December 2012 With Watermark

7/27/2019 December 2012 With Watermark

1/175

RICH INDIA CIVIL SERVICES ACADEMY

7/3, Arul Illam, Subramaniya Nager Cross Street, Kodambakkam, Chennai-6000 024.

Contact: 7373059333, 044-23725102.

Approach: 10 min walk able distance from Kodambakkam and Mambalam Railway Stations or Panagal

Park Bus stop.

December 2012-1st to 9thNational

Supreme Court for special investigation team to probe Manipur fake encounter killings

The Supreme Court on Thursday expressed serious concern at fake encounter killings inManipur, which included children, and suggested to the Union government that it form a specialinvestigation team to probe such killings.A Bench of Justices Aftab Alam and Ranjana Desai, after perusing the affidavits filed by theNational Human Rights Commission (NHRC), the Centre, the Manipur government and thereport of a judicial officer, said at least certain cases required further probe.Justice Alam told the amicus curiae, who sought a CBI probe into the killings: What will theCBI do? They will take years and years. By that time everything will be forgotten. Why shouldthere not be a proper investigation? There is something more than what meets the eye. So manyencounters took place. Situation is not normal. We are concerned about the failure of

constitutional scheme.Counsel for the NHRC said it would not be possible for a special investigation team to conductsuch a probe in such large number of cases.The Bench, after hearing a writ petition filed by the Extra-Judicial Execution Victims FamiliesAssociation for a probe into over 1,500 fake encounters, issued the notice to the Centre, theNHRC and Manipur.Justice Alam told counsel, It is a very serious matter. How can a 12-year-old child be abductedand killed in such a fashion? Even if he is a 12-year-old militant, there is no justification for sucha killing [and] the district judge inquiry has confirmed that they were fake encounters.In its counter argument, the Centre said that exempting Manipur from the Armed Forces SpecialPowers Act would call for an indirect amendment that would be totally unjustified anddemoralise the armed forces and hamper their functioning. These personnel were already riskingtheir lives while dealing with heavily armed militants and, therefore, it was of utmost importancethat sanction for prosecution was available to them.The Centre said, If normalcy prevails in Manipur, there will be no need for deployment ofcentral forces. The petitioner is blaming only the government and the security forces and is notmaking any adverse comments on the anti-national forces operating in the State. The petitionercan do well to instil good sense in those unlawful outfits by enlisting them to join the mainstreamof national life after laying down arms and get financial packages offered by the centralgovernment. Arguments will continue on January 4.

Armed Forces (Special Powers) Act

According to the Armed Forces Special Powers Act (AFSPA), in an area that is proclaimed as

"disturbed", an officer of the armed forces has powers to[6]:


2/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Fire upon or use other kinds of force even if it causes death, against the person who is actingagainst law or order in the disturbed area for the maintenance of public order, after giving

such due warning.

Destroy any arms dump, prepared or fortified position or shelter or training camp fromwhich armed attacks are made by the armed volunteers or armed gangs or absconders wanted

for any offence

To arrest without a warrant anyone who has committed cognizable offences or is reasonablysuspected of having done so and may use force if needed for the arrest.

To enter and search any premise in order to make such arrests, or to recover any personwrongfully restrained or any arms, ammunition or explosive substances and seize it.

Stop and search any vehicle or vessel reasonably suspected to be carrying such person orweapons.

Any person arrested and taken into custody under this Act shall be made over to the officerin charge of the nearest police station with the least possible delay, together with a report of

the circumstances occasioning the arrest.

Army officers have legal immunity for their actions. There can be no prosecution, suit or anyother legal proceeding against anyone act ing under that law. Nor is the government's

judgment on why an area is found to be disturbed subject to judicial review.

Protection of persons acting in good faith under this Act from prosecution, suit or other legalproceedings, except with the sanction of the Central Government, in exercise of the powers

conferred by this Act.

For declaring an area as a 'disturbed area' there must be a grave situation of law and order on thebasis of which Governor/Administrator can form opinion that an area is in such a disturbed or

dangerous condition that use of Armed Forces in aid of civil power is necessary

The Armed Forces (Special Powers) Act (AFSPA), was passed on September 11, 1958, bythe Parliament of India It grants special powers to the armed forces in what the act calls"disturbed areas" in the states ofArunachal

Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. It was later extendedto Jammu and Kashmir as The Armed Forces (Jammu and Kashmir) Special Powers Act, 1990 inJuly 1990

The central government accordingly set up a five-member committee under the Chairmanship

ofJustice B P Jeevan Reddy, former judge of the Supreme Court. The panel was given the


3/175


4/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

attack helicopter squadron (10-12 choppers) for the establishment of its three "strike" formations

Corps (Mathura)

Corps (Ambala) Corps (Bhopal)

In addition, it has plans to induct another 114 Rudra light combat helicopters for the 10 pivotcorps.What IAF is worried about?

As per IAF it will lead to duplication of efforts and waste of scarce resources.Navy Day 4TH DECEMBERThe three chiefs of Defence staff , on the occasion of Navy Day paid their homage to the

martyrs at the national war memorial at India Gate. Navy Chief Admiral D. K Joshi, Army ChiefGeneral Bikram Singh and Air Chief Marshal, N.A.K. Browne paid floral tributes to the soldiers

at the war memorial.

Every year, the Indian Navy celebrates December 4 as Navy Day to commemorate the victory ofIndian Navy at sea in the Indo-Pak War of 1971.

Indian Navy is evolving continuously to meet emerging challenges to suit India's maritimeinterests. Modernisation and enhancement of the Navy's capabilities is going on to meet

emerging maritime challenges/threats.Anti Surface Warfare Corvettes are being series built at

Garden Reach Ship-builders, Kolkata. In addition, Naval Offshore Patrol vessels are under

construction both at public and private sector shipyards.The construction of the IndigenousAircraft Carrier though delayed is now picking up pace at Kochi Shipyard. In 2013, Navy

expects to induct one Kolkata class destroyer, one P-28 ASW Corvette, one Catamaran HullSurvey Vessel, one Offshore Patrol Vessel and sixteen Fast Interceptor Craft.Amongst theoverseas projects, the delivery of Vikramaditya is expected to take place in the last quarter of2013. The scheduled induction of P8I Long Range Maritime Reconnaissance aircraft

commencing 2013 would augment the aerial surveillance capability.

