Daily News Notes: 11th to 20th July, 2012

· Commerce and Textile Minister Anand Sharma has said that the Technology Modenisation Subsidy Scheme for the textile sector would continue in the twelfth Plan with an enhanced allocation of 15,886 crore rupees. The outlay for for this scheme in the eleventh Plan was 12,000 crore rupees. Under the scheme, government provides subsidies to the industry for modernisation by installing new machinery and adopting upgraded technology.
· Addressing the Annual conference of Administrative Reforms Secretaries in New Delhi, the Minister of State in Prime Minister's Office has called on District Collectors to root out corruption in public service and ensure effective implementation of flagship programs of the Government including the MGNAREGA, Prime Minister's Gram Sadak Yojana and Sarva Sikhsha Abhiyan, and ensure timely delivery of services to the people. He said, the Lokpal Bill, the Public procurement Bill for streamlining public procurement, Foreign Public Institutions Corruption Bill, the Whistle Blowers Bill and India's signing of the United Nations Convention against Corruption are major strides in tackling corruption.
· While presenting survey, Census Commissioner Dr Chandramouli said that measures will be taken to focus on those districts which have high maternal deaths in the country. He said, survey revealed that Faizabad Mandal in Uttar Pradesh has maximum 451 maternal deaths per one lakh live births. He also informed that Rajasthan tops among the marriage among females below legal age followed by Bihar and Jharkhand. Also, Rajasthan, Uttarakhand, Uttarpradesh, Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh, Odisha and Assam are the 9 States which were selected for the Annual Health survey. They were selected for the survey as they constitute around half of the population of the country. 59 per cent of births and 70 per cent of infant deaths occur in these states.
· With a view to expedite highway construction, the Ministry of Road Transport and Highways has unveiled a draft of model Engineering, Procurement and Construction (EPC) contract. The ministry has proposed awarding contracts for 20,000 km of roads under the EPC in the next five years, in addition to the schemes under the public-private partnership mode.
· The Union Cabinet have approved the proposal to provide a special incentive package to promote large-scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector. The scheme is called the Modified Special Incentive Package Scheme (M-SIPS). The main features of M-SIPS are as follows: [1.] The scheme provides subsidy for investments in capital expenditure - 20% for investments in SEZs and 25% in non-SEZs;[2.] The incentives are available for 29 category of ESDM products including telecom, IT hardware, consumer electronics, medical electronics, automotive electronics, solar photovoltaic, LEDs, LCDs, strategic electronics, avionics, industrial electronics, nano-electronics, semiconductor chips and chip components, other electronic components and EMS; [3.] The policy is expected to create an indigenous manufacturing eco-system for electronics in the country.
· India successfully test-fired its home-built nuclear potent Agni-I ballistic missile off Integrated Test Range at Wheeler Island, Odisha coast. The missile has already been inducted into the Indian Army and this was done to train the army user team to launch the missile. Agni-1: [1.] Strike range: 700 km;[2.] Surface-to-surface; [3.] Single-stage missile; [4.] Powered by solid propellants; [5.] Weighs 12 tonnes, 15-metre-long; [6.] Carrying capacity: Up to 1000 kg (1 Tonne); [7.] With specialized navigation system.
· The DRDO will soon commercialize its Telemedicine Technology which was primarily developed for the armed forces that will make it accessible to civilians especially in the remote and rural areas. The technology facilitates patient and medical practitioners to communicate despite them being in different locations and transmit and share medical, imaging and health informatics data from one site to another. Thus with this people living in rural and remote areas in India will not need to go to hospitals located in urban centers. The Army and the Navy have expressed their satisfaction with the system during the last 6 months trial.
· Groundwater, a precious natural resource, is for all practical purposes a private property in India. With few rules to restrict over-exploitation, anyone can bore and extract water.
