Current Affairs Related Writeups

--------------------------------------------------------------------------Contents
1. International Relations
2. Science and technology
3. economics
4. Admin-all the polity, Admin, Development related items
--------------------------------------------------------------------------International relations
Bali Negotiations
In Bali, Ministers put the world back into the WTO

World Trade Organisation (WTO) Ministers in Bali finally adopted the historic fivedraft decision declaration and the 10-document full Bali Package that addresses the
Doha Development Agenda.
Declaration takes care of Indias concerns on food security and trade facilitation
What Doha Development Agenda?
The Doha Development Round or Doha Development Agenda (DDA) is the current
trade-negotiation round of the World Trade Organization (WTO) which commenced in
November 2001.
Its objective is to lower trade barriers around the world, which will help facilitate the
increase of global trade. As of 2008, talks have stalled over a divide on major issues, such as
agriculture, industrial tariffs and non-tariff barriers, services, and trade remedies.
Its a happy coincidence that the Doha Round, the only development agenda, has been
revived and re-energised in Bali and India could play a major role
it will benefit Indias exports and shift the focus away from preferential trade
arrangements.(PTA-A trade pact between countries that reduces tariffs for certain
products to the countries who sign the agreement- Mrunals article it's given in economy
section)
Bali outcome showed that the WTO could still deliver and the Doha development round
could move forward.

During the Bali negotiations, Indian industry had backed the Centre, and the
Confederation of Indian Industry termed the pact on food security critical to the
success of the Ministerial.
The Associated Chambers of Commerce and Industry felt the agreement on food
security would ensure a fair deal to vulnerable sections in developing countries.
The Bali agreement will benefit exporters, said the Engineering Export Promotion
Council.
Farmers Voice:
A farmers organisation, however, said the only possible gain was the peace clause.
All India Kisan Sabha apprehended a freeze on expansion of food security or price
support to farmers in developing countries and exclusion of pulses, cooking oil and
crops other than those described as traditional staples by the WTO.
Support subsidies for poor farmers across all developing countries get safeguards against
WTO rules after the Bali Ministerial decision.

Bilateral Investment Promotion and Protection Agreement (BIPPA) Signed Between

India and Government of UAE to Boost Investment Flows Between the two Countries

A Bilateral Investment Promotion and Protection Agreement (BIPPA) between the

Government of India and the Government of UAE was formally signed. The Agreement
was signed by Shri Namo Narain Meena, Minister of State (E&FS), on behalf of
Government of India and H.E. Mr. Obaid Humaid Al Tayer, Minister of State for
Financial Affairs of UAE on behalf of Government of UAE.
The text of the Agreement, which seeks to promote and protect investments from either
country in the territory of the other country with the ultimate objective of increasing
bilateral investment flow
It is hoped that the Agreement would serve as a catalyst in boosting investment flows
between the two countries.
The trade agreement reached in Bali has provided much-needed oxygen to a moribund
World Trade Organisation.
International Chamber of Commerce has estimated that the Bali deal will cut trade costs
by 10-15 per cent even as it adds an estimated $1 trillion to global trade.
mainly emerging economies such as India, Brazil, South Africa and Russia, realised the
WTO was critical to their interests.
The unyielding stance of India on protecting its farm subsidies which are set to increase
following the enactment of the Food Security Act did cause some disquiet amongst the
member-countries and at one stage seemed set to hold up an eventual agreement.

Air Defence Identification Zone (ADIZ) in the East China Sea

What is an ADIZ?

Its a section of international airspace over which a country declares its right to identify
aircraft, ostensibly to protect itself from foreign threat. Its a product of customary
international law but its not jurisdictional.

What happens once an ADIZ is established?

radar to detect
Using radio, it would query those it was concerned about.
If the country was still not sure, it would launch an aircraft to intercept and observe.
The country would not have the authority to do anything else unless it thought the
aircraft was a direct threat to the country.
The country would not have the authority to do anything else unless it thought the
aircraft was a direct threat to the country.

Whats the problem with China declaring an ADIZ?

Well, the problem is that Chinas ADIZ overlaps with the ADIZ that was created by the
U.S. after World War-II and transferred to Japan in 1969.
first time an overlapping ADIZ.
China thinks the ADIZ will strengthen its claim over the Diaoyu/Senkaku islands.
increased risk of either a deliberate or accidental incident involving military aircraft.
The Chinese call the islands Diaoyudao. The Japanese call them Senkaku.
The Diaoyudao islands were considered lost during this period when Japan formally
annexed them in 1895.

So why did China suddenly declare the ADIZ? Is it just about controlling
Diaoyu/Senkaku?

Chinese foreign policy decision-making is highly opaque, so all anyone can do is to

speculate and there have been a number of speculative theories.
What does this mean for India?

China is more aggressive in its foreign policy, which does not bode well for its relations
with India. Certainly, Chinas announcement of the ADIZ was unexpected. It was done
without any consultation with Japan and has thus been seen as very disrespectful.
China is engaging in lawfare using international institutions to achieve strategic
goals.
India, currently at least, simply does not factor into Chinas strategic priorities.

Chinas ADIZ: A Case of an Overreach?

When China announced on 23 November 2013 the establishment of an Air Defence

Identification Zone [ADIZ] in the East China Sea area and included the disputed
Diaoyu/Senkaku islands in the zone; it was clear that the main target of this exercise
was Japan.
Since this zone has been established in the air space adjacent to Chinese territorial air
space what is its legitimacy in international law?
Normally under international law, a countrys sovereign airspace extends to the outer
limits of its territorial waters; that is 12 nautical miles from its coastline.
Most countries require all foreign military aircraft to obtain permission to enter their
airspace and reserve the right to take military action
As both China and Japan claim the Senkaku/Diaoyu islands in the East China Sea as
part of their territory they also claim sovereign airspace above the islands and over
waters extending 12 nautical miles around them.
According to the UN Convention on the Law of the Sea [UNCLOS], each signatory
state can claim an EEZ that gives it special rights to exploit marine resources up to
200 nautical miles from its coastline.
An exclusive economic zone (EEZ) is a seazone prescribed by the United Nations
Convention on the Law of the Sea over which a state has special rights over the
exploration and use of marine resources, including energy production from water and
wind.
When EEZs overlap, states are supposed to negotiate an agreed boundary.
However, some states disagree on whether non-aggressive foreign military operations
such as reconnaissance patrols should be allowed in their EEZ.
Japan has decided to approach the International Civil Aviation Organization [ICAO]
will perhaps be a test case.
The US has taken no position on the merits of the case involving the Sino-Japanese
dispute over the Diaoyu/Senkaku islands;
The US even dispatched unarmed B-52 bombers to fly into the Chinese ADIZ,
without informing the Chinese authorities, to demonstrate its position as a faithful ally
in Japanese eyes. And yet on the other hand keeping in mind the visit of VicePresident Biden to China, where it needs Chinese help to free a US citizen held by the
North Koreans and to keep in check North Korean nuclear ambitions,
US is no more a reliable security provider.
If this perception persists it would be to the immense strategic advantage of China
who would then emerge as the strongest economic and military power in the region.
The Chinese President, Xi Jinping has been advocating a new relationship with the
US by underlining 3 basic principles. These are
[a] No conflict and no confrontation
[b] Mutual respect and

[c]Win-win co-operation which means that each side abandon a zero sum mentality
and accommodate each-others interests as also deepen shared interests
The last thing that the US wants is a military confrontation between China and Japan
over the insignificant Diaoyu/Senkaku islands.
A militarily rejuvenated Japan is likely to cause immense strategic problems for
China; for which its audacious move in setting up an ADIZ would be largely
responsible.

Iran Issue
Iran Nuclear Deal: The Fine Print
The November 24, 2013 Joint Plan of Action between Iran and its P5+1 interlocutors
is the first agreement since November 2004 that contains Irans acceptance of certain
short-term limitations on its nuclear programme.
The first-step agreement is renewable by mutual consent indicating that there is
scope for an extension of the time frame within which elements involved in this
agreement could be accomplished.
Iran has committed to implement over the course of the agreement the following:
1. dilute half of its currently available stockpile of 20 per cent enriched UF6 (196 kgs
according to the November 14, 2013 IAEA report) to no more than 5 per cent
while the remaining half would be retained as stock for fabrication of fuel for the
5MW Tehran Research Reactor (TRR)
2. not enrich uranium above 5 per cent for the duration of the six months
3. not make further advances of its activities at the Natanz Fuel Enrichment Plant
(FEP)
4. Fordow or the Arak reactor
5. convert to UO2 newly enriched UF6 up to 5 per cent, beginning when the line for
conversion of UF6 enriched up to 5 per cent to UO2 is ready
6. no new locations for enrichment;
7. no reprocessing or construction of facility capable of reprocessing
Iran to continue its safeguarded R&D activities; and enhanced monitoring of its
nuclear activities.
it has committed to provide information on its nuclear plans to the IAEA within three
months of the adoption of these measures
submit an updated Design Information Questionnaire (DIQ) for the Arak reactor,
daily inspector access at Natanz and Fordow for the purpose of access to offline
surveillance records
and managed access to centrifuge assembly workshops and storage facilities.
P5+1 Commitments
In return for Irans actions, the P5+1 have agreed to pause efforts to further reduce
Irans crude oil sales

enabling Irans customers to purchase their current average amounts of crude oil
enable the repatriation of an agreed amount of revenue held abroad
suspend EU and US sanctions on Irans petro-chemical exports and on gold and
precious metals
spare parts for civil aviation
establish a financial channel to facilitate humanitarian trade for Irans domestic needs
using Iranian oil revenues held abroad;
and increase the EU authorisation thresholds for transactions for non-sanctioned trade
to an agreed amount
Comprehensive Solution
Both sides envisage a comprehensive solution to involve the lifting of all UNSC,
multi-lateral, and national nuclear-related sanctions,
involve a mutually-defined enrichment programme with mutually agreed parameters
consistent with practical needs, with agreed limits on scope and level of enrichment
activities;
implement transparency measures including ratify and implement the IAEA
Additional Protocol;
and keeps open the prospect of international civil nuclear cooperation, including
providing modern light water reactors.
The JPOA affirms that following the successful implementation of this
comprehensive solution for its full duration, the Iranian nuclear programme will be
treated in the same manner as that of any non-nuclear weapon state party to the NPT.
Key Negotiating Principle
the point that no single element can be viewed in isolation and that further progress on
the more essential comprehensive solution is contingent on the implementation of
commitments on the varied elements agreed upon in this agreement to mutual
satisfaction.
Prior to the second round of talks at Geneva that began on November 7, Iranian
leaders were insisting that the two red lines for them included no stopping of
uranium enrichment and no transfer of enriched uranium outside the country.
Iran agreeing to halt enrichment above 5 per cent and dilute its current stock of 20 per
cent enriched UF6 is therefore a significant half way compromise.

The Asia Rebalance in disarray

western allies (recollect recent sactions of UN on iran lifted) appeared to revert to a

triumphalist rhetoric that suggested that the crippling sanctions that they imposed were
solely responsible for the turnaround
thanks at all to Tehrans new regime for taking a courageous step towards the
negotiating table.

