches estimation of Gandhi reveals his broadmindedness about political practices coming from a different historical context as well as his recognition of ideas resistant to the violence of history. In his interview at AIR, Che had to face an awkward moment when Bhanumathy told him, communist dogmas wont be accepted by a multireligious society. In the face of this provocation, Che avoided calling himself a communist and asserted instead that he was a socialist who believed in equality and freedom from exploitation. But he drove a fundamental point home, saying, The struggle for freedom starts from the hunger of the people. If Gandhis struggle stemmed from a critique of violence, Ches ideology was an attack against a system that instilled violence by violating the basic necessities of people. For Che, hunger

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is a violent condition forced upon the hungry, and he finds violence an unavoidable method to counter that condition. For Gandhi, violence is a boomerang, which, once unleashed against the oppressor, would return to chase the oppressed. Despite Ches close ties to violence, his endorsement of Gandhis non-violent struggle as a historical possibility is food enough for revolutionary thought. Courtesy-The Hindu Lets look closely at what has happened since 2000. The insurance industry requires significant inputs of capital sustained over a long period to build a viable business and meet growing policyholder commitments. It takes eight to 10 years to reach breakeven. The private industry in India has lost a combined $4 billion in the last decade. In the non-life segment, 13 private sector insurers have reported losses in 2011. Many of the smaller insurance companies have looked at options to introduce new domestic partners, but there are no buyers. Most existing foreign promoters have a longterm view. They are unfazed by medium-term losses which they regard as necessary investments to generate future returns. They are looking to increase their ownership stake while their domestic partners have neither the capital resources nor the inclination to do so. A few foreign firms have grown impatient with the slow pace of progress and exited. Following a long period of inaction and delay, the Union Finance Minister has taken the bull by the horns. He is committed to continuing with liberalising and reviving the industry. He realises that urgently needed infrastructure will require a far greater volume of investment by insurance companies and pension funds. Yet, unanticipated complications have arisen. The idea of increasing the capital base of the industry through FII (instead of FDI) emanated from an understanding between the government and the Opposition, which avoided lifting the FDI cap. That opposition was bolstered by the strong position taken by the Joint Parliamentary Standing Committee on Finance on grounds that remain arguable and contentious. For a variety of reasons, the notion of allowing a capital increase only through FII would be a non-starter. FIIs have a very limited role to play in insurance companies, e.g. those listed in secondary markets, or a few profitable early entrants about to launch initial public offerings (IPO). It has no useful role to play in JVs requiring significant direct injection of capital. The Insurance Regulatory and Development Authority (IRDA) has warned publicly against the entry of FIIs in insurance. Interestingly, the government has always been more in favour of FDI rather than FII, regarding FII as being hot and volatile.

The Risk Business Needs Better Cover


The opening up of Indias public monopoly insurance sector to competition from private companies in 2000 was billed as a major financial system reform. It was clearly understood that ownership rules for insurance would be liberalised progressively apace with liberalisation in other parts of the financial services industry. Since then, a large number of insurance joint ventures between domestic and foreign partners have been formed. They have transformed the Indian insurance scene and provided a much better deal to consumers. There is now a wider choice of products providing protection against many more types of risk. Most importantly, the insurance industry has become a key player in underpinning the long-term foundations of Indias capital markets and financial system. It is a growing source of finance for infrastructure. Insurance has also been a significant source of foreign capital inflows directly and indirectly.

Factor of destabilisation
For insurance JVs that are yet some distance away from IPOs, neither foreign nor domestic investors have any incentive to allow FII inflows that will dilute extant ownership rights and oblige operating JVs to sell shares to disinterested third parties at below par. Therefore, little new investment is likely to come in. Existing JV agreements often have clauses that do not allow other foreign investors to take up equity and dilute the rights of extant shareholders who have sustained losses for a long period of time. If the idea is to increase capital inflows, this is therefore unlikely to have much impact, except for a few insurance JVs that are at the IPO stage. If the FII-only route becomes enshrined in the amended law, it would allow new foreign entrants to establish JVs and own 49 per cent of shares immediately using a combination of 26 per cent FDI and 23 per cent FII. In contrast, existing foreign promoters would be prevented from investing more in their own JVs if the amended Bill permitted an increase in the foreign shareholding percentage through FII only. So extant foreign promoters would be incentivised, again perversely, to abandon current ventures and start new

Getting sidetracked
The core issue of lifting the FDI cap to permit inflows of capital from foreign partners, thus allowing the insurance industry to strengthen its capital base and grow, has been sidetracked by a proposal to permit new investment to come in only through Foreign Institutional Investors (FII) rather than the FDI route. That is odd for an industry that requires a longer term investment horizon than FIIs have. Indias insurance industry needs around $12 billion in capital up to 2020. Life insurance penetration is only 4.4 per cent of the countrys Gross domestic product (GDP) in terms of total premium underwritten in a year. The sector needs huge and sustained infusion of funding to build viable businesses for the long term.

The market since 2000


Moreover, the entry of private competition has forced the former public monopoly insurers to improve their performance and efficiency. Yet, despite these benefits, the government has not yet after 13 years lived up to its promise of fostering the growth of the industry by increasing the Foreign direct investment (FDI) limit in insurance from 26 per cent to 49 per cent. That unjustifiable delay now compromises the financial standing of many insurance joint ventures (JV) and puts a question mark over the future of an industry that is vital to the health of the financial system.