But all this could change soon. Plans are afoot to alter laws and regulations to make groundwater a common property as it will ensure better regulation by the government with the involvement of communities in the management of underground aquifers. The government, which is planning to make groundwater a public resource, will pass a framework law under Article 252 of the Constitution. This can be done with two states required to pass a similar law before the central initiative. India is the largest user of groundwater in the world. Almost a third of groundwater aquifers are semi-critical, critical and over-exploited and some estimates suggest that at current rate of extraction, 60% of groundwater blocks could turn critical by 2025. About 60% of irrigated agriculture and over 80% of rural and urban water supply are now being met with groundwater. Bringing water into the concurrent list of the Constitution is seen within government circles as a politically difficult shot with concerns over federalism bound to play a spoiler. The framework law, the Centre hopes, will leave the powers of the state untouched.
· The government will soon move for mandatory blending of petrol with ethanol (EBP), pegging the target at 5%, in what could be a first step towards reducing the escalating fuel import bill, which render economy hostage to price volatility in international markets. It is also seen as a long-term solution to reducing dependence on fossil fuel while increasing the energy efficiency of the fuel. The move for mandatory EBP would overrule the recommendation of PM’s Economic Advisory Council that blending be kept optional to deal with fickle supply of the bio-fuel. The move to make blending of petrol with ethanol mandatory would put India in the select band of countries with mandatory bio-petrol.
· The PMO has been pushing for greater private investment in inland waterways, an area of considerable importance. PMO has identified and fast-tracked implementation of key projects in the National Waterways - 1, 2 and 3 (NW - 1,2,3). These are the Varanasi- Haldia stretch of the Ganga (NW-1), the Brahmaputra in Assam (NW-2) and the inland stretch in Kerala (NW-3). Based on the push by PMO, IWAI has moved forward on large scale private investments to transport coal and fertilizer on NW-1, foodgrains and coal on NW-2 and a lot of cargo on NW-3. Abroad, the Rhine and the Danube are lifelines of transport in Europe. And there is no reason why the Allahabad - Haldia stretch (National Waterway - 1) cannot be a river based industrial corridor.
· The Union Cabinet approved the extension of tenure of Shri Justice M.B. Shah Commission to enquire into cases of illegal mining and also to identify and rectify management, regulatory and monitoring system failures in curbing illegal mining. The extension has been sought since the Commission is collecting and compiling information on mining from seven important mineral producing States (OR, JK, CG, KR, AP. GA, MP), which is quite voluminous, extension has been sought for one year. Background : Taking into account the serious concerns of Government on several reports of large scale illegal mining and failure of State Governments to effectively curb this menace, Government set up Shri Justice M.B.Shah Commission of Inquiry on 22nd November, 2011. The Commission is based in Ahmadabad. It was required to submit its report by 16th July 2012.
· The Union Cabinet approved the proposal for introduction of the Criminal Law (Amendment ) Bill, 2012 in the Parliament. The Law Commission of India in its 172nd Report on 'Review of Rape Laws' as well the National Commission for Women have recommended for stringent punishment for the offence of rape. The highlights of the Bill include substituting\replacing the word 'rape’ wherever it occurs by the words 'sexual assault', to make the offence of sexual assault gender neutral, and also widening the scope of the offence sexual assault. The punishment will be rigorous imprisonment which shall not be less than ten years which may extend to life imprisonment and also fine. The age of consent has been raised from 16 years to 18 years in sexual assault. However, it is proposed that the sexual intercourse by a man with own wife being under sixteen years of age is not sexual assault.
· Indian Space Research Organisation Chairman (ISRO) is ready to launch GSAT-10 in 2 months. It will be shipped to the spaceport at Kourou in French Guiana for launch by European space consortium Arianespace. GSAT-10 will Replace the ageing INSAT-2E and INSAT-3B satellites and Create additional capacity for DTH like applications, thus Provide on-orbit back-up for the GAGAN navigation payload. GAGAN is a regional GPS navigational system developed by India.