The States should adopt the Committees formula, which is not only transparent but has
been arrived at after a study of the cost structures of sugarcane farming and sugar mills.
A gesture of good faith towards Tehrans forward-looking re-engagement with the West
on the nuclear crisis, despite Israels sustained, warmongering bluster, might have been
for Mr. Obama to ease up on the oil sanctions, perhaps permit friends of Iran such as
India, who depended significantly on crude imports, to resume limited trading.
White House had determined that there is a sufficient supply of petroleum from
countries other than Iran to permit a significant reduction in the volume purchased
from Iran by or through foreign financial institutions.
What signal does this send to nations such as North Korea, whose resolve the U.S.
and its friends are similarly seeking to neutralise?
Regional powers such as India, who are discomfited by the emerging power vacuum in
Kabul and fear that it may again become a breeding ground for extremism, are resigned
to the reality that America has prioritised rolling back its wars and reviving its economy.
Troubling though the conundrums of Afghanistan and Iran may be, it is the failure of the
Asia Rebalance to prevent the U.S. second-largest trading partner from embarking on
campaigns of expansionist adventurism that truly casts doubt upon the strategy.
the inability of Washington to decisively marshal like-minded regional powers into a
string of partners, if not pearls has already conceded victory in this early round to
Asias hegemon.

Dtente between Tehran and Washington

United States imperialist war against Iran has been averted by the Joint Plan of
Action, agreed to in Geneva on 24 November by the P-5 + 1 (the US, the United
Kingdom, France, Russia and China, plus Germany) and the Islamic Republic of Iran.
The two sides, the Islamic Republic and the US establishment, are getting all the
attention, but what about the people of Iran? Should we not look at the situation from
their point of view?
What was agreed upon in Geneva last month is an interim deal, covering the next six
months, leading to a long-term comprehensive agreement,
only after which the remaining (the bulk of) sanctions on Tehran are to be lifted.
But from what has already been agreed, Irans nuclear programme has been frozen for
now, and the International Atomic Energy Agency has been allowed to conduct its
intrusive inspections.
The bulk of the sanctions, however, remain in place, sanctions that have led to a
drastic fall in Irans oil imports and deprived the country of access to the international
financial system,
nothing is agreed until everything is agreed. Iran now cannot enrich uranium
beyond the 5% limit required to fuel its nuclear power reactors; so enrichment to
weapons grade uranium is out of the question.

Western imperialist, especially US, confrontation with the Islamic Republic of Iran
has been on ever since the Iranian Revolution of 1979.
So, to reduce the current conflict to just two sides Western, mainly US, imperialism
and the Islamic Republic is erroneous.
There is a third side the people of Iran, and one needs to look at the situation from
their point of view too, and also from the side of the people of west Asia.
The dtente between Washington and Tehran, if it comes through in the form of the
long-term comprehensive agreement,
Of course, it will also, de facto, guarantee that there will be no regime change,
imposed by the Western imperialist powers, in Iran.
Indeed, if rapprochement with Washington does come about, then, the Islamic
Republic will get imperialist recognition as a regional power in west Asia
it will likely play a key role in the Geneva-II talks to resolve the Syrian crisis, and, the
Iranian President Hassan Rouhani may be asked to rein in Hezbollah in Lebanon and
Hamas in Palestine, even help broker a settlement with the Taliban in Afghanistan,
and with the Shia political parties in Iraq.
Will the world be witnessing a return to a neocolonialism in Iran?
For the people of Iran, with the grim prospect of imperialist military intervention
having receded, the opportunity to emulate the previous generation in the fight to
establish a democratic system, win a whole set of rights and freedoms, opens up a lot
wider.

Iran backs deep-sea gas pipeline to India

Indias South Asia Gas Enterprise Pvt. Ltd. (SAGE) had conducted feasibility studies for
the multi-billion-dollar undersea pipeline, which could carry gas from Irans giant South
Pars gas field to Indias west coast.
Irans interest in the India-centric project coincides with the cancellation of its $500million loan to Pakistan to build part of a pipeline to funnel natural gas.
Iran is focusing on exporting natural gas to India along a deep-sea route
the move coinciding with the cancellation of a loan to Islamabad to build the Pakistani
section of the Iran-Pakistan gas pipeline and the signing of the Geneva nuclear accord
that could help relax sanctions against Tehran.

Foreign Labourers nightmares

Woes of migrant labour

Qatar right to host the 2022 FIFA World Cup.
Qatars labour laws by private contractors. Migrant workers from Nepal, India,
Bangladesh and Sri Lanka are at the mercy of their Qatari employers,

Qatars sponsorship law designates private contractors as the custodians of their

employees travel documents until they are issued a valid residence permit.
Many migrant labourers are yet to receive their passports back.
access to justice for foreign labourers remains elusive.
economic growth does not ride on the inhuman treatment of migrants.
India should consider its migrant workforce in West Asia as an asset rather than as a
vulnerable constituency.

Afghanistan Issue
The Kabul test

Karzai's reluctance to sign the bilateral security agreement that defines the terms and
conditions for the residual military presence in Afghanistan after 2014.
Karzai is putting greater weight on military cooperation with India, not as an alternative
to that with the US, but as an important part of his strategy to diversify Kabul's defence
relationships after 2014.
India is committed, under the strategic partnership agreement signed with Afghanistan in
2011, to extend military assistance to Kabul.
That commitment is now under test as Karzai seeks expansive defence engagement with
India, including the supply of heavy equipment.
Delhi can't ignore the dangers that will flow from the Pakistan army's likely advances in
Afghanistan after 2014.
The answer for Delhi lies in extending strong military support for Kabul and
complementing it with an expanded political engagement with Pakistan's civilian
leaders.
India's Af-Pak strategy must walk on two legs, but walk it must.

Indias Afghan muddle

If New Delhi is serious about its concerns over rapid western withdrawal from
Afghanistan, it should along with other governments form a multinational joint working
group to assess the points of vulnerability for Afghan forces
Afghan National Security Forces (ANSF) are being left ill-equipped to fight insurgent
and terrorist threats that remain entrenched in the Afghanistan-Pakistan border areas.
Today, India is in a strong position to shape each of these factors to its advantage, but its
policies are marked by indecision and confusion.
western forces do not intend to withdraw from Afghanistan next year. Kabul and
Washington have agreed on the text of a Bilateral Security Agreement (BSA), which
would allow a force of 8,000 to 10,000 troops to remain in Afghanistan beyond 2014 for
training purposes and limited counterterrorism missions, albeit under strict conditions.

This would also put at risk the many billions of dollars of American aid that will flow to
Kabul for several years after 2014. Without this money, the survival of Afghan security
forces and the Afghan state itself is in question.
India first indicated that it wanted the BSA to reflect the concerns of India as well as
Iran.
consider the question of Indias military support to Afghanistan. India certainly hasnt
been entirely passive here.
It is intensifying its valuable efforts to train Afghan army officers in Indian
establishments, and will soon be training over 1,000 annually.
Indian officials privately criticise western powers for failing to arm the Afghans more
heavily,
but India vacillates over doing so itself.
India publicly insists that it has confidence in Afghan security forces, but then intimates
that their potential dissolution is a reason to avoid shoring them up.
the provision of heavy weaponry might provoke Pakistan into intensifying support for
anti-Indian groups in Afghanistan.
These concerns are legitimate, but India cannot hope to free ride on western efforts
while complaining incessantly about how western policy is leaving threats to India
unaddressed.
If India is serious about its concerns over rapid western withdrawal and Afghan
weakness, it should get serious itself.
New Delhi, Kabul, Washington, London and other governments with an important role
in the security sector of post-2014 Afghanistan should form a multinational joint
working group to assess the points of vulnerability for Afghan forces.
In turn, trainers from NATO countries, with over a decade of combat experience in
Afghanistan, could also be placed in Indian institutions that host Afghan officers.
India wants western troops to stay, but wont expend the diplomatic capital required to
push Mr. Karzai to sign the BSA.
India wants Afghan forces to be better armed, but shies away from taking on the talks
itself.
India opposes the speed and scope of the nascent American talks with the Taliban, but is
bereft of ways to shape this process.
If India doesnt like the way its going, it must decide whether to step up to the plate,
with all the attendant risks, or keep shouting from the sidelines.

US Rebalancing to the Asia-Pacific: Implications for West Asia

During the Cold War, the United States was completely focussed on the Soviet Union
and constantly striving to contain and if possible, to roll back - the Soviet presence
from the Third World.

The best and the brightest in the American academia studied the Soviet Union and the
Kremlinologists occupied the best births among policy wonks.
emergence of independent states in Central Asia and the Caucasus received its share of
international attention.
The US interest in the large quantities of oil and gas and US concerns over nuclear
proliferation and re-emergence of Islam dominated its foreign policy calculus.
West Asia acquired the status of the most crucial region.
After the nine-eleven, the Global War on Terrorism led the US into long-drawn-out
wars on Afghanistan and Iraq.
In 2011, the Obama administration made a series of pronouncements on a pivot to AsiaPacific, identifying it as a priority region.
The US would deploy greater naval assets, create new military capabilities and prepare
to engage in a newly formulated Air Sea Battle in the region.
A Trans-Pacific Partnership (TTP) between the US and some twelve states in the region
would create a free trade area.
Consequently, the attitude to China has moved from tacit confrontation to cautious
accommodation.
The twenty-first century is widely expected to be the Asian Century.
The economic growth in Asia is expected to outpace the West by a wide margin.
The legal and political status of Taiwan is fraught with the potential of conflict. A
defiant North Korea has acquired nuclear and ballistic missile capabilities.
South China Sea has become a jumble of contesting territorial claims by China, Taiwan,
Vietnam, Philippines, Brunei, Malaysia and Indonesia.
The islands in the East China Sea are disputed among China, Japan, South Korea and
Taiwan.
The recent Chinese announcement of an Air Defence Identification Zone over the East
China Sea and the unhindered exploratory flights of two American B-52 bombers right
through it may yet lead to an ugly situation in future.
a number of urgent challenges remain, including the Syrian civil war, the ongoing
struggle with the Taliban and al-Qaeda, and Irans nuclear programme would
undermine the US interests and needlessly antagonise China.
The US forces have withdrawn from Iraq and are in the process of withdrawing from
Afghanistan.
The US chose to lead from behind on the Libyan Spring.
It refused to accept the French-Turkish proposal to set up a No Fly Zone in Syria and
opted to work through the Friends of Syria instead.
There are two factors that have facilitated the direction of perceptible US retreat from
West Asia.
a. One, the production of shale oil and gas has largely diminished US
dependence on the imported energy from West Asia.

b. Two, the US economic turndown has put severe limitations on its power
projection worldwide.
The US federal government shutdown for over two weeks over budget allocations has
rung alarm bells worldwide
The fact that President Obama had to call off his week-long visit to Asia to attend the
APEC and ASEAN summits has raised serious questions regarding the US security
assurances and economic contribution to Asia-Pacific as also to West Asia.
Asia-Pacific is bound to remain at the top of the US foreign policy agenda till the
international situation warrants a relook.
In coming years, the US global posture may set less ambitious goals and allocate fewer
resources to pursue them.