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ones. That would destabilise the entire insurance industry. is run that of trust and the long-term promises to be upheld. This industry should not be seen merely in economic terms. The settlement of the death claim of Hemant Karkare, chief of the Mumbai Anti-Terrorist Squad, who was killed in Mumbais 26/11, presents a clear-cut example of Trust. Mumbais Dadar branch of the Life Insurance Corporation (LIC) had settled the death claim amount of Rs.25 lakh within five days whereas a private company (name withheld), where Karkare had coverage for a similar amount, had rejected the claim and, after a lapse of six months by stating that the deceased had wilfully risked his life, even after knowing that his life was in danger. Thats why I said the insurance business should not be seen in purely economic terms. In our country, insurance companies are mopping up peoples savings. During 2011-12, domestic savings were 32 per cent of GDP. Financial experts say that domestic savings, and not FDI, are crucial for any countrys economic development. In India, LIC has provided Rs.7,04,151 crore to the 11th Five-Year Plan (20072012) while the four general insurance companies and GIC of India have contributed about Rs. one lakh crore. Where will the government get these huge investments from if it tries to weaken the public sector insurance companies? The World Economic Forum Financial Development Report 2012 tells the success story of LIC. It shows that given the low level of income and low disposable income of most Indians, insurance penetration in India is much greater than in countries with a per capita income that is 10 times higher. It is remarkable that with a per capita GDP of $1,388.80, India has achieved a life insurance penetration of 3.61 per cent as against 3.56 per cent of the United States with a per capita GDP of $4,8386.77. It is also a matter of pride that the report places India at the top of global rankings in terms of Life Insurance Density (measured as a ratio of direct premium to per capita GDP of 2011). The LIC, the four general insurance companies in the public sector and GIC of India are doing an excellent job despite competition from private insurance companies. In 2011-12, LIC earned a premium of Rs.81,514.49 crore registering a market share of 71.36 per cent in premium income. It sold 3.57 crore new policies, to take an 80.9 per cent market share in the number of policies. Similarly, the four insurance companies have earned a premium income of Rs.30,532 crore and registered 58 per cent of market share. The financial crisis in the U.S. and Europe has seriously eroded confidence in the banking and insurance sectors. At the same time, our domestic private insurance partners hardly need capital to be infused by their foreign counterparts, as put forth by the votaries of FDI increase. Partners of private insurance companies in India like the Tatas and Reliance are on an acquisition spree, spending billions of dollars, both on the domestic and foreign fronts during the last five years. The others, like the State Bank of India and other public sector banks have capital reserves of their own. Some foreign partners have exited not due to a delay in the increase of FDI cap but because they are in search of greener pastures. The author has also put forth another interesting argument that shareholders and company boards be left free to determine whether additional investment should be through FDI or FII or by other means. The world saw the bubble burst in 2008 due to such flawed and mistaken judgements by company boards and shareholders, when they invested the earnings/savings of innocent policyholders into Collateralised debt obligations, or CDOs. India was saved from such a situation because of the domination of the public sector in the banking and insurance sectors. Even the Prime Minister and the Finance Minister have shared this view. Looking back, it is time to learn lessons from the global collapses of banks, insurance companies and other financial institutions like Lehman Brothers, etc. Foreign investment per se, does not bring any good with it, especially in fragile sectors like insurance. This sector is the pillar of any upcoming and growing economy. Courtesy-The Hindu

A compromise
From a practical perspective, the issue of new capital needed to strengthen the industry can be resolved by allowing the market to work and permitting an increase in the total foreign investment limit to 49 per cent, regardless of whether that increase is through FDI or FII. Such a compromise would not change the governments original stance, but would accommodate the desire to permit FII as well. The amended Insurance Bill should keep matters simple by lifting the total foreign investment limit to 49 per cent. Shareholders should be left to determine the best way to address a companys needs whether through FDI or FII. It should, therefore, also allow company boards to decide whether the investment should be in the form of entirely new capital or through a change in the ownership structure of existing capital. The amended Bill should leave it to the IRDA to approve such changes. If a domestic shareholder in a JV wants to stand diluted or sell his/her shares, why should the government wish to prevent his foreign partner from buying that stake and increase its shareholding up to a limit of 49 per cent? That is for the company rather than the government to decide. In the end, what the amended Insurance Bill needs to ensure is that India wins i.e. policyholders, employees, shareholders, companies, and even the government through an approach to increasing FDI in insurance that is transparent and flexible. It is time for the argument to end and for an amended Bill that is sufficiently foresighted and flexible to stand the test of time to be passed without delay. Courtesy-The Hindu Yes, insurance needs better cover but not with Foreign Capital The article by V.K. Shunglu in The Hindu , The risk business needs better cover is one-sided and conspicuously understates certain key aspects of insurance reforms undertaken in the country a decade ago. It misses the basic premise on which an insurance business

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A recipe for Continuing Stagflation
This was never going to be an easy budget to present. Finance Minister P. Chidambaram had to juggle many different considerations, but three must have dominated. First, the need to bring the economy out of its current spiral of stagflation, with investment and economic activity both decelerating even as inflation continues to rule very high. Second, the need to impress the global epistemic community consisting of rating agencies, representatives of international capital and domestic big business generally as well as other mainstream figures all of whom share the view that fiscal rectitude is always desirable and the only deficits that can be tolerated are privately generated ones. Third, the need to placate his own party and others in the Indian political establishment who are concerned at how the announcements he makes in this budget speech and related economic policies will affect the common people of the country. The last consideration is important because this is the last full budget before the next general election, which is due in a little over a year. Those analysts who have gathered some idea about Mr. Chidambarams own predilections will have known what to expect. The Finance Minister is a fiscal hawk who is much more likely to prefer fiscal contraction in most circumstances, even when economic growth is on a downward trend. He is also a champion of the interests of large private capital. While he is no doubt currently constrained by the political compulsions of a government soon to face elections, he has clearly sought to achieve the second objective, even if at the cost of generating more stagflation and making material conditions harder for much of the population. Not surprisingly, his speech had to obfuscate this unfortunate reality. In what will probably go down as one of the most boring, repetitive and scattered budget presentations in recent memory, Mr. Chidambaram did not work with smoke and mirrors so much as rely on the deadening effect of providing detailed minutiae of particular programmes and making various vague claims and proposals, often even without providing the fiscal content of such plans. rural development and social services (health and education) experienced sharp cuts in actual expenditure in comparison to the allocations made in the budget last year. But the proposed budget is slightly more cynical in its approach to fiscal consolidation. To begin with, there are fairly extravagant claims about future tax collections on the basis of very minor increases in some taxes (with even the most optimistic selfassessment suggesting additional resource mobilisation of only Rs.18,000 crore in total). Despite this, the FM has budgeted for a significant increase in tax collection of 19 per cent, even though nominal GDP is projected to increase by only 12.9 per cent. It is hard to understand such a buoyant prediction, especially when the current year already shows a significant shortfall of more than five per cent of actual tax collections over the budgeted amount. Meanwhile, while Plan outlays have been increased slightly over the low revised estimates of the current year, they show hardly any increase when compared to the budget estimates for the current year. And the worst sting in the tail is the proposed reduction/elimination of fuel subsidies: the total subsidy bill is to be brought down by more than Rs.26,000 crore almost entirely on account of reduced outlays on fuel subsidies. With global energy prices still ruling very high, this can only mean that the Central government is preparing to force Indian consumers to pay global prices for fuel, even though per capita incomes are only a small fraction of the global average. Since fuel is a universal intermediate, this is bound to affect all other prices, including those of essential goods and services like food, transport and so on. And so this is an aggressively inflationary move, which is more than surprising if the government is truly concerned about containing inflation and particularly food prices. As a result, Budget 2013-14 will deliver neither higher growth nor improved conditions of life instead it is likely to worsen the stagflationary tendencies in the economy. Given that poor employment conditions and food

