Daily News Notes: 11th to 23rd May, 2012

· Parliamentary Affairs Minister has informed that during the Budget Session, 21 Bills were passed by Lok Sabha as well as the Rajya Sabha, which included one Ordinance replacing Bill. Some of the important Bills passed were the Judicial Standards and Accountability Bill, 2012; the Indian Medical Council (Amendment) Bill, 2012; the Right of Children to free and Compulsory Education (Amendment) Bill, 2012; the North-Eastern Areas (Reorganisation) and Other Related Laws (Amendment) Bill, 2012; the Constitution (Scheduled Tribes) Order (Second Amendment) Bill, 2012; the Central Educational Institutions (Reservation in Admission) Amendment Bill, 2012; the Rajiv Gandhi National Institute of Youth Development Bill, 2012; the Copyright (Amendment) Bill, 2012; the Anand Marriage (Amendment) Bill, 2012; and the Protection of Children from Sexual Offences Bill, 2012. Further, the Minister said that the first part of this Budget Session commenced on 12 March, 2012 with the Motion of Thanks on the President’s Address. The session was mainly devoted to transaction of the financial business. The Budget (Railways) and Budget (General) for the year 2012-13, were presented. After a combined discussion on the Budget (Railways & General) for 2012-13, Demands for Grants on Account (Railways & General) for 2012-13, Supplementary Demands for Grants (Railways & General) for 2011-12 and Demands for Excess Grants (Railways & General) for 2009-10, the Demands were voted and the related Appropriation Bills were passed by the Lok Sabha. Both the Houses were in recess from 31st March, 2012 to 23rd April 2012 to enable the Standing Committees to examine the Demands for Grants of various Ministries/Departments and submit their Reports thereon. During the second part of the session (commenced on 24 April, 2012) in the Lok Sabha, the Demands for Grants for 2012-2013, in respect of the Ministries of Health and Family Welfare, Urban Development, Home Affairs and Commerce and Industry, were discussed before being voted in full and the related Appropriation Bill was passed and subsequently returned by the Rajya Sabha. The two houses considered the Finance Bill, 2012 before it was passed/ returned. The Lok Sabha also had debates on matters of Public Importance on (i) the situation arising out of widespread discontentment among the working class due to faulty Government policies; (ii) need to bring comprehensive policy changes in the Civil Aviation sector; (iii) steps taken by the Government to protect the river Ganga from pollution and the Himalayas from ruthless exploitation. Besides the above, five important matters were raised by way of Calling Attention, namely the (i) situation arising out of incident of child separation of an Indian couple by the Norway authorities; (ii) need to include Bhojpuri language in the Eighth Schedule to the Constitution; (iii) situation arising out of non-implementation of wage revision of Industrial Development Bank of India employees; (iv) situation arising out of severe drought in Karnataka; and (v) situation arising out of shortage of Drinking Water in the Country, particularly in Jhunjunu and Churu Districts of Rajasthan. Also, the Members of both the Houses of Parliament had a Special Sitting on Sunday, the 13 May, 2012 to commemorate the 60th Anniversary of the First Sitting of Parliament of India. The Houses discussed the topic “Sixty years Journey of the Indian Parliament”. A resolution was unanimously passed by both the Houses at the conclusion of the discussion solemnly reaffirming total and binding commitment of the Parliament to the ideals cherished by the founding fathers of the Constitution.
· A package of around Rs 14,000 Crore approved by the Govt in order to revamp the cooperative credit structure in India. The government has also enacted a law to ascertain democratic, autonomous and professional function of the cooperatives. Govt has sanctioned the National Policy on Cooperative aimed at providing essential support and fillip. Former President, Dr. A.P.J Abdul Kalam held that cooperative should work for inclusive growth in India and with more than 6 lakh cooperative societies and 250 million members, the Indian cooperative sector is one of the largest cooperative movements in the world and it can play a big role in India's development.
· Law & Justice Minister has informed that against the sanctioned strength of 31 Judges of the Supreme Court, including the Chief Justice of India, 26 Judges have been in position till date, leaving 5 vacancies to the filled. In the High Courts, against the sanctioned strength of 895 Judges, 632 were in position, leaving 263 vacancies to be filled. Also, as per the Supreme Court’s Court News Report, against 18,008 sanctioned strength of the District & Subordinate Courts of the State Government/ Union Territory, 14,374 were in position, leaving 3,634 vacancies to be filled.Thus the Government has been periodically reminding the Chief Justices of the High Courts to initiate proposals in time for filling the existing vacancies as well as the vacancies anticipated in next six months in the High Courts. The Minister also informed that the administrative control over the members of the district/ subordinate judiciary in the States vests with the concerned High Court and State Government under Article 235 of the Constitution of India. Regarding quicker disposal of corruption cases, the Minister of Law & Justice said that 56 courts are already functioning in the country for disposal of corruption cases. The Central Government has further decided to set up 71 additional special CBI courts. Of these, 62 CBI courts have started functioning already.
· In order to study sector-specific issues in detail the Financial Sector Legislative Reforms Commission (FSLRC) has set-up working groups on banking, securities, public debt management, payments and insurance, pensions & small savings. Each working group, chaired by a Member of the FSLRC, has involved a number of experts for interaction in their deliberations. Based on the deliberations and feedback/submissions, the FSLRC proposes to circulate an Approach Paper by October, 2012. The Commission (FSLRC) is mandated to review all financial sector legislations to bring them in harmony with the contemporaneous requirements of a modern financial sector in tune with the aspirations of the Indian economy.
· The Constitution (Scheduled Tribes) Order (Amendment) Bill, 2012 seeks to amend the Constitution to include the Medara community in the list of Scheduled Tribes in Karnataka.
· A Project on Skill Development was launched by the Government of India and the European Union here in New Delhi. This Project will be carried out in the next four and a half years. The main objective will be to support the development of a National Skills Qualification Framework (NSQF) in three key economic sectors in pilot States and to gather information about the needs of industry for skilled labour force. It also aims to increase the capacity of Policy makers and key counterparts, develop a National Vocational Qualification Framework and enhance Labour Market Analysis Process. The over all objective of this exercise will be to improve quality and relevance of the training provision and the number of certified skilled labourers in various sector of employment. The project will focus on three vocational sectors selected from the 20 high growth sectors prioritised by the Indian government. The first key sector identified under this initiative will address the automotive sector (manufacturing and maintenance) in the following states- Maharastra/Karnataka, Uttar Pradesh, and Orissa. The Prime Minister’s National Council on skill development under the chairmanship of Prime Minister has been set up as an apex institution for policy direction and review. The National Policy on Skill Development was approved on 23rd February 2009. It provides a clear vision for the country and states that: “National skill Development initiative will empower all individuals though improved skills, knowledge, nationally and internationally recognized qualifications to gain access to decent employment and ensure India’s competitiveness in the global market.”
· In a significant development towards realisation of the trans-national gas pipeline project-Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline project, the Gas Sale & Purchase Agreement was signed between GAIL and TukmenGaz at Ashgabat. The TAPI Gas Pipeline is envisaged to be 1680 Km in length (144 Km in Turkmenistan, 735 Kin in Afghanistan & 800 Km in Pakistan) with a capacity of 90 MMSCMD of gas, with 38 MMSCMD each for India and Pakistan and the remaining 14 MMSCMD for Afghanistan. The Pipeline is expected to be operational in 2018 and supply gas over a 30 years period. The source of the gas is the South Yoiotan Osman field, recently renamed Galkynysh, which has been certified by a reputed international consultant to be holding proven recoverable gas reserves of 16 trillion cubic metres. The provisions of the GSPA have been structured to protect India's commercial interests as India is at the tail end of the pipeline. Afghanistan and Pakistan have committed to the safety and security of the pipeline through the Inter-Governmental Agreement and the Gas Purchase Framework Agreement signed among the four countries in December, 2010. Presently, natural gas accounts for around 10% of India’s primary energy basket as against the world average of 24%. As natural gas is a more versatile fuel besides being environmentally benign, the Government of India has embarked on a path of increasing the use of this fuel in the country’s energy basket. The Mangala fields in Rajasthan have shattered the mis-perception that India was devoid of hydrocarbon potential. These fields, which commenced production in August 2009, are the biggest discovery since “Bombay High” in the 1970s, and at peak production will contribute about 25% of the country’s domestic oil production. British Petroleum’s recent decision to buy a 30% stake in the KGD-6 gas field for 7.2 billion dollars, one of the largest foreign direct investments in the country, is a concrete example of the tremendous opportunities offered by India’s hydrocarbon sector.
