Current Affairs March 2012 41 Pages

7/29/2019 Current Affairs March 2012 41 Pages

1/23

March Issue

Lt Gen Bikram Singh 1Mar

The government is all set to announce the appointment

of Eastern Army Commander Lt General Bikram Singh as

the next Army chief. The announcement will bring to an

end the unsavoury succession battle marred by several

controversies and sniper attacks.

According to senior government sources, the fileproposing Lt Gen Bikram Singh as the next Army chief is

n the final stages, and would be put up for approval of

the Cabinet Committee on Appointments sometime in the

next two weeks.

The customary procedures would lead to the defence

ministry listing Lt Gen Bikram Singh as the senior-most

n the line to succeed Gen V K Singh. The file proposing

his appointment would then be put up to the Cabinet

Committee on Appointments for final approval. Gen V K

Singh retires on May 31. The usual practice is to

announce the successor two months before the

retirement of the chief.

Van Rompuy 2Mar

Leaders of the European Union have agreed to extend

the mandate of European Council President Herman Van

Rompuy for another two and a half years during a

summit in Brussels. As the only candidate for the post,

the former Belgian Prime Minister said immediately after

the re-election it is a privilege to serve Europe in such

decisive times. Van Rompuy's current mandate should

end on May 31 this year while the second one will keep

him in the position until the end of 2014.

RK Tyagi 3Mar

RK Tyagi took over as chairman of Hindustan Aeronautics

(HAL).

Previously, he was chairman and managing director of

Pawan Hans Helicopter (PHHL) (since May 2007). Tyagi is

an Engineering Graduate in Electronics and

Telecommunication (1975) from IIT Roorkee and also

possesses a Degree of Master in Business Administration.

Subsequently, he has also attended an Advanced

Leadership course on Public Sector Management for 15months at Indian School of Business (ISB Hyderabad) in

the years 2004-05. He joined ONGC as a Graduate

Trainee 1976 and through various assignments rose to

the position of General Manager in 2003 and continued

serving ONGC up to May 2007. Tyagi was holding the

position of chairman-cum-managing director at PHHL

from May 2007 to

February 2012.

Bharat Bhushan Pandit 6Mar

The government appointed Bharat Bhushan Pandit as th

deputy Comptroller and Auditor General in the office

the Comptroller and Auditor General of India.

Pandit has been appointed in the pay scale equivalent

secretary of the Government of India with fixed month

income of Rs 80,000.

He will audit work of ministries of railways, defence, po

and telecommunications.

Pandit was earlier additional deputy at the CAG and h

looked after audit of states Andhra Pradesh, Gujara

Madhya Pradesh, Orissa and Punjab.

Pandit is a 1977 batch Indian Audits and Accoun

Service officer.

Before joining the apex audit body, he worked as th

director general, defence audit, member-secretary, aud

board and accountant general, Madhya Prade

government.

Prakash SinghBadal 9Mar

Prakash Singh Badal will be sworn in as Punjab Ch

Minister. He was elected leader of the Shiromani Aka

Dal Legislature Party in Punjab.

Vijay Bahuguna 12Mar

Congress MP Vijay Bahuguna, son of late leader Hemva

Nandan Bahuguna, will be the next Chief Minister

Uttarakhand.

A former Judge of the Allahabad and Bombay Hig

Courts, Bahuguna is vice-president of Uttarakhand unit

the Congress and is a second-term MP representing Teh

Garhwal.

Hailing from a political family, Bahugunas father w

Chief Minister of Uttar Pradesh long time back and h

sister Rita Bahuguna Joshi is currently the president

the Uttar Pradesh Congress Committee.

Bahuguna will be the sixth Chief Minister of the hill Sta

which was carved out of Uttar Pradesh 12 years ago.

Okram Ibobi 14Mar

In Manipur, Okram Ibobi Singh will take oath as the ne

Chief Minister of the state.

Earlier in the afternoon, AICC General Secretary a

Manipur in-charge of the Party, Luizinho Faleiro declare

in a press conference at Imphal that Congress Preside

Sonia Gandhi has appointed Ibobi Singh as the ne

leader of the Congress Legislature Party (CLP) in t

Tenth Manipur Legislative Assembly. Later, the new C

Leader staked claim to form the new Ministry in t

state.

Congress has a total strength of 42 seats in the 6

member state assembly.


2/23

Tourism Awards1Mar

In a nod to the active interest that states have taken in

developing tourism, Madhya Pradesh and Sikkim swept

the National Tourism Award ceremony with the maximum

number of awards. While Madhya Pradesh got four

awards, including best state for tourism infrastructure

and best tourism film, Sikkim got the award for tourism

nfrastructure in the north-east and best state for the

Clean India campaign.

The awards, given by President Pratibha Patil, were an

acknowledgement of the Indian tourism industry's

enterprise. Among the awardees were leading hotel

groups and tour operators, besides people in the travel

and hospitality sector.

Patil emphasized the need for responsible tourism.

Tourism needs to be responsible which means that the

footprints of tourists have to be handled in a manner that

respects cultural traditions and protects fragile eco-

systems.

The President gave away prizes to 78 awardees in over50 categories.

Pitching for accelerated development of the tourism

sector, tourism minister Subodh Kant Sahai sought active

nvolvement of industry to achieve the target of

ncreasing foreign arrivals to 11 million by 2016. At

present, India attracts nearly six million foreigners in a

year.

Efforts are on to promote India as a 365-day tourist

destination to attract tourists with specific interests and

to ensure repeat visits by tourists and also diversifying

the tourism products by developing and promoting the

nascent and upcoming niche products of the industry. In

an attempt to encourage states and Union Territories to

put into place effective mechanism for maintaining

cleanliness at tourist destinations, a new category of

award for the 'Best State: Campaign Clean India' was

ntroduced. In addition, two awards for the Best Heritage

City and Best Heritage Walk were also introduced this

year.

Besides Madhya Pradesh and Sikkim, Rajasthan and

Kerala also bagged awards for 2010-11.

Rajiv Gandhi International Airport at Hyderabad was

adjudged the best airport and New Delhi Railway Station

got the award for best tourist-friendly station in the

country.

Chameli Devi Jain Award10Mar

Tusha Mittal of Tehelka's Kolkata News Bureau has been

chosen for the Chameli Devi Jain Award, 2012.

Mittal has been chosen as the Outstanding Woman

Mediaperson for her sterling reportage of life in the raw

at the margins in deep interior Bengal, Orissa and

Chhattisgarh, in areas affected by bloody civil strif

Naxal and vigilante violence and dangerous living alon

the Bangladesh border, where cattle smuggling is rife.

The jury that chose her comprised Shravan Garg, grou

editor, Bhaskar; Seema Mustafa, columnist and direct

of Centre for Policy Analysis; and Pamela Philipos

director of the Women's Feature Service.

The award, instituted by the Media Foundation, will b

presented on March 13 in New Delhi. This will be followeby a release of a book of essays by previous Chame

laureates, titled Making News, Breaking News, Her Wa

published by Tranquebar and a panel discussion o

What Has Changed for or Because of Women in t

Media.

U.S. Award 10Mar

An Indian NGO has been selected for the U.S.' fir

Innovation Award for the Empowerment of Women an

Girls for training and organising waste-pickers a

eliminating child labour from recycling.

The State Department said the Secretary's InnovatioAward has been given to Chintan in support of its work

reduce ecological footprints and increase environment

justice among the informal sector through green job

advocacy and organising.

The awardees were chosen by a panel of exper

including Mohammed Yunus (Grameen Bank), Cher

Blair (Cherie Blair Foundation), Sheryl Sandbe

(Facebook), Beth Brook (Ernst and Young) and Noelee

Heyzer (United Nations).

The award, funded by the Rockefeller Foundation throug

the Secretary's International Fund for Women and Gir

would be formally announced by the Secretary of Sta

Hillary Clinton and foundation President Judith Rodin.

Chintan's founder Bharati Chaturvedi has been part

several national and global projects, such as t

UNHABITAT's 2010 report on Solid Waste in the World

Cities and the European Union's ISSOWAMA projec

said the State Department.

Bharati is part of various Indian government committee

for policy makin

45th Jnanpith Award 14Mar

Renowned Hindi litterateur Amarkant received 45

Jnanpith award in a ceremony at Allahabad. On th

occasion, well known Hindi scholar and critic Pro

Namwar Singh presented a cheque of five lakh rupee

and a citation and replica of Goddess Saraswati

Amarkant. The award was given for his life-tim

contribution to Hindi literature. The 86-year old auth

Amarkant has penned several novels and landma

stories.


3/23

Amarkant was born on 1st July, 1925 in Ballia district of

Uttar Pradsesh. He has authored novels like Inhee

hathiyaron se, Sukha Patta, and Gram Sevika. Some

of the well-acclaimed short stories written by him, are

Diptee Collectary,Dopahar ka Bhojan and Zindagi aur

Jonk etc.. Amarkant have been writing about the people

iving at grassroot level, like the author himself.

