Current News (Oct-Dec- Part 3)

HDFC Bank overtakes SBI in m-capitalisation The 17-year-old HDFC Bank for the first time became the most valuable lender in the country overtaking the 204-year-old State Bank of India in market capitalisation. SBI was the number one bank on all parameters of size and profits. SBI's share price has taken a severe beating after it touched a high on November 5, 2010. The bank's market capitalization which had touched Rs. 2,21,582 crore on that day is now less than half its peak level at Rs. 1,09,846 crore. The share price of HDFC Bank has continued to firm up with a market capitalisation of Rs. 1,10,200 crore. The shift in positions is ironic considering the huge differences in size. SBI with a loan book of Rs. 75,6719 crore is almost five times as big as HDFC Bank in advances. In terms of physical assets, SBI is seven times bigger with 13,929 offices as against HDFC Bank's 1,963 branches. Although HDFC Bank has more than doubled its employee base in the last four years to 55,752, its workforce is still a fraction of SBI's which stands at 2,22,933. IMF's Europe chief Antonio Borges resigns Antonio Borges, the chief of the European Department of the International Monetary Fund, has resigned from the post for personal reasons. The IMF said British-Iranian Reza Moghadam, currently IMF director of the Strategy, Policy, and Review Department, will replace Borges in the crucial job overseeing the Fund's largest borrowers. Adidas to launch $1 shoe in India Adidas, the German sportswear and equipment maker, is to launch a shoe costing one dollar a pair in India, despite the failure of a similar venture in Bangladesh. "The shoe will be sold in villages through a distribution network," Hainer said, "We want the product to be selffunding." "We sold 5,000 pairs during a test phase but we made only losses," he said. "The shoes cost us three dollars to make and we had to pay $3.50 in import duty." Under-fire James Murdoch reappointed as BSkyB director Rupert Murdoch's son James was reappointed as a director of British pay-TV giant BSkyB at the company's annual general meeting, but a fifth of shareholders refused to back him. Murdoch received the support of 76.9 percent of shareholders, with 17.8 percent opposed and 7.3 percent withheld. There have been calls for 38-year-old James to stand down from his role as BSkyB chairman since the News of the World tabloid owned by his father's firm News Corp was closed in July amid public revulsion at phone hacking. Some shareholders have said they fear the presence of James on the BSkyB board could damage the company's image because of his links to the phone hacking scandal. Standard Life Investments, which manages over six million shares in BSkyB, said it was among those who voted against Murdoch's re-election. But at the meeting, deputy chairman Nicholas Ferguson gave a strong defence of Murdoch's chairmanship and said the company had no doubts about his honesty as a result of his evidence to the parliamentary

committee. "We've worked with James for eight years, James is a highly competent man. "As for honesty, we've seen nothing that makes us question his honesty." Lanco Infra CFO Suresh Kumar quits J Suresh Kumar, the chief financial officer of power and infrastructure company Lanco Infratech, has resigned after being the most visible face of the company for about five years. "I am relocating to Mumbai and would be joining an industrial house there," Kumar said, without divulging details. He denied speculations that he may be joining Sajjan Jindal-led JSW Energy as its chief executive. His resignation is the second high-profile exit in two days in the power and infrastructure space. Lanco Infratech informed the bourses that Kumar will step down from his post on December 15. The company named T Adi Babu as the new financial controller, Philip Chacko as the new head of investor relations. The worlds population is seven billion now