Indian Issue
Is It Time to Withdraw the Army from Kashmir

A study of insurgencies reveals that security forces tend to lose the support of
intelligentsia and media, as the movement tends to prolong.
It is often a result of either low levels of violence or casualties, beginning of an electoral
process and the re-establishment of local administration machinery
army vetoing government proposals on Siachen troops withdrawal and dilution of
Armed Forces Special Powers Act (AFSPA).
if Hizb or Lashkar thugs again surface some place, you can easily confront them with
overwhelming force within minutes.
need to build upon the peace dividend
The assertion that the army can veto a government proposal on issues like Siachen or
AFSPA, is either a case of misunderstanding of constitutional powers and privileges, or
an under estimation of parliamentary democracy.
Therefore, while the advice of the army on both issues is in public domain to deduce that
this advice functions as a veto, is a gross overestimation of the powers and influence of
the men in uniform.
2013 witnessed the highest ceasefire violations in eight years.
sharp increase in security force casualties
This was also accompanied by higher numbers of successful infiltration,
the Af-Pak region suggest that the de-induction of US led forces from Afghanistan in
2014, is likely to become a tipping point for Pakistan to re-establish its control by proxy
in that country.
the end of war in Afghanistan is definitely likely to result in release of Pakistani forces
deployed in the region and their re-deployment along traditional areas of the border with
India

Both these factors will strengthen Pakistans ability to heighten tensions along the Line
of Control (LoC),
The final assertion deals with the ability to redeploy in case of an adverse situation in a
matter of minutes.
It needs to be understood that the mere deployment of a force is not a guarantee for its
immediate effectiveness.
Unlike flag marches in aid to civil authorities, deployment in terrorist infected areas
requires the buildup of operational and intelligence network by units, which takes
months if not years of diligent effort along with the conditions both on the LoC and
inside the state, before a decision on the issue is taken.

India in a tough neighbourhood

Indias approach in crafting a good neighbour policy with its South Asian sisters comes
from the strategic calculation that our security does not exist in a vacuum
For India, the perils of proximity have only grown.
This does not mean we turn our back on the world or our neighbours.
Rather, we must grow our comprehensive national strength in the economic, scientific,
technological, military and communication fields, in order to craft astute responses to
the challenges.
By virtue of geography, territorial size, economic heft, extent of development, military
capability and, the size of our population, India has a preponderant and central presence
in South Asia.
None of our neighbours (except Afghanistan vis-a-vis Pakistan and vice versa) can
interact with the other without traversing Indian territory, land, sea or airspace.
India and its neighbours in South Asia are integrally bound by ties of ethnicity,
language, culture, kinship and common historical experience.
The Himalayas and the Indian Ocean are the physical boundaries for India, and equally
for South Asia, as a region. India exists as the hub for South Asia.
There is merit in the reasoning that India should concern itself with the nature of any
external influence or presence within the confines of South Asia since threats to its
national security can emanate from the working of such influences.
Our neighbourhood will remain tough as long as our neighbours harbour tendencies and
foster elements that see the targeting of India as adding incrementally to their (false)
sense of security and well-being.
This is a calculus that is self-destructive as the growing tide of domestic terrorism and
insurgency in Pakistan created out of a sustained fostering of terror groups by some
sections of the establishment would indicate.
. The incursions and military provocations from across the Line of Control are another
manifestation of this calculus.

We are yet to see any realisation in Pakistan that pointing the gun at India in
Afghanistan through terror groups and their affiliates who wage a proxy war can never
bring peace to the Afghan people.
Neither will treating Afghanistan as an instrument to build strategic depth against India
help Pakistan.
India has always stated its intention to continue to invest and to endure in Afghanistan
because the Afghans need us and we will not abandon them.
The rising tide of democracy in Pakistan, we hope, can alter the trajectory of mayhem
and violence that emanates from its soil
It makes sense for India to substantively develop its partnership with the U.S. and
demonstrate strategic foresight to plan and provide for this relationship.
As 2014 approaches, and the U.S. and its allied forces prepare to draw down (and
possibly withdraw totally) from Afghanistan, strategic planners have to assess the
options available to India.
India must not hesitate to work to strengthen the international and regional coalition for
Afghanistan, and ensure that a democratically elected government is not left to fight the
forces of medieval extremism and radicalism on its own.

Balance of interests
Indias northeastern States would be benefited by smoother access through Bangladesh
to the rest of India.
In the case of Bangladesh we need to develop a whole of government approach that
enables a concerted approach of consultation involving all the States that border that
country so that a critical balance of interests is evolved without sacrificing national
interest.
The welfare of Nepalis should be at the core of Indias relationship with Nepal and the
strengthening of mutual trust and strategic reassurance that Nepal can always count on
Indian support and friendship is essential.
Any use of Nepali territory by alien, adversarial forces to threaten and weaken Indias
security concerns us.

we can well afford to be more generous with meeting the needs of neighbours like
Nepal and Bangladesh in order to cement trust and confidence and also to safeguard our
national security.
Myanmar is our land gateway to Southeast Asia. Its northern part defines the landscape
of the India-China-Myanmar triangle.
Security cooperation with Myanmar to counter insurgencies in our northeast is vital as
also the fast-tracking of road and multimodal transportation projects to build
connectivity

Anti Rohingya violence in Myanmar has had its reverberations in India, and bears close
monitoring.
For Sri Lanka, India is the only near neighbour.
The unfolding scenario of ethnic conflict and civil war spelt disaster for all communities
in Sri Lanka, with nobody more affected than the Tamil population of the North and
East.
The repercussions for India in terms of the assassination of Rajiv Gandhi were tragic.
The end of the civil war is a historic opportunity for reconciliation and the healing of
wounds of a bitter divide that pitted one Sri Lankan against another.
it is in the interest of both of us neighbours, that the pride and self-esteem, the selfrespect of the Tamil minority in Sri Lanka is not eroded,
they are treated with magnanimity and that they are able to contribute their talents, their
knowledge, and their effort for the progress of Sri Lanka.
India, Sri Lanka and the Maldives have institutionalised their cooperation on maritime
security issues.
This is a constructive development that creates a progressive template for security in our
region.
China is our largest neighbour. The challenge is to manage our relationship with China
despite inherent complexities and embed it in the matrix of dialogue and diplomacy.
The China factor has understandably influenced our security calculus. It subsumes
bilateral issues and Chinas regional profile and military capabilities.
The dispute over territory, in our language the boundary question, has existed for over
50 years.
to promote and sustain mechanisms to maintain peace and tranquillity.
West Asia is vital for India, from the point of view of fighting terrorism, the welfare of
the 6.5 million Indians who live there, energy security and fighting piracy.
We have been active in supporting dialogue processes in the region, whether it is on the
Palestinian question, or seeking a way out of the nuclear conundrum surrounding Iran.
New contours
Differing challenges require a mix of approaches to address them
a firm and clear strategic calculation that ensures the uncompromising defence of our
security interests,
the pursuit of foreign policy goals that stress dialogue and negotiation to achieve
solutions to long-standing problems, and do not forego the people-centred dimension
that is an essential ingredient of all viable diplomatic relationships.
The future has promise, but to embrace it, we must ensure an objective, clear headed
understanding of the present and its possibilities.

Cabinet nod for FTA in trade and services with Asean

approved a free trade agreement (FTA) in trade and services with the Association of
Southeast Asian Nations (Asean).
The Agreement on Trade in Services and Agreement is to be signed under the
Comprehensive Economic Cooperation (CECA) between India and the Asean.
The CECA between India and Asean was signed in 2003. The Cabinet approved the
Agreement on Trade Goods under the CECA with the Asean in July 2009.
aimed at boosting the movement of Indian professionals in the 10-nation Asean.
Member countries include countries like Singapore, Malaysia and Indonesia.
protect, promote and increase foreign investment flows into the country and also
removes and barriers, said the sources.

International Laws related

International law only for weaker states?

November 23 this year of an air defence identification zone (ADIZ) extending to

territories it does not control and Americas arrest,
Americas arrest, strip search and handcuffing of a New York-based Indian woman
diplomat on December 12 for allegedly underpaying a domestic help she had brought
with her from India
In truth, these actions epitomise the unilateralist approach of these powers.
A just, rules-based international order has long been touted by powerful states as
essential for international peace and security.
reinterpreting or making new multilateral rules to further their geopolitical and
economic interests.
The League of Nations failed because it could not punish or deter some powers from
flouting international law
Today, the United States and China serve as prime examples of a unilateralist approach
to international relations,
Disregarding global treaties
Take the U.S. Its refusal to join a host of critical international treaties from the 1982
United Nations Convention on the Law of the Sea (UNCLOS) and the 1997 U.N.
Convention on the Law of the Non-Navigational Uses of International Watercourses, to
the 1998 International Criminal Court Statute has set a bad precedent.
Add to this its international invasions in various forms, including cyber warfare and
mass surveillance, drone attacks and regime change.
Unilateralism has remained the leitmotif of U.S. foreign policy
U.S. militarily intervened in Libya and effected a regime change in 2011 an action
that has boomeranged, sowing chaos and turning that country into a breeding ground for

al-Qaeda-linked, transnational militants, some of whom assassinated the American

ambassador there.
Carrying out foreign military interventions by cobbling coalitions together under the
watchword youre either with us or against us has exacted as Iraq and Afghanistan
show a staggering cost in blood and treasure without advancing U.S. interests in a
tangible or sustainable manner.
Chinas growing geopolitical heft has emboldened its muscle-flexing and territorial
nibbling in Asia in disregard of international norms.
China rejects some of the very treaties that the U.S. has declined to join, including
the International Criminal Court Statute and the Convention on the Law of the NonNavigational Uses of International Watercourses the first ever law that lays down
rules on the shared resources of transnational rivers, lakes and aquifers.
Yet, the worlds most powerful democracy and autocracy have much in common on how
they approach international law.
The only major country that has still not ratified UNCLOS is the U.S., preferring to
reserve the right to act unilaterally.
Nonetheless, it seeks to draw benefits from this convention, including freedom of
navigation of the seas.
China still appears to hew to Mao Zedongs belief that power grows out of the barrel of
a gun. So, it will not consider international adjudication to resolve its territorial claims
in, say, the South China Sea, more than 80 per cent of which it now claims arbitrarily.
Indeed, it ratified UNCLOS only to reinterpret its provisions and unveil a nine-dashed
claim line in the South China Sea and draw enclosing baselines around the Japanesecontrolled Senkaku Islands in the East China Sea.
Worse still, China has refused to accept the UNCLOS dispute-settlement mechanism so
as to remain unfettered in altering facts on the ground.
The Philippines, which has since 2012 lost effective control to a creeping China, of first
the Scarborough Shoal and then the Second Thomas Shoal, has filed a complaint against
Beijing with the International Tribunal for the Law of the Sea (ITLOS).
Beijing, however, has simply refused to participate in the proceedings, as if it were
above international law.
Beijings new air defence zone, while aimed at solidifying its claims to territories held
by Japan and South Korea, is provocative because it extends to areas China does not
control, setting a dangerous precedent in international relations.
China and Japan, and China and South Korea, now have duelling ADIZs, increasing
the risks of armed conflict, especially between Japan and China, in an atmosphere of
nationalist grandstanding over conflicting claims.
Before every country asserts the right to establish an ADIZ with its own standards,
binding multilateral rules must be created to ensure the safety of commercial air traffic.