Earlier on this occasion, two books- Amarkant Ek

Mulayankan and Amarkant Sanchayan were also

released on this occasion.

The 45th Jnanapith was awarded jointly to Amarkant and

Late Srilal Shukla.

Bangladesh Honors 18Mar

Meghalaya Chief Minister Mukul Sangma's mother will be

posthumously awarded by the Bangladesh government

this month for her role in Bangladesh's independence 40

years ago.

The Bangladesh government has conveyed this to

Sangma who will be travelling to the neighbouringcountry to receive the honour.

The government of Bangladesh has decided to formally

recognise your mother, late Rawshanara Begum

Sangma's contribution and to express gratitude on behalf

of the people of Bangladesh.

Sangma's mother has been selected for the honour by

the National Committee to Honour Foreign Friends of the

Bangladesh Liberation War, of which the Foreign Minister

s the convener.

Prime Minister Sheikh Hasina will felicitate the recipientson March 27.

Your mother's support came at a critical time when we

stood up against barbaric atrocities and the worst-ever

genocide in world history and contributed to the eventful

emergence of sovereign Bangladesh.

The Chief Minister's mother, who lived at Ampati, near

the Indo-Bangladesh border in West Garo Hills district,

had provided food and makeshift shelter to people who

fled their homes to evade atrocities by the Pakistani

troops during the war.

Abel Prize 22MAr

The winner of the prestigious Abel Prize of the Norwegian

Academy of Science and Letters for the year 2012 is 72-

year-old Hungarian mathematician Endre Szemerdi of

the Alfrd Rnyi Institute of Mathematics, Hungarian

Academy of Sciences, Budapest, and Department of

Computer Science, Rutgers, The State University of New

Jersey in the United States.

Szemerdi's highly influential work has proved to be a

game-changer in many areas of mathematics.

The announcement was made by the President of t

Norwegian Academy in Oslo and the award is being give

for his fundamental contributions to discre

mathematics and theoretical computer science, and

recognition of the profound and lasting impact of the

contributions on additive number theory and ergod

theory.

Szemerdi has been described as a mathematician wi

exceptional research power and his influence in divers

areas of present-day mathematics has been enormouThe festschrift volume, titled An Irregular Mind, publishe

on his 70th birthday, ascribes his unique way of thinkin

and extraordinary mathematical vision as perhaps due

his brain being wired differently an irregular mind

than most mathematicians.

The Abel Prize, named after great Norwegia

mathematical genius Niels Henrik Abel (1802-1829),

given in recognition of outstanding contributions

mathematical sciences and has been awarded annua

since 2003.

Abel, who died at the age of 26, has often beecompared with the Indian mathematical genius Sriniva

Ramanujan. The Prize was established in 2001 as part

Abel's 200th birth anniversary. It carries a cash award

6 million Norwegian Kroner (NOK), equivalent

750,000 (about U.S$ 1 million), and is comparable

prestige, value and eligibility criterion to the Nobel Priz

which, does not cover mathematics.

The winning candidate is selected on the basis of t

recommendation of an international committee

outstanding mathematicians chaired by a Norwegian. Th

current committee is headed by Ragni Piene, Professor the University of Oslo and includes M.S. Raghunatha

formerly of the Tata Institute of Fundamental resear

(TIFR) and currently at the Indian Institute

Technology-Bombay (IIT-B), in Mumbai.

The selection of Szemerdi for the award was made

February at a meeting of the Committee held at the TIF

Phalke Award 22Mar

Elated with the news that he had been selected for th

Dadasahaeb Phalke Award, eminent actor Soumit

Chatterjee said that he was particularly pleased as thwas an honour that was not marred by controversies

politics.

He said the award, whose recipients have bee

deserving persons, vindicates the faith that m

countrymen have placed in me.

Chatterjee made his film debut with Satyajit Ray in Ap

Sansar, to go on to become a central actor in the note

filmmaker's team. He has also worked with several oth

well-known directors.


4/23

Global Jurists Award 23Mar

Samajwadi Party (SP) supremo and Member of

Parliament Mulayam Singh will be honoured with the

prestigious International Jurists Award-2012.' The award

will be given to Singh on May 28 in London by the Chief

Justice of the United Kingdom, Lord Phillips.

Justice Gavin Lightman, retired Judge of the High Court

of England, said Singh had been selected for his

unflinching contribution to the advancement of the Barand the Bench. His support to the development of the

egal fraternity was unparalleled in the world.

A biography of Singh,written by Attorney Sarah Booth,

would also be presented to the SP chief by Chief Justice

Phillips. The award presentation ceremony is expected to

be attended among others by the Prime Minister of

Jordan, Chief Justices and judges from various countries,

Members of Parliament, senior lawyers and social

activists.

Liberation War Friendship Honour27Mar

Indian politician-diplomat D.P. Dhar was honoured

posthumously by Bangladesh for his special role in the

countrys 1971 Liberation War.

Sree Durga Prasad Dhar is conferred with the Liberation

War Friendship Honour (posthumous) in recognition of

his pioneering role in concluding the 1971 Indo-Soviet

Friendship Treaty, mobilising international support in

favour of Bangladesh and playing a special role in

support of the Liberation War.

Dhar was the Chairman of Policy Planning in the Indian

External Affairs Ministry and played a crucial role in the1971 Indo-Pak war leading to the creation of an

ndependent Bangladesh.

The award was received by his son Vijay Dhar from

President Zillur Rahman along with a certificate and a

replica of the National Mausoleum.

Dhar was among 83 other foreign dignitaries and

nternational organisations honoured as foreign friend

at a grand ceremony in the capital attended by top

political leaders, including Prime Minister Sheikh Hasina.

Sobha Brahma 7Mar

Sobha Brahma, the artist-sculptor from Assam who gave

a contemporary stroke to the north-eastern region's

tribal art, passed away.

Brahma, trained under the two leading lights of

Santiniketan, Ramkinkar Baij and Nandalal Bose, planted

and honed a creative idiom that was at once avant-garde

and inventive. So distinct was his art, so researched it

was into the forms, tones and shades representative of

Assam's plains tribes the Bodos, and the Dimasas, the

Rabhas and the Karbis that Brahma becam

everyone's own.

Brahma's flowering in art began in the 1950s. Along wi

his contemporary, Beni Mishra, he began searching f

ways to give a fresh blend to art in Assam, different fro

their seniors in the 1930s and the 1940s. They ha

largely followed trails beaten by Raja Ravi Varma, an

beautiful rural-scapes with an Impressionist influenc

Joy Mukherjee 10Mar

Joy Mukherjee passed away after prolonged illnes

Mukherjee had starred in many Hindi movies of t

1960s such as Shagird, Love In Tokyo, Ziddi, Phir Wo

Dil Laya Hoon and Ek Musafir Ek Hasina.

Mukherjee hailed from a family which was well-known

the Hindi film industry. His father was the co-founder

Filmalaya studio and was married to veteran actor Asho

Kumar's sister Sati Devi. Mukherjee was actor Kajo

paternal unc

Uttamrao Patil 11Mar

Former Member of Parliament from Yavatmal and

prominent leader from Vidarbha region of Maharashtr

Uttamrao Patil passed away.

He represented the Yavatmal Lok Sabha constituency f

four consecutive terms from 1980 and again twice fro

1998.

Manik Godghate 27Mar

Marathi poet and author Manik Godghate, popula

known as Grace,' passed away.

Known for his path-breaking work in Marathi literatur

Godghate, was a household name owing to his poet

that was used in many popular songs. Having ma

awards to his credit, he portrayed the apathy a

sadness in human life.

He was awarded the Sahitya Akademi award for his pro

Varyane halte raan (The forest swings with the wind)

2011, which according to many of his readers shou

have come much earlier in his life. He was decorated wi

Vidarbha Bhushan in 2011.

His works include Churchbell and Mitva in prose, a

Sandhyakalchya Kavita, Rajputra and Darlin

Sanjbhayachay Saajani and Chandramadhaviche Prade

in poetry.

Health Sector 1March

A high level meeting at the Prime Ministers Office ha

decided to increase the total Government expenditure o

the health sector to 2.5 per cent of the GDP by the end


5/23

the coming twelfth plan period, from the current level of

around 1.4 per cent of the GDP.

Chaired by Principal Secretary to the Prime Minister,

Pulok Chatterji, the meeting decided to request the

Planning Commission to allocate adequate resources to

achieve the target and motivate and incentivise the

States, since health was primarily a State subject and

outlay of States for the sector would be critical in this

regard.

The Planning Commission in consultation with the Health

Ministry would work out an appropriate mechanism/

scheme for the purpose, Planning Commission Member

[Secretary], Sudha Pillai, attended the meeting, apart

from Union Health Secretary, P.K. Pradhan and five

senior officers of the Health Ministry.

The meeting, among other things, decided that the

Health Ministry prepare a clear roadmap to merge all

the National Rural Health Missions schemes to bring them

under one umbrella and that the merger may begin from

the coming financial year and be completed by 2013-14.