Operation Trident

Operation Trident and its follow-up Operation Python were naval offensive operations launched

on Pakistan's port city of Karachi by the Indian Navy during the Indo-Pakistani War of 1971.

Operation Trident resulted in the first use of anti-ship missiles in the region as well as the first

sinking of naval vessels during hostilities in the region since World War II. India celebrates itsNavy Day annually on 4 December to mark this operation.


5/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Corporate frauds on rise in India- Survey

As per the findings of India Fraud Survey Report 2012 published by KPMG, around 75%surveyed corporate in India believed that the incidences of fraud were increasing. As per the

report:

Decline of ethical values, weaker internal control system, reluctant managers for takingthe decisive action were major reasons.

Mistake of senior management tasks by the audit committees, weak regulatorymechanisms major concern.Sales, distribution and procurement are most susceptible areas of fraud.

Competition to surpass market expectations was the primary reason behind financialfraud

Fraud in financial statement was a primary concern Absence of recognized fraud risk management system In coming years, Computer-related and e-commerce frauds would become major

concerns,

Around 75% frauds were committed by the employeesThe important findings of the Survey are as follows:

63% say the desire to exceed market expectations is the main reason to commit financialfraud

81% say financial statement fraud is a major issue 41% say they do not have a formal fraud risk management framework e-commerce & computer-related fraud to be a source of major concern in the coming

years 75% all fraudulent activities, except Intellectual Property (IP) fraud were perpetrated by

employees

MIC: Killer behind the Bhopal gas tragedy

On this day, 28 years back, India witnessed what is now considered as the worlds worstindustrial disaster: a gas leak at Union Carbide Corporations (UCC) pesticide plant in Bhopal,the capital city of Madhya Pradesh. On the night of December 2-3, 1984, tonnes of methylicocyanate (MIC) leaked out of the Union Carbide India Limited (UCIL) plant even as the

residents slept on in oblivion.

The safety systems in place to contain such a leak did not function, and as a result the gas spreadthroughout the city.


6/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Thousands died within days of being exposed to the chemical substance, and millions are stillreeling from ailments that have been caused by this accident and the air pollution that has driftedacross from the plant site.

Fatal chemistry

So what triggered this chain of events? The UCIL factory set up in 1969 to produce the pesticideSevin (UCCs brand name for carbaryl), used MIC as an intermediate. Methylamine was made toreact with phosgene to produce MIC, which then reacts with 1-naphthol to form carbaryl, thefinal product.

This technique was different from other MIC-free routes employed across the globe, in whichchloroformate ester, produced when phosgene reacts with naphthol, was then made to react withmethyl amine.

On that fateful night, water entered Tank E610, which contained more than 40 tonnes of MIC,initiating a runaway reaction (an increase in temperature changes the conditions in such a waythat the temperature increases further, often destructive).

Contaminants, high temperatures and the presence of iron accelerated the process, resulting in anexothermic reaction.

The high temperature and pressure that developed forced the emergency venting of pressurefrom the holding tank and large volume of toxic gases escaped into the atmosphere.

More about MIC

Methyl isocyanate, an organic compound with the chemical formula CH{-3}NCO, is acolourless, lachrymatory (tear inducing), flammable liquid that is extremely toxic. The thresholdlimit is set as 0.02 ppm (parts per million) as quantities as low as 0.4 ppm is deemed poisonous ifit enters the system through inhalation, ingestion or contact.

While the high levels of exposure caused the deaths that occurred, follow-up studies haveindicated that pulmonary (pertaining to lungs), ophthalmic (affecting nerve organs),reproductive, immunological, neurological and hematologic (blood related) toxics are presentamong the survivors.

Twenty-eight years on, the city still continues to grapple with the situation even as the painfulmemories linger on. The effects and after-effects have been far more gruesome than thatimagined by anyone.


7/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Victims, survivors and their descendants have not only endured the repercussions of a harmfulgas, but have also fallen prey to the woeful treatment of the system. It is high time to free themfrom their suffocation.

Andhra Pradesh Assembly adopts Indias first legislation on Sub-plans for SCs/STs Andhra Pradesh Assembly adopted a Bill to provide legislative support to the Sub-Plans for SCsand STs with a mandatory provision for allocation of nearly a fourth of the States annual plan ofthe budget for them.With this, AP has become the first State in the country to adopt the law according legal status tothe Sub-Plans for SCs and STs as insisted for a long time on States by the Planning Commissionand National Development Council (NDC). The legislation will be effective from the States2013-14 budget.What would this legislation do?

The legislation would convert the Sub-Plans a right of the SCs and STs, mandatory tosuccessive Chief Ministers.There was no constitutional provision to prevent lapsing of SC/ST funds, as the Assembly wasempowered to adopt annual budget merely for one year.

Passport Seva Project: winner of CSI-Nihilent e-Governance AwardDecember 3rd, 2012Passport Seva Project of Ministry of External Affairs won CSI-Nihilent e-Governance award forExcellence.CSI-Nihilent e-Governance award for Excellence

Instituted in 2002 by the Computer Society of India (CSI), which is the largestassociation of IT professionals, in collaboration with Nihilent Technologies.

Recognizes successful efforts in application of Information and Communicationtechnology for good governance

Infosys to shift its ADS from Nasdaq to NYSE Euronext

Indian IT major Infosys will shift its American Depositary Shares (ADS) from the NASDAQto NYSE Euronext. The step is being taken to provide European investors better access to itsstock.What is ADS?

It refers to US dollar denominated share of any foreign company trading on an Americanstock exchange.

Why Infosys has chosen NYSE Euronext? NYSE Euronexts equities markets represent nearly 40% of the worlds equities trading

and are considered the most liquid of any global exchange group.


8/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Its tie-ups with exchanges in Europe will allow Infosys to expand its market base bymaking its stock more visible and accessible to investors in countries such as Germanyand France.

Goa illegal mining reportA large number of leases are being operated by persons other than lessees, and in violation of

Mineral Concession Rules

The Central Empowered Committee (CEC) has asked the Supreme Court not to permit the minesin Goa to extract minerals from the dumps located outside the approved lease areas till freshenvironmental clearance is obtained.In October, acting on a petition filed by the Goa Foundation, the Forest Bench stayed all miningoperations, including transport of mined minerals (iron ore and manganese), in the leases in theState.