But who will take the lead the two countries that have pursued a unilateralist
approach on this issue, the U.S. and China?
Despite a widely held belief that the present international system is pivoted on rules, the
fact is that major powers as in history are rule makers and rule imposers, not rule
takers.
They have a propensity to violate or manipulate international law when it is in their
interest to do so.

BCIM corridor key to development of border regions

India's development initiatives in the Mekong region and China's growing presence in
South Asia are now converging in the BCIM (Bangla, china India Myanmar) region.
The ideas driving the BCIM economic corridor project are a combination of domestic
and external interests of both New Delhi and Beijing, notwithstanding the security
reservations in some quarters of the Indian establishment.
The past decades have witnessed phenomenal economic growth in both India and China.
A major challenge has been to address the economic imbalance between the coastal
developed regions and the underdeveloped frontier regions.
Since the launching of the "Gateway Strategy" in 2009, Yunnan has been made the
gateway to Southeast and South Asia with several networks of road, rail, and air
connectivity being planned to connect Yunnan with the neighboring countries.
An important part of the strategy is to revive the ancient "Southern Silk Road," believed
to have connected China with India
Within the renewed China's "Going Out" policy, Yunnan's geographical location that
shares common borders with Myanmar, Laos and Vietnam is seen as the gateway.
Similarly, India's landlocked Northeast region has lagged behind compared to other
parts of the country.
the Northeast region shares common borders with Bhutan, Bangladesh, Myanmar and
China, making it the bridge between India and its eastern neighbors.
The border regions of the BCIM countries have a complex development-security nexus.
The BCIM region has a geographical advantage of connecting South, Southeast and East
Asia. This subregion is viewed as having the potential to promote the economic
integration of Asia.
China's rethink of its "Going Out" policy in the region, particularly, after its experiences
in Myanmar, is critical for the BCIM project.
An engagement policy that is guided by respect and sensitivity to culture and the
environmental concerns of local people is key for the success of "win-win cooperation"
in these border regions of BCIM countries, which are rich in biodiversity and ethnically
diverse people.
he BCIM economic corridor has the potential of transforming a conflict zone into a
cooperation zone.

BCIM corridor gets push after first official-level talks in China

Four nations have for the first time drawn up a specific timetable on taking forward plan
emphasising the need to quickly improve physical connectivity in the region, over two
days of talks in the south-western Chinese city of Kunming the provincial capital of
Yunnan, which borders Myanmar
The corridor, it was agreed, will run from Kunming to Kolkata, linking Mandalay in
Myanmar as well as Dhaka and Chittagong in Bangladesh.
The plan would advance multi-modal connectivity, harness the economic
complementarities, promote investment and trade and facilitate people-to-people
contacts,
Officials acknowledged that security concerns in parts of Myanmar were one likely
obstacle, although representatives from the country also expressed optimism that this
issue would, in time, be overcome.

Science and technology

India to push for freeing Internet from U.S. control

India has decided to challenge the U.S. governments control over the Internet
India will also push for storing all Internet data within the country, besides ensuring
control and management of servers.
In view of its growing cyber security concerns
Similarly, all traffic originating/landing in India should be stored in India,
Notably, the key function of domain name system (DNS) management today is in the
hands of the U.S. National Telecommunication and Information Administration and the
Department of Commerce.
India managed to get root servers installed in the country,

MERS-CoV virus has been identified in Qatari farm camels

Camels are catching a virus that has been sickening people in the Middle East, according
to research just published.
But the study has been unable to establish whether such animals could be a source of
human infections.
The Middle East respiratory syndrome coronavirus (MERS-CoV) was first reported just
over a year back.
Since then, the World Health Organisation has been informed about 165 laboratoryconfirmed cases of people infected by the virus, over 40 per cent of whom died.

Although antibodies to MERS-CoV had not been found in animals other than camels,
they should not be ruled out as potential hosts for the virus at this stage
The receptor molecule that the virus used to infect cells was found in goats and sheep,
among other animals, she noted in an email.

Potential malaria vaccine discovered

Researchers have discovered a key process during the invasion of the blood cell by the
Malaria parasite, and have found a way to block this invasion.
With this new knowledge, the scientists from Singapores Nanyang Technological
University (NTU) are looking to collaborate with the industry on a vaccine against
malaria which can be developed within the next five years if accelerated by vaccine
development companies.
Mass spectrometry: the most important analytical tool of modern times

With it, it is possible to measure the mass spectrum of complex proteins, extremely
fragile molecular assemblies and even intact cells
Mass spectrometry (MS), arguably the most important analytical spectroscopic tool of
modern times, is in its centenary year in 2013 along with two other celebrated
discoveries of science, the Bohr atom model and the chemical bond of G. N. Lewis; both
have profound connections to the first.
The technique is used to explore the chemical constitution of molecules from this planet
and beyond, e.g. the hydrocarbon seas of Saturns moon Titan.
It is used to understand the fundamental atomic and molecular processes and at the same
time those of immediate relevance to events within cells. As a technique, it helps to
control processes in chemical and biological industries, diagnose diseases, discover new
drugs, protect the environment and explore mysteries of nature.
In 100 years, it has been used to separate much of the uranium 235 used to make the
Little Boy (the bomb that was dropped onto Hiroshima in 1945), led to understanding of
thousands of chemical reactions, to the discovery of new molecules, to the resolution of
protein structures, to solve crimes and to provide answers to complex questions of
nature.
In each of these areas (forming ions, analysing their mass, detecting them) innovations
have led to multiple mass spectrometric techniques.
The most important developments have happened in ion formation. Years ago, it was
necessary to evaporate a sample to generate vapours and bombard these with a stream of
electrons in order to make ions, a process which required vacuum.

It is possible to understand the spectrum of molecules from the surface of a rose while
the plant is alive. Mass spectra of molecules metabolites or drugs or cancer markers
can be measured on a patients skin or in his/her blood.
Mass spectrometers may soon arrive in physicians consulting rooms.
It has been demonstrated that they can help in diagnosis during complex surgeries within
the operating theatre.
it is surprising that mass spectrometry is being removed gradually from our science
curriculum. Mass spectrometry concerns ion chemistry and physics with an emphasis on
scientific instrumentation.
The Nobel committee over many years has demonstrated its appreciation for scientific
instrumentation; this is a lesson we in India cannot afford to discard.

The green network

Environment Monitoring Forum (EMF)

TARGET: To address social issues that concern the environment at the regional level
and to learn to live in harmony with nature
ACTIVITIES: The Environment Monitoring Forum has always articulated that
development should be streamlined with a steady focus on sustainability.
IMPACT: Through several of its initiatives, the Environment Monitoring Forum could
bring about better awareness on ecology related issues at the regional level.
Greenhouse gas emissions will dry up water resources, warns UN panel
A leaked final draft of the UN scientific panel on climate change report has warned of
the risks that the world faces from climate change impacts if the greenhouse gas
emissions are not curtailed and countries do not adapt quickly enough.
The lack of adaptation efforts in developing countries has lead to significant
vulnerability and exposure from extreme climatic events, such as heat waves, droughts,
floods and wildfires, the report notes.
For agriculture dependent countries such as India, the report warns of ominous changes
in crop yields.
With or without adaptation, climate change will reduce median yields by 0-0.2% per
decade for the rest of the century, as compared to baseline without climate change.
This would happen against a surging 14% increase in demand of food crops every
decade till 2050.
These are extracted from the Chapter on Asia in the main report. The summary says the
key risk to Asia arises from increased flooding leading to widespread damage to
infrastructure and settlements,
heat-related mortality and increased risk of drought-related water and food shortages
causing malnutrition.

The scientific panel also draws from another future report on mitigation to warn that
emissions are rising so fast and unchecked that scenarios, which are more likely than
not, to limit temperature increase to 2 C are becoming increasingly challenging,
and most of these include a temporary overshoot of this concentration goal.
This emission growth was not met by significant greenhouse gas emission cuts in the
industrialized country group, which continued to dominate historical long-term
contributions to global carbon dioxide emissions.
In 2010, median per capita greenhouse gas emissions in high income countries were
roughly ten times higher than in low-income countries.
In 2010, median per capita greenhouse gas emissions in high income countries were
roughly ten times higher than in low-income countries.

Economics
Bitcoin puzzle might prompt advisory from Indian regulators
As regulatory glare increases on Bitcoin globally and its exchange rates become
extremely volatile,
Indian authorities may soon issue a public advisory to warn against potential risks
associated with this new digital currency concept.
While US has declared that all prevailing money laundering laws would apply to
bitcoins,
China has asked its banks and other financial institutions not to deal in bitcoins and the
public has been asked to do so at their own risk.
Besides, France last week warned its banks about risks related to bitcoins.
At the same time, the experts are also raising concerns about cyber security issues,

"The concept of a digital currency, unregulated by any monetary authority, is a recipe

for disaster. The RBI must step in and regulate this immediately.

So, Bitcoin can very well be used to finance terror."

Are Indian NBFCs Shadow Banks? Do They Pose Systemic Risks?
What Is Shadow Banking?
shadow banks as the whole alphabet soup of levered up non-bank investment conduits,
vehicles, and structures.
According to Acharya et al (2013), some of the key points that have emerged are:
(a) A shadow banking system conducts maturity, credit and liquidity transformation outside
the traditional banking system (Pozsar et al 2010):
Thus, not only is shadow banking usually (but not always) less regulated than the traditional
banking system (Acharya and nc 2010), there is also no explicit access to central bank
liquidity or public sector credit guarantees

(b) A shadow banking system decomposes the process of credit intermediation into a
sequence of discrete operations
Therefore, it can be a collection not only of single financial entities acting independently, but
also of (and usually is) networks of multiple financial entities acting together: banks, formal
and informal non-bank financial institutions, and even credit rating agencies, regulators and
governments
The shadow banking system can broadly be described as credit intermediation
involving entities and activities (fully or partially) outside the regular banking system.
In this broad definition, not only almost anything outside the regular banking system
qualifies as shadow banking,
but the regular banking system is also excluded, which is a problem because even
regular banks can get involved in shadow banking activities
In this broad definition, not only almost anything outside the regular banking system
qualifies as shadow banking, but the regular banking system is also excluded,
which is a problem because even regular banks can get involved in shadow banking
activities
In this broad definition, not only almost anything outside the regular banking system
qualifies as shadow banking, but the regular banking system is also excluded, which is a
problem because even regular banks can get involved in shadow banking activities
above definitions are based on the experiences in the US and EU.
Indian NBFCs

Adopting the FSBs broad definition, the Reserve Bank of India (RBI) the regulator of
the Indian NBFCs
considers the NBFCs as quintessentially epitomising the shadow banking system as
they perform bank like credit intermediation outside the purview of banking regulation
in India
To sum up, there is no definite answer to the question of whether the Indian NBFCs are
shadow banks or not, because if we adopt the FSBs (2011) broad definition,
A better question can be whether or not Indian NBFCs can create systemic risks.
Put differently, it may be better if we are concerned with the systemic risks the Indian
NBFCs might create. (This does not mean that other Indian financial institutions such as
commercial banks cannot create systemic risks.)
An ongoing debate in India is whether or not Indian non-banking fi nancial companies
(NBFCs) are shadow banks.