· With an aim to deliver speedy justice and cut the backlog of pending cases, the Government has decided to have pan-India roll out of e-Courts by 2014. The e-Courts Mission Mode Project (MMP) targets to develop, deliver, install, and implement automated decision-making and decision-support systems in 700 courts across Delhi, Bombay, Kolkata and Chennai; 900 courts across 29 State/UT capitals; and 13,000 district and subordinate courts across the nation.Under the MMP, the Govt of India plans to implement ICT in Indian Judiciary in 3 phases over a period of 5 years. This will also expected to bring transparency in the judicial system and help in speedier and efficient disposal of cases.
· Supreme Court has criticized the Centre for not implementing its orders on banning the use of tinted glass on vehicles. The apex court slammed the authorities for only targeting the middle class and sparing the elite class from removing the black tints from their car windows. The Supreme Court had banned the use of tinted glass from June the 4th this year, restricting visions beyond permissible limit in vehicles as fixed under the Motor Vehicles Act.
· Reserve Bank Governor D Subbarao has proposed a Producers Price Index saying that the present structure of measuring inflation does not capture the price movement of services and is a hybrid of rate quotes. He said, the Producer Price Index (PPI) will be better able to measure the average change over time in the sale prices of domestic goods and services. Mr.Subbarao said, sellers' and purchasers' prices differ due to government subsidies, sales and excise taxes, and distribution costs. He further said that core inflation gives a better picture of price trend as it is less volatile WPI-based inflation. Core inflation is usually estimated by excluding food and energy prices from the basket of goods and services that represents a household's spending.
· The Prime Minister has approved the constitution of an Expert Committee on GAAR (under the chairmanship of Dr. Parthasarathi Shome) to undertake stakeholder consultations and finalise the guidelines for GAAR. On this move, PM said, while postponing GAAR by one year to 2013 was a very welcome move, a widespread consultative process is necessary to generate a discussion on GAAR provisions so that there is an informed debate on how GAAR is going to operate.
· Minister of Commerce, Industry and Textile had launched the ‘Bank Realization Certificate (e-BRC)’ initiative, to electronically transmit foreign exchange realization details on exports from the respective banks to Directorate General of Foreign Trade (DGFT). He emphasised that this would reduce the transaction cost for exporters and for the banks.
· The chairman of Empowered Committee of State Finance Ministers Sushil Kumar Modi have cautioned that State governments may resort to `anti-reform' taxes in case New Delhi does not fully compensate revenue losses accruing to them on account of central sales tax (CST).
Pending phase out of CST and introduction of single goods and services tax (GST), states have demanded compensation worth Rs 19,000 crore in 2010-11, and about Rs 20,000 crore for 2011-12, against estimated revenue losses. To bridge revenue losses, the states may have to resort to “certain tax measures that may not be in the interest of tax reform,“ he said. [Click here: state of affairs]
· Gujarat has rejected central govt’s ‘Jan Aushadhi’ model saying it has better self developed model of providing free treatments for segments of population. Gujarat government currently runs a scheme to provide free medicines, and bears the entire cost of treatment for children below the age of 18 years at public hospitals. The scheme is also extended for all below-poverty-line (BPL) families and also offers treatment at private institutions for BPL families up to a maximum limit of Rs 30,000. Background : The Centre is considering reviving its Jan Aushadhi scheme, and now plans to extend open tenders for the procurement of drugs for the Jan Aushadhi stores with the aim to boost the supply chain for these stores across the country.
· As per a latest study, Tamil Nadu (Rs 6,711 crore) has left behind states like Gujarat (Rs 4,730 crore) and Andhra Pradesh (Rs 4,039 crore) in attracting Foreign Direct Investment during the fiscal of 2011-12, which is 66 % higher than AP and 41 % more than GJ. Maharashtra leads the country in attracting FDI to the tune of Rs 44,664 crore. Karnataka registered FDI of Rs 7,235 crore during 2011-12. The total FDI inflow into India was at Rs 1,73,946 crore during 2011-12, which shows an increase of 96.5 % from Rs 88,520 crore in the previous fiscal year.
