June 23-30 Current Affairs

NATIONAL UPDATES

India, Canada sign civil nuclear deal

INDIA concluded an agreement for Cooperation in Peaceful Uses of Nuclear Energy, to enable civil nuclear commerce between the countries. Canada is the ninth nation to enter into such an agreement with India, after India obtained its crucial waiver from the Nuclear Suppliers’ Group in 2008. The other eight are the US, Russia, France, the UK, Argentina, Kazakhstan and Mongolia. 

Canada had been one of India’s earliest nuclear collaborators but broke off cooperation in the wake of the 1974 Pokhran test, India’s first demonstration of mastery over nuclear technology. India and Canada also signed memoranda of understanding on higher education, earth sciences and mining and on cultural cooperation. 

Both nations also agreed to try and take the bilateral trade up to $15 billion in the next five years, up from the current level of around $5 billion. 

India’s significant step to cut greenhouse emissions

Cabinet approved the implementation framework of the National Mission for Enhanced Energy Efficiency (NMEEE), which is one of the eight missions under the National Action Plan on Climate Change. 

The mission seeks to strengthen the market for energy efficiency by creating conducive regulatory and policy regime. NMEEE has been envisaged to foster innovative and sustainable business models to the energy efficiency sector. The mission will help achieve total avoided capacity addition of 19,598 mw, fuel savings of around 23 million tonnes per year and green house gas emissions reductions of 98.55 million tonnes per year. 

The Cabinet approval includes implementation plan of NMEEE, funds to the tune of Rs 235.35 crore and creation of two new posts of deputy director general in Bureau of Energy Efficiency (BEE). 

 The mission has four new initiatives to enhance energy efficiency. The flagship project of the mission is Perform Achieve and Trade Scheme (PAT), a market based mechanism to enhance cost effectiveness of improvements in energy efficiency in large industries. The trading of energy saving certificates would facilitate this process. The second initiative is Market Transformation for Energy Efficiency (MTEE), which includes accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable. NMEEE’s third initiative is the Energy Efficiency Financing Platform (EEFP), which allows for the creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings. The final initiative is the Framework for Energy Efficient Economic Development (FEEED), to develop two fiscal instruments to promote energy efficiency — the Partial Risk Guarantee Fund (PRGF) and Venture Capital Fund for Energy Efficiency (VCFEE). 

India gets real-time access to data on terror money

INDIA has finally become a member of the elite global body Financial Action Task Force (FATF), which would allow the country to gain easy access to real-time exchange of information on money laundering and terror financing. India has been for the past 10 years attempting to become a member of FATF. 

 The FATF is an inter-governmental body set up by the G-7 for creating global policies and framework to combat money laundering and terror financing. Membership of this body is very select and was limited to only 33 countries and two organisations. India has become the 34th member country. FATF has 49 action points for member countries to act upon. India amended the Prevention of Money Laundering Act (PMLA) in line with the FATF recommendations. 

India and Korea have observer status in the body but are members of the Asia-Pacific Group, a FATF-style regional body. India became an observer in 2007.

India, Bangladesh to set up 'border haats' 

India and Bangladesh will soon set up 'haats' (markets) along their international border in the northeast to boost local business and trade between the two neighbours.  Two 'border haats' would be set up along the Indo-Bangla border in Meghalaya while eight such 'haats' would be established along Tripura's border with Bangladesh. The first 'border haat' is expected to be opened in the next two months along the Meghalaya border in West Garo Hills

India asked US to Lift ban on DRDO, ISRO

INDIA has asked the US to remove vital defence research organisations ISRO and DRDO from the entities list. ISRO and DRDO were put on American technology export control blacklist after the 1998 Pokhran nuclear blast. 

IAF Group Captain Sachin Tendulkar 

ANOTHER FEATHER IS set to be added to star cricketer Sachin Tendulkar's cap with the Indian Air Force sending a proposal to the defence ministry to confer on him an honourary Group Captain's post. Once the ministry clears it, the file will go to the Prime Minister's Office and then to the President, the supreme commander of the armed forces, for approval. In 2008, India's World Cup winning captain Kapil Dev had received the honourary rank of Lieutenant Colonel of the Territorial Army. Tendulkar is arguably the best batsman in the history of cricket, having amassed some 31,000-plus runs in Test and ODI cricket with a staggering 93 international centuries under his belt. 