Macroeconomic implications
In the event, his silences were actually the more important part of his speech. For what the Finance Minister did not actually outline were the macroeconomic implications of his chosen strategy of fiscal consolidation at all costs. The approach seems to be that showing some amount of fiscal consolidation is essential, that this can only be achieved through cutbacks in spending (regardless of how this translates into supply shortages or higher inflation in future) and that growth will miraculously return once private investors (both domestic and foreign) are persuaded that fiscal deficits will be kept in check. The positive role that public spending plays in providing essential infrastructure that is the basis for future growth, in improving the conditions of life and productivity of the people as a whole, in generating internal demand at a time when external demand is problematic, and in ensuring some stability in the prices of essential items of mass consumption all these have simply been ignored. Consider what has been achieved in the current fiscal year: containment of the fiscal deficit to an acceptable level of 5.2 per cent of GDP, essentially by sharp reductions in much-needed Plan spending. The revised estimates for the current fiscal year show that Plan spending was nearly 20 per cent below the budget estimates for 2012-13. This was effected by across the board cuts in all the major sectors, including those that directly affect the livelihood and well-being of the people. Some sectors suffered severe cuts, with unintended consequences that we may have yet to experience for example, actual plan spending on irrigation and flood control is estimated to be only one-third of the budget amount, while important sectors like industry and minerals, science and technology and communications also suffered deep cuts. Even agriculture,

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insecurity are rapidly emerging as the most significant political issues, this seems like political hara-kiri. Once this reality sinks in, it is likely that even people in Mr. Chidambarams own party are likely to become more restive about this strategy. Courtesy-The Hindu With poor growth restricting the resources available for an electorally rewarding boost to the social sector, the emphasis would have to be on more sharply focused social sector expenditure. And the broad contours that this approach could take are evident in the budget documents. At the heart of this approach is the Direct Benefit Transfer (DBT) or the direct cash transfers to beneficiaries identified using the Unique Identification Authority of India (UIDAI). In a year when MGNREGS has been frozen at the level of the previous budget, the allocation for UIDAI has been raised by 40 per cent over the current years Budget Estimates and 65 per cent over the years Revised Estimates, to reach Rs.1,819 crore. There does seem to be some recognition, though, of the need to hasten slowly on this front. The budget figures do not suggest any move to expand cash transfers rapidly into new areas. The cash transfers are supposed to reduce subsidies by preventing leakages. But the budget documents do not suggest any reduction in the major subsidies. On the contrary, while the fertilizer subsidy is budgeted to be kept at around the Revised Estimate for the current year, the budget estimates the food subsidy to go up to Rs.90,000 crore, up from Rs.85,000 crore in the Revised Estimates for the current year and Rs.75,000 crore in the Budget presented last year. Thus when Mr. Chidambaram assured the House in his speech that the DBT scheme will be rolled out throughout the country during the term of the UPA Government, he was apparently referring to the spread of only the schemes that are currently covered in the various pilot projects of the DBT or a few other similar ones. surprise that the budget has substantially increased allocations to schemes that allow for direct cash transfers to women and young Indians. The Indira Gandhi Matritva Sahyog Yojana (IGMSY) that envisages providing cash assistance directly to pregnant and lactating women has seen its Budget allocation for the coming year going up to almost five times the Revised Estimate for the current year. Similarly, the allocation for pre-matric scholarships for Other Backward Classes has been trebled from the Budget and Revised estimates for the current year. The allocation for postmatric scholarships for the same category has also gone up by 44 per cent to reach Rs.810 crore.

Social sector pays the price


If there was any expectation that the combination of an economic crisis and an election year would alter the governments priorities, the Finance Minister was quick to dismiss it. Early in his Budget speech, he made it clear that we must unhesitatingly embrace growth as the highest goal without growth there will be neither development nor inclusiveness. He went on to put the numbers to back this contention, with the fiscal deficit being kept closer to target levels than many thought would be possible. This commitment to growth at all costs demanded a price in terms of providing less than what is needed for the social sector. And the way Mr. Chidambaram has paid this price suggests the Congress party will be going into an election year without the resources that the government had in 2009.