It also decided that the Clinical Establishments

[Registration and Regulation] Act, which was passed by

Parliament in 2010 be brought into effect soon so that its

provisions are operationalised at the earliest.

It further wanted that the work on the establishment of

the National Centre for Disease Control be completed in

two years and that the integrated disease surveillance

project is strengthened with setting up of public health

aboratories at State and district levels.

Besides, it asked the Health Ministry to work towards

getting a Bill passed by Parliament for setting up of a

national commission on human resources in health to

ensure that the country had adequate numbers of

doctors, nurses, ANMs and other paramedics.

It decided that an approach paper for induction of health

managers and a creation of a public health cadre be

prepared for inclusion in the 12th plan and that efforts be

taken to strengthen facilities at primary health centres,

community health centres and district hospitals so as to

provide for a minimum package of care to all citizens

through provision of cashless, hassle-free outpatient,

npatient and diagnostic care, with adequate supply ofessential medicines.

The meeting also called for steps to speed up the

mplementation of the Union Cabinets decision to

establish a central procurement agency for bulk purchase

of drugs and to quicken the process of preparation of

standard treatment protocols.

The meeting, which was held at the direction of Prime

Minister Manmohan Singh, urged for early introduction in

Parliament of a Bill to amend the Drugs and Cosmetics

Act, which seeks to strengthen the enforceme

mechanism of drug control.

It also wanted the Health Ministry to work closely wi

other agencies dealing with social determinants of heal

such as nutrition, safe drinking water, hygiene educatio

and sanitation so that there was more focus o

prevention of diseases and promotion of good health.

The meeting specifically focussed on t

recommendations of the National Commission fmacroeconomics and Health and the High Level Expe

Group on Health set up by the plan pane

Akash Missile 2Mar

The indigenously developed advanced light-weig

torpedo and the Akash missile system will be hand

over to the Navy and the Indian Air Force respectively

a function in Hyderabad on March 3. Defence Minist

A.K. Antony will be present at the event.

Bharat Dynamics Limited (BDL), Hyderabad, is t

production agency for both the torpedo and the missil

The Navy has christened it Torpedo Advanced Lig(TAL).

The Naval Science and Technological Laboratory (NSTL

Visakhapatnam, which comes under the Defen

Research and Development Organisation (DRDO), h

designed and developed the TAL. The Defence Resear

and Development Laboratory (DRDL), Hyderaba

developed Akash, a surface-to-air missile.

Torpedoes are underwater missiles which are fired fro

ships, submarines or helicopters against ships a

submarines.

The TAL is about 2.75 metres long, weighs 220 kg an

packs 50 kg of explosives. It is an anti-submari

torpedo and can travel upto a maximum distance

seven km before taking out an enemy submarine. It ca

be launched from ships, helicopters and aircraft. T

Navy has placed an order for 25 TALs.

The TAL is a totally indigenous missile except for a fe

integrated circuits and sensors. It has a speed of 3

knots an hour and can operate at a maximum depth

540 metres.

The NSTL is the laboratory which develops underwat

weapons such as torpedos, mines and their associate

fire control systems, and decoys.

Akash, an anti-aircraft defence system, ca

simultaneously engage several targets. It has a warhea

weighing 60 kg and a maximum interception range of 2

km. Rajendra, the radar developed by the Electronics an

Radar Development Establishment (LRDE), a DRD

laboratory situated at Bangalore, forms a part of t

Akash system. Rajendra does the surveillance, tracks th


6/23

target, acquires it and guides the missile towards it.

Road Projects 2Mar

The government approved three highway projects in

Rajasthan, Tamil Nadu and Orissa that entail an

nvestment of Rs 3,412 crore, under its flagship road

building programme NHDP.

The projects include Rs 1,114.27 crore scheme in

Rajasthan, Rs 828 crore contract in Tamil Nadu and and

Rs 1,470 crore award in Orissa.

The Cabinet Committee on Infrastructure (CCI) approved

the investment proposal for the implementation of the

four/two laning of Gomati Chauraha-Udaipur section on

NH 8 in Rajasthan... Four/two laning of Madurai-

Ramanathapuram section on NH 49 in Tamil Nadu and

four laning of Chandikhole-Dubari-Talcher section on NH

200 in Orissa.

All these projects will be implemented under various

phases of Natinal Highways Development Project (NHDP)

under desgin, build, operate, finance and transfer

(DBOFT) basis on BOT (Toll) mode.

About the Rajasthan project, the statement said that the

79.31 km stretch will be widened in 30 months and has a

concession period of 27 years.

The main object of the project is to expedite the

mprovement of infrastructure in Rajasthan and also in

reducing the time and cost of travel for traffic plying

between Gomati Chauraha and Udaipur, the statement

added.

The Orissa project covering the districts of Angul,

Dhenkenal and Jajpur on completion will reduce the timeand cost of travel for traffic plying between Chandikhole,

Dubari and Talcher and will increase the employment

potential for the local labourers for the project activities.

BrahMos Missile 5Mar

The Indian Army had successfully launched BrahMos

missile and destroyed the preselected target in the field

firing ranges in Rajasthan.

The second BrahMos unit of Indian Army has been

operationalised at an undisclosed location in the western

sector. This is in conformity and pursuit of operationaland strategic surface to surface missile capability

development.

BrahMos has the capability of attacking surface targets

by flying as low as 10 metres in altitude. It can gain a

speed of Mach 2.8, and has a maximum range of 290

km.

The BrahMos has been developed as a joint venture

between the Defence Research and Development

Organization of India and the Federal State Unitary

Enterprise NPO Mashinostroyenia of Russia under

BrahMos Aerospace. The missile is named after tw

rivers, the Brahmaputra and the Moskva.

Minority Scholarships 9Mar

Center has distributed around 48 lakhs minor

scholarships till last months during the current Financ

Year under its Pre-matric Scholarship Scheme. It

against the target of 34 lakhs. Over 540 crore rupees h

been sanctioned by the Minority Affairs Ministry

achieve this target. This Scheme was started in the ye2008 and a cumulative total of over 1.14 cro

scholarships have been awarded till last month. T

scholarship scheme is for the welfare of minoriti

students from class one to class tenth.

CBRN Attacks 10Mar

The Defence Research and Development Organisation

developing static and moving censors to build a stron

defence against possible chemical, biological, radiologic

and nuclear radiation attacks. DRDO will soon set up a

institute near Delhi to train the armed forces' personn

in this field. This was stated by DRDO Director General K Saraswat in Chennai. He said the censors will enab

detection of chemical, biological, nuclear and radiologic

agents.

He said, the 5,000 plus km range surface-to-surfa

missile A V (Agni V) will be tested next month, while th

country's latest 1000-km range sub-sonic land atta

cruise missile 'Nirbhay' will be tested this year. He sa

DRDO has completed Tejas - the Light Combat Aircraft

for the Navy, which will enter the flight trial phase soon

India, Colombia 13Mar

India and Colombia signed a cultural exchan

programme agreement to promote the cultural heritag

of the two countries. The agreement was signed

Culture Secretary, Sangita Gairola and Vice-Minister

Foreign Affairs of Colombia, Patti Londono Jaramillo

New Delhi.

Under the programme, both the countries will contribu

for the exchange and cooperation between institutio

and organizations that are in charge of cultural affair

The programme will also cover promotion of museum

archives, exhibitions and research in this area.

Both the countries have agreed to establish a joi

working group to supervise the implementations of th

programme. The agreement has been signed for t

period 2012 to 2016.

Power Plant 13Mar

Adani Power synchronized the fifth unit of the Mund

power plant this week, taking its total generatin

capacity to 4,620MW, making it the world's large

single-location coal-fired plant in the private secto

China, Poland and Taiwan have three thermal pow


7/23

plants exceeding 5,000 MW but they are all state-owned,

making Mundra also the fifth largest globally. Adani,

which ventured into power generation in 2009-10, has

become India's largest power generation company in the

private sector and its current capacity is 15% more than

the ultra mega power projects (UMPPs) being executed

by Reliance Power and Tata Power in states of Gujarat,

Madhya Pradesh, Andhra Pradesh and Jharkhand. Even

India's biggest state-owned power producer NTPC does

not produce over 4000 MW of power in a single location.

The company has signed long-term power purchase

agreement with Gujarat and Haryana for sale of 80% of

the capacity while the remaining 20% the company

ntends to sell at merchant basis.

The PPAs signed with the state governments envisages

sale of power at Rs 2.34 per a unit to Rs 2.94 per unit.

However, with the price of Indonesian coal going up

substantially with the new Indonesian law to sell it at

market-linked prices, the company is looking at

renegotiating the terms of the PPAs. Adani Power

ntends to complete commissioning of 3300 MW at Tiroda

and another 1320 MW at Kawai by March 31, 2013. The

company intends to reach a capacity of 20,000 MW by

2020.

India to Export Warships 14Mar

Looking for export markets for its vessels, defence

undertaking Goa Shipyard is offering its smaller size

naval vessels to countries in Africa and the Middle East.

In this regard, a Nigerian delegation headed by a senior

Navy officer of that country visited the shipyard last weekn Goa.