US to offer F-35 fighters to Indian Navy

US defence Major Lockheed Martin will offer its latest fifth generation F-35 fighters to meet Indian Navy's requirements for carrier-based combat aircraft. The Navy, which will acquire the under-construction Indigenous Aircraft Carrier around 2015, is likely to build another larger-size carrier and is looking to procure fighter aircraft for it. American Boeing, Swedish Saab, European EADS and the French Dassault Aviation are also likely to offer their aircraft to the Navy.

Rs 15000cr Sukhoi order cleared

The Cabinet Committee on Security (CCS) cleared one of the biggest defence orders worth Rs 15,000 crore order for an additional 42 Sukhoi-30 MKI fighters that would add up the total number of these modern Russian fighters for Indian Air Force to 272. When the entire Sukhoi-30 MKIs, including the 42, are delivered to IAF by around 2018, it would become the single largest type of fighters in service, marking a huge technological transition from the dominance of MIG-21 fighters today. 

Indian Embassy in US starts new website 

THE INDIAN Embassy in the US has launched its new website, which contains latest information, frequent update and new netizen-friendly features that would help people to get quick acquaintances with the happening about India, but also Indo-US relationship. 

The new website is  www.indianembassy.org.

INTERNATIONAL UPDATES

Hunger back to 1990 levels in South Asia: UN report

According to the United Nations Millennium Development Goals report 2010, prevalence of hunger in South Asia was increasing instead of decreasing, taking the region further away from the goal of reducing hunger by half by 2015.  The report says that aggregate food availability globally was relatively good in 2008 and 2009 but higher food prices and reduced employment and incomes meant that the poor had less access to that food. The report says in 2005-2007, the proportion of undernourished people in South Asia had swelled to levels last seen in 1990. The prevalence of hunger had increased from 20% in 2000-2002 to 21% in 2005-2007. The regional average was 21% in 1990-92, indicating that no progress had been made in the last two decades in reducing hunger levels and that India — the dominant country in the region — will not be able to meet its millennium development goals. 

According to UN figures, the employment to population ratio in South Asia fell to 56% in 2008 from 57% in 1998. The 2009 estimates put it even lower at 55%. An International Labour Organization report says more people got into vulnerable jobs in 2009 due to the financial meltdown. The proportion of employed people living under $1.25 a day jumped sharply from 44% in 2008 to 51% in 2009. 

Julia Gillard becomes Australia's first woman prime minister

Julia Gillard has been elected as Australia's first woman prime minister after Kevin Rudd stepped down in tears as the ruling Labour Party's leader. The new leader for the Labour Party was elected unopposed.

A series of policy failures, poor polls and the decision to go to war with the mining industry have all contributed to Rudd's plunging fortunes among his colleagues.

UK budget: £30bn cut in spending, hefty tax hike

 Britain announced extra spending cuts worth £30 billion a year, hiked VAT from 17.5% to 20%, a two-year pay freeze for most public sector workers that will help wipe out the country’s record £155-billion deficit within five years. The move to hike VAT to 20% will cost the average family £400 a year in taxes. Capital gains tax is also being raised from 18% to 28% for top-slab taxpayers and child benefit frozen for three years to counter an ‘explosion’ in welfare handouts. The public sector would be hardest hit — with 77% of the package to tackle the deficit coming from slashing spending. 

Peter Orszag Budget chief 1st to quit Team Obama

White House budget director Peter Orszag, one of the US President’s top lieutenants is quitting, has become the first to leave his cabinet and he oversaw Barack Obama’s key stimulus plans for 18 months. Orszag has been behind two of the president’s signature legislative efforts: the stimulus bill and the health care overhaul.

Top emitters meet in Rome to iron out climate issues

Environment ministers and representatives of 17 top emitters, including the United States, will meet in Rome for two days to discuss climate issues that could facilitate negotiations. Major Economies Forum (MEF) meet have focus primarily on measuring, reporting and verification (MRV) and international consultation and analysis. the focus is not just on the developing world, but also on MRV for the industrialised countries in terms of their emission reduction efforts, contribution to financial, technological, and capacity-building support. 