· With the mammoth aircraft carrier INS Vikramaditya slated to reach Indian shores early next year, the government is scrambling to launch the long-delayed expansion of the strategic Karwar naval base in coastal Karnataka at a cost of around Rs 13,000 crore. The Phase-II A expansion of Karwar base, which gives the country both strategic depth and operational flexibility on the western seaboard, is now being sent to the Cabinet Committee on Security for the final nod after defence minister A K Antony approved it last week. The Navy will be able to berth 32 major warships and submarines and various other ships, including 10 of the 80 fast-interceptor craft (FICs) to be acquired for coastal security force Sagar Prahari Bal, after Phase-IIA is completed by 2018-19.INS Vikramaditya, or the 44,570-tonne Admiral Gorshkov being refitted by Russia for $2.33 billion, will be inducted much before that. Karwar is India’s third major naval base after Mumbai and Visakhapatnam, while Pakistan already has five at Gwadar, Ormara, Karachi, Pasni and Jiwani. Under Phase-II, Karwar will get an airbase, armament depot, dockyard complex and missile silos, apart from additional jetties, berthing and anchorage facilities.
· Reserve Bank of India (RBI) has informed that they have formulated an action plan to adopt the Basel III norms and have issued final guidelines on Basel III Capital Regulations to all scheduled commercial banks. Basel III – Capital Regulations will be implemented from 01.01.2013 in a phased manner. In order to allow banks to prepare and plan themselves and also to minimize any unintended consequences arising out of higher capital requirements, banks have been given a long phase-in period during which the Basel III guidelines would be implemented. Capital ratios and deductions from Common Equity will be fully phased-in and implemented as on March 31, 2018. Thus, the Basel III norms will be made fully applicable with effect from March 31, 2018.
· Minister of State for Finance has said that the Economic Reforms which began in 1991 in the wake of a crisis in balance of payments was focused on macroeconomic stabilization and structural reforms. The macroeconomic outcome subsequent to economic reforms in the form of high growth, relative stability and resilience owe in large measures to the reform process. Further, the Minister said that the Reforms are an ongoing process and a number of initiatives have been taken in the last three years. In fiscal policy, which seeks to resume mandated fiscal consolidation, to obviate the main risk of overshooting of subsidies, the Budget for 2012-13 has announced the endeavor to restrict expenditure thereon to under 2 per cent of GDP. This would be facilitated by the move towards nutrient based subsidy in fertilizers and the use of unique identity based ‘Aadhaar’ system for rationalizing subsidies. Steps have been taken for expediting the passage of Direct Tax Code (DTC) Bill and evolving a consensus among stake holders in implementation of goods and services tax. A National Manufacturing Policy with the objective of raising, within a decade, the share of manufacturing in GDP to 25 per cent and creation of 10 crore jobs has been announced. Also, with a federal structure and vibrant multi-party democratic polity, reforms in India have been made possible through the process of dialogue and consensus with the different stakeholders. While some stake holders might be desirous of a fast paced reform process, reforms are possible only with broad based agreement after dialogue and discussions. Thus while reforms in India may be gradual, it is sure and has larger democratic sanction.
· Under the Centre’s Integrated Action Plan (IAP), the Union Rural Development Ministry has deputed a team of fresh IIM and IIT graduates in Jharkhand to support the senior Bureaucrats in implementation of development plans across 11 naxal-hit districts. The posts of fellows were advertised by the Union Rural Development Ministry a few months ago. Over 8,000 Engineering, Management and other degree holders responded and from amongst them 800 were shortlisted. The fellows were appointed with a beginning honorarium of Rs 50,000 a month that will be raised to Rs 75,000 after 2 months.
· Minister of State for Finance has informed that there are 93,659 branches of Scheduled Commercial Banks (SCBs) functioning in the country as on 31st March, 2012 out of which branches are in rural areas are more that the branches in semi-urban areas, which together constitute about 63 per cent of the total bank branches. In order to further expand the banking network, RBI has advised that while preparing their Annual Branch Expansion Plan, the banks should allocate at least 25 per cent of the branches proposed to be opened during a year in unbanked rural centres with population upto 9999. Further, under the “Swabhimaan” financial inclusion campaign, banking facilities have been provided to over 74,000 villages having population over 2000. With a view of achieve the objective of greater financial inclusion, the Reserve Bank of India (RBI) issued instructions to all Scheduled Commercial Banks in November 2005, to make available a basic banking ‘no-frills’ account either with ‘nil’ or very low minimum balances as well as charges that would make such accounts accessible to vast sections of population.
· Central Electricity Authority (CEA) have informed that presently Flue Gas Desulphurization (FGD) process has been installed in only three coal based Thermal Power Plants (TPPs) namely; (i) Tata Power, Trombay, (ii) Dahanu Thermal Power Station (Maharashtra) and (iii) Udipi Thermal Power Station (Karnataka) in the Country. FGD technology is normally not being used in the Indian thermal power stations as the Indian coal used in the thermal power stations has low sulphur content of the order of 0.3% to 0.5% and SOx control is being achieved through dispersion from tall stacks.
· Gujarat will house one of country’s biggest component parks as the Automotive Component Manufacturers Association of India (ACMA), the nodal agency for the country’s auto component industry, plans to set up its first supplier park over 1,100 acres of land, preferably in Ahmedabad. In a first, ACMA, which has about 700 members contributing 85% of the total output in the organised sector, will bring together automotive component manufacturers, suppliers and service providers in one location to achieve synergies and cost benefits. Auto components industry in the region is growing at 30-40%per annum.
· Minister of New and Renewable Energy has informed that the State Level Energy Parks (SLEP) upto two numbers per State are supported by the Ministry of New and Renewable Energy (MNRE) under its Special Area Demonstration Project Scheme. During the last three years and in current year, MNRE has supported SLEPs at Bilaspur in Chhatisgarh, Hamirpur and Solan in Himachal Pradesh and Srinagar in Jammu and Kashmir. The Ministry has supported 30 SLEPs in various States and UTs so far. The Energy Parks have helped create awareness and publicity about renewable energy technologies & systems and their potential benefits to the people.
· Union Health Minister has informed that as a part of e-health initiatives, his Ministry has funded State Governments to facilitate establishment of National Rural Telemedicine Network for delivery of improved Primary Health Services in rural and underserved areas. It has also initiated a scheme of networking of Govt. Medical Colleges across the country to provide platform for tele-education, training, distance learning, continuing professional development and sharing of information on healthcare, education and research. Department of Electronics & Information Technology (Deity) has funded a number of projects on development and pilot-level deployment of telemedicine solutions as part of its R&D and technology promotion activities in different States, some of which have been taken over by the States themselves. The Government recognizes that e-health initiatives can be used to expand the reach, range and quality of healthcare services being provided under the existing public health systems to provide health services to the poor citizens across the country covering far flung areas.
· Days after facing opposition from several chief ministers to the proposal of a central counter-terror agency, home minister P Chidambaram again pitched for setting up such a body saying “given the gravity of the situation, every day we delay NCTC, we increase our risk”. Emphasizing that Naxalism and insurgency in the northeast were becoming “terrorist in nature”, the home minister said, “We need to counter terrorism not just as a police operation but we need a counter-terrorism organization that mobilizes all elements of national power; diplomatic, financial, investigative, intelligence and police. Therefore, we need a counter-terrorism body like NCTC.” While three CMs—Mamata Bannerjee (Bengal), Narendra Modi (Gujarat) and J Jayalalitha (Tamil Nadu)—had rejected the concept of such a body, others had extended ‘qualified’ support seeking certain change in the existing notification of the NCTC.
