{News Notes} Daily News Notes: 6th Jan, 2013

• The Prime Minister will lay the foundation for the 20,000 crore rupees BPCL Kochi Refinery expansion project tomorrow. The Project envisages increasing the refining capacity of the Refinery from the current level of 9.5 million metric tonnes to 16.5 million metric tonnes per annum, at a cost of 14,000 crore rupees. It also involves a 6,000 crore rupee diversification project of the Refinery into the petrochemical field.
• In Chhattisgarh, three police personnel, including an Additional Superintendent, were injured after an explosive device planted by the Maoists, blew up. In Assam, eight ULFA cadres and linkmen were arrested from different places yesterday. In another incident, security forces gunned down one Garo National Liberation Army, GNLA militant in Assam.
• Assam, on Sunday, entered the India Book of Records for the largest khol-playing ensemble. Organisers now eye mention in the Guinness World Records for the largest group playing this traditional percussion instrument. A total of 14,833 traditional khol players came together for a 15-minute performance. The khol is a drum-like instrument made of terracotta, usually played to accompany devotional music. In 15th century Assam, Vaishnavite saint-scholar Sankardev used khol in his plays and during devotional activities. The instrument is used in Manipur and West Bangal too, when devotional music is played.
• Over the last two decades, the rural areas of India have witnessed many changes. There are better road connections, there is a significant improvement in health care, literacy levels have gone up and mobile phones have become ubiquitous. But one thing that hasn’t changed much is the sorry state of electricity supply. 12-14 hours load shedding is a common phenomenon across most states of the country.  When there is no electricity for such a long time span, one of the most affected lot are the school going children. In absence of electricity, students either do not study at all or they study under kerosene lamp. Either situation is not good. Kerosene lamps do not emit sufficient light to enable children to read in comfort. They also emit carbon monoxide, which is harmful to the health of a child. Therefore the availability of light during the study hours of children is very important. Among all possible solutions, solar energy based solar lanterns (with white LED for lighting) appear to provide the cheapest and quickest solution. With the white LED revolution it is now possible to provide a simple light suitable for reading purpose that consumes less than a quarter watt but provides 10 to 50 times more useable light than a wick lamp.
• India is likely to begin by year-end construction of the world’s largest solar telescope (2-metre class, National Large Solar Telescope) on the foothills of the Himalayas in Ladakh to understand the fundamental processes taking place on the Sun. Though the 10-metre optical telescope at Mauna Kea in Hawaii is the largest, the Indian instrument will be the largest among solar telescopes. The project is likely to be completed by 2017. The Rs.150 crore project will be one of the few telescopes in the world with a capability to do both day and night time astronomy. The Sun’s three quarters of mass consists of hydrogen and the rest is helium. Less than two percent consists of heavier elements, including oxygen, carbon, neon and iron. Thus, the solar telescope will help study the microscopic structure of the Sun and derive specific observations that are speculative in nature and not available before.
• India’s foreign exchange (forex) reserves increased by $39.6 million to $296.57 billion for the week ended December 28, 2012, data released by the Reserve Bank of India (RBI) showed. The foreign currency assets (FCA) — the biggest component of the forex reserves — went up by $63.9 million at $262.01 billion, according to the weekly statistical supplement released by the RBI. Gold reserves value remained the same at $27.80 billion. However, the special drawing rights (SDRs) decreased by $15.9 million to $4.43 billion during the week under review, while reserves with the International Monetary Fund (IMF) went down by $8.4 million to $2.32 billion.
• The Nanavati-Mehta commission probing the 2002 Gujarat riots has been granted yet another extension by the State Government, till 30th of June 2013. The Commission was set up on the 3rd of March 2002 as one-member probe panel with retired HC judge K G Shah with mandate to probe the train burning incident of 27th February 2002. However, in May 2002, retired judge of Supreme Court G T Nanavati was appointed chairman of the commission and the Government asked it to probe post-Godhra riots too. In 2004, the state government widened the scope of its inquiry empowering it to question ministers including the chief minister.