India has underlined the need for interlinking the monitoring, reporting and verification (MRV) of climate mitigating actions to ensure that the developing nations have "equitable" access to carbon space. India emphasised on the issue of equity in the climate change discussions. 

The MEF was set up by US President Barack Obama last year and it is focused on working towards seeking an outcome on contentious is-sues. Technology is one area that the MEF has sought to address. In this context, a review of the renewables and efficiency deployment initiative (Climate Redi), which was launched at the Copenhagen conference, is taken up.

Lanka denies visas to UN panel on rights abuse

THE Sri Lankan government has not allowed UN panel members to enter Sri Lanka and it stood firm its commitment that it made to the UN on human rights accountability when it declared that it would refuse visas for UN panel members appointed to investigate alleged human rights abuses during the civil war against Tamil rebels. 

The UN took the decision to send a team following outrage over rights abuses during the war. The war, which pitted government forces against the LTTE — who were seeking an independent homeland in the country’s north and east — ended last May. More than 65,000 people died in the strife. 

Meanwhile, Colombo slammed the European Union for imposing conditions for Sri Lanka’s continued participation in the Generalised System of Preferences, which gives it preferential tariffs for trade with the EU. The conditions include repealing sections of its emergency rules and the Prevention of Terrorism Act as well as adopting a national human rights action plan. 

China, Taiwan sign historic trade pact

Ending six decades of hostility, China and Taiwan signed a historic trade pact under which Beijing generously granted tariff cuts and concessions to hundreds of products to export dependent Taipei. The Economic Cooperation Framework Agreement (ECFA) pact was finalised after excruciating negotiations. 

G8 sets deadline for Karzai

World leaders gave Afghan president Hamid Karzai a deadline of five years to tackle corruption and sharpen his security forces or risk a western backlash.  The G8, the exclusive club of the world’s richest nations plus Russia, used its Canadian summit to demand “concrete” steps from the Afghan president and for the first time imposed a timescale on results. 

Bill Gates bigger funder of WHO than US govt?

In the case of the World Health Organization (WHO), there seem to be two entities making the largest voluntary contributions, the US government and the Bill and Melinda Gates Foundation. But a closer look at the list of contributors suggests the Gates Foundation could be a biggest contributor than the US government. At the 63rd World Health Assembly in May, a 24-page briefing document produced by the WHO secretariat gave details of voluntary contributions for the financial period 2008 and 2009. According to this document, the US contributed $424.5 million and the Gates Foundation $338.7 million. 

A list of donor contributions shows that Gates Foundation has given over $1.14 billion from 1999 to 2009, far more than the US, which contributed just $569 million during 2001-09. 

German court approves mercy killing

Terminally ill patients on life support should have the right to die if they want to, Germany’s highest civil court said in its approval. After years of debate in Germany over euthanasia, the Federal Court of Justice upheld an appeal by a lawyer, Wolfgang Putz, who was convicted last year of attempted manslaughter for advising a woman to help her mother die. The court ruled that those caring for the patient should cut off life support if the patient willed it. 

A look at some countries where euthanasia is legal: 

Netherlands: In April 2002, euthanasia became legal in the Netherlands, the first country to permit assisted deaths 

Belgium: Brussels decriminalized euthanasia in May 2002. Two doctors must be involved in assisted suicide, plus a psychologist if there are doubts about the patient’s competency 

Switzerland: It has allowed assisted suicide since 1941, but it was in December 2005 that a hospital allowed the procedure to take place there rather than at the home of the ill patients 

Luxembourg: Since April 2009 a doctor can carry out euthanasia in cases where the patient has repeatedly asked to die

BUSINESS, BANKING AND FINANCE

India adds 16.31 Million Subscribers in May 2010 

Indian Mobile subscriber base has now reached 617.53 Million users, while number of telephone subscribers (wireline & wireless) in India has increased to 653.92 Million with a overall tele-density of 55.38 for month of May 2010.