· Maharashtra cabinet approved a proposal for banning the manufacture, storage, distribution and sale of gutka and paan masala. While a gutka ban already exists in four states—Kerala, Madhya Pradesh, Bihar and Uttar Pradesh—Maharashtra will be the first to ban paan masala. A senior cabinet minister said the decision was being taken in the interest of public health. Offenders can face jail time of six months to three years. The state has witnessed a rise in the incidence of oral and other forms of cancer, since a sizeable population is addicted to such products. Health activists and NGOs have for long been pushing for the ban on the grounds that the addiction was claiming many lives every year.
· It is for the first time that Assam has awarded three of its “best performing” state level public sector undertakings (PSUs). The initiative is aimed at boosting performances of its companies.
· The Punjab govt approved the project for digital mapping of all the villages in the state. The digital mapping would give a clear pictorial view of location and measurement of village’s common land (Shamlat) and the extent of encroachments on such land. Thus it will provide effective governance in rural areas. It will also provide aid to the state government to determine the common facilities available in all villages like road network and other necessities of villages. This project would be completed within a period of 6 months. The project would cover over 12,000 villages in the state.
· Manipur government has decided to approach the Centre to extend the provisions of the Bengal Eastern Frontier Regulation 1873 to the state. The decision follows rising demands from public to bring in the Inner Line Permit (ILPS) system under the Regulation.
· Andhra Pradesh Government has taken up a mass contact programme named as ‘Indiramma Bata’ to review the implementation of various welfare schemes such as Mahatma Gandhi National Rural Employment Guarantee scheme, Rural Health Mission, Public Distribution System etc. and to ensure maximum benefit to the poor at the grass root level.
· The World Health Organisation sponsored Road Safety programme has started yielding positive results in Jalandhar City Punjab. The City is among the two cities in the country where this project is presently running as a pilot project for the last two years. The other city is Hyderabad in Andhra Pradesh. This project has been initiated by United Nations in collaboration with several international agencies and is being implemented in 10 different countries including India.
· Professor Prithvi Nath Dhar (age:94yrs), an eminent economist who served as Principal Secretary to Prime Minister Indira Gandhi in the 1970s, died in New Delhi today. Dhar, who was the only person in the Prime Minister's Office those days who was not from either the IAS or the IFS, had joined the PMO in 1970. He also served as the United Nations Assistant Secretary General, Research and Policy Analysis, in New York from 1976 to 1978.
· Wrestler-turned-actor and Former Rajya Sabha member Dara Singh (84) passed away. Singh won the titles of 'Rustam-e-Punjab' and 'Rustam-e-Hind' for his wrestling competence. He was the first Indian sportsman to be nominated to the Rajya Sabha by Bhartiya Janata Party. He was also widely known for the role of Hanuman he played in the epic serial Ramayan.
· Millions of fans from across the nation bid a tearful adieu to the original superstar of Hindi Cinema actor Rajesh Khanna. He was called as the first superstar of the Indian Hindi Cinema. In 1995 Rajesh Khanna was honoured with the Kala Ratna Award by Punjabi Kala Sangam at Delhi by the then Human Resource Development Minister Arjun Singh.
· Indian sand artist Sudarshan Pattnaik has won the ‘People's Choice' Gold Medal at the second World Sand Sculpture Championship in Moscow. The celebrated sand artist sculpted a replica of the “showman of the millennium - Raj Kapoor”. The iconic actor is seen as the symbol of Indo-Russian Friendship.
· Record-setting Indian-American 46-year-old NASA astronaut Sunita Williams along with two other astronauts docked their Russian spacecraft at the International Space Station for a four-month stay. This is the second space mission for Sunita Williams. She also holds the record of the longest spaceflight -- 195 days -- for woman space travellers. The crew which will return home in mid-November is expected to conduct over 30 scientific missions during theirstay aboard the ISS.