Food Bill
This focus on cash transfer related social sector spending does not rule out expenditure on other more traditional electorally rewarding social sector activities. The offer of food at low prices has been a staple of Indian politics in several States. The proposed Food Security Bill is designed to take this benefit to the national stage. By making an allocation for the incremental costs of the food subsidy after the Food Security Bill becomes a law the Finance Minister has sought to confirm his partys commitment to this cause. But the lessthan-adequate allocation of Rs.10,000 crore suggests that Mr. Chidambaram only expects the Food Security mechanism to come into play for a relatively small part of the year; perhaps just long enough for it to have a political benefit. With the size of the allocation for the implementation of the Food Security Bill being small enough to create doubts about when, and even if, the Bill will come into effect, the main social sector take-away from the Budget would remain its clear focus on the cash transfer related schemes. The slow growth rate and the governments prioritisation of growth over welfare may have constrained the resources for the social sector. But in the distribution of those limited resources, the Finance Minister has made it clear that the electorally rewarding schemes come first. Courtesy-The Hindu

Frozen on MGNREGS
The first step in this strategy has been to gloss over those parts of the social sector where there is no real increase in allocations. The most striking example is that of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), which acted as the main vehicle of the Congresss electoral fortunes the last time round. Mr. Chidambaram has kept the allocation for this activity frozen at the level set in the last Budget. He has spoken of this as an increase by comparing it to the Revised Estimates for the current year rather than the Budget Estimates. But the fact that the revised estimates for MGNREGS was 11 per cent less than the budgeted figure only suggests that the decision not to make this scheme the leading light of the next election campaign has already been taken.

Focus on women, children


Having decided to focus on a relatively narrow base of schemes that are compatible with cash transfers the budget also reveals a clear focus on women and children. In listing the three faces that he saw as representing the country the Finance Minister began with women and youth before going on to the DBT related poor. It is then no

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Budget 2013-14: No Pain No Gain

Budget 2013-14: No Pain No Gain


Union Finance Minister P Chidambaram on 28 February 2013 tabled the Union budget in the Parliament for the financial year 2013-14. P. Chidambaram was presenting his 8th Union Budget. The union Budget of 2013-14 emphasized fast track economic growth with due importance on infrastructure development, skill development, employment generation and funding for social schemes. Three factors of Economic Concern discussed in the Union Budget 2013-14 were high fiscal deficit, slow growth and high inflation. Expressing his confidence on India returning back to the higher growth path Chidambaram advocated for support from all quarters to navigate through economic crisis. The Union Budget of year 2013-14 stressed on achieving a growth of 8 per cent on an immediate effect. The finance minister expressed his worry on Current Account deficit (CAD). CAD which required 75 billion Dollars to finance was high because of high import in Oil, coal and gold imports. The Budget, which came against the backdrop of a few key major reform announcements by the government, some tough decisions on fuel subsidy and some plain speak by the FM himself on how the growth momentum needed to be brought back, did not have that awe factor which the markets and Corporate India had come to expect of Chidambaram. To be fair to the FM, however, he did attempt to address the key concerns in his speech, whether it was the need to create employment or bring in greater foreign investment or spur investment activity. But the measures announced in the Budget were clearly not Big Bang. The best thing that can be said about the Budget, of course, is that it does nothing to unsettle the markets or corporate India despite the 10 percent surcharge on the super rich (those with taxable incomes above Rs 1 crore) or even the higher surcharge on the dividend distribution tax. He plays with a pretty straight bat and delivers on his broad promise of 137 keeping the fiscal deficit under check at 5.2 percent of GDP for FY13 and targets 4.8 percent for FY14. He has cut expenditure to Rs 4.29 lakh crore in FY13 and talks of redeeming the promise of bringing down the fisc to 3 percent by 2016-17. Surcharges find their way back for some super rich individuals and for profit making entities. While the Finance Minister has emphasised that this surcharge has been introduced for only one year to bridge revenue gaps, surcharges and cesses tend to have a persistency beyond their intended period of operation. Share buy backs by unlisted companies will be subject to a distribution tax. The proposed tax is not conditioned on the existence of accumulated profits nor capped to the amount of accumulated profits. Royalties and fees for technical service fees will be taxed at 25 percent, up from 10 percent presently, subject to tax treaty relief. Tax treaty relief itself will be conditioned on proof of tax residence (which was always the

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Budget 2013-14: No Pain No Gain


case) as well as beneficial ownership (a condition that has been implicitly introduced); there is some apprehension that there may be a hidden sting in what appears to be an innocuous clarification of a position that all tax treaties provide for anyway. India Inc. was not asking for concessions. It had two basic demands. First, there was the expectation of better macroeconomic management. Equally important was the hope that the projects worth Rs. 700,000 crore that have been stalled owing to problems with government clearances will finally start to materialise. This doesnt involve announcements in the Budget though a mention of the problem may have helped; it calls for political will and better governance. Unlike the fiscal deficit or even the revenue deficit, the deficit of governance cant be quantified. Yet, the ability of Mr Chidambaram to mount a successful salvage operation and inject meaning into the Prime Ministers post-Budget hope that India will soon be on an eight per cent growth trajectory depends almost entirely on improving the quality of governance. Unless, of course, the UPA-2 believes that the next election is as good as lost and that the next best thing is to make life hell for whoever follows. The Highlights of the Union Budget 2013-14 are as Follows: Total budget expenditure was Estimated at16.65 trillion rupees in 2013-14 Indias 2013-14 plan expenditure seen at 5.55 trillion rupees To allocate 801.94 billion rupees to rural development in 2013-14 Plan to allocate 270.49 billion rupees for agriculture in 2013-14 RBI expected GDP growth of 5.5% for Financial Year 201314 80194 crore rupees allocation have been made for rural development schemes including MGNAREGA, PMGSY, INDIRA AWAS YOYANA. The Jawaharlal Nehru National Urban Renewal Mission will to continue during the 12th plan period. 3511 crore allocation to minorities which is 12 per cent hike over budget estimates, 110 crore rupees allotted for welfare of disabled. 65867 crore rupees have been allocated to the Ministry of Human resources development which is 17 per cent hike over the revised estimates. 500 Crore rupees have been earmarked for high tech crop diversification program. Allocations also include 13215 crore rupees for mid day meal programme. 27,049 crore rupees for agricultural ministry and additional 200 crore to women and child Welfare Ministry. 14000 crore Rupees will be provided for PSB recapitalization. He will constitute a panel on transaction costs, and financial policies. Education gets 65867 crore rupees, an increase of 17 percent over RE for 2012-13. ICDS gets 17700 crore rupees. This is 11.7 percent more than the current year. Drinking water and sanitation will receive 15260 crore rupees. 1,400 crore was provided for setting up water purification plants to cover arsenic and fluoride affected rural areas. 138 Health and Family Welfare Ministry had been allotted 37330 crore rupees. Small Industries Development Bank of India (SIDBI) Refinance Fund doubled to an amount of 10000 crore rupees. Plans of Government are to encourage PPP projects along with Coal India. P Chidambaram announced setting up of a new allwomens bank. 1000 crore Rupees initial capital for a new womens bank which will be another public sector bank. The Bank will be set up by October 2013. An amount of additional 10000 crore rupees allotted for Food Security Bill in FY14. 3000 km of road projects will be awarded in first six months of FY14. Finance ministry approved 50000 crore Rupees tax-free bonds in FY14. The government expects to raise 25000 crore rupees via taxfree bonds in FY13. Refinancing capacity of SIDBI raised to Rs. 10,000 crore. Technol ogy Up gradation Fund Scheme (TUFS) for textile to continue in 12th Plan with an investment target of 151000 crore Rupees. 14000 crore Rupees will be provided to public sector banks for capital infusion in 2013-14. A grant of 100 crore each has been made to 4 institutions of excellence including Aligarh Muslim University, Banaras Hindu University, Tata Institute of Social Sciences, Guwahati and I n d i an National Trust for Art and Cultural Heritage (INTACH). New taxes to yield 18000 crore Rupees.