The visit assumes significance in view of GSL's ongoing

efforts to market its state-of-the-art Patrol Vessels to

coastal African nations and Middle East etc.

The delegation was headed by Senator Chris N D

Anyanwu, the Chairperson Senate Committee on Nigerian

Navy and held discussions with GSL chief Rear Admiral

(retd) Vineet Bakshi.

The delegation was also informed about the

modernisation programme and progress made thereof.

Expressing satisfaction on GSL's capability to design and

build sophisticated and high value ships, the visiting

delegation lauded GSL's efforts to upgrade its shipyard to

meet the future defence requirements.

GSL is one of the main shipyards building vessels for the

Indian Navy and Indian Coast Guard. The yard has also

provided speed patrol boats required for coastal

surveillance.

World Bank Aid to India 15Mar

The World Bank has announced 4.3 billion US doll

financial aid to India through a new innovative a

flexible financing arrangement to help the country fig

poverty.

This arrangement has been designed in a way

maintain net exposure of the lending arm of World Ban

International Bank for Reconstruction and Developmen

IBRD within the limit of 17.5 billion dollar established

it.

In a statement, the World Bank said the ne

arrangement will allow for special bonds to be issued

the World Bank and purchased by India, to offs

additional planned lending.

This will enable India to continue accessing long-term

low-interest IBRD finance for development projec

aimed at improving the lives of its people, one third

who are yet to make their way out of povert

Food Security Bill 19Mar

Implementation of the National Food Security Bill w

entail a subsidy of a whopping Rs 1.12 lakh crore, Fooand Consumer Affairs Minister KV Thomas informed th

Rajya Sabha.

Food subsidy as per 1993-94 poverty line and 200

population census is Rs 88,976 crore and as per the 201

census it would be Rs 197,096 crore.

Additional food subsidy burden for 2012-13 is estimate

at Rs 1,12,205 crore, he said adding this is Rs 3000

4000 crore more than previous estimate "which t

country can manage."

The National Food Security Bill provides that priorihouseholds will be entitled to receive rice at Rs 3 per k

wheat at Rs 2 per kg and coarse grains at Rs 1 per kg.

General households, under the Bill, are entitled f

foodgrains at a price not exceeding 50% of Minimu

Support Price for wheat and coarse grain and n

exceeding 50% of derived MSP for rice.

We need 561 lakh tons of foodgrains (for distributio

through public distribution system) as per 1993-9

poverty line and 2000 census.

As per provisions of NFSB, and using 2011 Cens

population, the requirement of foodgrains for Targete

Public Distribution System (TPDS) and Other Welfa

Schemes (OWS) prescribed in the Bill, is estimated

607.4 lakh tonnes.

The Bill does not include sugar as legal entitlement.

Thomas said the stock of foodgrains available in t

Central Pool as on March 1, 2012 is 544.3 lakh tonne

The average annual procurement of rice and whe

during the last four years (2007-08 to 2010-11) has bee


8/23

about 570 lakh tonnes as compared to 382.2 lakh tonnes

during 2000-01 to 2006-07.

The procurement of wheat during marketing season

2011-12 was 283.4 lakh tonnes and estimated

procurement of rice during 2011-12 is 353.2 lakh tonnes.

Phone Tapping System 22Mar

The Telecom Ministry has been allocated a sum of Rs 400

crore for setting up a Central Monitoring System (CMS)

to be used for lawful interception in telecommunicationand the project will be completed by August 2014.

An amount of Rs 400 crore has been allocated by the

government for the CMS... The project has three phases

with a time line of 13-14 months each. The project is

ikely to be completed by August 2014.

This monitoring system is being designed and developed

ndigenously.

The government is looking to set up CMS to help security

agencies monitor and prevent unlawful activities in the

country.

The Indian Telegraph Act authorises security agencies to

go for lawful interception. However, unlawful interception

s a punishable offence and the offender can be punished

with imprisonment for a term which may extend to three

years.

'New Pension System 22Mar

Assets under management of the New Pension System

(NPS) are likely to touch Rs 20,000 crore by the end of

2012 from Rs 14,000 crore at present.

"AUM [Assets Under Management] of the NPS [NewPension System] are likely to move up from Rs 14,000

crore now to Rs 20,000 crore by the year-end," NPS

Trust Managing Trustee and Chief Executive Officer NR

Rayalu said.

The NPS trust was set up in 2008 by the Pension Fund

Regulatory and Development Authority (PFRDA) for

taking care of the assets and funds under the NPS in the

nterest of the subscribers.

NPS is a crucial component of reforms in the Indian

pension fund market whose valuation is estimated at Rs

13.72 lakh crore.

He said pension funds can contribute immensely for

development of infrastructure as the country plans to

spend Rs 50 lakh crore during the 12th Five-Year Plan

(2012-17).

Only 13% of the workforce mainly employees of the

government and organised private sector are covered

by a pension scheme.

Pact for Atomic Reactors 22Mar

Russia's ability to restart long-delayed work at India

Kudankulam nuclear plant has paved the way for a de

with Delhi to build two more atomic reactors in the nea

future.

The first two reactors at the plant in Tamil Nadu we

meant to be operational last year, but work by Russia

engineers was delayed after protesters blocked access

the site following Japan's nuclear catastrophe.

The resolution of the political dispute over the first twreactors paves the road to sign the agreement on th

third and fourth (nuclear) generators.

The decision (on the third and fourth) reactors was linke

to the launch of the first and second generators.

Russia is keen to cash in on its nuclear know-how an

has ambitious plans to triple nuclear exports to $5

billion a year by 2030. It possesses about 40 percent

the world's uranium enrichment capacity, and expor

some $3 billion worth of fuel a year, offering discounts

clients who buy its reactors.

India meanwhile continues to suffer from huge electrici

shortages which are hampering its growth, and

therefore anxious to get more nuclear power statio

built as quickly as possible.

India plans to add 64 gigawatts of nuclear power to i

power generating capacity by building 30 reactors

2032.

Infra Financing 22Mar

India will get a $240 million soft loan from the Asia

Development Bank (ADB) for development

infrastructure projects in different states through publiprivate partnership (PPP).

The central government, ADB and the Ind

Infrastructure Finance Company Ltd (IIFCL) signed

$240 million loan agreement in this regard.

The fund will be used to expand road networks in Andh

Pradesh, Bihar, Gujarat, Maharashtra, Jammu a

Kashmir.

The loan to road projects will help connect far flun

communities to markets, adding a power project

Gujarat will also receive funding.

The long-term financing will play a catalytic role

encouraging private-sector participation in infrastructu

projects, particularly, through the PPP modality and w

leverage funds over 10 times from the private sector.

This is the third and final tranche of the ongoing secon

India Infrastructure Project Financing Facility (IIPFF

which aims to stimulate infrastructure developme

through PPP investments.


9/23

The loan would flow to the IIFCL on back-to-back basis

with sovereign guarantee.

In 2009, ADB had agreed to provide a $700 million multi-

tranche financing facility to help IIFCL provide long-term

funding for infrastructure development.

State Per Capita Income 23Mar

Orissa's per capita income has grown by 27 per cent in

the first four years of the 11th Plan (2007-12). The

state's per capita income has moved up substantiallyfrom Rs 20,194 in 2006-07 to Rs 25,708 in 2010-11.

This was informed by minister for Planning &

Coordination Usha Devi in the state assembly.

The state's per capita income is projected at Rs 26,900 in

2011-12 as per the Economic Survey report for 2011-12

released recently by the department of Planning &

Coordination.

However, district wise scrutiny of the state's per capita

ncome reflects a lopsided trend. Angul has wrested the

top slot at Rs 20,500 followed by Jharsuguda (Rs 19800)and Sundergarh (Rs 15700). Nabarangpur in south

Orissa fares the worst in the per capita index with a per

capita income of Rs 5800 and Malkangiri has scored

marginally higher at Rs 6800.

The state is gradually closing in on the gap with the pan-

India average (Rs 35993) in terms of per capita income.

With the exception of Bihar (Rs 13632) and Jharkhand

(Rs 21734), neighbouring states like Andhra Pradesh (Rs

40366), West Bengal (Rs 32228) and Chhattisgarh (Rs

27156) have higher per capita incomes than Orissa.

According to data of Central Statistical Organization

(CSO), Maharashtra leads all states with the highest

ncome per head standing at Rs 62729 followed by

Haryana (Rs 59221) and Gujarat (Rs 52708).

Besides recording growth in per capita income, the state

has also witnessed reduction in the number of people

iving below the poverty line. As per the methodology

adopted by the Tendulkar committee, the percentage of

people living below the poverty line in the state has

slumped 20.2 per cent during 2004-05 to 2009-10, the

minister said.

As many as 15.32 million people in the state were living

below the poverty line (BPL), according to data of

National Sample Survey Organization (NSSO) in 2009-

10.

Soyameal Imports 23Mar

Iran has signed contracts with Indian traders to purchase

1.25 lakh tonnes (LT) of soyameal, used as animal

feedstock, at $430-435 per tonne. The consignment will

be delivered during April-May period of this year.