• The new industrial policy of Maharashtra helps developers of Special Economic Zones (SEZs) de-notify land and set up Integrated Industrial Areas (IIAs) which will allow development of townships, including residential buildings. The policy, to be in force from April 1, 2013 to March 31, 2018, also seeks to create around 20 lakh jobs and bring in Rs5 lakh crore as investment. Maharashtra has around 24 lakh educated unemployed. Industry department officials said projects in the ultra-mega slot could ask the government for “customised packages of incentives” like stretching eligibility period for VAT rebate. Further, the Maharashtra Industrial Development Corporation (MIDC), the state’s nodal agency for industrial development, has notified 30,000 hectare land in Satara, Sangli and Solapur for the proposed Pune-Satara-Solapur industrial corridor. The corridor is part of the state’s newly launched industrial policy. The corridor has been proposed on the lines of the Delhi-Mumbai industrial corridor, which is expected to benefit Thane, Raigad, Dhule, Jalgaon, Aurangabad, Ahmednagar and Pune districts. Similarly, the state government’s proposed industrial corridor is likely to benefit the water scarcity zones — Pune, Satara, Solapur, Sangli and Kolhapur.
• Pitching for the tribal cause, former Lok Sabha Speaker P A Sangma, who broke with Sharad Pawar's NCP last year to contest the Presidential elections against Congress nominee Pranab Mukherjee, launched his own National People's Party (NPP) and joined hands with BJP-led NDA. Sangma said that the party has been active for long as a recognized party from Manipur.
• India's services sector expanded further in December — registering the fastest pace of growth in three months –– driven by a sharp rise in new business orders, an HSBC survey said. The HSBC’s Services Purchasing Managers Index (PMI) for December stood at 55.6, up from 52.1 in the previous month, signalling a sharp expansion in activity. The index has remained above the 50-mark, which indicates expansion since November 2011. Going forward, service providers in India are optimistic about the business outlook. Around 46 per cent of monitored companies expect overall activity to increase this year, and anticipate rises in demand, the launch of new projects and increased advertising, HSBC said.
• C Rangarajan, a key economic advisor to Prime Minister Manmohan Singh, has said the government could consider imposing a marginal tax rate higher than the current 30% on those with “substantially higher income”, becoming the first Indian policymaker to contemplate higher taxes after the US raised taxes on the wealthy for the first time in two decades. The veteran economist, a former RBI governor, also called for rethinking the current policy under which dividends were tax-free in the hands of investors, though companies pay a dividend distribution tax of 16%.Rangarajan questioned the logic of taxing dividends at a rate lower than the top marginal tax rate. India taxes income at three rates — 10%, 20% and 30% — though the actual top rate is higher, at around 33%, due to various surcharges. These rates were fixed in 1997 by Finance Minister P Chidambaram, who held the portfolio at the time.
• Often compared with Gujarat over investment climate, Maharashtra has coined its own lexicon to woo investors. While Modi has been using “Vibrant Gujarat”, the MH state government plans to organize investment summits (Udyog Diwas) to hard-sell “Magnetic Maharashtra, Attractions Unlimited” to promote the presence of all kinds of industries and better infrastructure.
• For the first time since 1969, Delhi’s maximum temperature fell below 10 degrees on Wednesday, making it the coldest day in the past 44 years. The damp chill, heightened by biting cold winds, brought the day temperature down to 9.8 degrees Celsius, 11 degrees below normal. The minimum temperature, at just 4.8 degrees Celsius, was also below normal.
• Tamil Nadu continues to be India’s top manufacturing hub with the number of factories in the state increasing by 33% between 2009-2010 and 2010-2011. The state’s 31,749 factories accounted for 17.4% of the 2,11,660 factories across India at the end of 2011. Maharashtra was in second place with 27,939 units (13.2%), followed by Andhra Pradesh (12.4%) and Gujarat (10.1%). TN had topped the list in 2008-09 too, when the survey was last conducted, with 26,122 factories to Maharashtra’s 20,450. Tamil Nadu also has more people employed in factories, which, for purposes of the study, were defined as labour intensive industrial units manufacturing products and governed by the Factories Act, 1948. The state employs nearly 15.4% of the country’s total factory workforce. In terms of emoluments, however, Tamil Nadu is second to Maharashtra, a pointer to the low cost of sustaining a manufacturing business in the state — a key reason that it is among the most preferred investment destinations. Maharashtra factories are the best paymasters, with 19.2% of the total factory emoluments going to its workers. Tamil Nadu is in second place (13.1%), followed by Gujarat (10.6%) and Andhra Pradesh (7.7%). The study shows that a large majority of the country’s factories manufacture food products. Around 16.1% of all factories make food products, 11% are in the non-metallic segment and 8% in textiles. Of the total payments disbursed to factory workers in India, basic metal units accounted for 11.2%, followed by machinery and equipment (8.3%), motor vehicles, trailers and semi-trailers (8%), food products (7.7%) and textiles (7.6%). [Statistics]
• The modernization budget of the armed forces has been slashed by around Rs 10,000 crore in a major jolt to them in the New Year. The cut is contrary to defence minister A K Antony’s earlier promise of a hike in the defence budget to cater for the threat of the expansive China-Pakistan military nexus. The move will lead to a major slowdown in the ongoing acquisition projects—ranging from aircraft and helicopters to howitzers and missiles. It also makes it clear that the already much-delayed $20 billion MMRCA (medium multi role combat aircraft) project to acquire 126 fighters will not be inked anytime before March 31.