· Maharashtra has held to its top slot as the state that receives the highest number of foreign tourists in the country with nearly 4.8 million tourist arrivals in 2011. Maharashtra was followed by Tamil Nadu and New Delhi. Also, Mumbai is a popular point of entry into India for foreign tourists. This year, the number of foreign tourist visits registered a growth of 8.85% over 2010, compared to a growth of 24.6% over 2009. It is the third consecutive year where the number of foreign tourist visitors has increased.
· India, Bangladesh, Ethiopia, Congo and Myanmar are the only five countries in the world’s 25 largest countries by population, which still do not permit foreign direct investment (FDI) in (multi-brand) retail trade. In the top 25 nations by GDP (PPP), India is the only one.Ethiopia is negotiating with Wal-Mart and Tesco to allow them to open stores in the country. Our “friendly” neighbour Pakistan permits foreign investment in retail trade. Local Pakistani retailers have been largely welcoming of foreign investment in the country’s retail sector, seeing foreign retailers as helping improve the quality of the overall market. The foreign chains have influenced Pakistani consumer behaviour and the principal beneficiary appears to be local retail chains. This is not too different from the way China opened up its retail sector. Initially, China also only allowed foreign retailers to open in select metropolises such as Beijing, Shanghai and Shenzhen, and, moreover, only in certain districts within those cities. Through these “invisible barriers”, China succeeded in giving local retailers protection, while, at the same time, the local Chinese learnt from the more efficient business models of foreign companies. Even though the world’s largest retailer Wal-Mart has opened some 340 stores in China since it entered the country 16 years ago, it still remains smaller in revenue terms, when compared with local retailers. The exits of Best Buy from China, Wal-Mart from Germany and Carrefour from Korea demonstrate the incapability of multi-national retailers to fight local competition due to lack of understanding of local consumer tastes, preferences and culture. Opening up Indian retail sector to FDI will help in the addition of 330 million square feet of new retail space. This will create a minimum of 4.58 million new jobs.
· Reflecting the growing might of China and India in the global economy, the Asian Development Bank (ADB) said it would start supporting deals denominated in Rupee (India) and Renminbi (China) under its Trade Finance Programme (TFP) in view of the expected rise in inter-regional transactions using the two currencies. Over 50% of TFP’s portfolio has supported intra-regional trade and this move will bolster TFP’s ability to further enhance its support for trade within developing Asia. Since 2009, the US dollar, the euro and the yen were the currencies in use under the programme that has provided support of over $10.6 billion. Government officials said the move is also expected to benefit bilateral trade between the two Asian giants by cutting down on exchange rate fluctuations and transactions costs as traders will not have to use a third currency. Already, BRICS (Brazil, Russia, India, China and South Africa) have signed an agreement to provide credit in local currency. There is also discussion on a common Asian currency, although it is at a very early stage and is unlikely to come anytime soon given the concerns over the artificial value of renminbi.
· India extended its proficiency and support to Cuba in energy and mining sectors. Indian companies can engage in Cuba through investment in exploration, production, refining and marketing. Recently, the complete outlook of India-Cuba relations was reviewed with the goal of adding larger economic dimension to existing strong political and cultural ties. Cuba has impressive growth of around 5% at a time when most of the western economies have contracted. Both sides felt disappointment at the low level of annual bilateral trade at about $ 40 million as it is far below the true potential. India asked to facilitate and speed up the request of ONGC Videsh Limited for extension of their contract in Cuba which is expiring in September 2012.