Tubes for Nuclear Plants 27Mar

India joined a select band of nations when the Nucle

Fuel Complex (NFC) successfully manufactured critic

tubes required for steam generators of nuclear pow

plants.

Currently, only three companies in the world a

producing the UNS NO8800 U tubes with NFC becomin

the fourth entity. The first tubing consignment w

handed over to Larsen & Toubro, which is manufacturin

eight steam generators for Kakrapara (3 and 4 units) an

Rajasthan (7 and 8 units) nuclear power plants being sup by the Nuclear Power Corporation of India Limit

(NPCIL).

Each steam generator will need 2,500 tubes and N

would be supplying 20,000 tubes for the eight stea

generators by the middle of 2013-14. In tune with L& T

strategy of promoting self-reliance, the company ha

opted to source the tubes from NFC rather tha

importing them. To pool the strengths of both t

organisations, NFC and L &T have signed a Memorandu

of Understanding for long-term manufacture and supp

of SG tubes, establishing the complete supply chain f

the tubes.

Addressing a press conference here, NPCIL Chairman an

Managing Director, S.K. Jain, L& T Vice-President, M.

Kotwal and Chief Executive of NFC R.N. Jayaraj said th

all along, these tubes, which formed the most importa

component in heat exchange, were being imported.

To a question on making operational the first unit

Kudankulam plant, Mr. Jain said work had begun on

war-footing and employees were working har

Sanitation Goal 28Mar

While it has made progress on water supply, a hig

percentage continue to defecate in the open

Going by the present pace of progress, India will achiev

the millennium development goals (MDGs) on sanitatio

only by 2054. While some States had already achieve

the target and some are close to it, other populo

States such as Madhya Pradesh and Orissa will reach th

target only in the next century, according to WHO an

UNICEF's Joint Monitoring Programme for Water Supp

and Sanitation (JMPWSS).

According to the JMPWSS' report, which tracks tprogress on drinking water and sanitation, 17 State

including Kerala, Haryana, Meghalaya, Himachal Prades

Punjab and most Union Territories, had already achieve

the MDG target while Assam, Andhra Pradesh a

Arunachal Pradesh will achieve it in the next 10 years.

Karnataka, Maharashtra, Tamil Nadu and Chhattisga

are some States that will meet the MDG target in t

coming 25 years, while Madhya Pradesh is expected

achieve the goal in 2105 and Orissa in 2160 unle

special strategies are adopted to speed up the progress


10/23

The world has pledged to reduce by half the proportion of

people without sustainable access to safe drinking water

and basic sanitation by 2015 from 1990 figures. Though

India has already achieved impressive results on water

supply, with 85 per cent of its people having access to

safe drinking water, 51 per cent or 626 million people in

the country defecate in the open, accounting for 60 per

cent of the world's total open defecations.

India has seen an improvement in the sanitation figures

from 1990, when 75 per cent people defecated in theopen as against 51 per cent in 2010. But this

mprovement is seen only in the urban settings, where 28

per cent had no access to toilets in 1990 as against 14

per cent in 2010. In the rural areas, 91 per cent had no

access to sanitation in 1990 as against 67 per cent in

2010, indicating that it was the rich who had more access

to sanitation.

Four out of every 10 people who have gained access to

mproved sanitation since 1990 live in China or India, and

more than half of the 2.5 billion people without improved

sanitation too live in these two countries. In India, 251

million people gained access to sanitation between 1990

and 2010 but the percentage continues to be low

because of the annual increase in the population. Over

1.7 million (22% of the world total) children under five

who died in 2010 were Indians, diarrhoea being one

among the largest killer diseases and accounting for 13

per cent of the deaths. Worldwide, over 80 per cent of

diarrhoeal deaths are due to unsafe water, inadequate

sanitation and poor hygiene.

Test-flight of BrahMos 29Mar

Supersonic cruise missile BrahMos was successfullyflight-tested from the Integrated Test Range at

Chandipur, Orissa.

The missile rose from a Tatra truck on the sea-side

aunch station and sped over the Bay of Bengal at 2.8

times the speed of sound (2.8 Mach) and covered its

entire range of 290 km.

It used an advanced guidance algorithm to perform a

steep dive during the terminal phase of its flight and

accurately plunged over the targeted area in the Bay of

Bengal.

It performed the dive at supersonic speed. Telemetry

received from two ships stationed near the impact point

confirmed the missile's steep dive. It was a successful

mission. It achieved 100 per cent results.

This was the 29 test-flight of BrahMos, which had been

deployed in two regiments of the Army. The missile has

also been inducted into the Navy.

India- Germany Pact 30Mar

India and Germany have signed an agreement to financ

clean energy for rural development projects. As per th

agreement, KfW (German Development Bank) w

provide a loan amount of 100.1 million Euros to Rur

Electrification Corporation, REC, to support such projec

in the field of renewable energy and energy efficiency.

The loan agreement was signed by Rajeev Sharm

Chairman and Managing Director of REC and Oscar vo

Maltzan, Country Director of KfW for India in New Delh

A Guarantee Agreement was also signed between Kfand the Government of India. This is the third Line

Credit that REC is receiving under the Bilater

Development Programme between India and Germany.

Indo-US joint Venture 31Mar

Kapil Sibal launched the Indo-US joint venture projec

Open General Government Platform (OPGL) for makin

available Data from both countries. The project envisag

openness, transparency and engaging of citizens

participative governance.

Sibal said, accessiblity to data would also facilitiaparticipation of individuals and communities for sharin

innovative ideas and creative projects. The OPGL is base

on the National Data and Accessibility policy approved

the Cabinet for providing public acess to data owned b

the government. He said it is also part of the outcome

discussions between Prime Minister Manmhan Singh an

US president Barack Obama, during the US President

visit to India in November last year.

The Open Government Platform (OGPL) has bee

developed by the nodal agencies from both the countri

National Informatics Centre, India and Office of CitizeServices & Innovative Technologies of the U.

Government can be assesd on the internet

www.opgl.gov.in. The OGPL Platform offers citizens

engage in their open data initiatives for bett

understanding of their needs, provides publicly availab

application programming interfaces and other tools

add external software modules for data visualizatio

wizards, and other purposes.

China's Defence Budget 5Mar

Puts in place plans to modernise its Army against th

backdrop of an uncertain regional environment.

China has announced it will increase defence spending b

11.2 per cent in 2012, for the first time taking its annu

military expenditure beyond $100 billion as it puts

place plans to modernise its Army against the backdro

of an uncertain regional environment.

The planned defence budget was announced in Beijing

670.274 billion yuan ($106.39 billion), an increase

67.604 billion yuan over the expenditure in 2011 and a


11/23

11.2 per cent year-on-year rise. The proposed budget is

expected to be approved this week when the National

People's Congress (NPC), the top legislative body, begins

ts annual session.

China's spending in 2012 will exceed what India spent

ast year by three times India's defence expenditure

was reported at $36 billion in the 2011-12 budget.

Conference on Climate Change 15Mar

Nepal is to hold an International Conference of mountainCountries on Climate change in Kathmandu on 5-6th

April. Secretary, Ministry of Environment, Government of

Nepal, Krishna Gyawali said that the conference is an

effort to develop a coordinated voice for mountain

countries. The Conference aims to project the needs and

concerns of mountain countries and arrive at a

framework for effective collaboration for addressing the

concerns. The conference will bring together mountain

countries from Hindu-Kush, Himalayas, Andean, Alpine,

Pamir and the Atlas region.

The object is being to provide a forum, to share

knowledge, and experiences on impact of climate changeon the mountains and deliberate on associated common

risk. The conference is in which a dozen environment

ministers and representatives from various countries and

nternational agencies are expected to take part in the

two day summit.

4G Auction 1Mar

Communications Minister Kapil Sibal said a spectrum

auction for fourth-generation (4G) mobile services wasplanned by the end of the year. 4G services enable data

speeds many times higher than 3G.

The auction could fetch the government nearly Rs 13,000

crore for each 20-MHz block. That is the amount Finance

Minister Pranab Mukherjee expected the government

would get from the auction of each block of broadband

wireless access (BWA) or 4G spectrum at the time of

Budget 2011-12. Owing to a lack of spectrum availability,

the auction was postponed.

With about six blocks of 4G spectrum expected to be

available, the government could make Rs 52,000 crore if

t sells four or as much as Rs 78,000 crore if it sells six.

The number will be decided by the Department of

Telecommunications (DoT).

Apart from the six blocks identified, the state-owned

BSNL recently returned BWA spectrum allocated to it.

That may also come up for auction. In June 2010, the

government had auctioned two slots of BWA spectrum,

which had fetched over Rs 38,000 crore. Reliance

Industries, through Infotel Broadband, was the only

player to have taken a pan-India licence.