The Bench made it clear that no minerals, whether lying in the mine-head or the stockyard,would be transported until further orders and asked the CEC to file its response to the petition.This ruling was based on the report of the Justice M.B. Shah Committee of Inquiry into illegalmining. In its interim report, the CEC said: As against the total production of 1553.724 lakhtonnes of iron ore between 2006-07 and 2010-11, a total of 1949.369 lakh tonnes of Goan originhas been exported, i.e., the total quantity exported is 395.645 lakh tonnes more than the totalquantity reported to have been legally produced.In addition, part of the iron ore has been used for domestic consumption. There was everyreason to believe that the excess quantity that was exported was illegally minedIt said a very large number of leases were being operated by persons other than the lessees, andin flagrant violation of the provisions of the Mineral Concession Rules, 1960 and, in allprobability, with the tacit approval of the State government. Through the unregistered anddubious general power of attorneys and other documents, the leases were allowed to be operatedby persons having clout, with the leases granted to individual persons treated as those given topartnership firms, and such persons included as partners in the firms and the genuineleaseholders retiring. Two such leases were being operated by the subsidiaries of a companyregistered outside India.The environmental clearances granted for mining in areas, comprising forestland, full or in part,might be directed to be operative only after the approvals were granted under the Forest(Conservation) Act, 1980, for the non-forestry use of the forestland. Till then, all such clearancesshould be held in abeyance, and the mining operations should not be permitted to resume, theCEC said. The Bench said: The operation may be allowed to be resumed by the lessees notinvolved in any illegalities only after the Macro-Level Environment Impact Assessment StudyReport of the Indian Council of Forestry Research and Education is received, and a decision istaken on the taluk-wise ceiling on the permissible annual production from all the leases.The resumption of operations by lessees found involved in illegalities, including the violation ofRule 37 (1) of the Mineral Concession Rules, and working beyond the sanctioned boundaries


9/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

should not be permitted till a decision was taken on compensation payable by such leaseholders,and the preparation and implementation of the reclamation and resettlement plans werecompleted.

The CEC said it would file its recommendations in due course on the punitive action against theerring officials and other public functionaries; compensation payable by the defaultingleaseholders and others; cancellation of the leases found involved in substantial illegal miningand other serious illegalities; and other issues, if any, which have not been adequately dealt within this report.It wanted the court to consider passing directions on compensation payable by the leaseholdersfound involved in illegal mining; cancellation of the leases found involved in substantial illegalmining; and punitive action against the erring officers and others.The case will come up for further hearing on January 4.CEC-Central Empowered CommitteeThe CEC was constituted on 17 September 2002 through a Gazette Notification issued by the

Ministry of Environment and Forests. The CEC has been constituted as an Authority under theprovision of Sub section (3) of section 3 of the Environment (Protection) Act, 1986 in pursuanceof the order of the Supreme Court dated 9-5-2002 and 9-9-2002 in W.P. 202/95 and 171/96 for aperiod of five years. The CECs broad task is to monitor and ensure the compliance of the ordersof the Supreme Court concerning the subject matter of forests and wildlife and other issuesarising out of the said order.

The Supreme Courts decision to get an independent technical assessment on how the Yamunacan be revived from its deathly state is a deserved rebuke to the Delhi administration andequally, the Ministry of Environment and Forests for the manner in which they have beenhandling the issue of pollution control. For many years now, the Ministry has been aware of thetorrents of untreated sewage that choke both the Yamuna and Ganga. The Central PollutionControl Board has produced detailed reports on the problem and attributed the Yamunas slowdeath between Hathnikund and Agra to the unmitigated discharge of effluents. Regrettably, inspite of constant monitoring by the CPCB and the worsening state of the river, the MoEF haspursued little more than incremental steps. Delhis civic agencies have also not delivered on thesewage treatment plants that are so vital for restoration. Clearly, mitigating river pollution enjoyslow priority. Parliament was informed recently that the Ganga is so polluted with faecal coliformmatter that it does not meet water quality norms all the way from Kanpur to Diamond Harbour inKolkata. It will take another eight years under the Mission Clean Ganga for the flow of untreatedsewage (exceeding 1,600 million litres a day) and industrial effluents into the river to stop. Allthis reflects an indolent approach to urban pollution control, which stands in contrast to hecticspeculation in real estate.

A clean-up programme for Indias rivers requires vigorous application of the polluter paysprinciple. Since much of India is inexorably moving towards urbanisation, the focus of policymust be on planned housing, water supply and sanitation. For New Delhi, the Supreme Court had


10/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

ordered even in 1999 that a specific quantum of water flow be ensured in the Yamuna for itsrevival. That no salvage operation has proved successful is a telling commentary on the efficacyof the expensive Yamuna Action Plan, which is now into its third phase. It would be appropriate,

therefore, for the court to put in place a review mechanism for the cleansing operation to follow,with clear reporting requirements. Accountability norms for official agencies are necessary forthe restoration of many more rivers that have been killed off by pollution. Although theEnvironment (Protection) Act and the Water (Prevention and Control of Pollution) Act areintended to protect Indias waterways, the CPCB and the State Pollution Control Boards areunwilling to use them effectively. Also, a more ecologically sound approach towardsenvironmental flows in rivers is necessary. That would mean building fewer big dams, andmaking more life-giving water available to rivers.Mission Clean Ganga and Yamuna Action Plan I and IIThe Parliamentary Committee on Environment and Forests has found that the mission to cleanGanga and Yamuna has failed. It says undue investment on technical aspects like creating

sewage treatment plants to prevent the pollution in river Ganga without involving people livingon the banks of the river are the reasons for it. In its report on demands for grant for the year2012-13 for the Union environment ministry, the committee said in the last twenty years, theministry has spent Rs 39,226-crore on cleaning river Ganga and Rs 1,306 crore on Yamuna butthe quality of water in both the rivers is deteriorating day-by-day. The report has been tabled inthe Rajya Sabha on May 18.The committee noted that initiative to clean Ganga started somewhere in the sixth Five Year Planunder Ganga Action Plan. Thereafter, Ganga Action Plan-II and some other schemes withdifferent names were operationalised by the ministry. In 2009, the ministry set up NationalGanga River Basin Authority (NGRBA) which aims that by 2020 no untreated municipal sewageor industrial effluent will flow into the river Ganga. Under the programme 53 projects forabatement of pollution in the river have been sanctioned since 2009-10 in 42 towns ofUttarakhand, Uttar Pradesh, Bihar and West Bengal at an estimated cost of Rs 2,598.48 crore.Similarly, Yamuna Action Plan Phase-I was launched by the ministry in 1993 and had beencompleted at a total cost of Rs 682 crore in 2003. Under this Plan, a sewage treatment capacity of753.25 million litre per day has been created in Haryana, Delhi and UP. Thereafter, YamunaAction Plan Phase-II was initiated at an estimated cost of Rs 624 crore. Now, Yamuna ActionPlan-III is envisaged to be implemented in Delhi at an estimated cost of Rs 1,656.00 crore.