· Union Health Minister has informed that under the umbrella of National Rural Health Mission (NRHM), various interventions for prevention and control of anaemia among children and pregnant women are being implemented. These steps include: [1.] Universal screening of pregnant women for anaemia as part of ante-natal care and supplementation with iron and Folic Acid tablets to all pregnant and lactating women; [2.] The Weekly Iron-Folic acid Supplementation Programme (WIFS) is recently being introduced for adolescent boys and girls in Government and Government aided schools and out of school adolescent girls in order to increase their pre-pregnancy iron stores and decrease prevalence of anaemia; [3.] Children from 6 months to 10 years are provided Iron Folic Acid (IFA) supplementation in syrup/tablet form for at least 100 days in a year; [4.] Deworming: Children under 5 years of age are provided deworming tablets/ syrups twice a year to reduce the parasite load; [5.] Distribution of Long Lasting Insecticide Nets (LLINs) and Insecticide Treated Bed Nets (ITBNs) in endemic areas to tackle the problem of anaemia due to malaria particularly in pregnant women and children; [6.] Rajiv Gandhi Scheme for Empowerment of Adolescent Girls (SABLA) to address the multi-dimentional problems of adolescent girls including under-nutrition; [7.] Mid day meal scheme; [8.] Supplementary Nutrition Programme under the Integrated Child Development Services Schemes (ICDS) by Ministry of Women and Child Development addressing pregnant and lactating women and children under 6 years of age. The cause of anaemia is multifactorial and various reasons are (a) inadequate intake of food (cereals, pulses, meat products) and vegetables rich in iron and folate, (b) poor bio-availability of iron in diet, (c) high incidence of hookworm infestation and (d) high incidence of malaria.
· Impressive gains have been registered under Janani Suraksha Yojana (JSY) since its inception. The scheme has led to an increase in institutional deliveries which have gone up from 47% (2007) to 72.9% (2009) and to the resultant decline in maternal mortality and neo-natal mortality. Maternal Mortality Rate (MMR) has declined from 254 maternal deaths per 1,00,000 live births in 2004-06 to 212 maternal deaths per 1,00,000 live births during 2007-09. Similarly, the Neo-Natal Mortality Rate (NMR) has declined from 37 per 1000 live births in 2006 to 33 per 1000 live births in 2010. The Health Ministry has also decided to get the annual transaction audit of the National Rural Health Mission (NRHM) done through the Comptroller & Auditor General of India (CAG) in all the States from the Financial Year 2011-12 in order to facilitate independent monitoring and to take corrective measures to control financial irregularities.
· Ignoring concerns expressed by child rights activists on the age of consent being increased from 16 to 18 years, the Rajya Sabha passed the Protection of Children Against Sexual Offences Bill. The bill provides for special courts and stringent punishment including life imprisonment for sexual assault against a minor but it also seeks to criminalize teenage sex, making any intercourse below 18 years of age an offence. Activists have opposed the bill saying it was retrograde and would allow enforcement authorities to harass young couples. According to a study conducted by Women and Child Development Ministry in 13 states, 33% of children said they had been sexually exploited. The bill had a provision for state governments to set a court of session to be a special court to try offences under the Act. The bill also has a provision for stringent punishment for perpetrators of crime against children.
· The Swadhar Greh scheme of the Ministry of Women and Child Development provides for financial assistance for construction of rooms/cottages/huts for the shelter of the residents and common facilities like kitchen, bathroom, etc. The grant is admissible to State Government agencies only including Women Development Corporation, Municipal Corporations and Panchayati Raj Institutions. The cost of construction would be shared by Central Government and the State Government in the proportion of 75% and 25% respectively. All the Swadhar Grehs would be monitored continuously by the District Administration through a District Women’s Welfare Committee (DWWC) for ensuring their smooth functioning.
· The Government is promoting organic farming through various schemes such as National Project on Organic Farming (NPOF), National Horticulture Mission (NHM), Rashtriya Krishi Vikas Yojana (RKVY) and Horticulture Mission for North East & Himalayan States (HMNEH). These initiatives have helped increased availability of organic produce in the country.
· 6 generic schemes being implemented by Govt for the promotion and development of Handicraft sector and for the welfare of handicraft artisans/workers including those belonging to SC & ST community on All India basis. These schemes are: [1.] Baba Saheb Ambedkar Hastshilp Vikas Yojana, [2.] Design & Technology Upgradation Scheme; [3.] Marketing Support Services Scheme; [4.] Research & Development Scheme; [5.] Human Resource Development Scheme; [6.] Handicraft Artisans Comprehensive Welfare Scheme.
· A Special Session of the Lok Sabha held on May 13, 2012 to mark its 60th anniversary. Both houses of the Parliament held day-long special sittings with party leaders recalling India's freedom struggle and the nation becoming the largest democracy in the world. On May 13, 1952 was the milestone in India's journey of democracy. Parliament house originally known as Council House and was planned initially as a part of Rashtrapati Bhavan. In 1919, under Montague-Chelmsford reforms, it was designed as Indian parliament which was designed by Sir Edwin Lutyens and Sir Herbert Baker. Various designs planned – from triangular to a Roman colesseum-like, thus paving the way for its present circular design. It has more than 200 pillars and 560-foot diameter. Its foundation stone was laid on February 12, 1921 by Prince Arthur, Duke of Connaught, third son of Queen Victoria.
· The Government reviews the performance of Regional Rural Banks (RRBs) on an ongoing basis. The Committee constituted by Government under the chairmanship of Dr. K.C. Chakrabarty on Capital to Risk Weighted Assets Ratio (CRAR) has reviewed the performance and the financial position of Regional Rural Banks (RRBs). After assessment of financial position of RRBs the Committee in April, 2010 inter-alia recommended recapitalization of 40 RRBs to improve their CRAR. In view of the recommendations of Dr. Chakrabarty Committee, an recommended amount released to 24 RRBs during 2010-12 as the release of Central Government share is subject to the release of proportionate share by concerned State Government and sponsor bank.
· The Government has taken several policy measures from time to time to increase the availability of credit to the rural areas in general and farmers in particular. These inter-alia include the following: [1.] In terms of Reserve Bank’s extant guidelines on lending to priority sector, a target of 40 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), has been mandated for lending to the priority sector by domestic scheduled commercial banks, both in the public and private sector. Within this, a sub-target of 18 per cent of ANBC or Credit Equivalent amount of OBE has been mandated for lending to agriculture sector; [2.] The Government has been setting an annual target for the flow of credit to the agriculture sector. The agriculture target for 2012-13 is fixed at Rs.5,75,000 crore; [3.] The Interest Subvention Scheme is being implemented by the Government of India since 2006-07 to make short-term crop loans upto Rs.3 lakh for a period of one year available to farmers at the interest rate of 7 per cent per annum. The Government of India has since 2009-10 been providing additional interest subvention (of 3% in 2011-2012) to prompt payee farmers; [4.] RBI has also advised banks to waive margin/security requirements for agricultural loans upto Rs.1,00,000. Also, the Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS), 2008 was implemented by the Government. This Scheme has de-clogged the lines of credit that were clogged due to the debt burden on the farmers and make the farmers eligible for fresh loans.; [5.] Banks have been advised to issue Kisan Credit Cards (KCC) to all eligible farmers and General Credit Cards (GCC) to non-farmers. A new scheme for KCC has been circulated by NABARD which provides for KCC as an ATM card which can be used at ATM/ Point of sale (POS) terminals.
· A Committee report on corporate sector participation in higher education headed by Chief Mentor of Infosys N R Narayana Murthy presented its report to the Planning Commission Deputy Chairman Montek Singh Ahluwalia. As per the Committee estimates over the next decade, India does not have ample eligible students and needs an additional capacity of 26 million seats. Some of its key suggestions are: [1.] Government should allocate land free of charge for 999 years to set up an educational institution; [2.] Land provided by the government to the private sector for setting up a new institution should have world class air connectivity and well-developed social infrastructure and such land should be usable for setting up academic facilities, incubation centres and technology parks; [3.] Visas for all academic and research visitors (faculty, student, staff, administrator, researchers) and that they should be exempt from current visa regulations of minimum salary norms ($25,000 per annum).
· On the basis of violence profile, the Central Government has, inter alia, included thirteen Left Wing Extremism (LWE) affected districts of Chhattisgarh under the Security Related Expenditure (SRE) Scheme for the purpose of reimbursing expenditure incurred by the State Government of Chhattisgarh on Anti-naxal operations.