Sibal said the government did not want to put all th

spectrum for auction in one go and the decision wou

depend on recommendations by the Telecom Regulato

Authority of India (Trai). "In fact, we don't think we a

going to put all the spectrum for auction. That depen

on what Mr Sarma (the Trai Chairman) does for us, th

idea being we should come up with enough spectrum

get a reasonable price for ourselves.

More Tier-I Capital Adequacy 2Mar

The Reserve Bank of India (RBI) had indicated it wou

prescribe higher capital adequacy norms than tho

proposed under the Basel III framework. This would he

sustain the advantage of healthy financial profiles th

Indian banks currently enjoy.

Deepak Singhal, chief general manager, RBI, said,

requirement of one per cent above the floor set und

Basel III would not impact Indian banks. RBI would n

like our banks to be seen as laggards. The central ban

in its draft guidelines issued in December, had propose

that the common equity Tier-I capital should be at lea

5.5 per cent of risk weighted assets (RWAs). Basel Inorms prescribe minimum common equity of 4.5 p

cent.

RBI has proposed Tier-I capital of at least seven per ce

and said the total capital be kept at least nine per cent.

has also proposed a capital conservation buffer in th

form of common equity of 2.5 per cent of RWAs.

According to RBI, Indian banks would not have a proble

in adjusting to the new capital rules, both in terms of th

quantum as well as the quality. Quick estimates sugge

the capital adequacy of Indian banks under Basel Inorms would be 11.7 per cent, compared with t

required capital to risk (weighed) asset ratio of 10.5 p

cent under the Basel III norms.

Many developed and emerging countries had stringe

norms to maintain a higher capital base. In Swede

banks have to maintain a capital adequacy ratio (CAR)

at least 15 per cent, while in Argentina, banks can pa

dividend only when the CAR is 18 per cent or more.

Rating agency ICRA said public sector banks media

capital adequacy levels declined from 13.4 per cent o

March 31, 2011, to 12.1 per cent on December 31. Tiercapital of these banks fell from 8.7 per cent to 8.3 p

cent in the same period. The capital adequacy ratios

all large private banks remain comfortable. Their media

capital adequacy stood at 16.3 per cent, while the Tier

capital was 11.2 per cent in Decembe

RBI buys Bonds 3Mar

The Reserve Bank of India (RBI) bought 107.76 billio

rupees ($2.18 billion) of government bonds through a

open market operation, lower than the notified 120 billio

rupees.

The RBI bought the 9.15 percent bonds maturing in 202


12/23

at 106.61 rupees, yielding 8.2951 percent, lower than a

Reuters poll forecast of 8.3013 percent.

The central bank rejected all bids for 8.35 percent bonds

maturing in 2022. A Reuters poll had forecast 8.2955

percent or 100.35 rupees cut off for the 2022 bonds.

For the 8.28 percent bonds maturing in 2027, the central

bank set the cut-off at 98.15 rupees for a yield of 8.4958

percent, lower than the poll forecast of 8.5017 percent.

The central bank bought the 8.28 percent bondsmaturing in 2032 at 97.94 rupees, yielding 8.4952

percent, lower than the forecast of 8.5285 percent in the

poll.

Ready for IFRS6Mar

The Reserve Bank asked urban co-operative banks

(UCBs) to take necessary steps to ensure smooth

transition to new international accounting norms IFRS

from April 2014.

"UCBs are advised to take necessary steps to ensure thatthey are in readiness to adapt to IFRS convergence IAS

from April 1, 2013, or April 1, 2014, as the case may be,"

the Reserve Bank of India (RBI) said in a notification.

It said that banks and NBFCs should upgrade their skills,

manage information system and technology capabilities

for smooth transition to new financial reporting standards

to manage complexities and challenges of international

standards.

According to a roadmap of the Corporate Affairs Ministry,

all large commmercial scheduled banks are mandated to

prepare their books of accounts according to theInternational Financial Reporting Standards (IFRS) from

April 1, 2013.

Besides, smaller urban cooperative banks and non-

banking finance companies are to converge their opening

balance sheets with IFRS from April 1, 2014.

SingTel 6Mar

Singapore Telecom, which has 434 million subscribers

across Asia and Africa, has reached an agreement to buy

California-based Amobee, a premium provider of mobile

advertising solutions to operators, publishers andadvertisers globally.

SingTel said it would pay $321 million for the acquisition

of Amobee, which would complement existing advanced

geo-localisation capabilities.

SingTel would also operate under a new organisational

structure from April 1 comprising three groups -

consumer, digital services and information and

communications technology.

Central Bank 7Mar

State-run Central Bank of India said it has received IS

27001:2005 certification for compliance with the be

security practices. The certification was awarded for th

bank's compliance with international standard f

capabilities relating to processes policies, practices an

infrastructure.

Unique Customer Identification9Mar

The Reserve Bank of India (RBI) has asked banks

develop a unique system of customer identificatio

across the banking system. This could be accessed by abanks while vetting loan proposals. The move follow

concern on the multiple lending model, one in which

customer can avail of loans from multiple lender

Limited knowledge on borrowers credit histories h

been a challenge for banks.

At a seminar organised by the Credit Information Burea

RBI deputy governor Anand Sinha said, Uniq

customer identification in the banking system is

paramount importance. While some banks have starte

the unique customer identification process, this is n

present across the banking system, that is, on a share

database. This could enable borrowers to circumve

guideline risk profiles and obtain multiple facilities fro

banks.

Though RBI had asked banks to share information wi

each other and obtain declarations from borrowers abo

all loan facilities availed of by them, this was n

followed.

The central bank feels the unique identification shou

eventually graduate to a legal entity. Sinha said t

central banks financial stability board had backed t

idea and the G-20 also favoured it. He added issuanceof Aadhaar numbers provided hope on this.

RBI said it expected banks to use credit burea

information not just for retail borrowers, but f

corporate houses as well. Commercial banks a

increasingly using information from the credit bureau

extend more loans to retail investors than to companie

The impression we had sometime back was this was use

actively for retail, not so much for corporates, Anan

Sinha said.

M V Nair, chairman and managing director of Union Ban

of India and chairman of Cibil, said loan sanctions b

banks using information from the credit informati

bureau had doubled in three years. For customer loan

about 45 per cent of decisions were made on the basis o

credit bureau data in 2008. In 2011, the proportion ha

gone up to 88 per cent. Generally, banks extend loans

the credit score of an individual is above 800, he said.

The data should be furnished timely and accurately,

told credit information companies. He expressed hop

that banks would do a better balancing act. Now, the

are three more credit information companies. I am su


13/23

the situation would definitely improve.

RBI cuts CRR 10Mar

The Reserve Bank of India (RBI) reduced the Cash

Reserve Ratio (CRR) by 75 basis points from 5.5 per cent

to 4.75 per cent with effect from March 10.

This reduction will inject around Rs.48,000 crore of

primary liquidity into the banking system to ensure

smooth flow of credit to productive sectors of the

economy.

CRR is the percentage of deposits that commercial banks

must keep with the central bank.

The markets were expecting a reduction in CRR as the

banking system was experiencing a liquidity tightness in

the recent days.

Earlier, in its third quarter review in January last, the RBI

reduced the CRR by 50 basis points from 6 per cent

njecting a liquidity of Rs.31,500 crore into the banking

system to mitigate the tight liquidity conditions, which

was the first move in the CRR since it was increased to 6

per cent in April 2010.

The RBI's action now is apart of its continued efforts to

provide liquidity through open market operations

(OMOs), injecting primary liquidity of over Rs.1,245,00

crore this financial year so far, of which Rs.52,800 crore

was injected after the CRR cut in the third quarter

review.

Despite these measures (OMOs as well as the earlier cut

of 50 basis points in CRR), the RBI said that the liquidity

deficit has remained large on account of both structural

and frictional factors.

This was reflected in the net average borrowing rising

from an average of Rs.1,292,00 crore in January 2012 to

Rs.1,405,00 crore in February. Net injection of liquidity

through other measures rose to a peak of Rs.1,917,00

crore on March 1, 2012, though, subsequently, it

declined to Rs.1,273,00 crore on March 7, 2012.

The 75 basis point CRR cut is a proactive step by the RBI

to inject permanent liquidity into the system. This is

expected to bring down the high level of overnight

borrowing by banks from the RBI. This would also ensure

continued smooth flow of credit in the corporate andretail sectors.

IT Limit 1Mar

The Parliamentary Standing Committee on finance has

recommended the raising of Income Tax limit to three

akh rupees from the present one lakh 80 thousand

rupees. The committee headed by former Finance

Minister and Senior BJP Leader Yashwant Sinha

submitted its report. The panel gave its report on the

Direct Taxes Code Bill recommending a higher exemption

imit for women.

ADB Loan for Assam 13Mar

The Asian Development Bank (ADB) has approved a $8

million loan to finance an infrastructure upgrade projec

called Assam Urban Infrastructure Investment Progra

(AUIIP), in Assam.

Major growth in these cities in recent years has p

serious pressure on basic services. Guwahati, f

example, currently has no sewage system and more tha

two-thirds of its population has no access to piped wateThis project will make the citys living conditions mu

more bearable.