Indira Gandhi Centre for Sustainable Development at Oxford University

As a tribute to the former Prime Minister, Indira Gandhi, the government on Friday gave an in-principle approval for setting up of the Indira Gandhi Centre for Sustainable Development atSomerville College, University of Oxford. Mrs. Gandhi was a student of Somerville College. Aninter-ministerial committee is already in place to discuss the proposal.The centre will honour the late Prime Ministers legacy by addressing key issues of sustainabledevelopment and will result in building up Indias intellectual capital and expertise in the area.


11/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

It will enhance scholarship opportunities at Oxford for bright and talented students from India inthe field of sustainable development, invest in intellectual capital and build a platform forstrengthening partnerships with Indian scholars and leading institutions, thereby creating a

community of alumni engaged in lifelong learning.The centre is aimed at having atransformational impact on the lives of future leaders, who will help to direct a new paradigm ofsustainable development in India and beyond.There will be three core activities, includingsupporting talent and leadership development by making graduate/Ph.D. scholarships availablespecifically to Indian students at Oxford, with a cohort of Indian graduate students participatingdirectly in research of relevance to India.

The centre will strengthen interdisciplinary and pioneering research into food security,environmental sustainability and international governance by establishing post-doctoral positionsand fellowships. The building will be designed to house an innovative incubator environment,helping foster new thinking and robust solutions to the challenges facing India and South Asian

communities.

Lok Sabha and Rajya Sabha clears FDI in retail

Parliament gave the approval to FDI in multi-brand as the opposition motion seeking immediateback down of the decision was rejected convincingly as BSP and SP walked out.

The House also rejected the motion seeking amendment to the rules notified by the ReserveBank under Foreign Exchange Management Act (Fema) to enable FDI in multi-brand retail.

Members of SP and BSP, strength 22 and 21 respectively in Lok Sabha, did not participate in the

voting as they walked out alleging that interests of farmers and small retailers had been ignored

FEMA violations in the Bharti-Walmart joint venture

The government told Parliament that investigation into alleged FEMA violations in the Bharti-Walmart joint venture had been referred to the Enforcement Directorate. Online servicesprovider Flipkart is also under the ED scanner.

Minister of State for Commerce and Industry S. Jagathrakshakan informed the Rajya Sabha, in awritten reply, that the Reserve Bank of India had not taken on record the documents filed for aninvestment of Rs. 455 crore by Walmart in the Bharti group firm Cedar Support Services and had

referred the matter to the ED.

The FC-GPR form filed for issuance of the Compulsorily Convertible Debentures [CCD] hasnot been taken on record by the RBI to ensure that the CCDs are FDI-compliant instruments andfor the purpose certain information has been called for from the company.


12/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

The Minister said an inward remittance of Rs. 455.80 crore was reportedly made by WalmartMauritius Holdings Co Limited into Cedar Support Services on March 29, 2010. However, thedocuments for issuance of the CCDs filed with the RBI were not taken on record by the central

bank. The RBI referred the alleged violation of the Foreign Exchange Management Act to theED for investigation in regard to both Bharti-Walmart and Flipkart Online Services.

Rules flouted

Flipkart allegedly flouted FDI rules which allow e-commerce companies with foreign investmentto carry out only business-to-business (B2B) transactions, and not business-to-consumer (B2C)transactions by creating complex structures that may not be permissible.

Walmart denial

Meanwhile, a Walmart spokesperson denied as false the allegation that a routine U.S. lobbyingdisclosure form reflected improper conduct in India. This disclosure had nothing to do withpolitical or governmental contacts with Indian government officials. It shows that our businessinterest in India was discussed with U.S. government officials along with 50 or more othertopics during a three-month period, the spokesman replied to The Hindu.

Under U.S. law, on a quarterly basis, all companies which meet certain time and expensesthresholds were required to disclose issues and expenditures spent in connection with contactswith the U.S. government, including staffing cost, association dues, and payments to consultants,Walmart said.

Not a unique procedure

This is not unique to Walmart. All organisations which expend more than $11,500 annually onlobbying activities and employ at least one lobbyist must register and file the quarterly reports. Inthe third quarter of 2012, lobbyists and companies filed thousands of forms. According to aWashington D.C. publication,Roll Call, in the first quarter of this year, 143 organisationsreported expenses of more than $1 million. Our Washington office naturally had discussions withthe U.S. government officials about a range of trade and investment issues that impact ourbusinesses in the U.S. and worldwide and disclosed this in accordance with the law, thecompany said.


13/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

The Foreign Exchange Management Act (FEMA) was an act passed in the winter session ofParliament in 1999 which replacedForeign Exchange Regulation Act. This act seeks to make

offenses related to foreign exchange civil offenses. It extends to the whole ofIndia.[1]

FEMA, which replaced Foreign Exchange Regulation Act(FERA), had become the need of the

hour since FERA had become incompatible with the pro-liberalisation policies ofthe Government of India. FEMA has brought a new management regime of Foreign Exchange

consistent with the emerging framework of the World Trade Organisation (WTO). It is another

matter that the enactment of FEMA also brought with it the Prevention of Money Laundering

Act 2002, which came into effect from 1 July 2005.

Main Features

- Activities such as payments made to any person outside India or receipts from them, along withthe deals in foreign exchange and foreign security is restricted. It is FEMA that gives the centralgovernment the power to impose the restrictions.

- Restrictions are imposed on people living in India who carry out transactions in foreignexchange, foreign security or who own or hold immovable property abroad.

- Without general or specific permission of the Reserve Bank of India, FEMA restricts thetransactions involving foreign exchange or foreign security and payments from outside thecountry to India the transactions should be made only through an authorised person.