· Minister of State (I/C) for Youth Affairs & Sports has said that as per the National Youth Policy, 2003, under the Implementation Mechanism there was a provision to create a National Youth Development Fund, through contributions, including from Non-Governmental Organizations, to be utilized for youth development activities. The Minister further stated that Income Tax exemption would be sought for contribution to the fund. However, the said fund could not be created as the Government had formulated various schemes for the youth activities/programmes.
· A joint venture AAI - ISRO GPS aided Geo Augmented Navigation system (GAGAN), satellite-based facility aimed at enhancing safety and efficiency of aircraft operations, is expected to be installed in all airports in the country by June 2013. Once it is implemented, India would be the 4^th nation in the world to have a satellite-based navigation system after USA, Japan and European Consortium. With this the human intervention will be minimized or eliminated for navigational leading both at Air Traffic Control room and aircraft cockpit, by virtue of this system. The national GAGAN Centre would be located in Bangalore. Apart from air navigation applications, GAGAN would also be helpful to other service providers like the Indian Railways, Survey of India, Geological Survey of India, and Archaeological Survey of India etc. And even to the Navy and Indian Coast Guard.
· The outward Foreign Direct Investment (FDI) comprising equity, loan and guarantee invoked by Indian parties has increased to over US$ 72 billion during 2005-06 to 2009-10. The increased outward FDI by Indian parties has been primarily driven by resource seeking or market seeking or technology seeking motives. It is also a part of corporate strategy to promote the brand image and utilization of raw materials available in the host country. An Indian party, who complies with the applicable provisions of Foreign Exchange Management Regulation is allowed to make FDI abroad under the general permission.
· Environment and Forests Minister informed that there are no cases of loss of forests because of wild fire in forests in India. She explained that the Forest Fires in the country including Odisha are generally ground fire in which dried fallen material on the forest floor is burnt and there is no loss in tree cover. State Forest Departments regularly create and maintain fire lines in forest areas. Regular patrolling by forest personnel is also done to prevent forest fires. She added that the Government of India implements a scheme “Intensification of Forest Management Scheme” (IFMS) which supplements the efforts of State Governments in protection from forest fires. In addition the Forest Survey of India (FSI) monitors forest fires on a daily basis during hot summer months using satellite data and information is sent to State to take immediate action for controlling these fires.
· J.P.Morgan held that India's liquidity deficit will decline more, hitting 1.5 lakh crore in June 2012. Further it stated that the core liquidity deficit could hit 1 lakh crore by the end of June, 2012. For this JP Morgan recommended: [1.] The deficit would only come down if there are more cuts in the CRR or more open market operations; [2.] If they want to bring down core liquidity deficit to their comfort band, RBI needs to purchase Rs 35,000 crore in bonds via OMOs by June, 2012.
· The Working Group constituted on Food Processing Sector for Ministry of Food Processing Industries for 12th Five Year Plan has recommended the launch of a new Centrally Sponsored Scheme- “National Mission on Food Processing” (NMFP) from 2012-13. Government has approved a proposal for State Government to start preparatory activities for this scheme. The Government has taken up a number of schemes including setting up of Mega Food Parks, Integrated Cold Chain, Value Addition and Preservation Infrastructure, setting up/ Modernization of Abattoirs, Technology Upgradation/ Establishment/ Modernization of Food Processing Industries, Skill Development etc. to catalyze growth in the food processing sector.
· Minister of State for Environment and Forests has informed that the International negotiations on Climate Change under the aegis of United Nations Framework Convention on Climate Change (UNFCCC) are aimed at advancing global actions to stabilise climate and address the urgent mitigation and adaptation needs of developing countries on the basis of the principles of equity and Common but Differentiated Responsibility (CBDR). In furtherance of this principle, the recently held Climate Change Talks in Durban in December 2011 have helped operationalise the Green Climate Fund, the Adaptation Committee and the Technology Mechanism which would facilitate support to developing countries in terms of finance and technology for effective mitigation and adaptation actions. She futher stated that India’s approach to forthcoming Rio+20 Conference is guided by the Rio Principles, in particular the principles of equity and CBDR. India also coordinates its approach on the relevant issues with the like minded developing country members from Group of 77 and China including those from Asia and Africa.
· In a key respite to the nation's public broadcaster, the Prasar Bharati has been relieved from paying any income tax. As per one of the amendments in the Finance Bill, 2012, “any income of Prasar Bharati (Broadcasting Corporation of India)” is now mentioned among entities who will not have to pay tax.
· The Ministry of Food Processing Industries has conducted a techno-feasibility study for establishing Strategic Distribution Centres (SDCs) at six strategic locations in the country. The SDC concept envisaged the last leg of the supply chain from where the finished products shall directly be sent for export/processing and to the retail/wholesale outlets. The SDC was also envisaged to handle fresh produce which will be sorted and graded properly to meet the customer requirements. The SDC concept has been integrated in ongoing schemes of Integrated Cold Chain, Value Addition & Preservation Infrastructure and Mega Food Parks. Integrated cold chain provides components for taking care of product requirement right from farm to market through reefer vans etc.
· The Insurance Regulatory and Development Authority (IRDA) has informed that the total insurance penetration, which is the ratio of insurance premium as a percentage of GDP has increased from 2.32 in 2000-01 to 5.10 in 2010-11. The life insurance penetration has decreased whereas the non-life insurance penetration has increased in 2010-11. The IRDA undertakes a sustained insurance education campaign under the brand name Bima Bemisaal. The campaign seeks to educate the uninsured and the insured about the need for insurance, rights, obligations of policyholders etc through various media channels.
· The Union Cabinet cleared the Micro Financial Sector (Development and Regulation) Bill, 2011, which will bring the microfinance industry under the regulatory ambit of RBI. As per the Bill all microfinance institution (MFIs) will now have a minimum net-owned funds of Rs 5 lakh and have to be registered with the RBI, which will decide the interest rate that MFIs can charge. A Micro-Finance Development Council will be set up to advise the government on formulation of policies, schemes and other measures required in the interest of orderly growth and development of the sector with a view to promote financial inclusion. However, the bill has gone soft on the issue of interest rates charged by the MFIs though the MFI sceptics were expecting the capping of the rates. This Bill was drafted in the backdrop of issues faced by the microfinance borrowers in Andhra Pradesh. Micro-lenders have been accused of aggressive lending and recovery practices and high interest rates, which attracted calls for regulation. A Micro Finance Institution can provide one or more of the following financial services involving small: [1.] Amounts to individuals or groups; [2.] Providing micro credit; [3.] Collection of thrift; [4.] Remittance of funds; [5.] Providing pension or insurance services; [6.] Any other services as may be specified.
· University Grants Commission (UGC) has informed that the names of 24 personalities have been permitted by UGC to conduct research, under the scheme of Epoch Making Social Thinkers of India, namely Mahatma Gandhi, Pt. Jawaharlal Nehru, Mahatma Buddha, Dr. B.R. Ambedkar, Shri Aurobindo Ghosh, Dr. K.R. Narayanan, Swami Vivekanand, Dr. Zakir Hussain, Shri Guru Nanak Dev, Smt. Indira Gandhi, Netaji Subhash Candra Bose, Pt. Madan Mohan Malviya, Gurudev Rabindra Nath Tagore, Sardar Valabhbhai Patel, Shri Shankar Dev, Shri Sukafa, Shri Ramakrishna Paramhans, Shri Adi Shankaracharya, Shri Lala Lajpat Rai, Dr. S. Radhakrishnan, Shri Rajiv Gandhi, Pt. Iswara Chandra Vidyasagar, Shri Raja Ram Mohan Roy and Swami Dayanand Saraswati.
· Minister of State for HRD has informed the various ongoing scheme on education in Naxal Affected Areas: [1.] Sarva Shiksha Abhiyan (SSA) is under implementation in Left Wing Extremism (LWE) districts. From the year 2011-12, Planning Commission has increased the number of LWE districts from 35 to 60. [2.] Rashtriya Madhyamic Shiksha Abhiyan, a centrally sponsored scheme has been under implementation since 2009-10 with the vision to make secondary education of good quality available, accessible and affordable to all young persons in the age group 15-16 years with priority given to SC, ST , Minority concentration areas including naxal affected areas. [3.] Saakshar Bharat, the new variant of National Literacy Mission has been launched on 8^th September, 2009 with the prime focus on adult non-literate women of rural areas. A district which had adult literacy rate of 50 percent or below, as per 2001 census, is eligible for coverage under the Saakshar Bharat programme. All 35 Naxal Affected districts are eligible for this scheme.