Baby Nargis, the worlds seven billionth person, born in Uttar Pradesh on October 31. FDI procedures to woo global investors eases by RBI Seeking to woo global investors by easing foreign direct investment (FDI) procedures, the Reserve Bank of India (RBI) announced that transfer of shares between Indians and non-resident Indians (NRIs) would not require its permission in several key areas such as financial services. Amending the Foreign Exchange Management Regulations, the RBI said its prior permission would not be necessary where the company whose shares were being transferred was engaged in any financial service. The steps had been taken as a measure to further liberalise and rationalise the procedures and policies governing foreign direct investment in India. Shri Azad re-elected PPD Chairperson The Union Health and Family Welfare Minister Shri Ghulam Nabi Azad has been unanimously re-elected as the Chairperson of Partners in Population Development (PPD). The other members of the newly constituted Executive Committee include China as Vice-Chair, Kenya as Secretary, Tunisia as Treasurer and Mexico and South Africa as members. The PPD partner countries are from Asia, North Africa, Sub-Saharan Africa, Latin America and the Caribbean. India has chaired the PPD since 2009. Partners in Population Development (PPD) is an inter-governmental organisation created specifically for the purpose of expanding and improving South-to-South collaboration in the fields of reproductive health, population and development. PPD was initiated in 1994 at the International Conference on Population and Development (ICPD) held at Cairo, Egypt.

India to commission 3rd research station in Antarctica

India set up the first permanent research station in the South Polar region nearly after 28 years, India is all set to commission and occupy a third such station in Antarctica by March next year. After the station named Bharti becomes operational, India will join the league of selected nations that have multiple operation stations in the region. The new station is located almost 3,000 km away from the existing Maitri station which is serving the nation since its inception in 1988-89. Indian scientists will undertake cutting-edge research on geological structures and tectonics at the centre from the next year. India had in the past established Dakshin Gangotri (1983) and Maitri (1988-89) stations in Antarctica. The former has since been decommissioned after it got buried under ice and has been marked as an historic site. International Space Station is launched three astronauts by Russia Russia launched a rocket carrying three astronauts to the International Space Station (ISS), in a mission critical to keeping the station manned and to the countrys reputation as a space power. A Soyuz-FG rocket with American Dan Burbank and Russians Anton Shkaplerov and Anatoly Ivanishin aboard blasted off from Kazakhstans Baikonur space centre. They are to join the ISS current crew of American Mike Fossum, Japans Satoshi Furukawa and Russias Sergei Volkov. India re-elected as UNs International Law Commission

India was re-elected to the International Law Commission for a five year term starting from January 1, 2012. The UN General Assembly re-elected Indias Narinder Singh as a member of the Commission. A member of the ILC since 2007, Singh is currently legal adviser and Head of the Legal and Treaties Division of Ministry of External Affairs. Rice with Radiation Levels exceeding the Safety Limits In Japan, rice with radiation levels exceeding the countrys safety limits was discovered for the first time since the nuclear disaster at Fukushima in the Tsunami in early 2011. The Japanese government is considering banning all shipments from the area where it was detected. Rice with radiation above the official safety limits was detected in a sample from a farm in Fukushima city. The rice was being prepared for market. Radiation was detected in food in Japan in beef, mushrooms and green tea among other products. Japan is fighting to tackling the radiation, which spread across eastern Japan by wind and rain following the damage of Fukushima Nuclear complex in the Tsunami. Cyrus Mistry to succeed Ratan Tata Cyrus Mistry, board member of Tata Sons, will succeed Ratan Tata next year. The board of Tata Sons appointed Mistry aged 43, as deputy chairman on 23rd November. The board unanimously took a decision on the basis of the recommendation made by the selection committee set up to find a successor for Ratan Tata.