- Deals in foreign exchange under the current account by an authorised person can be restrictedby the Central Government, based on public interest.

- Although selling or drawing of foreign exchange is done through an authorised person, the RBIis empowered by this Act to subject the capital account transactions to a number of restrictions.

- People living in India will be permitted to carry out transactions in foreign exchange, foreignsecurity or to own or hold immovable property abroad if the currency, security or property wasowned or acquired when he/she was living outside India, or when it was inherited to him/her bysomeone living outside India.

- Exporters are needed to furnish their export details to RBI. To ensure that the transactions arecarried out properly, RBI may ask the exporters to comply to its necessary requirements.

Life insurers not allowed to participate in repo transactions: IRDA

The Insurance Regulatory and Development Authority (IRDA) said that life insurancecompanies are not allowed to take part in repo transactions. In a circular IRDA clarified that:


14/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

In case of reverse repo (lending) transactions in government securities and corporate debtsecurities, the exposure should not exceed 10% of all funds taken together.

Even at segregated fund level, exposure should not exceed 10% of the fund size.

For non-life insurers, the exposure to reverse repo and repo transactions in governmentsecurities and corporate debt securities should not exceed 10% of investment assets of theinsurer.

The tenure of repo transactions shall not exceed a period of six months. All companies would have to take prior sanction from investment committee before

participating in repo transactions. The underlying debt security would have to be listed and have a minimum rating of AA

or equivalent Reverse repo and repo transactions in corporate debt securities would not be allowed b/w

insurer and its promoter group entities In terms of matters like accounting methodology and reporting of trades for reverse repo

and repo transactions, companies would have to follow the January 2010 directions ofRBI.

Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutorybody which regulates and develops theinsurance industry in India. It was constituted by

a Parliament of India act calledInsurance Regulatory and Development Authority Act, 1999 and

duly passed by the Government of India.

The agency operates its headquarters at Hyderabad, Andhra Pradesh where it shifted

from Delhi in 2001.

The duties, powers and functions of IRDA are laid down in section 14 of IRDA Act, 1999 as : [1]

1. Subject to the provisions of this Act and any other law for the time being in force, theAuthority shall have the duty to regulate, promote and ensure orderly growth of the

insurance business and re-insurance business.

2. Without prejudice to the generality of the provisions contained in sub-section (1), thepowers and functions of the Authority shall include, -

1. issue to the applicant a certificate of registration, renew, modify, withdraw,suspend or cancel such registration;

2. protection of the interests of the policy holders in matters concerning assigning ofpolicy, nomination by policy holders, insurable interest, settlement of insurance


15/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

claim, surrender value of policy and other terms and conditions of contracts of

insurance;

3. specifying requisite qualifications, code of conduct and practical training forintermediary or insurance intermediaries and agents

4. specifying the code of conduct for surveyors and loss assessors;5. promoting efficiency in the conduct of insurance business;6. promoting and regulating professional organizations connected with the

insurance and re-insurance business;

7. levying fees and other charges for carrying out the purposes of this Act;8. calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organizations connected with the insurance business;

9. control and regulation of the rates, advantages, terms and conditions that may beoffered by insurers in respect of general insurance business not so controlled and

regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act, 1938 (4 of 1938);

10.specifying the form and manner in which books of account shall be maintainedand statement of accounts shall be rendered by insurers and other insurance

intermediaries;

11.regulating investment of funds by insurance companies;

12.regulating maintenance of margin of solvency;13.adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

14.supervising the functioning of the Tariff Advisory Committee;15.specifying the percentage of premium income of the insurer to finance schemes

for promoting and regulating professional organisations referred to in clause

(2.6);

16.specifying the percentage of life insurance business and general insurancebusiness to be undertaken by the insurer in the rural or social sector; and

17.exercising such other powers as may be prescribed


16/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

ADB lowers India growth forecast to 5.4 per cent

The Asian Development Bank (ADB), on Friday, cut Indias growth forecast to 5.4 per cent in

2012-13, barely two months after it had made a projection of 5.6 per cent growth for the Asiasthird largest economy.

Indias growth forecast is revised from 5.6 per cent to 5.4 per cent in fiscal year 2012 and from6.7 per cent to 6.5 per cent in 2012-13, the ADB said in its supplement to the AsianDevelopment Outlook (ADO) 2012This is the fourth time that the bank has slashed the growthestimates for India.

In the ADO released in April, the ADB had projected India to grow at 7 per cent. But it loweredits estimate to 6.5 per cent in July and further to 5.6 per cent in the ADO October update, citingfalling global demand and impact of delayed monsoon on agricultural production.As regards

developing Asia, which comprises 45 nations, the ADB lowered its 2012 growth forecastmarginally to 6 per cent from 6.1 per cent. It also revised downward the growth outlook for 2013to 6.6 per cent from 6.7 per cent projected earlier.

Indias economy has slowed in the recent years on the back of domestic and global factors.

The Asian Development Bank (ADB) is a regional development bankestablished on 22 August1966 to facilitate economic development of countries in Asia (headquartered at ManilaPhillipines).The bank admits the members of the United Nations Economic and SocialCommission for Asia and the Pacific (UNESCAP, formerly known as the United NationsEconomic Commission for Asia and the Far East) and non-regionaldeveloped countries. From 31

members at its establishment, ADB now has 67 members - of which 48 are from within Asia andthe Pacific and 19 outside. ADB was modeled closely on the World Bank, and has a similarweighted voting system where votes are distributed in proportion with member's capitalsubscriptions. At present, both the United States and Japan hold 552,210 shares, the largestproportion of shares at 12.756% each.China holds 228,000 shares (6.429%), India holds 224,010shares (6.317%), the 2nd and 3rd largest proportion of shares respectively.

Section 66 (A) of IT Act: Recent Controversies

Section 66 (A) of IT Act has been termed as draconian and violating the fundamental right offreedom of expression by various civil society activists and critics. Some incidents of arbitraryarrests under this Section in the recent past for posting alleged offensive messages on socialmedia has resulted in huge public outrage against this Section of the IT Act. Voicing concernover recent incidents of people being arrested for posting alleged offensive messages onwebsites, the Supreme Court has agreed to hear a PIL seeking amendment to the InformationTechnology Act.