· The government has amended Schedule-I and Schedule-II of the Mahatma Gandhi National Rural Employment Guarantee (MGNREG) Act, 2005. There is now an expansion of the scope of activities permitted under the MNREGS by including 30 new activities. These will supplement agricultural and animal husbandry operations along with flood management and sanitation-related works in rural India. The amendment will provide for inclusion of vermi-composting, liquid bio-manures, creation of poultry and goat shelters, construction of pucca floors for cattle, development of public water bodies for fisheries, construction of fish drying yards and rehabilitation of minor, sub-minor and field channels for irrigation among the permissible activities to benefit the agriculture sector. The amendments into the Schedule, which do not require the approval of Parliament, also include sanitation-related activities like construction of soak pits and recharge pits, individual household latrines, toilet units in schools and anganwadis as another set of permissible activities. The move is expected to supplement government's Total Sanitation Campaign in rural areas. In another key change, the government has empowered Gram Panchayats to set the priority of the works that should be undertaken in respective Panchayats, by doing away with the existing criteria where the priority of works was fixed from the Centre. The decision was taken at a suggestion by CM of Bihar that had highlighted the difficulty of the state government in undertaking flood management-related works as they fell way down the priority list fixed by the Centre.
· The percentage of Gross Domestic Product (GDP) spent on education during 2009-10 is 3.85%. As per the figures published by UNESCO Institute of Statistics (UIS) in its publication titled, “Global Education Digest 2011”, contribution of education in Gross Domestic Product in some of other countries were U.S.A. (5.5.%), U.K. (5.4%), Japan (3.4%), Australia (4.4%), Russian Federation (4.1%), Egypt (3.8%), Azerbaijan (2.8%), Tajikistan (3.5%), Hong Kong SAR of China. (4.5%), Thailand (4.1%) , Peru (2.5%), Pakistan (2.7%), Bangladesh (2.4%), Ethiopia (5.5.%), United Republic of Tanzania (6.8%) and Zambia (0.8%) during 2009.
· Planning Commission has indicated a tentative Central Sector Plan Scheme “Implementation of National Water Mission” for the 12th Five Year Plan. The National Water Mission under the National Action Plan for Climate Change envisages the following five goals : Goal 1: Comprehensive water data base in public domain and assessment of the impact of climate change on water resource; Goal 2: Promotion of citizen and state actions for water conservation, augmentation and preservation; Goal 3: Focused attention to vulnerable areas including over-exploited areas; Goal 4: Increasing water use efficiency by 20%; Goal 5: Promotion of basin level integrated water resources management.
· A yearlong Joint Indo-Bangla Celebrations to commemorate the 150th Birth Anniversary of Rabindranath Tagore concluded in New Delhi on May 7, 2012. For this celebration, a National Committee (NC) under the chairmanship of the Hon’ble Prime Minister of India Dr. Manmohan Singh was set up with the mandate to frame policies and lay down guidelines for the celebrations during 2010-2012. Also, a National Implementation Committee (NIC), under the chairmanship of Hon’ble Finance Minister was constituted to finalise the programmes and events for the National Commemoration. Some highlights of the National Commemoration are: [1.] Tagore Commemoration Grant Scheme (TCGS) was launched by the Ministry of Culture to provide financial assistance to Not-For-Profit organisations for holding cultural programmes to commemorate the 150th Birth Anniversary of Rabindranath Tagore; [2.] Revamping of Multipurpose Cultural Complexes (MPCCs) scheme and replacing it with “Scheme for Tagore Cultural Complexes”; [3.] Instituting “Tagore Award for Promotion of Universal Brotherhood”; [4.] A dedicated website launched by Ministry of Culture Govt of India which provides details related to projects, schemes launched or planned so far and programmes or events envisaged as a part of the National Commemoration; [5.] Publication of Tagore’s works and contributions. Bangladesh held that it will celebrate the 100th year of Tagore getting the Nobel Prize for Gitanjali in 2013.
· The Election Commission of India signed a Memorandum of Understanding with the Washington based International Foundation for Electoral Systems (IFES) at New Delhi for developing, promoting and strengthening India International Institute of Democracy and Election Management, IIIDEM. IFES has been involved in election assistance and democracy promotion in around 100 countries across the world. IIIDEM, which was launched in the middle of June last year, is already offering courses to international election practitioners and managers at their request, besides training domestic election officials at regular intervals. It proposes to hold special courses for SAARC Election Commissions and make global offer of election management courses under the ITEC programme of Ministry of External Affairs.
· Civil Aviation Minister has informed that M/s KPMG was engaged to conduct pre-feasibility study for the corporatisation of Airports Authority of India’s Air Navigation Services (ANS) in December 2007, based on the findings of various Committees, which includes Tata Committee (1976), Justice Lahoti Committee (1996), Julka Committee (1997), Naresh Chandra Committee (2003) and the Roy Paul Committee (2006). The Ministry of Civil Aviation had accepted the recommendation of M/S KPMG for hiving of ANS as a separate entity. The key recommendations of the study were: [1.] Consolidate ANS under member (ANS), as part of AAI; [2.] Segregate ANS from AAI and establish it as a separate Government of India enterprise. The new ANS entity shall have stringent performance parameters and monitoring mechanism.
· The legislation to protect children below 18 years from sexual abuse became a reality with LS passing the bill earlier cleared by RS. Parliament’s nod came with the decision to keep the age of consent at 18 years despite opposition from child rights activists. The Bill provides for special courts for speedy trial of cases and up to life term for the offenders.
· Minister of Social Justice and Empowerment has informed that the National Council for Older Persons has been reconstituted and renamed as National Council of Senior Citizens (NCSrC). The NCSrC will advise Central and State Governments on the entire gamut of issues related to welfare of senior citizens and enhancement of their quality of life, with special reference to policies, programmes and legislative measures; promotion of physical and financial security, health, and independent and productive living; and awareness generation and community mobilization.
· Minister for Women and Child Development has informed that the scheme of Integrated Child Development Services (ICDS) was initiated in 1975 with 33 projects and 4891 Anganwadi centres (AWCs). The scheme was gradually universalised, in phases, and finally in 2008-09 with approved 7076 projects and 14 lakh AWCs. In order to address various programmatic, managemental and Institutional reforms as well as to meet administrative and operational challenges, the Ministry of Women and Child Development has formulated a comprehensive proposal on ICDS Strengthening and Restructuring which inter-alia include addressing the gaps and challenges with: [1.] special focus on children under 3 years and pregnant and lactating mothers; [2.] strengthening and repackaging of service including, care and nutrition counseling services and care of severely underweight children; [3.] focus on Early Childhood Care and Education (ECCE); [4.] models providing flexibility at local levels for community participation; [5.] allocating adequate financial resources for other components including Monitoring and Management and Information System (MIS), Training and use of Information and communication technology (ICT); [6.] to put ICDS in a mission mode.
· The Programme Evaluation Organization of the Planning Commission conducted an evaluation of ICDS through National Council for Applied Economic Research (NCAER) during 2009. Some of the key findings in the draft report are as below: [1.] About two thirds (64%) of the children received supplementary nutrition (may not be for all 300 days); [2.] Against the norm of 25 days a month, on an average they received food for 16 days in a month; [3.] Overall 42.5% of sampled AWCs have their own buildings, 17.4% are in rented buildings, 17.3% are located in primary schools and other 22.9% are running from AWW/AWH house, panchayat and community buildings; [4.] Country-wide, a total of about 87% AWCs were found to have drinking water supply; [5.] 69% of sampled AWCs have functional baby weighing scale; [6.] About 94% of sampled AWWs reported to have been adequately trained to conduct pre-school education; [7.] Average attendance of no. of children 3-6 yrs based on three sudden visits by the Research Team was found to be 14; [8.] Intended behavioural changes of varied intensity have been observed in Kerala, Himachal Pradesh, Andhra Pradesh, Tamil Nadu, Maharashtra, West Bengal and Jharkhand; [9.] ICDS has also positively influenced formal school enrolment and reduction in early discontinuation among beneficiaries; [10.] ICDS programme has impacted the immunization coverage, especially measles vaccination.