RBI RELATED
A course correction?

The new understanding is that to spur growth, private investment has to be supported
The Reserve Bank of Indias (RBI) decision to hold the policy rates in its mid-quarter
policy review
current inflation is too high how it will move in the short term is uncertain.
So the call is to act when the inflation trend is better understood.
Latest available official data shows food inflation was growing at 19.93 per cent in
wholesale prices and 14.72 per cent in retail prices in November.
RBI data shows vegetable prices are climbing down.
As the economy is weak, said Dr. Rajan, the RBI resisted monetary policy
overreaction at this stage
Indias economic growth mid-90s onwards was led by private investment and not
government spending-led pump priming.
The best way to support or boost growth in the Indian economy is going to be
facilitation and incentivisation of private investment.
the government has said it is pressing in spending cuts, including in the social sector, to
keep its fiscal deficit within the committed target.
These cuts will reduce inflation more effectively as social sector spending puts money in
the hands of people who are completely out of the transmission channels of the
monetary authority.
The RBIs interest rate hikes so far have been blunt on food inflation though
manufacturing inflation is down drastically.
In fact, RBIs inflation fight has reduced demand for manufacturing products, pushing
the factory output growth into negative territory.
Inflation, Dr. Rajan is expecting, will get contained by factors such as the negative
output gap, the services growth slowdown, the lagged effect of the RBIs June policy
action, the disinflationary impact of the exchange rate stability and, in some measure,
the governments spending cuts.
The RBI has long maintained that monetary policy is blunt on food inflation.

Admin-all the polity, Admin, Development related items

North-East (NE) India represents a mosaic of diverse geographical features inhabited
by different peoples with distinct ethnic markers.
1894.1 It was considered as merely a peripheral space perceived as inhabited by poorly
administered and unadministered tribals with distinct ethnic and cultural markers.
The terminology NE got a boost in post-Independence India when Prime Minister
Pandit Jawaharlal Nehru created the North-East Frontier Agency (NEFA)
Koms success catapulted the NE story into the spotlight of the country. Her
achievement not only generated solidarity and pride among the people of the region, it
also awakened many Indians to the region.
A conflict between the Bodo community and the perceived illegal immigrants took a
different turn with the problem snowballing into an issue between the NE people and
other Indians
serious administrative mishandling and totally misconceived notions about the
complexities of the region by the Indian state
It is a region where the people repeatedly challenge the Indian nation-building process
based on the one nation theory.
some consider the NE as a coinage that explains the relation of unequal power and
politics between the centre and the perceived periphery.
New Delhi deals with the local regimes of corruption and repression.
New Delhi tolerates and even supports localised autocracy as a means to manage
security threats (Lacina 2009). E
The assertion of ethnic identities and movements is not confined to the larger
communities or nationalities;
many of the smaller communities in the region are also asserting and articulating their
rights, interests and identities
voices that hardly reach the corridors of Delhi.
silently bear the ill-treatment or indifferent attitude meted out to them
The politics of tussle between the peripheral voices and the locally dominant centre
Indigenous tribal elites in the hills of Manipur were sensitive to their relatively
vulnerable status
The media too played a crucial role in shaping the image of the region,
Notes

1 The region acquired the name the North-East Frontier Tract (NEFT) in 1914, after the
Assam province became a separate unit directly administered by a governor general. The
NEFT later became a part of Assam, after Indias Independence in 1947.
2 NEFA, created during the interim period was a centrally-controlled administrative unit
under the then governor of Assam. On 21 January 1972, NEFA became the Union Territory

of Arunachal Pradesh, and ultimately a state (present-day Arunachal Pradesh) of the Indian
Union.
3 North-Eastern Hill University, a central university was set up for the whole region with the
primary objectives of benefiting the indigenous tribals of the region.

Poverty Related

Tendulkar committee based its definition on purchasing power parity.

A survey among the Indian or global poor on what poverty is would lead to a definition
widely divergent from that of governments and economists.
A poorly-created poverty measurement index easily misrepresents and often reduces the
poverty in a society. In doing so, it decreases the responsibility of the privileged and the
powerful to improve the condition of the less privileged.
In the long-term, such discourses fracture societies, eventually leading to unrest,
inequality, internalised dissatisfaction and eventual conflict.
The point to consider, then, is who should define poverty and why the poor should not
lead this process?
Poverty, as defined by the poor, must converge at some point with the states definition.
Why?
Because if our definitions of what poverty is can be so vastly divergent, how can any
programmes designed for poverty alleviation ever truly succeed?
There is a need to recognise that poverty is multi-dimensional.
After all, despite rising above the poverty line, millions of Indians continue to lack access to
safe water, sanitation, housing, nutrition, health and education.
Unless we take into account what poverty means to the poor, measuring or reducing it will
continue to remain a game of deliberate obfuscation.
The sugar imbroglio

A little over a year after the Rangarajan Committee, which went into the regulatory and
business aspects of the industry submitted its report,
only a part of its sensible recommendations have been implemented.
crucial recommendation on revenue-sharing between sugarcane farmers and sugar mills
has been ignored.
especially Uttar Pradesh which accounts for the bulk of the sugarcane output had
implemented the recommendation and not gone ahead and announced their own prices
for procurement by mills.
mills are in poor financial shape
consequent slump in prices.
bailout package for them.

The package includes interest-free loans adding up to Rs.7,500 crore with favourable
repayment terms, restructuring of existing loans, incentives for the production of 4
million tonnes of raw sugar for exports, and doubling of ethanol blending in petrol to 10
per cent.
5 per cent blending is not happening due to disagreements over pricing.
The Rangarajan Committee recommended a 70:30 revenue-sharing mechanism between
farmers and mills,
The States should adopt the Committees formula, which is not only transparent but has
been arrived at after a study of the cost structures of sugarcane farming and sugar mills.

Continuation of ongoing State Plan scheme of Rashtriya Krishi Vikas Yojana (RKVY)
during 12th Five Year Plan
1. The Cabinet Committee on Economic Affairs has approved the continuation of the ongoing
state Plan Scheme of Rashtriya Krishi Vikas Yojana (RKVY) in the 12th Plan
2. One of the basic objectives of RKVY is to incentivize investments in agriculture and allied
sectors by linking state wise allocation of RKVY funds to the increased share of State plan
expenditure in agriculture and allied sectors.
Background:
1. The Rashtriya Krishi Vikas Yojana (RKVY) is a continuing scheme under implementation
from the 11th Five Year Plan period.
2. RKVY is a State plan scheme that provides considerable flexibility' and autonomy to
States in planning and executing programmes for incentivizing investment in agriculture and
allied sectors.
Approval of Integrated Mission for Development of Horticulture during 12th Plan
1. Economic Affairs has approved a Mission for Integrated Development of Horticulture
(MIDH) for implementation during the 12th Plan with an outlay of Rs. 16,840 crore, a
centrally sponsored scheme.
2. Implementation of MIDH is expected to achieve a growth rate of 7.2 percent in the
horticulture sector during the 12th Plan,
3. besides generating skilled and unskilled employment opportunities in rural and urban
areas.
4. The scheme will cover all States and Union Territories (UTs) of India.
5. While the NHM scheme will be focusing on 18 States and UTs, the Horticulture Mission
for North East and Himalayan States (HMNEH) scheme will cover all States in the North
East and Himalayan region of the country.
6.National Horticulture Board (NHB) scheme will address developmental issues on
commercial horticulture through entrepreneurs involving institutional financing.

7. The National Bamboo Mission (NBM) will address developmental issues on bamboo,
whereas the Coconut Development Board (CDB) schemes will focus on development of the
coconut sector.
Background:
1. India has a wide and varied horticulture base, which includes fruits, vegetables, tuber
crops, mushrooms, spices, medicinal and aromatic plants, flowers and foliage and plantation
crops like coconut, areacanut, cashewnut, cocoa and bamboo.
2. The horticulture sector has been an engine of growth for the rural economy while
providing food and nutritional security to the people.
3. The horticulture sector has been an engine of growth for the rural economy while
providing food and nutritional security to the people.
4. Implementation of the Centrally sponsored and Central sector schemes has provided
necessary stimulus to the horticulture sector
5. Implementation of Centrally Sponsored Scheme Livestock Health and Disease Control
Economic Affairs has approved the proposal of the Department of Animal Husbandry,
Dairying and Fisheries for implementation of the on-going Centrally Sponsored Scheme
"Livestock Health & Disease Control" (LH & DC) in the 12th Plan with certain modifications
and expansion of existing components.
6.modifications and expansion of the national control programmes including addition of one
new component on control of classical swine fever
enable effective tackling the issue of livestock health and strengthing the existing efforts to
7.manage the animal diseases,
Accordingly, besides modification of existing components, the scope of Foot and Mouth
Disease and Peste des petits Ruminants (PPR) Control Programmes will be expanded to
cover all the districts during 12lh Plan.
8. A new component, viz., Classical Swine Fever Control Programme has also been included
in the scheme.