· India and Singapore inked 3 major pacts including one on continuing the military training that Indian armed forces extend to their Singaporean counterparts. These agreements coincide with the state visit of Singapore PM Lee Hsien Loong to India. India is already imparting training to the Singaporean air force personnel at the Kalaikunda air base in West Bengal. A MoU was also signed b/w the Indian labor and employment ministry and Singapore's education ministry regarding cooperation in the area of vocational education and skills development. Both countries are also reviewing the Double Taxation Avoidance Agreement (DTAA) between the two countries. A ‘limitation of benefit’ clause has already been added to the DTAA to avoid its misuse by companies not genuinely based in Singapore.However, Singapore PM Lee Hsien Loong on his visit to India asserted that Business environment in India is complicated. From the term “Complicated” he was referring to red-tapism. Although he didn’t point to the proposed GAAR or retrospective Income Tax Act amendments, he held that companies investing in India look for predictability of rules. After Mauritius, Singapore is the second country to send a high-level delegation to India after the the issuance of draft guidelines on the General Anti-Avoidance Rules (GAAR). The Importance of Singapore to India: [1.] Among the group of ASEAN, Singapore is India’s largest trading partner; [2.] After India signed Comprehensive Economic Cooperation Agreement (CECA) in 2005, the bilateral trade is reported to have been expanding at 20% per annum; [3.] B/w 2006-07 and 2010-11, trade has increased by 51%, and it is projected to touch $32 billion by 2015; [4.] Singapore has a share of 10% of India’s total incoming FDI, which makes it 2nd largest investor in Indian economy; [5.] Singapore is India’s doorway to ASEAN, China and APEC. Many Indian companies using Singapore as a platform for functions in South East Asia.
· India has decided to downgrade its diplomatic links with Denmark after Denmark's refusal to take action against the main accused in the Purulia arms drop case accused Kim Davy. Indian government has issued a circular that directs all senior officials not to meet or entertain any Danish diplomat posted in India. Denmark has shown obdurate attitude to despite India’s promise to put Davy in a special jail if extradited.
· India and Mozambique have signed an Agreement on Security Co-operation between the two countries. The two countries have also discussed cooperation between the two countries and to develop these relations further in various fields for mutual benefit of the two countries. There are about 25,000 people of Indian origin who have living in Mozambique for generations.
· India and Russia have decided to double their bilateral trade volume to 20 billion US dollar by 2015. The decision was taken following the Russian Indian Inter-Governmental Commission on military-technical, trade, economic, scientific and cultural cooperation meeting. Further, with Kudankulam nuclear project likely to be commissioned next month, Russia has agreed to extend a USD 3.4 billion credit for setting up of two more 1,000 MW nuclear power plants at the same site in Tamil Nadu. The estimated cost of building units 3 and 4 at Kudankulam will be Rs 32,000 crore, out of which Rs 17,000 crore is expected to be met through the Russian state credit.
· The 15 nation UN Security Council votes on a western nations draft resolution to end the violence in Syria. The resolution calls for sanctions on Syria if the regime doesn't withdraw heavy weapons and troops from cities and towns within 10 days. The voting is significant since the Security Council has to decide the future of 300 strong UN Observer Mission in Syria whose 90 days mandate expires tomorrow. Russia has said it would block any resolution which calls for sanctions on Syria. It said British text amounted to support for the rebels and would lead to more bloodshed.
· In Nepal, Chairman of the Unified Communist party of Nepal-Maoist (UCPN-Maoist) Puspha Kamal Dahal and Party Vice-chairman and Prime Minister, Baburam Bhattarai, has appealed to the Nepali Congress , CPN-UML and other parties to come forward and continue the process to take the country forward. Addressing the inaugural of UCPN (maoist ) seventh plenum in Kathmandu, Mr Dahal said that the twelve point agreement that led to the Maoist joining the mainstream and the establishment of democracy is not dead and is still relevant today.
· The newly-elected chairperson of the African Union Commission, South Africa's Nkosazana Dlamini-Zuma (becoming the first woman to lead the pan-African institution), was sworn into office today at the closing ceremony of the 19th AU Summit, held in the Ethiopian capital Addis Ababa.