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Budget 2013-14: No Pain No Gain


A surcharge of 10 percent on persons (other than companies) whose taxable income exceeds Rs.1 crore have been levied. Tobacco products, SUVs and Mobile Phones to cost more. Relief of Rs. 2000 for the tax payers in the first bracket of 2 to 5 lakhs. V ol untar y C o mp l i a nce E nc ourag emen t Sch eme launched for recovering service tax dues. 9000 crore Rupees earmarked as the first installment of balance of CST compensations to different States/UTs. New Pl ans and Schemes rolled out in the Union Budget 2013-14: Nirbhaya Fund: The Finance Minister announced the setting up of a fund called the Nirbhaya Fund - with the Government contributing 1000 crore Rupees for safety and security of the women in India. The Finance Minister announced that various initiatives were underway as well as a lot more were undertaken by Government and NGOs for empowering women and providing them safety and security. 1000 crore Rupees scheme for training youth: A 1000 crore Rupees scheme for training youth for boosting up their employability and productivity was rolled out in the budget. The National Skill Development Corporation would be required to set up curriculum and standards for training different skills. The trained youth who will pass the test by the end of the training would get monetary reward of 10000 Rupees on an average. This initiative would motivate 10 lakh youth. Proposal to set up Indias first Womens Bank as a public sector bank with 1000 crore Rupees as initial capital. Direct Benefit Transfer (DBT) Scheme to be rolled out throughout the country during the term of UPA Government. This scheme will help the poor. Under the scheme, a bank account will be opened for each beneficiary; and the bank account will be seeded with Aadhaar in due course. 10000 crore Rupees earmarked for National Food Secur i ty towards the incremental cost. Dri nki n g w a ter and sanitation will receive 15260 crore Rupees. 1400 crore Rupees is being provided for setting up water purification plants to cover arsenic and fluoride affected rural areas. Proposal to launch Inflation Indexed Bonds or Inflation Indexed National Security Certificates to protect savings from inflation. V ol untar y C o mp l i a nce E nc ourag emen t Sch eme launched for recovering service tax dues. 9000 crore Rupees earmarked as the first installment of b al ance of C ST compensations to different States/UTs. The I nteres t Sub venti on Scheme: This scheme for short-term crop loans is proposed to be continued for loans by public sector banks, RRBs and Cooperative banks, and expanded to private scheduled commercial banks. Under the scheme, a farmer who repays the loan on time is able to get credit at 4 cent per year. 139 National Livestock Mission: 307 crore Rupees have been provided for setting up of the National Livestock Mission. This will attract investment and enhance livestock productivity. A sub-mission of this Mission seeks to increase the availability of feed and fodder. Assistance of the World Bank and Asian Development Bank will be sought to build roads in the North Eastern States and con nect them to Myanmar. The body of Rur al Infrastructure Development Funds (RIDF) is proposed to be raised to 20000 crore Rupees. Plans for s e ven n ew ci ti es were finalized for industrial corridors and work on two new smart industrial cities at Dholera (Gujarat) and Shendra Bidkin (Maharashtra) will start during 2013-14. Tw o new p o rts will be established in Sagar (West Bengal) and in Andhra Pradesh. A p o w er tra ns m i s s i on system will be constructed from Srinagar to Leh and for this 226 crore Rupees were provided in 2013-14. Apparel Parks are proposed to be set up within the Integrated Textile Parks, to house apparel manufacturing units. Sta nd i n g C ou nci l of Experts: Standing Council of Experts is proposed to be constituted in the Ministry of Finance to analyse the international competitiveness of the Indian financial sector. A number of p ro p os a l s rel ati n g to cap i tal market have been finalized in