· Minister of Panchayati Raj has informed that the mechanism of efficient and simple financial management system and on-line transfer and tracking of funds is presently being implemented in the Backward Regions Grand Fund Scheme administered by the Ministry of Panchayati Raj. The Guidelines of the Scheme, inter-alia, stipulate that all funds will be transferred to the Consolidated Funds of State Governments.
· Parliament gave its nod to the amendments to Copyright Act, with the Lok Sabha unanimously passing the Copyright Act (Amendment) Bill. The Bill designates the authors as the copyright owners which can’t be assigned to producers contrary to the current practice. Noting that producers pocketed the royalties while artistes were left in the lurch, HRD minister Kapil Sibal said the new law would help artistes in their old age when they would reap the rewards of work done during their professional life. Sibal drew the attention of the House to the deplorable condition to which shehnai exponent Bismillah Khan and music composer Ravi had sunk in their old age, saying they were unable to even pay their house rent and meet medical expenses. The Act makes it mandatory for radio and TV broadcasters to pay royalty to the owners of the copyright each time a work of art is broadcast. The amount of royalty would be decided by the Copyright Board rather than left to the whims of companies. The Act bans the bringing out of cover versions of any literary, dramatic or musical work within five years of their original recording. Sibal said the Bill adequately took care of the piracy issue.
· Union Labour & Employment Minister has informed that the Government has enacted Equal Remuneration Act, 1976 which provides for payment of equal remuneration to men and women workers for the same work or work of similar nature without any discrimination. However, the difference in the earning of male and female workers at the industry and occupational level is mainly due to seniority/length of service, difference in output etc. He further informed that there is a concept of National Floor Level Minimum Wage (NFLMW) which was mooted on the basis of the recommendations of the National Commission on Rural Labour (NCRL) in 1991. The NFLMW has no statutory backing, the State Governments are persuaded to fix minimum wages such that in none of the scheduled employments, the minimum wage is less than the NFLMW. Also, to safeguard the interest of workers engaged in unorganized sector, Government has enacted The Minimum Wages Act, 1948, Plantation Labour Act, 1951, The Contract Labour (Regulation & Abolition) Act, 1970, The Inter State Migrant Establishment Workmen (Regulation of Employment & Conditions of Service) Act, 1979, The Equal Remuneration Act, 1976, The Building and Other Construction Workers(Regulation of Employment and Condition of Service) Act, 1996 etc. for the welfare of unorganized Sector. Besides this, the Government has enacted the Unorganised Workers Social Security Act, 2008 with a view to providing social security to unorganized workers. Further, the National Social Security Fund for unorganized sector workers has set up with initial allocation of Rs. 1,000 crore. This fund will support schemes for weavers, toddy tappers, rickshaw pullers, bidi workers etc.
· Minister of State for Commerce and Industry has informed that the Competitiveness Industrial Performance (CIP) index assesses industrial performance using indicators of an economy’s ability to produce and export manufactured goods competitively. The CIP index comprises eight indicators which include industrial capacity, manufacturing export capacity , economy’s share in world’s manufacturing value added, economy’s share in world’s manufactured exports, industrialization, intensity and export quality. Though India’s ranking remained unchanged at 42nd out of 118 countries, the Competitiveness Industrial Performance index for India has improved. The CIP index is based on criteria developed by ‘United Nation’s Industrial Development Organization (UNIDO). The Minister added that the Government announced the National Manufacturing Policy in November, 2011 with the objective of enhancing the share of manufacturing in Gross Domestic Product (GDP) within a decade.
· The price of petrol has gone up by more than Rs 7.50 a litre across the country. The increase, the steepest-ever, came a day after Parliament’s Budget session ended. After adding state taxes, petrol will cost Rs 73.18 a litre in Delhi, Rs 78.58 in Mumbai. The government seems to be testing the patience of the middle class. But the timing of the shocker of a raise, after seven-and-a-half months, seems political. The next political challenge, elections in BJP-ruled Gujarat and Himachal, are in November and the Congress is hoping the angst will die down by then or better still, the middle class will come to terms with the ‘new normal’ in petrol prices.
The sharp increase in petrol prices will have a marginal impact on inflation but any increase in diesel and cooking gas prices may hurt, experts said.
· The Minister for Housing and Urban Poverty Alleviation has said that in pursuance of the Government’s vision of creating a Slum-free India, ‘Rajiv AwasYojana’ (RAY) has been launched on 02.06.2011. The Phase I of Rajiv AwasYojana is for a period of two years from the date of approval of the scheme. The Scheme will provide financial assistance to States that are willing to assign property rights to slum dwellers for provision of decent shelter and basic civic and social services for slum redevelopment, and for creation of affordable housing stock. Fifty percent (50 %) of the cost of the Yojana would be borne by the Centre, including operation & maintenance of assets created under this scheme. For the North Eastern and Special Category States, the share of the Centre would be 90% including the cost of land acquisition, if required. The Scheme is expected to cover about 250 cities, across the entire country by the end of 12th Plan (2017). She said, to enable the urban poor to obtain credit for home loans at affordable rates, the existing Interest Subsidy Scheme for Housing the Urban Poor (ISHUP), which provides 5 % interest subsidy on loans up to Rs. One lakh, has also been dovetailed with RAY.
· The Ministry of Health & Family Welfare, Government of India has initiated a school-based screening program for diabetes on pilot basis in six Districts. The screening is primarily focused on school children of 1st to 10th standards in the age group of 5 to 15 years. The National School Health Programme (NSHP) under the National Rural Health Mission (NRHM) as the public sector programme specifically focused on school going children and adolescents in the 6-18 years age group enrolled in Government and Government aided schools is already in place. The NSHP includes biannual health service provision through screening, health care and referral for disease, deficiency and disability. Several studies have contributed to overwhelming evidence that indicates the increase in type 2 diabetes amongst children and adolescents. Major risk factors of diabetes are un-healthy diet, obesity and lack of physical exercise.
· The Ecological Sequestration Trust (Test), a UK-based charity, has selected Surat among three cities in the world to be developed as ‘global cities’. An island in north China and Kigali in Rwanda are the other two. Now, if all goes as per plan, the city may well emerge as Singapore of India.
· Minister of State for Commerce and Industry has informed that there is no fixed criteria for according national status to any particular product/commodity. However, a proposal to declare tea as the national drink of India was earlier examined during 2006 in consultation with the Central Ministries/Departments concerned and the States/UTs. The matter was not pursued further as objections were raised by some of the State Governments and it was felt that coffee is a competing beverage and both have respective market shares and declaring one particular beverage as a ‘national drink’ will likely be at the cost of the other.
· Minister of State of Home Affairs has informed that the contraband smuggled on Indo-Bangladesh border includes Fake Indian Currency Notes, readymade garments, food grains, cattle, cigarettes and medicines, narcotics (including phensedyl syrup). He said that the Government has adopted a multi-pronged approach for effective domination and to check illegal activities including infiltration on Indo-Bangladesh border. The steps taken in this regard inter-alia includes: [1.] Effective domination of the border by carrying out round the clock surveillance of the borders by patrolling nakas (border ambushes). Riverine segments of IB are being patrolled and dominated with the help of water crafts/speed boats/floating Border Out Posts (BOPs) of BSF water wings; [2.] Construction of fencing, patrol roads, floodlighting and additional Border Out Posts; [3.] Induction of force multipliers and Hi-Tech surveillance; [4.] Up-gradation of intelligence network and co-ordination with sister agencies. Further he said that there are reports of Bangladeshi nationals having entered into India without valid travel documents. As entry of such Bangladeshi nationals into the country is clandestine and surreptitious, it is not possible to have a correct estimate of such illegal immigrants living in different states in the country, he said.