Tata Sons heads in the past: 1991-2012 Ratan Tata 1932-1991 Jehangir Ratanji Dadabhoy Tata 1932-1938 Sir Nowroji Saklatwala 1904-1932 Sir Dorab Tata 1868-1904 Jamsetji Nusserwanji Tata Kamal al-Ganzuri appointed new Egyptian PM Egypts ruling military council on 24th November tasked former Prime Minister Kamal al-Ganzuri with forming a new cabinet. Ganzuri headed the government from 1996 to 1999, under ousted President Hosni Mubarak. Born in 1933, Ganzuri served as minister of planning and international cooperation before his first tenure as Egyptian premier. He then made a name for himself by working to strengthen ties between Egypt and the World Bank and the International Monetary Fund. Justice M. Karpaga Vinayagam reappointed Chairperson of Appellate Tribunal Justice M. Karpaga Vinayagam was reappointed chairperson of the Appellate Tribunal for Electricity, Petroleum and Natural Gas on the recommendations of Chief Justice of India S.H. Kapadia. Justice Karpaga Vinayagam had first assumed office on 14th November 2008. He will serve as the chairperson of the Appellate Tribunal for Electricity, Petroleum and Natural Gas for three more years in his second term. He is entitled to a monthly salary and such allowances and other benefits as are admissible to a Supreme Court Judge. Under his supervision during his first term, the tribunal had disposed 1278 appeals/petitions/ interlocutory applications pertaining to consumer interests. He ensured that in all States, the posts of ombudsmen and the grievance redress forums became functional. Justice Karpaga Vinayagam was a judge of the Madras High Court from 1996 to 2006, following which he served as Chief Justice of Jharkhand High Court till retirement in May 2008. Kuwaits Prime Minister and Cabinet Resigned amid Accusations of Corruption Kuwaits Prime Minister Sheikh Nasser Mohammad al-Ahmad al-Sabah and the Cabinet resigned on 28th November 2011 amid accusations of corruption. Kuwaits Emir, Sheikh Sabah Al Ahmed Al Sabah, accepted the resignation. Opposition groups, liberals, Islamists, student associations and rival chiefs organised a mass rally in the Erada Square pressing for their demands. The opposition accused Sheikh Nasser of transferring public funds into his overseas bank accounts. The Kuwaiti Government denied these charges. A New Type of Cell was discovered to Boost the Ability of Human body to fight off Infections A researcher from Australias National University discovered a new type of cell, which boosts the ability of the human body to fight off infections and life threatening diseases. The cell is called Natural killer T follicular helper (NKTfh). It generates antibody responses in B cells, which are the bodys natural defence against invasion by bacteria and viruses. These Natural Killer T Cells recognise molecules known as lipids instead of just recognising proteins expressed by infectious bacteria. NKTfh cells also produce specialised structures called germinal centres, similar to those, which generated high affinity antibody responses to protein antigens.