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Budget 2013-14: No Pain No Gain


consultation with SEBI. These include simplification of procedure and uniforms norms for foreign portfolio investors, clarity relating to FDI investment, allowing FIIs to participate in new areas, etc. Relief for taxpayers in the bracket of 2 lakh Rupees to 5 lakh Rupees tax credit of 2000 Rupees to every person with total income up to 5 lakh Rupees Surcharge of 10 percent on persons with taxable income exceeding 1 crore rupees Additional deduction of interest up to 1 lakh rupees on home loan for first home buyerSecurities Transaction Tax (STT) reducedThe Union Budget 2013-14 proposed reducing rates of Securities Transaction Tax (STT) in respect of certain transactions. P. Chidambaram proposed the following reductions in the rates of STT: Equity futures: From 0.017 to 0.01 per cent MF/ETF redemptions at fund counters: From 0.25 to 0.001 percent MF/ETF purchase/sale on exchanges: From 0.1 to 0.001 percent, only on the seller Commodities Transaction Tax (CTT) introduced in a limited way; agricultural commodities will be exempted Securitisation trust to be exempted from income tax. As per the article 112 of Indian Constitution (1) The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year, in this Part referred to as the annual financial statement. (2) The estimates of expenditure embodied in the annual financial statement shall show separately(a) The sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of India; and (b) The sums required to meet other expenditure proposed to be made from the Consolidated Fund of India, and shall distinguish expenditure on revenue account from other expenditure. On the other hand first signal of political pressure getting the better of good economic sense is the decision to cut petrol prices but not raise diesel rates. Under the January decision, the oil companies were to raise diesel prices by 45-50 paise a month till they are able to cover their losses fully. But over the weekend, while petrol prices were cut by Rs 2 a litre, diesel wasnt raised. The February hike was missed. One newspaper reported that the oil companies have been advised to wait till the parliament session ends to raise diesel prices. Once a policy decision is taken, why should the ministry keep intervening on when diesel prices should be raised or dropped? In fact, raising diesel prices on the day petrol prices were being cut would 140 have been the best way to neutralise their political impact. But the UPA lost the opportunity. Now, even if diesel prices are raised next week, it will only show that government is afraid to implement its own reform. The second signal is the food subsidy which the budget placed at Rs 90,000 crore for 2013-14, including the Food Security Bill. The Congress party is pushing for a Bill that does not discriminate between the level of food subsidy being given to above poverty line (APL) recipients and below poverty line (BPL) families. The finance ministry has now discovered that the subsidy bill will bloat 38 percent, from Rs 90,000 crore in the budget to Rs 1,24,747 crore, reports The Indian Express. If Chidambaram loses this fight with the party, it will be a clear signal that he is abandoning fiscal consolidation with half-measures. The third signal is coming from Jairam Rameshs Rural Development Ministry. It has proposed all kinds of changes which will have a negative effect on reforms. After first proposing a Land Acquisition Bill that will raise land prices, it has proposed a National Right to Homestead Bill to provide houses to the rural poor. Every homeless rural family will thus be entitled to 10 cents (one-hundredth of an acre) of land at a time when land prices will rise in general. Who is going to pay for this munificence? To compound matters, Jairam Ramesh is also concocting a National Land Reform Policy that wants to limit land holdings to a maximum of 15 acres. Now, Indias problem is the atomisation of land holdings due to family separations, and not excess land holdings (though this may exist in benami forms). Development requires a strategic shift which allows more rural landowners to opt out of agriculture and seek nonagricultural occupations or

Budget in Indian Constitution

MAY 2013

Budget in Indian Constitution is an annual financial statement. It is included in part V, Chapter 2 of PARLIAMENT Procedure in Financial Matters of Constitution of India.

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Budget 2013-14: No Pain No Gain


productive jobs in cities. On the other hand, the productivity of land needs to be improved by greater mechanisation and providing more avenues for contract farming and this will be helped by increasing the land ceiling, and not reducing it. Fourth, a significant chunk of Chidambarams revenues this year are coming from forcing public sector financial entities to buy disinvested equity. The governments sale of Rashtriya Chemicals and Fertilisers was a nearflop, with the LIC having to pick up a big chunk of the offering. The Nalco sale had to be curtailed due to the paucity of investor interest. The point is this: raising revenues from disinvestment at the best of times is not the same as genuine fiscal consolidation. Raising it by transferring money from LIC to itself is an accounting fraud. And selling well below fair value in a fire sale and simply not right. On the other hand, if you add up the measures, theres probably enough to keep the political constituency happy with several steps aimed at the farm sector and the rural population. The interest subvention scheme for short-term crop loans will continue, and there are a slew of steps on education and health, with Rs 37,330 crore allocated to the health ministry. Almost Rs 66,000 crore has been allocated to the HRD ministry, and Rs 80,000 crore for rural development. Theres even a whole new bank for women. Some concrete steps have been announced on the infrastructure front. Infrastructure debt funds will be encouraged, there will be a regulatory authority for the road sector and there will be tax-free infrastructure bonds to the tune of Rs 50,000 crore. On the investment side, an important move which could be good news for smaller and medium companies is the investment allowance of 15 percent on companies investing over Rs 100 crore in plant and machinery between 1 April 2013 and 31 March 2015. The Budget also aims to bring in a greater proportion of household sector savings into financial instruments and hence proposes to liberalise the Rajiv Gandhi Equity Savings Scheme, introduce inflationlinked instruments and give additional deduction of interest upto Rs 1 lakh for a person taking the first home loan of upto Rs 25 lakh, during 2013-14. Expectations have a way of getting ahead of themselves, but with plunging growth rates, declining savings and investment rates, stalled projects and spiralling costs, a battered economy and a bruised psyche pinned much hope on Budget 2013. Expectations were elevated also on account of a purposeful approach that the Government appeared to demonstrate since September 2012. Budget 2013 did not quite deliver to these expectations. Government actions and tax proposals contained in Budget 2012 combined to heighten concerns on the approach of Indian Revenue authorities, the ambiguity of our tax laws and their predictability and our ill equipped dispute resolution processes. Recognising the damage that this was causing, the Government established expert committees to review the relevant provisions and to recommend actions that the Government should consider. After an extensive consultation process, the Shome committee submitted its final report in September 2012. Given the expressed concern and the determination that the Government demonstrated to alleviate it, it was not unreasonable to expect that Budget 2013 would address all these 141 issues comprehensively. Yet, Budget 2013 is silent on a number of these matters, in particular the taxability of indirect transfers such as the one concerning Vodafone. Meanwhile, an overhang of uncertainty persists, which appears to be at conflict with the Finance Ministers stated themes in relation to his tax proposals of clarity in tax laws and fair dispute resolution mechanism. At the same time, the approach of the Revenue authorities on the ground does not appear to accord with the objective of a non adversarial tax administration. On the controversial GAAR provisions, the indications were that the Shome committee recommendations would be substantially adopted. However, the revised GAAR provisions per Budget 2013 do not consider a number of salutary recommen-dations contained in the Shome committee report, and unless these will figure in further guidance that is intended to be released at a later date, the pain that was apprehended when these provisions were initially introduced will have merely been deferred to FY 2015-16. Given the far reaching implications that these provisions could have, tax governance best practices would suggest that the Government should explain the recommendations that it has accepted and the ones that it has chosen not to act upon along with reasoned explanations, something that would have served to provide a level of reassurance that the Finance Minister seeks to provide but does not appear to have delivered upon. Whatever the shortcomings, this Budget speech will get high marks for candour. The Finance Minister makes it clear that food inflation is the real worry and he would take all steps to ease the supply-side constraints to meet the