Continuation of central sector Integrated Scheme on Agriculture Census, Economics

and Statistics during 12th Plan
The Cabinet Committee on Economic Affairs has approved continuation of the Central Sector
Scheme "Integrated Scheme on Agriculture Census, Economics & Statistics" with some
modifications.
The total plan outlay will be Rs.1091 crore during 12th Plan.
The following modifications are approved:
i. Restructuring of studies in Agriculture Economic Policy and Development scheme by
dividing it into three independent components namely,
(a) comprehensive scheme of Cost of Cultivation of Principal Crops in India,
(b) Agro Economic Research Centers (AERC) and

(c) Scheme of Planning, Management & Policy Formulation, and discontinuing the
component of Drought Management with effect from 2014-15.
ii. Enhancement of rate of honorarium to the staff from the existing rate of Rs. 700/- per
village to Rs.1000/- per village each for phase-I and II of the Agriculture Census.
iii. 2nd Inter-Ministerial Committee for Cost of Cultivation Scheme will be set up to address
the implementation and administrative issues.
The existing pattern of funding to Agro-Economic Research Centres (AERC) will continue
till the terminal year of the 12th Five-Year Plan.
Approval for modification and continuation of Dairy Entrepreneurship Development
Scheme during the remaining period of 12th Plan
1. The Cabinet Committee on Economic Affairs has approved modification and continuation
of the Dairy Entrepreneurship Development Scheme (DEDS) during the 12th Plan with an
outlay of Rs.1400 crore to generate self employment opportunities in the dairy sector,
2. covering activities such as enhancement of milk production, procurement, preservation,
transportation, processing and marketing of milk.
3. The Cabinet Committee on Economic Affairs has approved modification and continuation
of the Dairy Entrepreneurship Development Scheme (DEDS) during the 12th Plan with an
outlay of Rs.1400 crore to generate self employment opportunities in the dairy sector,
covering activities such as enhancement of milk production, procurement, preservation,
transportation, processing and marketing of milk.
4. The funding Pattern will be as follows:
a) Entrepreneur contribution (Margin) -10% of project cost (Minimum)
b) Back ended capital subsidy @ 25% of the project cost for general category and @ 33.33 %
for SC/ST farmers. The component-wise subsidy ceiling will be subject to indicative cost
arrived at by NABARD from time to time.
c) Bank Loan - Balance portion.
5. The objectives of "DEDS" are to generate self-employment and provide infrastructure for
dairy sector,
6. set up modem dairy farms and infrastructure for production of clean milk, encourage heifer
calf rearing for conservation and development of good breeding stock,
7.bring structural changes in the unorganized sector (so that initial processing of milk can be
taken up at the village level), upgrade traditional technology to handle milk on commercial
scale, and provide value addition to milk through processing and production of milk
products.
8.The National Bank for Agriculture and Rural Development (NABARD) will be the nodal
agency for implementation of the scheme.
9. NABARD will implement the scheme through all Scheduled Commercial Banks, Regional
Rural and Urban Banks, State Cooperative Banks, State Cooperative Agriculture and Rural
Development Banks and such other institutions, which are eligible for refinance from

NABARD.
10. The proposals will be sanctioned by the banks as per guidelines of RBI, NABARD and
Government of India.
11.The eligible beneficiaries of the scheme will be agricultural farmers, individual
entrepreneurs, self-help groups, dairy cooperative societies, milk unions, milk federation,
panchyati raj institutions (PRls) etc.
12. The scheme will be implemented throughout the country and cover all sections of society
including women, the landless and small and marginal farmers in rural and urban areas.
.
Approval to set up an Alternative Investment Fund Category I and for receiving
contributions from international investors
1.The Cabinet Committee on Economic Affairs has approved the proposal of M/s IDFC
Trustee Company Limited to set up the India Infrastructure Fund II, to be registered as the
Alternative Investment Fund (AIF) Category I with the Securities and Exchange Board of
India (SEBI) as recommended by the Foreign Investment Promotion Board (FIPB).
2.The Indian Infrastructure Fund II is aimed at making investment primarily in the sectors of
energy utilities, transportation, aviation, telecom infrastructure, other urban infrastructure and
public utilities. The fund is targeted to receive contribution from international investors up to
Rs.5500 crore.
India-China agree to exchange information on Brahmaputra basin
1. India and China have agreed to share information on the hydro power projects activity
being undertaken in the Brahmaputra river basin
2. China has agreed to share only hydro information.
3. In Brahmaputra, nearly 85 per cent of the water emanates from India.
4. We are able to tap only 5 per cent of it. We are also working on inter-basin water transfer
in India,
5. Hydro power tariff becomes significantly lesser than coal based tariff over time; hydel
plants have a much longer life as compared to coal fired plants; there is no strain on transport
infrastructure for regular movement of fuel and saves precious foreign exchange.
Rare Earth in the Country
1. Indian Rare Earths Ltd. (IREL) a Public Sector Undertaking of the Department of Atomic
Energy (DAE) produces monazite which is a prescribed substance under Atomic Energy Act
1962 and processes the same to produce mixed Rare Earth compounds.
2. IREL has set up a 10,000 tpa monazite processing plant at Odisha to produce mixed rare
earth chloride and at Aluva, Kerala to produce separated high pure rare earth products.
3. An MoU has been signed between IREL, Bhabha Atomic Research Centre (BARC),
Defence Metallurgical Research Laboratory (DMRL) & International Advanced Research

Centre for Powder Metallurgy & New Materials (ARCI) for production of value added
products of Rare Earths.

Science Centre
The Department of Science and Technology in collaboration with the Russian Ministry of
Education and Science has jointly established the Indo-Russian Science and Technology
Centre (IRSTC) with offices at New Delhi NCR region and in Moscow.
The following terms and references have been mutually agreed upon:
(i) Both sides (India and Russia) are to financially support the Centre in their respective
country;
(ii) IRSTC is mandated to facilitate transfer of proven technology (at laboratory scale or pilot
scale) to industry, both from India and Russia;
(iii) IRSTC is also mandated to explore for all possible technologies including
nanotechnology;
(iv) IRSTC would provide services for information search; organize meetings, seminars and
conferences, presentation, exhibitions and advertising of various available technologies;
(v) IRSTC would facilitate preparation and conclusion of technology transfer agreement
between
technology
supplier
and
acquirer.

The following terms and references have been mutually agreed upon:
(i) Both sides (India and Russia) are to financially support the Centre in their respective
country;
(ii) IRSTC is mandated to facilitate transfer of proven technology (at laboratory scale or pilot
scale) to industry, both from India and Russia;
(iii) IRSTC is also mandated to explore for all possible technologies including
nanotechnology;
(iv) IRSTC would provide services for information search; organize meetings, seminars and
conferences, presentation, exhibitions and advertising of various available technologies;
(v) IRSTC would facilitate preparation and conclusion of technology transfer agreement
between
technology
supplier
and
acquirer.
Bilateral Investment Promotion and Protection Agreement (BIPPA) Signed Between India
and Government of UAE to Boost Investment Flows Between the two Countries

Bilateral Investment Promotion and Protection Agreement (BIPPA) Signed Between

India and Government of UAE to Boost Investment Flows Between the two Countries
1. A Bilateral Investment Promotion and Protection Agreement (BIPPA) between the
2.Government of India and the Government of UAE was formally signed here today. The
3.Agreement was signed by Shri Namo Narain Meena, Minister of State (E&FS), on behalf
of Government of India and H.E. Mr. Obaid Humaid Al Tayer, Minister of State for Financial
Affairs of UAE on behalf of Government of UAE.
4. The text of the Agreement, which seeks to promote and protect investments from either
country in the territory of the other country with the ultimate objective of increasing bilateral
investment flow
5. It is hoped that the Agreement would serve as a catalyst in boosting investment flows
between the two countries.

Health Ministry worried SC verdict will affect AIDS control

ruling will prevent vulnerable communities from accessing health facilities for fear of
discrimination and stigma.
concerned that this will discourage people from seeking health care, and consulting with
doctors, counsellors and health workers,
The LGBT (lesbian, gay, bisexual and transgender) is defined as a high-risk group by
the National AIDS Control Organisation
The Department of AIDS Control provides inclusive healthcare service for gay men and
transgenders primarily for checking HIV infections
the service was being accessed by a large number of the LGBT community following
the 2009 Delhi High Court judgement that had struck down Section 377 of the Indian
Penal Code which criminalised unnatural sex.
The HIV Estimation of 2012 suggests an overall reduction of 57 per cent in the annual
new HIV infections (among adult population) from 2.74 lakh in 2000 to 1.16 lakh in
2011,
While HIV prevalence shows declining trends among female sex workers, MSM,
injecting drug users and single male migrants are emerging as important risk groups.

Greenhouse gas emissions will dry up water resources, warns U.N. panel

final draft of the U.N. scientific panel on climate change has warned of the risks that the
world will face if greenhouse gas emissions are not curtailed and countries do not adapt
quickly enough.
The final draft has been sent to all governments for review and comment before the
report is finalised.

The lack of adaptation efforts in developing countries has led to significant vulnerability
and exposure from extreme climatic events, such as heat waves, droughts, floods and
wildfires, the report says
For agriculture-dependent countries such as India, the report warns of ominous changes
in crop yields. With or without adaptation, climate change will reduce median yields by
0-0.2% per decade for the rest of the century
This would happen against a surging 14% increase in demand for food crops every
decade till 2050.

Food Security Uncertainties after Bali

The Government of India claims "victory" at the WTO; it has only bought time.
The WTO claimed the worlds poor would benefit from Bali, when in actual fact it
oversaw a set of trade agreements that had imbalance written all over them with the
developed countries walking away with the biggest gains.
For India, the most important item on the agenda was to ensure that its current public
distribution system (PDS) as well as the new food security programme under the
National Food Security Act (NFSA) would not have to be curtailed if the food subsidy
breached the ceilings decreed by the WTOs 1994 Agreement on Agriculture (AoA).
While the AoA does permit governments to operate public stockholding programmes
and provide foodstuffs to the poor at subsidised rates, the provisions of that agreement
were sufficiently ambivalent to cause concern.
Indias refusal at Bali to accept the peace clause option allowed it to extract some
measure of protection.
What has been agreed is that no developing countrys food security programme can be
questioned at the WTO, pending negotiation of a permanent solution before the WTOs
11th ministerial meeting four years
it leaves India with the Herculean task of negotiating an agreement which would either
keep food security programmes altogether outside WTO disciplines, or substantially
raise the permissible food subsidy, or revise the methodology for measuring the subsidy.
Even if such a deal were to be negotiated, what price would India and other developing
countries have to pay and where?
The text of the agreement makes it clear that subsidies provided under public food
stockholding programmes will not, for now, be questioned for any violation of the AoA,
it is yet possible for India to find its expanded PDS under challenge at the WTO for
violating the 1994 Agreement on Subsidies and Countervailing Measures.
When compared to the 2001 Doha Declaration on TRIPS and Public Health, an
agreement that made explicit the freedom that developing countries had under the WTO,
the Bali text does indeed look weak.

At Bali, India, along with all the other members of the trade body also had to sign up for
a comprehensive agreement on trade facilitation.
This WTO deal calls on countries to, broadly speaking, simplify customs procedures to
permit the smoother flow of goods across borders.
the developed countries will have to make minimal changes to their laws and only
modest investments, the opposite will be the case for all developing country members,
including India.
The trade facilitation is a concrete achievement, of benefit to the developed world. But
on the other side, the least developed countries and other developing countries were only
given what are called best endeavour texts, i e, promises to address their concerns in
subsidies, import tariffs and market access. This is the larger imbalance at Bali, an
imbalance which has always marked the working of the WTO.
The trade facilitation is a concrete achievement, of benefit to the developed world. But
on the other side, the least developed countries and other developing countries were only
given what are called best endeavour texts, i e, promises to address their concerns in
subsidies, import tariffs and market access. This is the larger imbalance at Bali, an
imbalance which has always marked the working of the WTO.
New Delhi signalled that this was an area where it was willing to accommodate US
interests, only to wake up at the last minute to the political costs that such a decision
would entail?