17/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

The recent controversyThe Section 66 (A) of IT Act gathered the public attention and became an issue of controversywhen two young girls were arrested in Mumbai. One of these girl was arrested for questioning

on Facebook the shutdown in Mumbai after leader Bal Thackeray's death, which was 'liked' andshared by the other girl, who was also arrested. The police invoked section 66A of theInformation Technology (IT) Act against these young women.Use of authority against a person for expressing an opinion on a restricted-access social

networking site is arbitrary in nature and gross abuse of authority. The girl was not slanderinganybody, nor was she promoting hatred towards any community. She was merely expressing theview that there was no need for Mumbai to be shut down because a leader had died. A section ofsociety (the Shiv Sainik in particular) may not agree with this view, but there certainly was nocriminality involved in it. What is even more bizarre is that another girl was arrested merely forindicating that she agreed with her friend.The Supreme Court in various cases regarding the freedom of speech has held that fundamental

right to freedom of expression protects not merely ideas that are accepted but also those thatoffend shock or disturb the State or any sector of the population.What is Section 66 (A) of IT Act?Section 66 (A), which is a bailable offence and provides for a jail term of up to three years,makes it an offence to send, by means of a computer resource or communication device, anyinformation which is grossly offensive, menacing, causes annoyance or hatred.66 A is related to Punishment for sending offensive messages through communication service,etc. Any person who sends, by means of a computer resource or a communication device,-any information that is grossly offensive or has menacing character; orany information which he knows to be false, but for the purpose of causing annoyance,inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred, or illwill, persistently makes by making use of such computer resource or a communication device,any electronic mail or electronic mail message for the purpose of causing annoyance orinconvenience or to deceive or to mislead the addressee or recipient about the origin of suchmessages shall be punishable with imprisonment for a term which may extend to three years andwith fine.Explanation: For the purposes of this section, terms Electronic mail and Electronic MailMessage means a message or information created or transmitted or received on a computer,computer system, computer resource or communication device including attachments in text,image, audio, video and any other electronic record, which may be transmitted with the message.Core IssueThe phraseology of Section 66A of the IT Act, 2000 is so wide and vague and incapable of beingjudged on objective standards, that it is susceptible to wanton abuse and hence falls foul ofArticle 14, 19 (1)(a) and Article 21 of the Constitution. Currently, a police station in-charge oran inspector can register a case under the said provision.Other cases involving misuse of Section 66 (A) of IT Act:


18/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

April 2012 incident, when a professor of chemistry from Jadavpur University in West Bengal,Ambikesh Mahapatra, was arrested for posting a cartoon concerning a political figure on socialnetworking sites.

Arrest of businessman Ravi Srinivasan in October 2012 by the Puducherry Police for havingmade a allegation on twitter against a politician from Tamil NaduArrest of two Air India employees, V Jaganatharao and Mayank Sharma, by the Mumbai Policeunder the for posting content of Facebook and Orkut against a trade union leader and somepoliticiansAssem Trivedi, the famous cartoonist arrested misusing Section 66 (A) of IT act along with thesedition charges.New guidelines for Section 66 (A) of IT Act:The government has issued fresh guidelines in the backdrop of Public outrage against the Section66 (A) of IT Act. The following are the guidelines:A police officer no less than the rank of DCP can sanction prosecution.

In metropolitan cities, such an approval would have to be given by officers at the level ofInspector General of Police (IGP).Only officers of these ranks will be allowed to permit registration of a case for offences underthe Information Technology (IT) Act relating to spreading hatred through electronic messages ina bid to prevent the misuse of the legislation.

RBI sets up supervisory colleges for SBI, ICICIThe RBI has for the first time established the Supervisory College for cross bordersupervision of State Bank of India (SBI) and ICICI Bank.What is the role of Supervisory College?

The main role of the supervisory college, comprising local and international regulators, isto keep lenders aware of the latestglobal regulations and to evaluate their worthiness forglobal operations. This concept was suggested by Basel Committee for BankingSupervision (BCBS) October 2010.

Supervisory college will help in reducing supervisory overlap and filling in supervisoryvoids for better supervisory co-operation articulated in Basel-2 framework.

Why only for these two banks? SBI is the largest bank in the country with maximum foreign officers among Indian

banks. ICICI Bank is the largest private sector bank, which also have a considerablepresence overseas.

Who are the supervisors for these banks?SBI to have 9 host country supervisors which are:

Bangladesh Bank, Central Bank of Bahrain, National Bank of Belgium, Dubai FinancialServices Authority, Financial Services Authority (London), Federal Financial ServicesAuthority (BaFin), Bank of Mauritius, Nepal Rastra Bank, and Monetary Authority ofSingapore.

ICICI Bank to have 7 host country supervisors which are:


19/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Central Bank of Bahrain, National Bank of Belgium, Dubai Financial Services Authority,Financial Services Authority (London), BaFin, Bank of Russia and Monetary Authorityof Singapore.

Direct Cash Transfer SchemeIn a major initiative to check corruption and pilferage of subsidised items, the government ofIndia is launching an ambitious scheme for direct electronic transfer of cash to beneficiaries thatis expected to cover one quarter of households of the country.Prime Minister Manmohan Singh has set up an architecture comprising a ministerial committeeunder him besides a few other panels which would ensure time-bound implementation of theproject leveraging the Aadhar scheme.The Government spends a huge amount of Rs 3,25,000 crore annually on subsidies and the newscheme is intended to check corruption and pilferage of subsidised items including diesel, LPGand besides leakages in other schemes like MNREGA, pension and scholarships.

"In a move to cut down wastage, duplication and leakages and enhance efficiency, the PrimeMinister has given a major push to transfer individual benefits from the government directly intothe bank accounts of beneficiaries," a PMO statement said.

"This is to be done in fast-track, accelerated mode to be achieved in a time-bound manner. Theidea is to move to a completely electronic cash transfer system for the entire population," it saidabout the scheme.The amount of cash to be transfered electronically to the beneficiaries is to be worked out.Against the backdrop of corruption and pilferage in various schemes, the government has beenthinking about direct cash transfers to genuine beneficiaries to plug leakages as it is expected tobring down the subsidy burden.