Both these qualities give a natural boost to B cells and strengthen the human immune system and its ability to fight infection. NKTfh cells provided this boost over a very short period of time. Padma Bhushan Awardee and Renowned Sarangi Maestro, Ustad Sultan Khan died Renowned sarangi maestro and singer Ustad Sultan Khan died of kidney failure on 27th November 2011. He belonged to the Indore Gharana of singing. Born in the year 1940, Khan's first performance was at the All India Conference at the age of 11. He was taught sarangi by his father Gulab Khan. A Hindustani classical music exponent, Khan was renowned for his international collaborations and will always be remembered as the voice behind Piya Basanti Re and Albela Saajan (Hum Dil De Chuke Sanam). He was one of the members of the Indian fusion group Tabla Beat Science, with Zakir Hussain and Bill Laswell. He had performed on an international scale with Ravi Shankar on George Harrison's 1974 Dark Horse World Tour. He was awarded the Padma Bhushan, the third highest Indian civilian honour in 2010. He won numerous musical awards including the Sangeet Natak Akademi Award which he won twice. He was presented the President's Award, as well as the Gold Medalist Award of Maharashtra and the American Academy of Artists Award in 1998. India lost two other renowned musicians in 2011 with the death of Jagjit Singh and Bhupen Hazarika. Brazilian Filmmaker amd Journalist, Oscar Maron Filho died in Goa while addressing IFFI Forum Film maker and journalist from Brazil, Oscar Maron Filho died of a fatal heart atrtack on 27th November 2011 in Goa while addressing an open forum arranged as part of the ongoing International Film Festival of India (IFFI). Oscar Maron, born in Rio de Janeiro in 1955 had come to the 42nd IFFI with his documentary Mario Filho, the Creator of Crowds on the legendary sports chronicler and creator of the Brazilian football mythology. He was the director of the biggest production house, Atlantica Cinematographica in Brazil. Filhos other notable films include Bye Bye Romario, Pele and O Papa da Bola. Union Government cleared 18 Foreign Direct Investment (FDI) Proposals worth Rs.2126.20 crore The Cabinet Committee on Economic Affairs on 25th November cleared 18 foreign direct investment (FDI) proposals enabling a forex inflow of about Rs. 2126.20 crore. The major chunk of the projected FDI inflow is envisaged to come through two proposals pertaining to Dish TV India (Rs.980 crore) and Ventureast Life Fund (Rs.950 crore) which were given the go-ahead based on the recommendations of the Foreign Investment Promotion Board (FIPB). Dish TV India was premitted to increase foreign equity to produce telecommunication equipment and provide management and marketing of agrani services in the area of mobile satellite communications. The induction of fresh foreign equity will involve an inflow of Rs. 980 crore in foreign exchange. Mauritius-based Ventureast Life Fund III LLC received the government's nod to induct foreign equity in a trust to the extent of Rs. 950 crore in foreign exchange. The application of Unitech Wirless (TN) Pvt. Limited seeking to bring in fresh foreign equity worth Rs. 8,250 crore to carry out the business of providing unified access services was referred to the Cabinet Committee on Economic Affairs (CCEA) for approval in view of it exceeding the FIPB's approval ceiling pegged at Rs. 1200 crore. Mumbai-based Amar Remedies Ltd. has been permitted to issue secured redeemable non-convertible debentures along with warrants to undertake manufacturing and marketing of personal care and OTC (over the counter) products entailing a FDI inflow of Rs. 170 crore.