• Each time there is a major crime in a metro or terror attack on the country’s mainland, there is a renewed nationwide cry on reforming India’s archaic police system. However, it has fallen on the government’s deaf ears, leaving recommendations on the much-needed reforms — as suggested by various expert panels as well as the Supreme Court — gathering dust. Neither the Centre nor states have been proactive in improving the quality of policing. Official records show that only 14 states have either enacted the new Police Act or amended their existing laws to incorporate SC’s suggestions. States like Maharashtra, Uttar Pradesh, Madhya Pradesh, Karnataka, Andhra Pradesh, Tamil Nadu, Odisha and West Bengal have been laggards. The SC, in its September 2006 judgment, had come out with seven key suggestions. It had prescribed a minimum tenure of two years for state police chief and officers on operational duties, separating investigation and law and order functions and measures to insulate police personnel from political interference.
• In a move to ward off “corrupting influence” on students, Asia’s largest Islamic seminary, Darul Uloom Deoband, has banned the use of multimedia mobile phones on its campus. Darul Uloom deputy vice-chancellor Maulana Abdul Khalik said authorities acted on complaints that students were misusing multi-media cellphones for “morally un-acceptable purposes”. He said there’s no proscription on simple mobiles without camera or video features. A source in Darul Uloom’s governing body said the authorities do not have the expertise or mechanism to counter misuse of multimedia phones, and that there was no other way they could have prevented abuse of such phones. Asked about laptops, a Deoband source said although very few students on the campus own these, any instance of its misuse will be punished. On whether such a ban would deprive students of access to the outside world, the source said, “The faculty provides internet access and students are free to use it. There is no restriction on information technology.”
• Growth rate of eight core sector industries declined to 1.8% in November, from 7.8% in the same month last year. The decline in growth in November 2012 was due to negative growth witnessed in coal, natural gas and cement sectors and drop in growth rates of electricity, steel and petroleum refinery products, according to the official data released. The eight industries (Coal, Petroleum Refinery, Natural Gas, Crude Oil, Electricity, Cement, Steel and Fertilizer Industries) have a weight of 37.9% in the overall Index of Industrial Production (IIP). [Statistics]
• InfoGraphic: Indian Economy at a Glance [1.]; [2.]; [3.]
• India has tightened visas for Maldives in what is being seen as retaliation for the GMR fiasco in that country. New Delhi has stopped Maldivians from using their visa-free travel facilities to India for other activities like medical treatment, restricting it only to tourism. India revised its earlier ` “liberal’’ interpretation of the 1979 bilateral visa agreement with Maldives this month which allowed thousands of Maldivians to use a 90-day visa-on-arrival facility — meant only for tourism — to travel for treatment in Indian hospitals.
• Top scientist at European Organisation for Nuclear Research (CERN), which found first evidence of the elusive God particle, on Saturday pitched for India becoming an associate member of the organisation. Indian scientists have submitted a proposal to the government for becoming an Associate Member of CERN which is awaiting budget approval. To become an associate member (AM), India will have to make an annual contribution of 10 million Swiss Francs to CERN. The associate membership of CERN will not only open the doors of mega science experiments for Indian scientists but also help them participate in training and education programmes held at the laboratory. It would also allow Indian industry to participate in bids for CERN contracts across various sectors, including in niche areas like developing equipment for crucial experiments. However, India will not have voting rights in the Council but ask for the floor to make statements without having been invited to do so. India became an 'Observer' at CERN in 2002, a position that literally allows it to observe the proceedings at the Council meetings and speak when invited to do so. As Brazil and Israel may soon become associate members, scientists are hoping for a green signal from the Central government.