Ending VIP culture in public governance

The political executive and the permanent executive should realise they are public
servants first and work in harmony to achieve the constitutional objectives
the option to exercise the voting right to reject all contesting candidates by what is
known as the none of the above option (NOTA)
effecting the transfer of senior civil servants through a Civil Services Board
civil servants necessarily obtaining written orders from their political masters before
implementation
A view has often been expressed that such intervention by the Supreme Court to
improve the quality of public governance and democracy would amount to judicial
overreach, not warranted by the spirit of the constitutional provisions
the Union governments counsel to the effect that a draft Bill titled Civil Services
Performance Standards And Accountability Bill, 2010 was under the governments
consideration.
the reluctance, indifference and insensitivity on the part of governments cannot be
overlooked.
The main reason for such an attitude seems to be the fear of erosion of political authority
in governance

Supreme Court judgments on such matters relating to public administration should not
be seen as an issue between the political class and the permanent executive.
On the other hand, it has to be seen as an attempt to promote good governance and
quality democracy in order to achieve the rule of law and equality of opportunities.
Let it be clearly understood that public governance in a democracy is not the private
business of any one section. I
It is the collective responsibility of the government as a whole.
One of the issues highlighted in the discussions at the drafting stage was the anxiety to
avoid concentration of power in a few individuals as naked greed for power will destroy
democratic principles.
We have to realise that there is an urgent need to change the countrys administrative
culture if we have to survive as a nation
We need to get away from the leisure culture where public holidays and delays
contribute to deficiencies in the delivery of public service

National Crop Insurance Programme being Implemented from Current Rabi Season
A new central sector scheme, National Crop Insurance Programme (NCIP) has been
introduced by merging Modified National Agricultural Insurance Scheme (MNAIS), Weather
Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS)
throughout the country from Rabi 2013-14.

Administrative Approval for implementing NCIP from Rabi 2013-14 has been issued on
1st November, 2013.
NCIP has been introduced to provide financial support to the farmers for losses in their crop
yield, to help in maintaining flow of agricultural credit,
1. to encourage farmers to adopt progressive farming practices and higher technology
in Agriculture and thereby,
2. to help in maintaining production, employment & economic growth. Besides, farmers
are also benefitted due to:

coverage of indemnity for prevented sowing/planting risk and post harvest losses (due to
cyclone in coastal areas),

higher level of indemnity and more proficient basis for calculation of threshold yield,

faster settlement of claims due to provision for making 50% advance of likely claims
under MNAIS component for immediate relief to the farmers, etc.

To encourage the State Governments to implement the scheme at village/ village

panchayat level, a provision to reimburse 50% of incremental expenses on Crop Cutting
Experiments has been made in the scheme.

Unit area of insurance has been reduced to the village/village panchayat level in the
restructured scheme of National Crop Insurance Programme (NCIP).

All you want to know about Lokpal Bill

1. Lokayuktas: The new bill mandates states to set up Lokayuktas within 365 days. States
have the freedom to determine the nature and type of Lokayukta.
The old bill said the law shall be applicable to states only if they give consent to its
application.
The old bill gave power to the central government to appoint state Lokayuktas while the new
draft gives this power to the states.
2. Constitution of Lokpal: The Lokpal will consist of a chairperson and a maximum of eight
members, of which fifty percent shall be judicial members. Fifty percent members of Lokpal
shall be from among SC, ST, OBCs, minorities and women.
The older version said the chairperson shall be the Chief Justice of India or a present or
former judge of the Supreme Court or a non-judicial member with specified qualifications
(chief justice or a judge of a high court).
3. Selection of Lokpal: The selection committee will have Prime Minister, Lok Sabha
Speaker, leader of the opposition in Lok Sabha and the Chief Justice of India. A fifth member
of the selection committee for selection of Lokpal under the category of "eminent jurist" may
be nominated by the President on the basis of recommendation of the first four members of
the selection committee.
In the old bill, selection of the fifth person was left entirely to the President.
4. Religious bodies and trust: The new bill includes societies and trusts that collect public
money, receive funding from foreign sources, and have an income level above a certain
threshold, it excludes bodies creating endowments for or performing religious or charitable
functions.
The old bill expanded definition of public servant by bringing societies and trusts which
receive donations from the public (over a specified annual income) and, organisations which
receive foreign donations (over Rs 10 lakh a year) within the purview of the Lokpal.

5. Prosecution: In the new version, before taking a decision on filing a chargesheet in a case
upon consideration of the investigation report, the Lokpal may authorise its own prosecution
wing or the concerned investigating agency to initiate prosecution in special courts.
Under the old bill, prosecution of the case could be done only by the prosecution wing of the
Lokpal.
6. Central Bureau of Investigation: For independence of the CBI, in the new bill a directorate
of prosecution will be formed. Appointment of the director of prosecution will be on the
recommendation of the Central Vigilance Commissioner.
Transfer of officers of CBI investigating cases referred by Lokpal will be only with the
approval of Lokpal who will also have superintendence over CBI in relation to Lokpal
referred cases.
7. Hearing: The new bill says a government servant will get a hearing before a decision is
taken by the Lokpal.
8. Prime Minister: The Prime Minister will be under the purview of the Lokpal with subject
matter exclusions and specific process for handling complaints against the Prime Minister.
9. Investigation: Inquiry has to be completed within 60 days and investigation to be
completed within six months. Lokpal shall order an investigation only after hearing the public
servant.
Inquiry against the prime minister has to be held in-camera and approved by two-thirds of the
full bench of the Lokpal.
10. Penalty: False and frivolous complaints - imprisonment up to one year and a fine of up to
Rs.1 lakh. Public servants - imprisonment up to seven years. Criminal misconduct and
habitually abetting corruption - jail term up to 10 years.

Lokpal's journey to transparency

1966
Morarji Desai led First Administrative Reforms Commission recommends setting up of
Lokpal at Centre and Lokayukta in states to look into complaints against public functionaries,
including MPs
1968-2001
Successive governments introduce Lokpal bill eight times
2002
Justice MN Venkatachaliah led Constitution Review Commission stresses the need for
Lokpal and Lokayuktas
2004
UPA-I's national common minimum programme promises that Lokpal bill would be enacted

2005
Veerappa Moily led Second Administrative Reforms Commission reiterates that Lokpal be
established without delay
2011
Jan: UPA-II's GoM headed by Pranab Mukherjee suggests a range of anti-corruption
measures, including the Lokpal bill
Apr 5: Anna Hazare begins his fi rst fast at Jantar Mantar demanding enactment of Jan
Lokpal bill drafted by his team
Apr 9: Anna ends fast as the government forms a joint drafting committee consisting of
ministers and civil society members
Jun 21: The last meeting of the drafting committee ends with the two sides coming up with
separate drafts
Aug 4: Govt introduces a Lokpal bill, widely attacked as fl awed
Aug 8: Bill referred to standing committee
Aug 16: Anna launches second fast for Jan Lokpal bill
Dec 22: Govt re-introduces Lokpal and Lokayuktas bill
Dec 27: Lok Sabha passes bill
Dec 29: Introduced in Rajya Sabha
2012
Re-introduced in Rajya Sabha. Referred to select committee
2013
Dec 10: Anna Hazare begins fast in his village in Maharashtra, demanding urgent
introduction of a new anti-corruption law
Dec 13: Amended bill tabled in Rajya Sabha

The Lokpal shall consist of

(a) a Chairperson, who is or has been a Chief Justice of India or is or has been a Judge of
the Supreme Court or an eminent person who fulfils the eligibility specified
such number of Members, not exceeding eight out of whom fifty per cent. shall be
Judicial Members:
Provided that not less than fifty per cent. of the Members of the Lokpal shall be from
amongst the persons belonging to the Scheduled Castes, the Scheduled Tribes, Other
Backward Classes, Minorities and women.
A person shall be eligible to be appointed, (a) as a Judicial Member if he is or has
been a Judge of the Supreme Court or is or has been a Chief Justice of a High Court;
(b) as a Member other than a Judicial Member, if he is a person of impeccable integrity
and outstanding ability having special knowledge and expertise of not less than twentyfive years in the matters relating to anti-corruption policy, public administration,
vigilance, finance including insurance and banking, law and management.

The Chairperson or a Member shall not be (i) a member of Parliament or a member of

the Legislature of any State or Union territory; (ii) a person convicted of any offence
involving moral turptitude; (iii) a person of less than forty-five years of age, on the date
of assuming office as the Chairperson or Member, as the case may be; (iv) a member of
any Panchayat or Municipality; (v) a person who has been removed or dismissed from
the service of the Union or a State,
and shall not hold any office of trust or profit (other than his office as the Chairperson or
a Member) or be connected with any political party or carry on any business or practise
any profession and, accordingly, before he enters upon his office,
a person appointed as the Chairperson or a Member, as the case may be, shall, if (a)
he holds any office of trust or profit, resign from such office; or (b) he is carrying on any
business, sever his connection with the conduct and management of such business; or (c)
he is practising any profession, cease to practise such profession.
4.(1) The Chairperson and Members shall be appointed by the President after obtaining
the recommendations of a Selection Committee consisting of (a) the Prime Minister
chairperson; (b) the Speaker of the House of the Peoplemember; (c) the Leader of
Opposition in the House of the Peoplemember;
(d) the Chief Justice of India or a Judge of the Supreme Court nominated by him
member; (e) one eminent jurist nominated by the Presidentmember.
(2) No appointment of a Chairperson or a Member shall be invalid merely by reason of
any vacancy in the Selection Committee.
(3) The Selection Committee shall for the purposes of selecting the Chairperson and
Members of the Lokpal and for preparing a panel of persons to be considered for
appointment as such, constitute a Search Committee consisting of at least seven persons
of standing and having special knowledge and expertise in the matters relating to anticorruption policy, public administration, vigilance, policy making, finance including
insurance and banking, law and management or in any other matter which, in the
opinion of the Selection Committee, may be useful in making the selection of the
Chairperson and Members of the Lokpal
The President shall take or cause to be taken all necessary steps for the appointment of a
new Chairperson and Members at least three months before the expiry of the term of the
Chairperson or Member, as the case may be, in accordance with the procedure laid down
in this Act.
The Chairperson and every Member shall, on the recommendations of the Selection
Committee, be appointed by the President by warrant under his hand and seal and hold
office as such for a term of five years from the date on which he enters upon his office
or until he attains the age of seventy years,
Provided that he may
(a) by writing under his hand addressed to the President, resign his office;
or (b) be removed from his office in the manner provided in section 37.

The salary, allowances and other conditions of service of

(i) the Chairperson shall be the same as those of the Chief Justice of India;
(ii) other Members shall be the same as those of a Judge of the Supreme Court

A cure worse than the malady?