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Budget 2013-14: No Pain No Gain


growing demand for food items. The FM also made no bones about the fact that getting in foreign investment is a priority at this point, and India cannot choose between welcoming and spurning foreign investment. The Budget does focus on a few areas: an attempt at employment generation, some moves to please the capital markets, some steps which will make the small and medium enterprises and those who fund them happy. Equally important, he does not tinker with taxes much and keeps the base rates unchanged. S. K. Singh

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Budget 2013-14: No Pain No Gain

Railway Budget 2013-14: On Recovery Path


Union Railway Minister Pawan Kumar Bansal presented the Union Railway Budget for 2013-14 in Lok Sabha on 26 February 2013. Except for the fact that it was after 17 long years that a Congress minister got to present the Railway budget, there was nothing particularly unique about Pawan Kumar Bansals maiden essay. Having raised fares a little over a month ago, he was able to spare passengers this time, but he has put in place a dynamic tariff mechanism for freight to take care of future increases in the price of fuel. This is likely to result in a 5 per cent rise in freight rates from April 1, with the promise of a half-yearly fuel price adjustment system to provide for the regular hike in diesel prices announced earlier by the government. The incremental loading of 40 million tonnes projected for 201314 vis--vis the BE of 2012-13 is far below the projections arising out of the Vision 2020 document of nearly 100 million tonnes. This is an indication of how far the Railways have fallen behind their growth plans projected hardly three years ago. Food for thought at the highest level whether the Railways should lead or lag behind the overall economys growth rate. In this context, the Minsters announcement that contracts covering 1500 km of the Dedicated Freight Corridors on the Eastern and Western sector will be awarded during 2013-14 is welcome news as the completion and commissioning of these two corridors is essential before the effects of the next Pay Commission deal a fatal blow to Railway finances around 2017-18. The Ministers announcement for Fuel Adjustment Component (FAC) linked revision of freight tariff, a proposal mooted by his predecessor, with effect from April 1, 2013 is welcome. His reluctance to bite the FAC bullet in the case of passenger fares is understandable, considering that a revision has been done recently. But hopefully this will not once again lead to a long hiatus of passenger fare revision citing various reasons. It is necessary to institutionalise the revision of freight 143 tariff and fares through the proposed Rail Tariff Regulatory Authority. However, it is doubtful whether a final decision in this regard will be taken during the balance tenure of this government. The January 22 passenger fare revision was meant to fetch the Indian Railways Rs. 6,600 crore in additional revenue in a full year; but the recent increase in diesel prices could cost the Railways Rs. 3,300 crore in its fuel bill. The logic of dynamic tariffs, even if only for freight, can therefore hardly be faulted. On the passenger fare front, though the basic fare has not increased, the minister has raised the reservation, tatkal , supplementary, cancellation and super fast train charges marginally. With the focus on making the Railways financially sustainable, Mr. Bansal is hoping to end 2013-14 with a balance of Rs. 12,506 crore in Railway funds. It is creditable that an operating ratio of 88.8 per cent is being achieved during the current year 2012-13, even after fully repaying the loan of Rs 3,000 crore

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Railway Budget 2013-14: On Recovery Path


along with interest that was taken from the Ministry of Finance, and after setting aside Rs. 9500 crore for Depreciation Reserve Fund (DRF). Against this, the budget estimate for 2013-14 projects an Operating Ratio (OR) of 87.8 per cent with a DRF appropriation of only Rs.7500 crore. This once again highlights the need for a more reliable index of financial performance rather than the present OR, which can be tweaked to suit by appropriately adjusting the DRF allocation. It is hoped that the proposed revamping of the accounting system will look into this aspect. Railway Budget 2013-14 at a Glance: The Thrust of this year Railway Budget was on Safety, Consolidation, Passenger Amenities and Fiscal Discipline. Deployment of new generation energy efficient electric locomotives and EMUs. Five Percent Increase in freight to push Inflation. Elimination of 10797 level crossings during the 12th Plan and no addition of new LCs to the IR system henceforth. Introduction of Train Protection Warning System on Automatic Signalling Systems. Rigorous trials of the indigenously developed Train Collision Avoidance System. Four companies of women RPF personnel set up and another 8 to be set up to strengthen the security of rail passengers, especially women passengers Recruitment to RPF with 10% vacancies reserved for women. No increase in passenger fares 500-km new lines to be completed in 2013-14 Diesel price hike added 3300 crore rupees to fuel bill of Railways Railways hopes to end 201314 with a balance of 12506 crore rupees Concessional fare for sportspersons Five fellowships to be announced to motivate students Seek to fill 1.52 lakh vacancies in railways this year. 47000 vacancies for weaker sections and physically challenged to be filled up soon Target of 4000 crore rupees for railway production units in 2014 Induction of e-ticketing through mobile phones, SMS alerts to passengers Free wi-fi facilities in select trains. 60 more adarsh stations The number of passenger trains has increased from 8000 in 2001 to over 12000 in 2012 - yet losses continue to mount. It is estimated to be Rs. 24000 crore in 2012-13 Proposal for setting up of Railway Tariff Regulatory Authority formulated and at inter-ministerial consultation stage. Supplementary charges for super fast trains, reservation fee, clerkage charge, cancellation charge and tatkal charge marginally increased. Complimentary card passes to Olympic medalist and Dronacharya Awardees for Rajdhani Shatabdi Trains. Announcement Facility and Electronic display boards in train. Railway Budget 2013-14: New Plans and Schemes Union Railway Minister Pawan Kumar Bansal presented the Union 144 Railway Budget for 2013-14 in Lok Sabha on 26 February 2013. Some of the New Plans and Schemes proposed in Railway Budget 201314 are as under: Proposal for setting up of Railway Tariff Regulatory Authority formulated and at inter-ministerial consultation stage. To provide a memorable experience to the visitors especially the children, a revamp plan will be rolled out for National Railway Museum in 2013-14. To create a corpus for meeting IRs committed liabilities for debt servicing of JICA and World Bank loans taken for the DFC Project, it is proposed to set up a new Debt Service Fund. In order to meet the growing demand, 72 additional services in Mumbai and 18 in Kolkata are being introduced. Besides, rake length is being increased from 9 cars to 12 cars for 80 services in Kolkata and 30 services in Chennai. A target to complete 500 km of new lines has been set for 2013-14. There is target to convert 450 km of MG/NG lines to broad gauge during 2013-14. Announcement of resumption of work on new line projects of Chickmagalur - Sakleshpur and Bengaluru Satyamangalam, which were pending for want of resources and other mandatory clearances, after State Government of Karnataka agreed to give land free of cost and bear 50% of the cost. Railway budget 2013-14: New Initiatives Union Railway Minister Pawan Kumar Bansal presented the Union