The projects urban transport component includ

development of a 10 km rapid transit corridor for bus

in Guwahati, which is expected to serve more tha

40,000 people daily, shorten travel time and c

greenhouse gas emissions.

ADB has helped the Assam government to draw a 1

year road map for developing urban services and th

program prosposes to support the states over

investment plans. The water supply upgrade in souteastern Guwahati will complement improvements bein

carried out elsewhere in the city funded by the sta

government and the Japan International Cooperati

Agency (JICO).

In Dibrugarh, solid waste collection coverage will increa

to more than 80 per cent of households and will includ

recycling. Drainage in the city will be improved

removing waste from waterways and by widening an

rebuilding flood relief culverts, bridges and sluice gate

Besides, a new treatment plant, pipes and pumpi

stations will be built in Guwahati.

Linked technical assistance will also help lay t

groundwork for reforms to turn the Guwaha

Metropolitan Water Supply and Sewerage Board into

sustainable, autonomous body.

The program is due to be completed by December 201

Village Banking 13Mar

After coming close to the target of providing banki

facilities in 73,000 villages with population of more tha

2,000, the next one for banks will be to cover 120,00

villages with population between 1,000 and 2,000.

In Budget 2010-11, the finance minister had asked ban

to provide banking facilities to habitations with populatio

of more than 2,000 by March 2012. About 20,00

villages were covered in the financial year. In the ne

phase, the finance ministry is looking to provide

bouquet of financial services, including bankin

insurance and pensions, under one roof.

The new model of ultra small branches, which includ

services provided by banking correspondents (BCs) an


14/23

regular visits by bank officials, will be used to provide a

banking facility in most of these.

FINANCIAL UMBRELLA

The government is planning to roll out the next phase of

rural banking to cover villages with population between

1,000 and 2,000

* To cover 1,20,000 villages

* Banking, insurance and pensions to come under roof

* Ultra small branches and banking correspondents to

offer wide coverage

* Banking correspondents to cover multiple banks

The Reserve Bank of India recently allowed

nteroperability of the BCs, to ease the accessing of

banking services from any bank and any place in the

country.

At the end of January 2012, banks had covered 62,000

villages with a population of over 2,000 each. Most of theremaining 11,000 villages are likely to be banked by the

end of this month. Finance minister Pranab Mukherjee

may announce new targets for financial inclusion in his

Budget speech.

About 50,000 BCs have already been appointed to take

banking to the doorstep of every villager. As the

government wants to include smaller villages in the next

round of inclusion, more BCs will be appointed. It may

also look at assigning one BC to one or more gram

panchayats. This may help cater to about 400,000 even

smaller villages.

Each BC will cover a population of 5,000-6,000. (But) the

average population of a gram panchayat is 3,000-4,000.

So, one BC may cover more than one panchayat. The

ministry is banking upon integration of BCs to expand the

reach of banking services. At present, a BC can only

cater to clients of his bank and to people within his

assigned region.

Under the new system, a BC will be able to perform

banking transactions for customers of other banks, too.

It will be similar to interoperability of ATMs, which allows

customers to withdraw cash from any ATM. It will lead to

system integration and give rise to competition among

Bcs, thereby improving their services. Procedures and

technology will be standardised.

The system will also help the government better target

payments under its social sector schemes. BCs will be

able to do electronic transfer of money on a CBS

platform.

The ultra-small branches, being set up to drive the

financial inclusion initiative of the government, will be

served by BCs, with regular follow-up visits by bank

officers. The designated officer will visit the village in h

area on a pre-fixed date and time every week and th

periodicity of the visits could be enhanced, dependin

upon the business volume in the village.

The finance ministry now also wants representatives

financial institutions to visit such branches to off

insurance and pension products.

Banks have been asked to request local bodies in the

villages to provide them an area of 100-200 sq ft free cost till the business grows to a viable level.

Highlights of Rail Budget 2012-13 15Mar

udp://tracker.openbittorrent.com/An increase

passenger fares across all classes, more than 100 ne

trains, enhanced frequency or routes for many other

and plans to hire more than one lakh employees we

some of the key Rail Budget proposals made.

Presenting the annual Rail Budget for the financial ye

2012-13 in Parliament, Railway Minister Dinesh Trive

made following key proposals:

*Passenger fares to be hiked by 2 paise per km f

suburban and ordinary second class travel; 3 paise p

km for mail/ express second class; 5 paise per km f

sleeper class; 10 paise per km for AC chair car/AC 3-ti

and First Class; 15 paise per km for AC 2-tier and 3

paise per km for AC 1-tier.

*Minimum fare and platform tickets to cost Rs 5.

*75 new Express trains to be introduced, along with 2

new passenger services, nine DEMU services and 8 MEM

services trains.

*Route of 39 trains to be extended and frequency of 2

trains to be increased.

*Railways to hire more than one lakh employees in 201

13; 80,000 persons hired last year.

*Indian Railways Stations Development Corp to be set u

to re-develop stations and maintain them like airports.

*To set up an independent Railway Safety Authority as

statutory body.

* The open discharge toilets on trains to be replaced wi

green (bio) toilets.

*All unmanned level crossings to be abolished in ne

five years; To target zero deaths due to rail accidents.

*To provide rail connectivity to neighbouring countries,

new line from Agartala to Akura in Bangladesh to be s

up.

*Double-decker container trains to be introduced.


15/23

*Steps to improve cleanliness and hygiene on trains and

stations within six months. A special house keeping body

to be set up to take care of both stations and trains.

*New passenger services include escalators at major

stations, alternative train accommodation for wait-listed

passengers, laundry services, AC lounges, coin/currency

operated ticket vending machines.

*Two new members, one for marketing, and other for

safety, to be inducted into Railway Board.

*On board passenger displays indicating next halt station

and expected arrival time to be introduced.

*Introduction of regional cuisine; Book-a-meal scheme to

provide meals through SMS or email.

*Specially designed coaches for differently-abled persons

to be provided in each Mail/Express trains.

*Railway Tariff Regulatory Authority to be considered.

*National High Speed Rail Authority to be set up; Pre-

feasibility studies on six high speed corridors completed;

study on Delhi-Jaipur-Ajmer-Jodhpur to be taken up in

2012-13.

*Wellness programme for railway staff at work places.

*Institution of Rail Khel Ratna Award for 10 rail

sportspersons every year.

*A wagon factory at Sitapali, Odisha, rail coach factory at

Palakkad, two additional new coach manufacturing units

n Kutch (Gujarat) and Kolar (Karnataka); component

factory at Shyamnagar (West Bengal); new coachingterminal at Naihati, the birth place of Bankim Chandra

Chattopadhyay.

*Freight loading of 1,025 MT targeted; 55 MT more than

201112; Passenger growth targeted at 5.4 per cent.

*Passenger earnings to increase to Rs 36,200 crore.

*Gross rail traffic targeted to increase by Rs 28,635 crore

to Rs 1,32,552 crore in 201213.

PF Rate 16Mar

The Finance Ministry has given its nod for the Labour andEmployment Ministry to fix the rate of interest payable to

EPF subscribers at 8.25 per cent for 2011-12, instead of

at 9.5 per cent paid in 2010-11.

The decision was taken in keeping with the finances of

the Employees' Provident Fund Organisation, which

manages the PF fund.

They are paying from the interest they get from what

they invested two or three years ago in financial

nstitutions. So what is reflected now to the PF

subscribers relates to the investment made earlier and

the rate of interest that prevailed then in the market.

The Board of Trustees of the EPFO, which includ

representatives of labour unions too, approved t

proposal to leave the financial decision on the intere

rate to the Labour and Finance Ministries.

The Board, at its meeting on December 23 las

empowered the Labour Ministry to take the decision

view of the plea for reducing the interest this year (201

12) to 8.25 per cent.

In 2010-11, the rate was fixed at 9.5 per cent, thanks availability of a surplus fund of Rs. 1,731 crore.

Later, the Labour Ministry prepared a note mentionin

that the rate for 2011-12 could be fixed at 8.25 per cen

to benefit about five crore PF subscribers. This is

ensure that the rate matched the interest rate bein

offered to Public Provident Fund scheme customers

scheduled banks.

Ethical Companies List 16Mar

The Ethisphere Institute's annual World's Most Ethic

companies list found 145 companies in countriincluding United States, Great Britain, Japan, Portug

and India stood out as setting a high standard for the

employees' behaviour.

American Express Co, General Electric Co and Starbuc

Corp all of which have made the list six years running

are among the companies that stand out as encouragin

employees to voice their concerns, said Alex Brigham

executive director of Ethisphere.

Ethisphere evaluated about 5,000 global companie

including all members of the Standard & Poor's 500 inde

.SPX, on reputation, corporate citizenship, culture aother qualities.

Newcomers to the list range from those that focus o

social responsibility, including Thrivent Financial f

Lutherans and Britain's Ethical Fruit Co, to Portugue

utility EDP Energias de Portugal and US defen

consulting company SRA International Inc.