Here are details of Telecom Subscribers in India

• Total Telephone subscriber base reaches 653.92 Million
• Wireless subscription reaches 617.53 Million
• Wireline subscription declines to 36.39
• 16.30 Million new additions in wireless
• Overall Tele-density reaches 55.38
• Broadband subscription is 9.24 million

Base Rate regime kicks in, SBI sets base rate at 7.5%

The new lending regime, which will come into effect from July 1, has got a start as SBI has kept its base rate at 7.5% and Most of the large public sector banks set their base rate at 8 per cent. This new lending regime is to remove the opacity. Under this regime, short term borrowing for companies would be raised so this may lead large corporates to raise fresh short-term resources through commercial papers and non-convertible debentures as banks are not allowed to lend below the base rate.. All loans will be linked to this single lending window of Base rate except concessional loans for agriculture, exports and other specified sectors.  

The new base rate is linked to bank's cost of deposits, outgo on account of CRR and SLR, return on networth and administrative cost.

Examining sunset clause:

The RBI is examining whether there should be a sunset clause on existing BPLR-linked loans so that through a notification, all these loans can be moved to base rate.

About Base Rate:

The new benchmark rate is the rate below which banks will not provide loans. It is linked to the cost of funds and will replace the benchmark prime lending rate, or BPLR, and bring in transparency in loan pricing. RBI has given banks the flexibility to fix their base rate. It will kick in from July 1. 

Base of some banks:

SBI – 7.5%

ICICI Bank – 7.5%

Bank of Baroda, PNB, Union Bank of India, UCO Bank, Allahabad Bank – 8%

HDFC bank – 7.25%

Dena Bank – 8.25%

Know more about it, read Concept of Base Rate

Autofuel prices left to market; kerosene & LPG get costlier 

The Manmohan Singh government announced the freeing up of petrol and diesel prices, raising hopes of a further decontrol of the oil sector over the next few years, which could help balance public finances and let private companies challenge state-run firms’ decades-old retailing monopoly. Government took first step to move towards the market determined fuel price regime. 

REACTING TO the increase in the price of international crude oil to around 70 US dollars per barrel Petrol prices will go up by Rs 4 per litre, diesel by Rs 2. Kerosene, the fuel of the poor, will go up by Rs 3 a litre while cooking gas will become dearer by Rs 35 a cylinder.  Government has been acting on the lines of Kirti Parikh Committee recommendations and has shown quantum of decontrol fuel price regime.

The decision of the government to hike the fuel price is increasingly seen as step towards deregulating the oil prices and bringing them in tune with market prices. This means that prices of fuel will see regular fluctuation and they will rise and fall in tune with the global crude oil prices. The move following freeing up petrol prices and cutting subsidies on diesel, kerosene and cooking gas, to help rein in the fiscal deficit, which is projected at 5.5 percent of the gross domestic product in 2010/11 and free up revenues for other programmes. The move will help boost profits of state-run oil firms that have been losing revenue from government-set lower prices.

Decontrol of fuel price means prices of petroleum-products do need regular updating in tune with price-fluctuation of crude oil in international market.

Food inflation touches 16.9%

There seems no respite to high food inflation despite the promise of a good monsoon and a softening of global commodity prices. The official “food articles” index has gone up 16.9 per cent year-on-year for the latest recorded week ended June 12. That makes it the highest in 10 weeks since the 17.38 per cent level for the week ended April 3. The main contributors to the 16.9 per cent annual food inflation rate have been pulses (up 34.14 per cent over last year) and milk (21.12 per cent).

**it is 12.92% on week ended June 19

RBI Housing Start-up Index (HSUI) to track residential projects

The Reserve Bank of India (RBI) is planning to launch a Housing Start-Up Index (HSUI) which will help track new residential projects and measure changes in construction activities. This index has got attention as the recent crisis in US Sub-prime market rooted in the construction sector. Housing activity is considered as amongst the important lead indicators of economic activity, given its strong and substantial forward and backward linkages with other sectors of the economy.

What is a Housing Start-Up Index? 

Housing start up index (HSUI) tracks construction of new houses started in a particular period. It is a measure of the level of construction activity in a given period for a region and is considered as one of the leading indicators of economic activity. New starts pick up when the business cycle picks up. 

How does such an index help? 

• Housing activity has a bearing on a number of other sectors such as steel, cement and construction labour. Moreover, investment in housing would at a later stage translate into increased purchases of other consumer goods such as furniture, furnishings and home appliances. Timely and quality data on housing starts can help these businesses plan better. The index will help the developers ascertain the risk of building in a particular area by providing them about the construction activity happening across major cities. 