Actor-producer Aamir Khan chosen to be UNICEFs Ambassador in India Aamir Khan was chosen to be the latest celebrity face of UNICEF in India. On 30 November 2011, the actor will be appointed the national ambassador of the United Nations International Children's Emergency Fund. The actor-producer, known for his films like Taare Zameen Par, Ghajini, 3 Idiots and Dhobi Ghat, will support UNICEF's work in promoting child rights and nutrition of children under two years. UNICEF had earlier appointed Amitabh Bachchan and Priyanka Chopra as the face of the organisation. Bachchan was appointed a UNICEF goodwill ambassador in 2005 and has since fronted their polio eradication programme successfully. The global organisation has roped in various international celebrities to support its campaigns around the globe. Some famous faces include Hollywood actors Angelina Jolie, Jackie Chan, Mia Farrow, Vanessa Redgrave, Susan Sarandon, entertainer Shakira and football player David Beckham. Chairman of Indias Largest Microlender, SKS Microfinance, Vikram Akula, resigned Vikram Akula, founder and chairman of Indias largest and only listed microlender, SKS Microfinance, resigned from his post on 23rd November 2011. Akula who started SKS in 1998 stayed at its helm for 14 years. Independent director P. H. Ravi Kumar who has been on SKS board for the last five years was appointed interim non-executive chairman with immediate effect. Akula will stay on as a consultant till the end of March 2012 to assist with the transition. Akula was lately under tremendous pressure from the board to resign as executive chairman in the larger interest of the company, which has seen a massive decline in its financial fortunes since the controversial sacking of CEO Suresh Gurumani in early October 2010. Former Pakistani Information Minister Sherry Rehman appointed Pakistans Ambassador in the USA On 23 November 2011, former Pakistani Information Minister Sherry Rehman was designated to become Pakistans next Ambassador in the US. She succeeded Husain Haqqani who resigned over the Memogate controversy. Her selection for the post announced by the Prime Minister was perceived by analysts as a sign of consensus between the civil and military leadership of the country after a tense week that followed the Memogate controversy. Rehmans appointment was criticised by the Sunni Tehreek on the premise that she is not fair to either Islam or her country. The organisation also accused her of pursuing Jewish and American policies. A petition was also filed in the Multan bench of the Lahore High Court against Rehmans appointment as Ambassador on the plea that she had committed blasphemy. Renewable Energy Ministry entered into MoU with Swedish Governemnt for Producing Bio-fuel DJB, Indraprastha Gas Ltd (IGL) and KG Renewables Ltd on 23rd November 2011 signed a memorandum of understanding for setting up a pilot plant at the Keshopur STP to help run DTC buses on compressed biogas (CBG). The fuel will be derived from sludge, a byproduct of treated sewage at Delhi Jal Board's sewage treatment plants (STPs). The signing of the MoU was supported by the Government of Sweden and the Ministry of New and Renewable Energy, Government of India, in line with the Indo-Swedish MoU on renewable energy. The Indian and Swedish government are in a 50-50 cost sharing model of the estimated Rs. 25 crore project.
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DJB was lately facing a major problem in disposal of sludge at all its STPs and the sludge, a form of hazardous waste, had been piling up at the plants. Hence, the idea of producing biogas at several STPs emanated. The production of biofuel is to take place for the first time in India. India and the UAE signed Agreements on Security and Exchange of Prisoners India and the United Arab Emirates on 23rd November 2011 signed two key agreements. The first agreement will allow each others convicted prisoners to serve the rest of their jail terms in their native country. It is likely to benefit 1000 Indians imprisoned in different UAE jails for various crimes. The agreement has provision that any Indian sentenced in the UAE who is to be transferred to India should have a minimum of six months of jail term left and there should not be any pending case against him. The second agreement is related to security cooperation. The agreement seeks to increase cooperation on several issues like organised crime, combating terrorism and drug trafficking. India and UAE already have an extradition treaty. Former Telecom Minister Sukh Ram sentenced to 5 years jail for Telecom Scam A Delhi court on 18th November 2011 held former telecom minister Sukh Ram guilty of misusing his official position when he was a member of the PV Narasimha Rao Cabinet and giving undue favour to a cable supply company. Sukhram was awarded five years of rigorous imprisonment for accepting a bribe of Rs. three lakh and showing undue favour to a private firm in 1996. Apart from the five-year jail term, he will also have to pay a fine of Rs. 4 lakh. During his tenure as Telecom Minister in P V Narasimha Rao's Cabinet he had given a contract worth Rs. 30 crore to a private firm, Haryana Telecom Limited (HTL), to supply 3.5 lakh Conductor Kilometres (LCKM) of Polythene Insulated Jelly Filled (PIJF) cables to the telecom department. Special CBI Judge RP Pandey convicted 84-year-old Sukh Ram under various provisions of Prevention of Corruption Act and section 120 B (criminal conspiracy) of Indian Penal Code in the 15-year old case. The CBI, in its chargesheet filed in 1998, had accused Sukh Ram of allegedly showing undue favour in supply of excess quantity of cable and acceptance of Rs. 3 lakh. Two cases were filed against Sukh Ram after suitcases stuffed with cash were seized from his government residence in New Delhi and private home in Mandi in August 1996. In 2009, he was held guily of possessing disproportionate assets worth Rs. 4.25 crore. In 2002, he was awarded a three-year jail term under the Prevention of Corruption Act in an equipment supply case for causing a loss of Rs. 1.66 crore to the state exchequer. Fujitsu to open its Fourth Delivery Centre in Bangalore In November 2011, Fujitsu announced that it would expand its footprint in India by opening a new delivery centre in Bangalore. Fujitsu will now have four delivery centres in India. Fujitsu is the third largest IT services company in the world. China signed a Contract with ISA to explore Ore Deposits in Indian Ocean On 18th November 2011, China signed a contract with ISA (International Seabed Authority) to gain rights to explore polymetallic sulphide ore deposits in the Indian Ocean for the next 15 years. The exploration contract was signed between China Ocean Mineral Resources Research and Development Association and International Seabed Authority (ISA). ISA is an inter-governmental body with observer status in the United Nations. Through this contract, the Chinese association won exclusive rights to explore 10000 square kilometres of international seabed in the southwest Indian Ocean.