Growth Forecast 16Mar

The pre-Budget Economic Survey, tabled in Parliame

amidst a scenario of economic and political gloom, h

projected a sharp improvement in the growth rate

gross domestic product from 6.9 per cent in the curre

year to 7.6 per cent in 2012-13 and to 8.6 per cent

the following year.

Presenting an optimistic outlook for the economy, t

Survey said the weakness in economic activity h

bottomed out and a gradual upswing is imminent. I

forecast draws inspiration from calculations based o

tracking several statistical indicators and projections

incremental capital-output ratios. The World Banks late

economic update projected Indias growth rate for ne


16/23

year at 7-7.5 per cent and the PMs Economic Advisory

Council has projected it even higher at 7.5-8 per cent.

The highlight of this years Survey, however, is not its

rosy growth forecast, but its focus on six key areas of

reform that it believes can help the economy grow at a

rapid pace. The six areas are: Efficient contracts, minimal

ntervention in fixing prices, flexible labour laws,

acquisition of land by the government for industrial

projects, giving subsidies directly to users, and a fixed

subsidy on diesel.

SURVEY HIGHLIGHTS

* 6.9% GDP growth in 2011-12, 7.6% in 2012-13 and

8.6% in 2013-14

* Fixed subsidy on diesel as interim step towards full

price deregulation

* Leaving land acquisition to the market would mean

giving in to hold-ups

* FDI in multi-brand retail should happen in big citiesfirst; small kirana stores should get incentives

At the moment, the price of diesel is fixed, and the losses

of the oil marketing companies are made good by the

government. A fixed subsidy on every litre of diesel sold,

the Survey said, could be an interim step towards full

price deregulation, though not ideal. This will transfer a

chunk of the current burden from the government to the

users, and will bring in efficiency in the usage of the fuel.

To support the governments plan to make available

nexpensive food for all, the Survey has also called for

direct transfer of subsidy to the targeted beneficiaries,with which they can buy food items from the market.

This subsidy, it added, would have to be periodically

adjusted in line with the price in the market.

In devising the mechanisms for delivering such benefits,

we have to utilise the forces of the market, not ignore

them. The Aadhaar unique identification number could

be used for such cash transfers, the Survey added.

Aadhaar has the potential for being a game-changer for

the Indian economy.

The Survey has made a case for acquisition of

agricultural land by the government for industrial

projects because private entrepreneurs had failed on this

count. Often, it has been experienced, land acquisition

gets held up because a few farmers do not want to sell.

To leave it completely to the market would mean giving

n entirely to the hold-up problem, the Survey said,

which would slow down industrialisation. This is the

reason why government intervention is considered

necessary, it added.

Choosing to stay away from making any specific fiscal

policy suggestions, the Survey has instead called for

flexible labour laws, from the perspective of both

employers and workers. It has noted the absence of suc

labour laws means smaller organised labour marke

with stagnant wages. It also called for more transpare

exit routes for firms, which would free up huge tracts

land locked in sick units.

Price controls, the Survey said, bred corruption, inflate

the governments subsidy bill and distorted mark

signals, which caused a loss in efficiency. And contrac

need to be reviewed, it said, so that the ease of doin

business in the country improves.

The Survey makes a significant suggestion with poli

implications for the government. It has supported foreig

direct investment in multi-brand retail, but has adde

that the liberalisation of this sector should first take pla

in big cities even as small kirana stores should be give

some incentives. The Survey has also lamented t

inadequacy of finance for infrastructure, but stopp

short of endorsing genetically modified crops to boo

farm produce.

Explaining why the economy would grow 6.9 per cent

2011-12, down sharply from the original estimate of niper cent made by it in February 2011, the Survey note

the slowdown was partly rooted in domestic causes lik

inflation (that remained over nine per cent for much

the year) and "democratic politics", which slowe

reforms. But, with inflation bottoming out and intere

rates likely to ease, growth will improve to 7.6 per ce

(with an error possibility of 0.25 per cent) in 2012-1

and 8.6 per cent in 2013-14.

The governments finances, it admitted, were und

stress on the revenue side as well as the expenditu

side. While the 2011-12 Budget had projecteexpenditure to grow 4.9 per cent during the year, it ha

grown 13.9 per cent in the first nine months. On th

other hand, corporation tax and excise duty collection

have been below projections and disinvestment revenu

have fallen short of the target because of the depresse

stock market sentiment.

Consequently, the Survey said, slippage is likely in th

revenue and fiscal deficits budgeted this ye

notwithstanding the efforts taken to minimise it.

order to fix the problem, the Survey has said the tax

GDP ratio should be raised from 10.5 per cent in 2011-1

to 13 per cent by 2016-17.

Infusion into Banks 17Mar

The government has earmarked Rs 15,888 crore f

capital infusion into banks in the next financial yea

considerably higher than what was allotted in t

previous Budget. This apart, its planning to set up

financial holding company that will raise funds for pub

sector banks.

For 2012-13, I propose to provide Rs 15,888 crore f

capitalisation of public sector banks, regional rural ban


17/23

and other financial institutions, including Nabard

(National Bank for Agriculture and Rural Development),

Finance Minister Pranab Mukherjee said while presenting

the Budget for 2012-13. We are committed to protecting

the financial health of public sector banks and financial

nstitutions.

CAPITAL INJECTIONThe government roped in LIC to give mid-sized state-run lenders capital

Bank GoI* LIC*

GoI#Holding(%)

LIC's#Holding%)

SBI 7,900 0 61.6 12.1

PNB 1,290 1,590 56.9 13.9

Union Bank 350 650 55.5 12.1

OB 1,670 300 70.5 12.2

Syndicate 540 320 68.6 13.4

Uco 500 260 67.9 11.7

All Bank 1,000 500 59.1 11.7

Dena 0 150 55.2 10.3

BoI 1,000 990 64.4 12.7

Vijaya Bank 0 150 55.0 12.4

Central Bank 660 340 78.4 10.8

BoB 0 1,640 54.4 12.1

DBI 4,630 670 72.3 8.4

Total 19,540 7,560

* Figures in Rs crore for capital infused in 11-12 #Asof March 15

The provision for higher capital comes after state-run

banks gave their capital requirement plans for the next

eight-10 years, after taking into account the capital

requirement under the new Basel-III framework. Theholding company structure, on the other hand, is in line

with the governments plan to maintain a minimum stake

of 58 per cent in public sector banks. Otherwise, it may

find it difficult to infuse large sums of money, as this

would affect the countrys fiscal position.

The capital infusion would enable public sector banks to

maintain a minimum Tier-I capital adequacy at eight per

cent, and also meet their capital requirements in the

coming financial year. The regulatory capital adequacy

ratio (CAR) requirement is six per cent, with an overall

CAR of nine per cent.

T M Bhasin, chairman and managing director of Indian

Bank, said the fund allocated for state-owned banks

would help them achieve the target of 18 per cent credit

growth next financial year.

In 2011-12, government also roped in Life Insurance

Corporation of India (LIC) to infuse capital into mid-size

state-run lenders. A dozen state-owned banks like Punjab

National Bank, Union Bank of India, Indian Overseas

Bank and Bank of Baroda allotted shares to LIC. The

argest institutional investor in the country, LIC, infused

Rs 7,560 crore by subscribing to those shares. In total,

taking LIC into account, Rs 27,100 crore was infused in

13 state-run banks.

According to sources, the funds would be raised by th

holding company, which would be an investor in t

bank. The government would continue to hold on to i

control of the banks management, while inducti

external capital into the holding company.

The government has 54-56 per cent in large banks li

Bank of Baroda, Union Bank of India and Punjab NationBank. It would not be possible for the government

raise additional funds without diluting its stak

Subsidies 17Mar

Mukherjee said that his endeavour will be to restrict th

subsidies to under 2 per cent of GDP in 2012-13. H

however said the government will fully meet t

subsidies for food security. The recommendations of t

task force for direct transfer subsidies are bei

implemented in subsequent phases which will benefit 1

crore farmers families. He announced that Kisan Cred

Card will be modified to make it smart card to use it

ATMs.

He said the interest subvention scheme for providin

cheaper loan to farmers at 7 per cent interest w

continue in the next year. The Agriculture cred

proposed to be increased to a whooping 5 lakh 7

thousand crore rupees, an increase of one lakh cro

rupees. NABARD will get 10 thousand crore rupees f

short term crop loans to small and marginal farmers.

To bring green revolution to Eastern India allocation f

Rashriya Krishi Vikas Yojna to be increased to o

thousand crore rupees from 400 crores.

To promote housing for low income groups in major citi

and towns the budget proposes to allow extern

commercial borrowing besides increasing Rural Housin

fund to 4000 crore rupees from 3000 crores. The intere

subvention of one per cent of housing loan upto 15 lak

will continue.

India opportunities venture fund will be set up f

availability of equity for micro small and mediu

enterprises. External commercial borrowing will also

allowed for infrastructure sectors

Date post:	03-Apr-2018
Category:	Documents
Upload:	vmktpt
View:	270 times
Download:	0 times

Current Affairs March 2012 41 Pages

Documents