· In what is a first by an Indian PM in 25 years, Singh will visit Myanmar for three days, starting May 27. He will hold talks with Myanmarese President Thein Sein and pro-democracy leader Aung San Suu Kyi. The visit is being talked about as one of the most important ones undertaken by Singh considering the geostrategic significance of Myanmar, a resource rich country, where China alone accounts for more than 70% of FDI in the hydrocarbon sector. In the past, Suu Kyi has always urged New Delhi to play a more active role in democratization of Myanmar, insisting that India should not be driven purely by commercial considerations.
· Minister of State for Finance has informed that India’s sovereign debt is usually rated by six major Sovereign Credit Rating Agencies (SCRAs) viz. Moody’s Investor Services, Standard and Poor’s (S&P), Dominion Bond Rating Service (DBRS), Fitch Ratings, Japanese Credit Rating Agency (JCRA) and Rating and Investment Information (R&I). The assessment and ratings given by the various agencies differ from each other. In June 2011, DBRS upgraded the outlook on India’s rating and also appreciated the Government’s efforts towards fiscal consolidation. In December 2011, Moody’s upgraded the rating on India’s sovereign debt in four segments. S&P, in its latest rating of India’s sovereign credit rating on 25th April 2012, affirmed its BBB (-) long term and A-3 short term sovereign rating of India. However, all the SCRAs have note favourably commented on India’s fiscal deficit and debt. In their April 2012 report, S&P had revised the outlook on the long-term rating on India from Stable to negative. In this regard, Government is taking a number of measures, including steps to restrict the expenditure on central subsidies to under 2% of GDP in 2012-13 and to further bring it down to 1.75% of GDP in the next three years. In addition, Government has made a determined attempt to come back to the path of fiscal consolidation by reducing the budgeted fiscal deficit to 5.1% of GDP in BE 2012-13 from 5.9% of GDP in RE 2011-12.
· Minister of Defence has said that as per report published in March 2012 by the Stockholm International Peace Research Institute (SIPRI), India has become the largest importer of arms during 2007-11 and accounted for 10% of the global arms imports as compared to China's share of 5%. He informed that the procurement of arms and equipment for the Armed Forces is a continuous process based on threat perception, operational challenges and available resources. The process is based on a 15 year Long Term Integrated Perspective Plan (LTIPP), five year Services Capital Acquisition Plan (SCAP) and Annual Acquisition Plan (AAP). Shortage of any weapons, is adequately addressed through indigenous production and import.
· India and Malaysia inked a DTAA (Double Taxation Avoidance Agreement) to encourage bilateral trade and alleviating exchange of tax information. The objective of the agreement is to evade incidence of double taxation on income by determining the taxing rights b/w countries.
· Delhi Metro Rail Corporation Ltd. (DMRC) has informed that the following steps have been taken to reduce human dependence in Operation of Metro Rail: [1.] Automatic Train Operation (ATO) mode in running of metro trains has been implemented on Line-2 and now being implemented on Line-5 & Line-6 of Delhi Metro; [2.] Automatic Ticket Vending Machines have been installed at seven metro stations; [3.] DMRC has planned to install Platform Screen Doors (PSD) at six key metro stations to do away the requirement of Customer Facilitation Agents at the platforms.
· The Ministry of Science and Technology, during the last three years, has signed Inter-Governmental Science and Technology (S&T) Agreements with 4 countries namely, Kuwait, Georgia, Singapore and Saudi Arabia for undertaking joint research and development programmes.
· The ocean-atmospheric phenomenon called Double Inter Tropical Convergence Zone (DITCZ) investigated by the Researchers at the National Institute of Oceanography, Goa, have investigated over the Western Indian Ocean, for its meteorological characteristics. The study derives significance as former studies found weak signals of the DITCZs over the Indian Ocean in November. Double ITCZs are significant climatological features of the tropics because of their repeating occurrence at certain longitudes and during certain seasons. About 10 degrees north or south of the equator there forms a region of convective activity which is called the Inter Tropical Convergence Zone (ITCZ). Sometimes, on the opposite side of the equator, another ITCZ forms which is short-lived (November-December) in the western Indian Ocean and this phenomenon is called Double Inter Tropical Convergence Zone (DITCZ). The most identifiable double ITCZ is found over the eastern Pacific during boreal spring, mainly in March and April. Weak signals of a double ITCZ exist over the Indian Ocean during November, but only infrequently. Over the western and central Pacific, signatures of a double ITCZ can often be found, but mostly during June through September. No DITCZ is found over the Atlantic Ocean.
· Ministry of Home Affairs has sent a detailed advisory to all State Governments/UTs, wherein they have been, inter-alia, advised to adopt appropriate measures for swift and salutary punishment to the persons found guilty of violence against women and children, improve the quality of investigations, minimize delays in investigations of crime against women, set up ‘Crime against Women Cells’ in districts, advised to undertake gender sensitization of the police personnel, special women courts and initiate steps for security of women working in night shifts at call centers. Majority of the States/UTs have established ‘Women Cells’. Some States/UTs have also set up ‘All Women Police stations’ at district level and ‘Mahila/children help desk’ at police station level. As per Seventh Schedule, ‘Police’ and ‘Public Order’ are State subjects under the Constitution, and as such the primary responsibility of prevention, detection, registration, investigation and prosecution of crimes, including crimes against women lies with the State Governments and Union Territory Administrations. The Delhi Police has issued orders directing the BPOs, Corporate and Media Houses for taking certain steps for the safety and security of the women employees like ensuring that they do not travel alone in the cab and are dropped right at their door steps and accompanied by Security Guards.
· Minister of State of Home Affairs has said that there is no direct evidence to suggest that naxalites in the country are directly getting financial assistance from foreign countries. However, the possibility of some front organizations of CPI (Maoist) clandestinely getting foreign funds cannot be ruled out. Further he said that the main source of funds for the Maoists include extortion from contractors engaged in carrying out infrastructure/development works, businessmen, industries, Tendu patta constractors, government servants etc. In addition, they rob banks and public/private property to augment their finances. Also, Law and Order being a state subject, such matters are dealt with directly by the State Governments concerned. The Central Government also closely monitors the situation and supplements the efforts of the State Govts. Crimes related to fund collection by naxalites, etc. are registered, investigated and prosecuted by the State Governments.
· The Department of Personnel and Training (DoPT) has invited for the assignment of ‘Self Evaluation Study’ of India’s status of compliance of provisions of the United Nations Convention Against Corruption (UNCAC) and preparation of ‘Country Response’ to the ‘Comprehensive Self Assessment Checklist’ (SACL) for submission to the United Nation’s Office on Drugs and Crime (UNODC) under the UNCAC review mechanism. Thus, once completed, the study would be submitted to the United Nations Office on Drugs and Crime. The United Nations Convention against Corruption (UNCAC) is a universal legal instrument to deal with the menace of Corruption including corruption at the global level. This Convention was adopted by the UN General Assembly on 31st October 2003 and entered into force on 14th Dec 2005. The Convention and its provisions are legally binding on countries which have acceded to it or have ratified the same. India signed the UNCAC on 9 th Dec 2005 and ratified the same by deposit of instrument of ratification on 9 th May 2011 with the Secretary General of the United Nations. With ratification India has become obligated to implement the provisions of the Convention after acceptance of the instrument of ratification. But all provisions of the UNCAC are not mandatory, thus providing many loopholes in its implementation. Also, while the Prevention of Corruption Act does provide for measures to deal with corrupt government officials and public servants, it is silent on corruption in the private sector. There are at present 160 States Parties to the UNCAC who have either ratified or acceded to the UNCAC, including India.
· Minister of State for Health & Family Welfare has informed that his Ministry is committed to strengthen effective implementation of the Pre-Conception and Pre-Natal Diagnostic Techniques Act to address the declining male female sex ration in the country. He said that the Government of India has notified important amendments in rules under the Act, including Amendment to provide for confiscation of unregistered machines and further punishment under the Act, and Amendment to regulate the use of portable ultrasound equipment and services offered by mobile genetic clinics. Besides above, to bring about change in mindset of gender discrimination in society, support is being provided for Behaviour Change Communication campaign in State’s PIPs under NRHM.