• It can also help authorities detect property bubbles in their early stage.

• Buyers/Sellers will get a idea about prices by comparing the offered price with the HSUI. They will also get demand-supply updates by this index.

Which cities will be covered under the index? 

The first phase of HSUI will cover 31 cities across the country. These will include all major cities like Delhi, Mumbai, Chennai, Bengaluru, Kolkata, among others. Eventually it will cover the rest of the country. Once operational, the data is expected to be printed on a quarterly basis. 

UID Authority to float Rs 1k-cr tender

THE Nandan Nilekani-led Unique ID Authority of India plans to invite tenders for developing and managing the world’s largest citizen database of over 1.2 billion people. Touted as one of the largest tenders by the authority, it is expected to have a contract size of over Rs 1,000 crore. Technology majors like IBM, Hewlett-Packard, Wipro, TCS, Accenture and Infosys are likely to bid for the project. The government wants only large corporations — with revenues of over Rs 6,000 crore annually and net worth of Rs 4,000 crore — to participate in the bid. 

Yuan can be alternative reserve currency: ADB

The ADB study, entitled ‘The Future Global Reserve System — An Asian Perspective’, said that China’s yuan could rapidly become an internationally-used currency and serve as an alternative to the US dollar in central bank reserves and It could become one much more quickly than many anticipate.

Some points:

The renminbi can become an international currency much more quickly than many anticipate, predicts Asian Development Bank 

Most analysts expect the yuan to be fully convertible by 2020, the target date set by Beijing to make Shanghai an international financial centre 

The study, undertaken by 11 economists from around the world, including academics Joseph Stiglitz and Barry Eichengren, did not provide a timeline for when the yuan could become a reserve currency 

Global financial markets have focused intensely this week on the yuan, after China’s central bank pledged at the weekend to increase currency flexibility after pegging the yuan to the US dollar for nearly two years

APPOINTMENTS

Pranab quits from WBPCC

senior Congress leader and finance minister Pranab Mukherjee has quit as West Bengal Pradesh Congress Committee (WBPCC) president. And Congress Legislature Party leader in West Bengal assembly Manas Ranjan Bhunia has been appointed to the post.  

Ex-minister Digvijay Singh dies in London 

FORMER UNION MINISTER and Lok Sabha MP from Bihar Digvijay Singh passed away in a hospital in London. He was 54. Digvijay Singh, a former Janata Dal-United (JD-U) leader, won the 2009 Lok Sabha election from Banka constituency as an independent candidate. He had served as minister of state for external affairs in the National Democratic Alliance government of prime minister Atal Bihari Vajpayee. 

SPORTS

Saina Nehwal Defends Indonesia Open Title

Saina Nehwal clinched the Indonesia Open Super Series retained the crown. The Indian ace downed Sayaka Sato of Japan 21-19, 13-21, 21-11.  Saina was ranked at number 3 before the victory of Indonesia cup.

Vettel charges to Euro win

Sebastian Vettel won the European Grand Prix. McLaren’s Lewis Hamilton doubled his championship lead by finishing runner-up for the third year in a row. Formula One world champion Jenson Button finished third.

Pawar takes over as ICC president

 Former BCCI chief Sharad Pawar will take over as International Cricket Council president, becoming the second Indian, after Jagmohan Dalmiya, to occupy the top post. Pawar takes over as the seventh ICC president, succeeding Englishman David Morgan.  Dalmiya was the first Indian to be elected for the post, in 1997. 

India cricket team won Asia cup

Breaking a 15-year jinx in the Asia Cup and improving their record in finals of major tournaments, MS Dhoni’s boys outplayed Sri Lanka by a comprehensive 81 runs in the final.  The win earned India its fifth Asia Cup title in the 10th edition of the tournament, breaking Sri Lanka’s growing hegemony over the tournament as the islanders failed to clinch a hat-trick of titles.  

Isner Wins Longest Tennis Match In History Over Mahut, The clock stops at 11 hours & 5 mins

John Isner and Nicolas Mahut interlocked in a mighty tennis duel Tuesday, Wednesday and Thursday at Wimbledon in a contest that lasted over 10 grueling hours, easily the longest match in the sport’s history. Isner barely outlasted Mahut 6-4, 3-6, 7-6, 6-7, 7-6, 70-68.