The issue of direct cash transfers was discussed at the meeting of the Planning Commission heldearlier this month to finalise the 12th Plan as pilot projects have been successful in some stateslike Chhattisgarh, Andhra Pradesh, Karnataka, West Bengal, Tamil Nadu and Punjab.There will also be sub-committees like Cash Transfer Mission to work out technological,financial and banking aspects. Another sub-committee Electronic Benefit Transfer (EBT) willwork out data bases, transfer rules, controls and audits, etc.The beneficiaries will include poor people. Of them, the Unique Identity (UID) Mission hasalready enlisted 200 million people and the number is expected to go up to 600 million in thenext six months, an official in the PMO said.The programme will initially cover scholarships, pensions and unemployment allowances andlater MNREGA and Public Distribution Schemes.The programme is inspired by such successful schemes existing in countries like Brazil andMexico and cities like New York and Washington.Such a scheme in Brazil covers 25 per cent of the population, involving 11 million householdsand 46 million people.


20/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

In Mexico, five million households are benefitting from such a scheme.

The Prime Minister has set up the architecture for cash transfers in order to speed up activity andensure that the shift to cash transfers is rolled out rapidly, the statement said.The committees and sub-committees will work on and finalise all operational and

implementation details relating to the design and operation of the transfer system, it said."There is a lot of work needed to have a smooth roll-out and has to be done in a mission mode

with multiple agencies acting in a coordinated manner," the statement said while explainingreasons behind setting up various sub-committees.

"A Cash Transfer System can be used for transferring cash benefits such as NREGA wages,scholarships, pensions, income support of other types and health benefits," the PMO statement

said."Electronic Transfer of Benefits (ETB) is a simple change as the transfers are already takingplace and the only modification that would be involved is a movement from a paper based, cash-

driven system to an electronic direct transfer system," it said."Cash Transfer System would improve targeting, reduce corruption, eliminate waste, control

expenditure and facilitate reforms," it said.The cash transfer scheme is aimed at bringing about reforms in the Public Distribution Scheme.

The programme is inspired by such successful schemes existing in countries like Brazil andMexico and cities like New York and Washington.

"With the rapid rollout of Aadhar, now covering 20 crore people and rapidly growing to 60

crore, and with the National Population Register covering the other half, it is possible to move toa system of transferring cash benefits directly to the poor," the statement said.

The National Ministerial Committee, to be headed by the Prime Minister, will include Ministersof Finance, IT, Social Justice, HRD, Minorities, Labour, Health, Food, Petroleum and Natural

Gas, Fertilizers and Deputy Chairman of the Planning Commission.Besides, there will be a National Executive Committee comprising Secretaries of ministries

concerned and it will ensure adherence to timelines and sort out any hitch in the roll-out of theprogramme.

INTERNATIONAL AFFAIRS

India, Pak talk towards resolution of Sir Creek Issue

India and Pakistan recently concluded a meeting with an

aim to resolve Sir Creek dispute. Besides, issues on

Siachen and Kashmir are other territorial troubles b/w the

two nations were also discussed.


21/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Both countries agreed on certain issues including:

De-linking maritime boundaries from land. Marking from seaward to the point where both these sides agree. Declaring non-defined area (Sir Creek and the approaches) as free zone or the maritime

sensitive zone, or turn the area into the a jointly administered maritime park.

Sir Creek Issue

Sir Creek: It is 96 km narrow strip of water in the Rann of Kutch marshlands. The creek, which

opens up into the Arabian Sea, divides the Kutch region of the Indian state of Gujarat with

the Sindh province of Pakistan. It is locally called Baan Ganga.

Dispute: it is a bone of contention b/w India and Pak. The major issue over Sir Creek is aboutunderstanding of the maritime boundary b/w the Kutch and the Sindh. The region remained part

of British India before Indias independence. After partition of 1947, Sindh went to Pakistan and

Kutch remained with India.

Why so much fight for this region b/w India and Pakistan?

Little military value but immense economic value Region is rich in oil and gas below the sea bed With Creek as reference, maritime boundaries will be which will in turn determine the

limits of Exclusive Economic Zones (EEZs) and continental shelves. EEZs extend to 200

nautical miles (370 km) and can be subjected to commercial exploitation.

The demarcation would also prevent the inadvertent crossing over of fishermen of bothnations into each others territories.

What Pakistan says:

Pakistan lays claim to the entire creek as per paras 9 and 10 of the Bombay GovernmentResolution of 1914 inked b/w the then Government of Sindh and Rao Maharaj (the ruler

of the princely state of Kutch).


22/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Although Pakistan doesnt challenge the 1925 map, it holds that the Thalweg Doctrine inInternational Law is not relevant in this case as it only holds for bodies of water that are

navigable, which the Sir Creek is not.

What India says:

India supports its stance by citing the Thalweg Doctrine in International Law. India rejects the Pakistani stance by maintaining the fact that the creek is navigable in

high tide, and that fishing trawlers use it to go out to sea.

How Pakistan looses if the boundary line is demarcated according to the Thalweg principle?

The Thalweg principle states that river boundaries between two states may be, if the twostates agree, divided by the mid-channel.

If the boundary line is demarcated as per the Thalweg principle, Pakistan stands to lose asubstantial share of the territory that was historically part of the province of Sindh.

Submitting to Indias position would also lead to the shifting of the land/sea terminuspoint several km to the detriment of Pakistan, leading in turn to a loss of several thousand

square km of its EEZ under the UN Convention on Law of the Sea.

Maldives Airport Company Limited takes over airport operations from GMR

Maldives' state-run MACL tonight took over the operations of the Ibhrahim Nasir International

airport from GMR after the Indian infrastructure major lost a week-long legal battle over the

"unilateral" termination of its $511 million airport modernisation contract.

There would be three-week transition period during which GMR and state-run MACL will work

together.

Terminating the $511 million contract with GMR on November 27, Maldivian government had

given time till tonight to the Bangalore-based firm to handover the airport operations.

The handover took place a day after the Singapore Supreme Court ruled that Maldives

government has the "power to do what its wants including expropriating the airport", dealing a

severe blow to GMR which had earlier got a temporary reprieve with the Singapore High Courtstaying the termination.

The contentious issue saw various twists and turns both on legal and diplomatic fronts with India


23/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

expressing its strong displeasure over the "unilateral" decision of termination and had conveyed

that the move will have an adverse impact on the bilateral ties.

Top GMR officials including Kiran Kumar Grandhi, Business Chairman - Urban Infra &

Highways, who is also GMR chairman G M Rao's son had met with Maldives President earlier inthe day.