· At end-December 2011, India’s external debt stock stood at US$ 334.9 billion recording an increase of 9.4 per cent over the level of US$ 306.1 billion at end-March 2011. The rise in external debt is largely attributed to higher commercial borrowings and short term debt.
· The per capita income (Rs 60,972 at current prices) may have gone up by 14% during the last financial year, but the debt burden on every Indian — in the form of the government’s debt — went up by 23%, latest official estimates show. According to finance ministry data, the per capita debt in India was estimated at nearly Rs 33,000 at the end of March 2012, compared to a little over Rs 26,600 a year ago, led primarily by internal as well as external loans. While companies as well as governments avail of external loans, internal debt is mainly on account of government borrowings, either from the market or even from individuals in the form of small savings schemes such as the National Savings Certificate or Public Provident Fund. A sharper increase in the overall debt stock was on account of high government borrowings to fund a large subsidy bill and compensate for the shortfall in revenue. In case of external debt, the private sector has played a major part as it has resorted to raising foreign loans at a cheaper cost, including the hedging charges. Although India’s overall debt position may have come under the lens of rating agencies, compared to other major economies, the government appears to have a much lower stock of loans. According to IMF’s estimates, total debt as a proportion of GDP is estimated at around 67% for India, which may be the highest among the four BRICS countries but much better than major economies, leave alone the PIGS (Portugal, Ireland, Greece and Spain). But a high debt level also comes with a high interest burden. The government has budgeted to pay Rs 2.75 lakh crore, or 18.45% of the total expenditure as interest payments. For long, economists have asked the government to cut down on interest outgo and subsidies so that more resources are available for physical and social infrastructure.
· Reserve Bank of India (RBI) has issued circulars under the Foreign Exchange Management Act, 1999 (FEMA) and also from regulatory perspective, advising the NBFCs to obtain its prior permission before opening branch/office/joint venture/subsidiary/representative office abroad. Broadly, the following conditions have been prescribed by RBI in this regard: [1.] Investment in non-financial services sectors shall not be permitted; [2.] Direct investment in activities prohibited under FEMA or in sectoral funds will not be permitted; [3.] Aggregate overseas investment should not exceed 100% of the Net Owned Fund (NoF); [4.] Overseas investment should not involve multi layered, cross jurisdictional structures; [5.] The level of NPA of NBFC should not be more than 5% of the net advances; [6.] NBFC shall comply with the KYC norms.
· India and China held discussions and shared their experiences in the areas of civil services, capacity building, health care of Central Government employees, public service delivery, pension benefits and public sector reforms. Both the sides also adopted the Plan of Action for exchange of cooperation. Earlier, both India and China had signed the Memorandum of Understanding (MoU) on cooperation in the field of Civil Services, Personnel Management and Public Administration on 27th May,2010.
· After missing several deadlines, the Yamuna Expressway is finally set to open around June 15. The state government has asked Jaypee Group to complete work on the e-way by May 31 after which UP chief minister Akhilesh Yadav will inaugurate it. The 165 km-long expressway is being constructed between Greater Noida to Agra. Before the Bhatta-Parsaul agitation took place on May 7, 2011, the Yamuna Expressway Authority had announced that its work in Gautam Budh Nagar district would be completed by June end. However, the bloody clash between farmers and police disturbed the process.
· India is on the verge of losing its tag of a trillion dollar market capitalization country because of the weakening rupee and the slide in the stock market. On Wednesday, the Rupee slipped to 56.22 intra-day as euro fell to 20-mth low against dollar on Greek exit fears. The trend persisted in the absence of any major flows despite intervention by the Reserve Bank of India. Forward market quotes indicate rupee could slide to 58 in six months, or beyond 59 in a year. However, any depreciation beyond this level could trigger panic and lead to a currency crisis, which would force the central bank to come out with concerted efforts to support the rupee. With the rupee breaching the 56-level against the dollar, chief economic advisor Kaushik Basu said on Wednesday the exchange rate problem is a “bit of a bubble” and has nothing to do with domestic policies. He pointed out that currencies of several emerging economies — like South African rand, Brazilian real and Mexican peso — all are moving very much like the rupee. The CEA also said that the rupee is not the worst performing currency. Benefits of weaker rupee: Imports are slowing down, Import substitution picking up, Domestic tourism gets preference over overseas, Five star hotels make money and Exporters get a fresh lease.
· Minister of Overseas Indian Affair has informed that a comprehensive Social Security Agreement has been signed by the India with Germany in October, 2011. Earlier, an Agreement on Social Insurance was signed with Germany in 2008 in respect of Posted Workers. India has so far signed bilateral Social Security Agreements with Belgium, France, Germany (Social Insurance for posted workers & Comprehensive SSA), Switzerland, Luxembourg, The Netherlands, Denmark, Republic of Korea, Hungary, The Czech Republic and Norway. India has also signed a Labour Welfare Agreement with Qatar, United Arab Emirates , Kuwait, Oman and Bahrain. Under these Agreement, Joint Working Groups (JWG) are constituted. Issues relating to the welfare of Indian workers including passport custody are taken up during the regular meetings of these JWGs.
· Following the Madhya Pradesh model, the Gujarat government has offered to subsidize the private players who are interested in providing regional air services in the state. The model was first adopted in the neigbouring state recently, where the government offered to pay for three seats on an average for 16-seater small turbo prop aircrafts taking flights between selected spots, including Bhopal, Gwalior, Indore and Khajuraho. The official said that the Gujarat government has set aside a "token amount of Rs 10 crore" as subsidy to the private players wanting to ply aircraft within Gujarat's selected cities. There are two types of tenders – offshore and onshore. Offshore tenders require nine-seater amphibian planes which can land in dams, in rivers in lakes and even on runways, and these will be purely tourist ventures -- “For this, only foreign parties will be interested, but they will have to come with a foreign partner. These planes can land off Dwarka, in the sea, for instance, or off Somnath, or even in the Narmada dam reservoir”. As for the onshore tender, these can attract businessmen -- “The selected spots that have been offered are Surat, Ahmedabad, Vadodara, Bhavnagar, Rajkot, Porbandar, Deesa and Kandla. While the government may subsidize flights between any of these places, the selected parties will be free to extend the flights to, for instance, Diu, Jamnagar, Mandvi, Mundra, Amreli, even Mumbai and Delhi.“
· The roots of ancient and mythical river, Saraswati, are now being dug up. The Saraswati River Research Development project of the Bharatiya Itihas Sanklan Samiti, Gujarat has started digging a bore well to trace the roots of the Saraswati in the state. The Saraswati was a river which had its origin in the glaciers of Himalaya near Kailash Mansarovar and the Samiti had found five different flows of Saraswati in the state. Several palaeo-channels of river have been identified in the region of Rajasthan, Haryana, Uttar Pradesh and adjacent areas, some of which are assigned to the Saraswati. The river is considered to have migrated from east to west. But in the past, most discussions have pointed to the river being in north Gujarat. During low sea level regime, the Rann of Kutch and Gulf of Cambay played a significant role in sustaining the course of northern rivers and helped human settlements to thrive. Discovery of distinct palaeo-channel with fortified settlement and numerous channels appeared in the Great Rann of Kutch immediately after the 2001 earthquake.
· ‘International Biodiversity Day’ observed across the world on May 22 to make people aware about the importance of biodiversity on the one hand and its unprecedented loss on the other. The theme for 2012: “Marine Biodiversity”
· May 21, the death anniversary of ex-PM of India, Shri Rajiv Gandhi is also observed as Anti Terrorism Day all over the country. It was on May 21, 1991 that former Prime Minister Rajiv Gandhi fell to the designs of terrorists. The Day is observed to bring forth awareness in the nation among all sections of people, about the danger of terrorism, violence and its dangerous effect on the people, the society and the nation as a whole.
· India, Trinidad ink MoU to boost and develop technical cooperation in the coconut sector. Its objectives is to transfer of technologies in production, post harvest management, value added products and mechanized palm climbing for a period of 2 years. The Coconut Development Board will provide technical support to rehabilitate coconut plantation in 10,000 acres in Trinidad and Tobago, for which 6 lakh superior quality seedlings will be produced. Shipment of these seedlings will take place next year.
· Grandmaster Parimarjan Negi won the Asian chess championship at the Ho Chi Minh City, Vietnam.