· United Arab Emirates shipped its first oil cargo from its Fujirah oil export terminal, bypassing the strait of Hormuz. The UAE Oil Minister said, the strategic project provides options to its clients to transport larger quantities of oil. Until now, the UAE, like Qatar and Kuwait, had been entirely dependent on Strait of Hormuz to export its crude oil. The 370-km Abu Dhabi Crude Oil Pipeline carries oil from Habshan oifields in the western desert to Fujairah which is a major oil storage and fuel bunkering hub on the eastern coast. It opens direct access to the Indian ocean bye passing the strait of Hormuz. The move is significant in the wake of warnings to close the Strait of Hormuz by Iran over the sanctions.
· The first cargo ship to sail from Miami to Cuba in fifty years has arrived in Havana. The ship was carrying humanitarian supplies such as food and medicine that are exempt from the US trade embargo against the communist-run island. Its cargo was made up of charitable donations and gifts to relatives from Miami's huge Cuban exile population. Similar cargo services to Cuba already operate from other US ports. The International Port Corporation - which is operating the service - obtained a special permit from the US Treasury's Office of Foreign Assets Control, which enforces the trade embargo against Cuba.
· The upper house of Pakistan’s Parliament has passed a bill to protect top leaders from contempt of court and thwart the Supreme Court's efforts to push the Prime Minister into reopening graft cases against President Asif Ali Zardari. The government has decided to delay the submission of response to the Supreme Court attributing to the NRO implementation case.
· The International Criminal Court awarded a Congolese warlord, Thomas Lubanga, 14-year imprisonment. He is the first person ever convicted by the International Criminal Court (ICC). He was found guilty of recruiting and using children under the age of fifteen years in his Union of Congolese Patriots militia sending them to kill and be killed during fighting in Congo’s eastern Ituri region in 2002-2003. This trial is seen as a potential milestone in the struggle to protect children during wartime.
· China's Gross Domestic Product (GDP) grew at an annual rate of 7.6 per cent in the April to June period, down sharply from the 9.5 per cent a year earlier, according to government figures released on Friday. The decline is partly caused by a weak global economy. Europe, which until this year was China's biggest trading partner, is in recession, while the United States economy remains weak. Even developing countries like India and Brazil have weakened considerably. The rate was the lowest since the 2008-2009 global recession, when growth dipped to 6.6 per cent in early 2009 before a huge government stimulus package provided double-digit economic growth. Now, however, that stimulus has worn off and economists are divided over China’s prospects. [Clik here: (1.) Dark Clouds Loom; (2.) Economy Watch]
· Global trends indicate that more and more countries are moving away from Business Tax (BT) towards Value Added Tax (VAT) as a more reliable means of raising revenue. A proposed mandate by the Chinese Government will see most of China move to a VAT system very quickly. The original pilot in Shanghai was a success, and Beijing should be the next city to employ the VAT system this year.
· The World Energy Forum will hold its first conference outside its UN headquarters, in Dubai from October 22nd to 24th, this year to discuss sustainable energy policies and solutions for the world. The Chairman of the forum, Prof. Harold Hyun Suk-Oh said, the conference will highlight the energy and water issues related to sustainable development so as to have a cleaner, safer and sustainable energy system benefiting all. The focus will be on green economy for sustainable development.
· In a first-of-its-kind project, Indian scientists have embarked on a venture to build computer models that would predict the erratic movements of the monsoon with more precision. Working with their counterparts in the United States and Britain, the scientists will build the world's first short-range and long-range computer models that can give much more granular information about the monsoon's movements. This would help conserve depleting water resources and agricultural output would get a boost as farmers would be able to plan their crops better. Armed with more precise forecasts, the state governments would be better prepared for disasters such as the recent floods in Assam.