Not much will change under the new Lokpal for the Central Bureau of Investigation
except that it will have one more master
It took an eternity because of an obvious lack of political will and a fear of the unknown.
There is a need to educate the common man on what he can and cannot expect from this
new experiment.
Lokpals members. This stipulation is because of the apprehension of frivolous
complaints being made mainly to unsettle a government in position.
It will have jurisdiction over all public servants under the Union government, including
the Prime Minister.
While it will have its own investigative wing, which will conduct a preliminary inquiry
into a complaint received by it, the Lokpal can entrust such an inquiry to the Central
Bureau of Investigation (CBI) or to any other agency. Significantly, the Lokpal can
initiate prosecution through its own team.
Such action will not have to wait until the prosecution successfully establishes the
charge in a court of law..
Strict exercise of this authority will certainly be lauded by the honest citizen, currently
dismayed by the sight of corrupt public servants continuing to enjoy the fruits of their
misdeeds even after being taken to task.
But the Lokpal Bill comes as a disappointment to many of us who have been asking for
greater CBI autonomy.
Under the new dispensation, not much will change for the highest investigative agency,
except that, with the arrival of the Lokpal
There are far too many grey areas in the new law for us to be able to predict whether the
Lokpal will play an effective role.
For instance, what will the relationship between the CVC and the Lokpal be like?
There is scope for conflict between the two authorities when a CVC and the Lokpal refer
the same matter to the CBI for inquiry.
On the whole, the Lokpal cannot be viewed as anything but a cosmetic imposition on a
CBI that is craving for autonomy without any great success.
The commendable support to its cause by the Supreme Court is still in the realm of
theory, with the Union government uninhibitedly rejecting all suggestions that the CBI
be allowed to function unhampered by the executive.

Poorna Shakti Kendras to empower rural women

They will help women get pensions, voter identity and Aadhaar cards
To ensure the socio-economic development of women in rural areas, the National
Mission for Empowerment of Women is promoting a model intervention project.
At the heart of the project launched in 21 districts nationwide, including Pali in
Rajasthan is the womens centre, Poorna Shakti Kendra, established in villages, for
offering services to women at the grassroots.
The NRLM proposes to ensure universal financial inclusion by facilitating opening of
savings accounts by all SHGs, while encouraging their thrift and credit activities and
other financial services,
Under the NRLM, there shall be one rural self-employment training institute in each
district. Each will train at least 750 candidates of the below poverty level category.

Ensuring Environmental Sustainability Included in the List of Activities for CSR

Policies

Section 135 of the Companies Act, 2013 deals with Corporate Social
Responsibility (CSR).
Under this Section every company having net worth of Rs. 500 crore or more or
turnover of Rs. 1000 crore or more or net profit of rupees five crores or more during any
financial year, shall constitute a CSR Committee to recommend its activities for
discharging CSR in such a manner that the company would spend at least 2 percent of its
average net profits of the company made during the three immediately preceding
financial years, in pursuance of its CSR policies.
Section 135 of the Act has not yet come into force and as such this Ministry has no
information on the expenditure incurred on CSR activities.

India and the Government of Republic of Macedonia Signed an Agreement for The
Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect
to Taxes on Income
Republic of India and Republic of Macedonia signed the new Agreement for the
avoidance Of Double Taxation and the prevention of fiscal evasion (DTAA) with respect to
taxes on income .
Once the DTAA enters into force, it will provide relief to taxpayers from double taxation
and thereby, stimulate the flow of capital, technology and personnel between both the
countries and will further strengthen the economic relationship between the two countries.
The Salient features of this agreement are as under:

The agreement provides relief from double taxation to residents of India earning income
in Macedonia and residents of Macedonia earning income in India.

The agreement provides that taxation of dividend, interest and royalty in the source
country will not exceed 10 %.
The agreement provides for taxation of business income in the source country if the
taxpayer has a permanent establishment there
The agreement provides for taxation of capital gains from securities in the source
country.
The agreement has a limitation of benefit article which provides that the benefit of this
agreement will not be available to entity which has formed mainly to obtain benefits
under this agreement.
The agreement is based on international standard of transparency and exchange of
information and provides for exchange of information (including banking
information)concerning taxes.
The agreement has a specific provision that the requested Party shall use its informationgathering measures to obtain the requested information even though that Party may not
need such information for its own tax purposes.
The agreement provides for the representatives of the competent authority of the
requesting Party to enter the territory of the requested Party to interview individuals and
examine records.
The Agreement provides for mutual assistance in collection of taxes due in other
country.
This agreement is expected to boost economic relationship between India and
Macedonia.

The Public Procurement Bill, 2012

Highlights of the Bill
The Bill seeks to regulate and ensure transparency in procurement by the central
government and its entities.

It exempts procurements for disaster management, for security or strategic purposes,

and those below Rs 50 lakh.
The government can also exempt, in public interest, any procurements or procuring
entities from any of the provisions of the Bill.
The government can prescribe a code of integrity for the officials of procuring entities and
the bidders. The Bill empowers the government and procuring entity to debar a bidder under
certain circumstances

The Bill mandates publication of all procurement-related information on a Central

Public Procurement Portal.
The Bill sets Open Competitive Bidding as the preferred procurement method; an entity
must provide reasons for using any other method. It also specifies the conditions and

procedure for the use of other methods

The Bill provides for setting up Procurement Redressal Committees. An aggrieved
bidder may approach the concerned Committee for redressal.
The Bill penalises both the acceptance of a bribe by a public servant as well as the
offering of a bribe or undue influencing of the procurement process by the bidder with
imprisonment and a fine.
Key Issues and Analysis
The Bill exempts certain procurements from the specified process, besides allowing the
government to limit competition in certain cases. It is unclear why the government has
been given further powers to exempt any procurement or procuring entity from the
applicability of the Bill.
The Bill specifies Open Competitive Bidding as the preferred method of procurement,
without defining the term. The UN Model Law and an earlier draft procurement Bill
describe equivalent terms in detail
In cases where procurement from a particular supplier is necessary to ensure
standardisation or compatibility with existing systems, the Bill does not require
certification from a competent technical expert. Such a certification is required by
existing regulations and model laws.
In a departure from existing regulations, the Bill does not restrict use of cost-plus
contracts, which provide no incentive for efficiency.
The National Food Security Bill, 2011
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.
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 Micro Finance Institutions (Development and Regulation) Bill, 2012

Highlights of the Bill

The Bill seeks to provide a statutory framework to regulate and develop the micro
finance industry.
The Reserve Bank of India (RBI) shall regulate the micro finance sector; it may set an
upper limit on the lending rate and margins of Micro Finance Institutions (MFIs).
MFIs are defined as organisations providing micro credit facilities up to Rs 5 lakh, thrift
collection services, pension or insurance services, or remittance services.
The Bill provides for the creation of councils and committees at central, state and district
level to monitor the sector.
The Bill provides for a Micro Finance Development Fund managed by RBI; proceeds
from this fund can be used for loans, refinance or investment to MFIs.
The Bill requires the RBI to create a grievance redressal mechanism.
Key Issues and Analysis
The Bill provides safeguards against misuse of market dominance by MFIs to charge
excessive rates. It allows RBI to set upper limits on lending rates and margins.
However, there is no provision for consultation with the Competition Commission of
India.
The Bill allows MFIs to accept deposits. Unlike banks, there is no facility for insuring
customer deposits against default by MFIs. The minimum capital requirement is also

lower, though RBI may prescribe higher requirements.

The Development Fund for MFIs is to be managed by the RBI. The Bill also enables
regulatory powers to be delegated to NABARD. Both these provisions could lead to
conflict of interest.
The Bill provides for the creation of micro finance committees at central, state and
district levels to oversee the sector. However, the formations of these committees are
not mandatory.
The Bill allows MFIs to provide pension and insurance services. However, it does not
provide for regulation by or coordination of RBI with the respective sector regulators.

The Right of Citizens for Time Bound Delivery of Goods and Services and
Redressal of their Grievances Bill, 2011
Highlights of the Bill
The Bill seeks to create a mechanism to ensure timely delivery of goods and
services to citizens.
Every public authority is required to publish a citizens charter within
six months of the commencement of the Act. The Charter will detail
the goods and services to be provided and their timelines for delivery.
A citizen may file a complaint regarding any grievance related to:
(a) citizens charter;
(b) functioning of a public authority;
or (c) violation of a law, policy or scheme.
The Bill requires all public authorities to appoint officers to redress
grievances. Grievances are to be redressed within 30 working days.

The Bill also provides for the appointment of Central and State Public
Grievance Redressal Commissions.
A penalty of up to Rs 50,000 may be levied upon the responsible officer or the
Grievance Redressal Officer for failure to render services.
Key Issues and Analysis
Parliament may not have the jurisdiction to regulate the functioning of state
public officials as state public services fall within the purview of state
legislatures.
This Bill may create a parallel grievance redressal mechanism as many central
and state laws have established similar mechanisms.
Companies that render services under a statutory obligation or a licence may
be required to publish citizens charters and provide a grievance redressal
mechanism.
The Commissioners may be removed without a judicial inquiry on an

allegation of misbehaviour or incapacity. This differs from the procedure

under other legislations.
Appeals from the Commissions decisions on matters of corruption will lie
before the Lokpal or Lokayuktas. The Lokpal and some Lokayuktas have not
been established.
Only citizens can seek redressal of grievances under the Bill. The Bill does
not enable foreign nationals who also use services such as driving licenses,
electricity, etc., to file complaints.

Protecting women at workplaces

Sexual harassment cases usually have a marked power imbalance between the
victim and the accused; this may well affect the negotiation scenario, with the
victim being unable to hold her own
Given that many victims will shy away from the publicity, the procedures, the
delay and the harshness in the criminal justice system, the alternative structure
and process is welcome, but needs much alteration.
Helping victims to make informed choices about the different resolution
avenues, providing trained conciliators, a monetary compensation settlement
option, an inquisitorial approach by the Committee when indicated, naming
and shaming in grave cases, and in-camera trials are some areas of
improvement.
We need something else which legislation cannot provide the mindset to
understand the fears, compulsions, and pressures on women victims.
The legal concept and test of the reasonable man should give right of gender
way to that of the reasonable woman.

INDIA TEST-FIRES NUCLEAR-CAPABLE AGNI-III MISSILE

India on Monday test-fired its nuclear-capable Agni-III ballistic missile with a strike range of
more than 3,000 km as part of a user trial by the Army from Wheeler Island off Odisha
coast,
Indigenous device detecting early cervical cancer launched
1. Magnivisualizer is a user-friendly device costing about Rs. 10,000
2. The Union Health and Family Welfare Ministry on Monday launched indigenous
equipment that can detect early cervical cancer and be used even by healthcare workers with
basic training.

3. The device AV Magnivisualizer which was developed by the Institute of Cytology and
Preventive Oncology under the Indian Council of Medical Research (ICMR) has 95 per cent
accuracy for detecting pre-cancerous lesions.
4. it would be available in the market within the next 8-9 months
5. At present, cytology screening or Pap Smear is available only in advanced cytology
centres, Regional Cancer Centres and some medical colleges.
6. Cervical cancer takes about a decade to fully develop and is often detected when it has
spread substantially.
7. It starts from a pre-cancer stage called dysplasias and early detection and appropriate
treatment at this stage can halt its progression, resulting in decreased incidence or mortality.

By B BABLOO,
REFERENCES: NEWSPAPER-HINDU, ECONOMIC AND POLITICAL WEEKLY,
IDSA, MRUNAL SITE, ORF SITE.