MAY 2013

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Railway Budget 2013-14: On Recovery Path


Railway Budget for 2013-14 in Lok Sabha on 26 February 2013. Some of the major Initiative proposed in Railway Budget 2013-14 are as under: Anubhuti Indian Railways will introduce one coach in select trains which will provide an excellent ambience and latest modern facilities and services responding to the Increased Popularity of Shatabdi and Rajdhani Trains. Such coaches will be named Anubhuti with commensurate fare structures. Amenities for Differently-abled Passengers To facilitate the boarding of trains and exit from the stations for the differentlyabled and the elderly, there is a proposed provision of 179 escalators and 400 lifts at A- 1 and other major stations, affixing Braille stickers indicating the layout of coaches including toilets, provision of wheel chairs and battery operated vehicles at more stations and making coaches wheel-chair friendly. In order to provide an employment avenue to the disabled people, there is proposal to reserve a specified number of Jan Sadharan Ticket Booking Sewak (JTBS) for them, keeping in view the fact that the PCOs at stations have become largely redundant after the mobile revolution in India. IT Initiatives for Passenger Benefits There will be now Use of Aadhar scheme by Indian Railways. The database generated, can be extensively and efficiently used by railways not only to render more user friendly services such as booking of tickets, validation of genuine passengers with GPS enabled handheld gadgets in trains, but also to provide a better interface with its employees in regard to their salaries, pension, allowances etc. Some of the other measures proposed under IT Initiative of Railways are: Extending availability of the facility of internet ticketing from 0030 hours to 2330 hours Making e-ticketing possible through mobile phones as a follow up to overwhelming response to IR website and Integrated Train Enquiry Service under 139, a project of SMS Alerts to passengers providing updates on reservation status is being rolled out shortly. Covering larger number of trains under Real Time Information System (RTIS), whereby rail-users will be able to access information through nominated websites and mobile phones. Some measures taken to curb malpractices in reserved tickets including Tatkal are: Mandatory carrying of ID cards by passengers with reserved tickets Rigorous drive leading to prosecution of more than 1800 touts in the current year In case of tatkal, reduction of advance reservation period to one day, issue of tickets only on production of ID proof at PRS counters, issue of only one tatkal ticket per train per day to web service agents; Denial of access to agents to internet booking between 0800 to 1000 hrs. 145 Other Major Initiatives A Centralised Catering Services Monitoring Cell with a Toll free number 1800 111 321 has started functioning w.e.f. 18th January, 2013 to facilitate redressal of complaints/suggestions on real-time basis. For effective quality control, arrangements are being tied up with food testing laboratories in addition to third party audit. State-of theart base kitchens are proposed to be set up in railway premises for better monitoring of quality of meals. ISO certification will now be insisted upon for all basekitchens. Green Energy Initiatives Some of the new steps that have been taken or are proposed to be taken include: Setting up of Railway Energy Management Company (REMC) to harness potential of solar and wind energy Setting up of 75 MW windmill plants and energizing 1000 level crossings with solar power Deployment of new generation energy efficient electric locomotives and electrical multiple units (EMUs) saving about 60 crore units in 2011-12. Railways have also won the National Energy Conservation Award Encourage more usage of agro-based and recycled paper and ban use of plastic in catering. The focus of the plan seems to be on doubling of tracks, raising capacity, improving safety and significantly enhancing passenger amenities on trains and at stations. Internet ticket booking hours have

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Railway Budget 2013-14: On Recovery Path


been extended to allow customers to make reservations 23 hours a day. Like his predecessors, Mr. Bansal could not resist the temptation of announcing a string of new manufacturing units, 67 new express and 27 new passenger trains, in addition to a host of new lines and surveys. Of course, many if not most of these have gone to select constituencies important to the Congress party, and to electorally important States such as Uttar Pradesh, Haryana, Karnataka, and Andhra Pradesh. With general elections due in 2014, Mr. Bansal has used the budgetary means at his disposal to signal the onset of campaign season. Typically, the budget has skirted the prickly issue of structural reforms. There is no mention in the budget of even the proposal in the last budget to expand the Board to include two members to look after PPP /Marketing and safety/research. The proposal has perhaps been shelved. Overall, the budget conveys an impression of an exercise to keep the system going very much as it has done in the past, at a modest growth rate. Whether such a rate of growth of this key infrastructure sector will be sufficient to sustain the projected growth rates of the economy as a whole remains to be seen. Gyanesh Pandey

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Railway Budget 2013-14: On Recovery Path


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