· Earth recently embraced a power solar storm in last 5 years but caused no damage. A solar flare or solar storm is a abrupt brightening observed over the Sun's surface or the solar limb, which is understood as a huge energy release of up to 6 × 1025 joules of energy (about a sixth of the total energy output of the Sun each second). The solar storm could have impacted Earth’s magnetosphere and energy released in the form of X-rays can be hazardous to spacecraft, astronauts, and cosmonauts. It could also have disrupted the function of Power grids, Satellites and Airplane routes.
· “Mobile communication has arguably had a bigger impact on humankind in a shorter period of time than any other invention in human history,”says report released by the World Bank. The number of mobile phones in use has skyrocketed from less then one billion in 2000 to six billion in 2012. With the ownership of multiple subscriptions is now common, mobile usage may outnumber the world’s population in future, the report suggests. India has 70 subscriptions per 100 people, of which 96% are prepaid, while 53% of households own a mobile phone. Cellphone networks currently cover 83% of Indians, a number that is far less than in other countries. However, India’s price per minute use is the lowest possible at $0.01. [Click here for Snippets]
· United States space s cientists have discovered a 5th moon (nicknamed S/2012 for now, diameter 10 to 24 km) orbiting Pluto. Astronomers, last year found the 4th moon around the Pluto some 5 billion km away. Charon is Pluto's biggest moon which measures 1,030 kilometres across. US Naval Observatory discovered Charon in 1978. The two other moons, Nix and Hydra, are b/w 32 and 113 km in diameter. Hubble - a powerful space telescope that has brought transformation the arena of astronomy since it was first launched in 1990 - discovered Nix and Hydra in 2005.
· World Population Day was sobserved on July 11th. Pluto was removed from the list of full-fledged planet in August 2006 and was placed in the new category of dwarf planets.
· In Poland, one person was killed and at least 10 others injured during a series of freak tornadoes in northern and western parts of the country. Reports say that those tornadoes are not unknown in Poland, and weather forecasters have predicted that stormy conditions will continue.
· The United States is currently suffering its widest drought since 1956, according to data released by the National Oceanic and Atmospheric Administration (NOAA). The agency said that by the end of June, 55 per cent of the continental US was in a moderate to extreme drought. Crops, including corn and soybeans, have been hit by the dry conditions, and several states have seen wildfires. High temperatures across much of the country in June contributed to the spread of the drought.
· In a breakthrough, US scientists have genetically modified a bacterium (called Pantoea agglomerans) to secrete proteins that are toxic to the malaria parasite but not harmful to the mosquito or humans and thus killing the parasite that causes malaria before it infects humans. Malaria kills over 800,000 people worldwide every year, most of them children. found that the engineered P.agglomerans strains inhibited development of the deadliest human malaria parasite "Plasmodium falciparum" and rodent malaria parasite "Plasmodium berghei" by up to 98 per cent within the mosquito. The proportion of mosquitoes carrying parasites (prevalence) decreased by up to 84 per cent.
· The 30th edition of Summer Olympics is scheduled to start from 27th July. Thus an air exclusion zone has come into effect over parts of the city. In extreme cases, the Royal Air Force will be allowed to use lethal force against any aircraft that violates the zone and ignores warnings to leave. London will become the first city to officially host the Olympics three times, having previously done so in 1908 and 1948. The Olympic Torch has a history going back to the ancient Olympic Games in Greece. The flame is lit from the sun's rays at the Temple in Olympia, in a traditional ceremony before being delivered to the host country. India would send its largest ever contingent of 81 players for London Olympics.
· Jeev Milkha Singh won the Scottish Open Golf Title after a final round with Italy's Francesco Molinari. This is his 4th European Tour title.
· One of the fastest bowlers in the world of cricket, Australia's Brett Lee, announced retirement from international cricket after serving it for 13 years. He had already taken retirement from Test cricket in 2010. He had been facing difficulties in performing due to a calf injury. However, he will continue to play in Australia's Twenty20 Big Bash and the Indian Premier League.