The Chinese association will have to give up 75 percent of the ore deposit region within 10 years before it exercises pre-emptive rights of commercially mining the remaining 2500 square kilometres as per the contract. This is the second time that China has gained the right to explore an international seabed ore deposit. In 2001, China had got the rights to mine a 75000 square kilometres area of international seabed for polymetallic nodule ore in the northeast Pacific Ocean. The Directorate of Naval Intelligence (DNI) expressed its reservations to the Indian government about the contract. It could provide an excuse for China to operate its warships and compile data on the vast mineral resources in India's backyard. SAIL & POSCO signed MoU to form JV for producing cold-rolled non-oriented products Steel Authority of India (SAIL) and South Korean steel major, Posco in November 2011 signed a memorandum of understanding to develop a feasibility study to establish a joint venture company for the production of cold-rolled non-oriented products. The MoU also provides for formation of a joint venture company with FINEX technology facility at Bokaro or any other location. The feasibility report, prepared jointly by SAIL and Posco, envisages a FINEX technologybased steel plant of around 3 million tonnes annual capacity at Bokaro and other downstream steel facilities. General Motors appoints Lowell Paddock as President and MD of India Operations General Motors announced the appointment of Lowell Paddock as President and MD of India operations with effect from 1st January 2012. He will succeed outgoing Ppresident and MD Karl Slym. Slym who led the Indian operations of GM since 1st October 2007, will move to SAICGM-Wuling in China as executive V-P. Lowell Paddock will oversee GMs operations across India, including manufacturing facilities in Halol, Gujarat, Talegaon and Maharashtra, as well as its joint venture with Chinese auto-maker SAIC. Italy's Silvio Berlusconi resigned Italy's Silvio Berlusconi resigned as Prime Minister on 12th November 2011 after he was stripped off a parliament majority due to his unsuccessful handling of the fierce financial crisis. Berlusconi's latest popularity rating was at an all-time low of just 22 percent. Silvio Berlusconi, born in September 1936 is an Italian politician and businessman who served three terms as Prime Minister of Italy. He lost his majority in parliament amid growing fiscal problems related to the European debt crisis. Economist Mario Monti to head Emergency Italian government following Berlusconis Resignation Economist Mario Monti will head an emergency Italian government following the departure of Silvio Berlusconi who resigned as Prime Minister on 12th November 2011. Monti came into prominance as the powerful competition commissioner who took on the US corporate titans General Electric and Microsoft, blocking GE's planned merger with rival Honeywell and imposing a record 497 million euro ($683 million) antitrust fine on the software giant. Asia-Pacific Economic Cooperation (APEC) Summit 2011 APEC summit 2011 was held in Honolulu, Hawaii from 8th November to 13th November 2011. Under the chairmanship of US President Barak Obama, leaders of the Asia-Pacific Economic Cooperation (APEC) forum agreed a comprehensive set of measures to increase economic growth and job creation by expanding trade and investment in the Asia-Pacific region. Leaders agreed to adopt market-driven innovation policies, reduce tariffs and eliminate other barriers to trade in environmental goods and services and improve regulatory environments to reduce unnecessary burdens on businesses.

APEC nations encouraged small and medium-sized businesses to trade in the region by exempting more lowvalue shipments from customs duties and simplifying customs requirements and documentation. They planned to launch an APEC Travel Facilitation Initiative to make travel in the region easier, faster and more secure. The US supported promotion of domestic structural reforms in APEC economies to minimize barriers to market-based incentives and to facilitate competition and opportunities for the US exporters. The leaders agreed to improve food security by extending an APEC-wide standstill on agricultural export restrictions. They vowed promotion of growth by taking concrete actions to expand economic opportunities for women in the Asia-Pacific region.