• Iran has reported that the total volume of its foreign trade in the first three quarters of financial year 2012-13 during March till December 2012 was around 72 billion US dollars despite the sanctions and restrictions imposed on the country's economy. An Iranian news agency said that Iran exported 31.7 billion dollars worth of non-oil goods, including gas condensate, and imported around 40.47 billion dollars worth of products in this period. The report specifically mentioned India along withIraq, China, the UAE and Afghanistan were the main importers of Iranian non-oil goods.
• Syrian President Bashar Assad on Sunday outlined a new peace initiative that includes a national reconciliation conference and a new government and Constitution but demanded regional and Western countries stop funding and arming rebels first. However, Syrian opposition forces, including rebels on the ground, are likely to reject Mr. Assad’s proposal. They have repeatedly said they will accept nothing less than the president’s departure, dismissing any kind of settlement that leaves him in the picture.
• Amid reports that China is gearing up to conduct one more anti-satellite weapons test (ASAT) putting US Global Positioning System (GPS) at risk, Chinese state media today asserted that Beijing had the right to carry out the test as it is a "trump card" against Washington. In 2007 and 2010, China had already conducted anti-satellite (ASAT) weapons tests, both on January 11. China's previous tests caused concern in India too with assertions by the Indian defence officials that New Delhi also should acquire such a capability. "China's public policy is peaceful use of space, which is also China's real desire. China has no interest in launching a large-scale space race with the US. China and Russia jointly initiated a programme to avoid an arms race in outer space in 2008, but this proposal was refused by the US. Against this background, it is necessary for China to have the ability to strike US satellites. This deterrent can provide strategic protection to Chinese satellites and the whole country's national security", China said. The planned test by China comes in the backdrop of the launch of China's own GPS called BeiDou Navigation Satellite System (BDS) currently being used by Chinese military and a number of official bodies. China plans to launch 20 more satellites to improve its functioning. Anti-satellite weapons (ASAT) are designed to incapacitate or destroy satellitesfor strategic military purposes. Currently, only the United States, the former Soviet Union, and the People's Republic of China are known to have developed these weapons. On September 13, 1985, the United States destroyed US satellite P78-1 using an ASM-135 ASAT anti-satellite missile. On January 11, 2007, China destroyed an old Chinese orbiting weather satellite. However, the origins of the Soviet anti-satellite weapon program are unclear. Also, India had identified development of ASAT weapons "for electronic or physical destruction of satellites in both LEO (2,000-km altitude above earth's surface) and the higher GEO-synchronous orbits" as a thrust area in its long-term integrated perspective plan (2012–2027).
• Pakistan and China have signed a contract for manufacturing of Al-Khalid-I tanks.
• New solar power installations in Germany hit a record high last year but tapered off in the fourth quarter as subsidies were cut to curb costs to consumers, environment ministry data showed on Saturday. Capacity grew by more than 7.6 gigawatt (GW), breaking the previous records of 7.5 GW in 2011 and 7.4 GW in 2010, and far above the 2.5 to 3.5 GW Berlin would like to see each year. The solar boom has been encouraged by generous feed-in tariffs, which are guaranteed to generators for 20 years to encourage carbon free power to gradually replace fossil fuels.
• The number of Heads of States using the social media network, Twitter to engage with the citizens has gone up by 78 percent in 2012 as compared to 2011. Three out of four Heads of States are now using Twitter accounts. US President Barack Obama is the most watched world leader on Twitter, with 25 million followers. He is followed by Hugo Chavez of Venezuela, with 3.5 million followers. Turkish President Gul Mohammad is placed third in this list. From the West Asia region, UAE President and the Ruler of Dubai Sheikh Mohammed Bin Rashid Al Mkhtoum is placed ninth in the list of Heads of states followed by Twitter users. According to the report, the most-followed woman on the list is the Jordan Queen Rania Al Abdullah, who used her account as a political channel to represent the viewpoints of the King Abdullah II of Jordan in the past. It says that the Middle East region also saw a rise in the heads of state that joined Twitter. In 2012, five out of the top 15 heads of state using Twitter came from Middle Eastern countries. Arab Spring players such as Libya, Tunisia, and Iraq also had their heads of state adopted Twitter along with Qatar and Afghanistan.
• A peculiar petal-shaped cluster spotted on Mars by NASA scientists has sparked speculation that flowers might be blooming on the red planet. The so-called ‘Martian flower’ is recently seen in an image captured by NASA’s Curiosity rover. In the image, pearl-coloured petals appear to sprout from a rock’s surface.