Meanwhile the GMR said in a statement that "GMR Maldives Internal Airport Limited (GMIAL)

has been assured that as a result of this takeover, all its employees, suppliers and other interested

parties will not be put to any inconvenience.

21st ASEAN and related Summits

The 21st ASEAN Summit, with the theme of ASEAN: One Community, One Destiny held in

Phnom Penh, on 18th November 2012, was chaired by Samdech Akka Moha Sena Padei Techo

HUN SEN, Prime Minister of the Kingdom of Cambodia. ASEAN has 10 members Cambodia,Vietnam, Thailand, Laos, Myanmar, Indonesia, Malaysia, Singapore, the Philippines and Brunei.

The Summit provides a valuable opportunity for leaders to engage on key strategic, political and

economic issues of common concern, with the aim of promoting stability and economic

prosperity in the region.

Major Issues discussed in the Summit:

Maintaining ASEAN Community peace and security

Focusing on bruising territorial rows

Human rights pact

Deadly ethnic unrest in Myanmar

Disputes with China over competing claims to the strategically vital South China Sea

ASEAN and China: Over South China Sea

China insists that it has sovereign rights to nearly all of the sea, including waters close to the

coasts of its Asian neighbors. ASEAN members Vietnam, the Philippines, Malaysia and Brunei,

as well as Taiwan, also have sometimes overlapping claims to the sea The ASEAN Summit

appealed to China to begin top-level talks over the territorial disputes that involve members

Vietnam, Malaysia, the Philippines and Brunei. ASEAN expressed its readiness to begin formal

and official talks on a legally binding code of conduct aimed at easing tensions in the South

China Sea as soon as possible.


24/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Ten years ago, China and the ASEAN countries signed the Declaration on the Conduct of Parties

in the South China Sea (DOC) and reached a series of important principles and consensus. China

has said that it wanted to continue with the current framework of lower-level negotiations that

were agreed in this framework. However some ASEAN countries have complained that the DOCis not legally binding, and has not prevented China from aggressive diplomacy.

ASEAN-India Summit

The 10th annual ASEAN-India Summit was held on the sidelines of the ASEAN Summit.

India''s Dialogue Partnership with the ASEAN countries is one of the cornerstones of its Look

East Policy. India sees this partnership as a step to further economic growth and prosperity,

peace and stability in the region.

ASEAN-India trade in 2011-12 reached USD 79.3 billion, crossing the target of USD 70 billion

by 2012 set in 2009. Both have a Free Trade Agreement (FTA) in goods, which was signed in

2009 and which became fully operational in August 2011. However the FTA in goods covers

only 80 per cent of tariff lines compared with 90 per cent found in ASEANs FTAs with other

countries.

India has agreed to finalise the Free Trade Agreement (FTA) in services and investment before

next month. India will conclude the agreement on trade in services and investment promotion

before the ASEAN-India commemorative summit in Delhi in December this year.

India had initially sought a more liberal visa regime for its professionals in areas like education,

health, nursing, information technology, architecture and chartered accountancy compared towhat ASEAN has offered to New Zealand and Australia in its FTA with the two countries.

ASEAN has offered longer visa permits and other qualification relaxations to professionals from

Australia and New Zealand. India is now willing to accept similar relaxations for Indian

nationals.

The India-Myanmar-Thailand highway is supposed to be operational by 2016. This will open the

physical connectivity from North Eastern Indian States to South East Asia. India is also

exploring an alternative route through central or north Myanmar to connect Guwahati to Hanoi.

East Asia Summit

The East Asia Summit (EAS) is a forum held annually by leaders of, initially, 16 countries in the

East Asian region. Membership expanded to 18 countries including the United States and Russia


25/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

at the Sixth EAS in 2011. EAS meetings are held after annual ASEAN leaders meetings.East

Asia Summit (EAS) was held one day after the ASEAN Summit. Leaders from the 10 ASEAN

members and 8 other countries Australia, China, India, Japan, New Zealand, Russia, South

Korea and the United States participated in the Summit. The following were the importantdiscussions that took place this year:

Discussions on cooperative efforts at improving maritime security:

EAS members discussed challenges including territorial and maritime disputes, piracy,

trafficking in illicit materials and natural disasters.

Launch of negotiations for a free trade agreement among ASEAN AND SIX PARTNERS:

Negotiations on a Regional Comprehensive Economic Partnership (RCEP) were launched at the

EAS. If passed, RCEP will see tariffs lifted and investment rules across the Asia-Pacific regionliberalised. In addition to the 10 ASEAN members, Australia, China, India, South Korea, Japan

and New Zealand are participating in the talks.

The RCEP was first discussed at the 19th Asean Summit in November last year. ASEAN

member states adopted the framework for the RCEP, which sets out the general principles for

broadening and deepening ASEANs engagement with its free trade agreement partners.

The RCEP would be the largest regional trading arrangement in the world to date. It could

eventually lead to the creation of an integrated market that spans 16 countries with a combined

market population of more than 3 billion people and a combined GDP of about US$19.78 trillion

based on 2011 figures.

Announcement of a U.S.-Asia Pacific Comprehensive Partnership for a Sustainable Energy

Future:

Under this initiative, the U.S. will extend energy-related cooperation in multilateral and bilateral

channels, focusing on providing technical assistance and financing for renewable, energy

interconnectivity and markets, natural gas, and sustainable development.

India-Japan sign currency swap accord to enhance bilateral trade

Central banks of India and Japan (The Reserve Bank of India (RBI) and the Bank of Japan (BoJ)

respectively) signed a 3-year Bilateral Swap Arrangement (BSA).

How agreement will help?


26/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Help in addressing short-term liquidity problems Supplementing the existing international financial arrangements Strengthening bilateral trade b/w Japan and India Aid in ensuring financial market stability

This agreement will enable both the countries to swap their local currencies (i.e., either Japanese

yen or Indian rupee) against US dollar for an amount up to $15 billion. Previously, the agreement

b/w the two nations was limited to $3 billion for a period of three years from June 2008 to June

2011.

Personalities in News

Indra Kumar Gujral

Former Pime Minister of India, passed away. He was 92.

I.K.Gujral (December 4,1919 November 30, 2012) Born in Punjab, in British India. Participated in Indias struggle for freedom. Left the Indian National Congress party in the mid-1980s and joined the Janata Dal. Became the 12th Prime Minister of India from April 1997 to March 1998. Second PM to govern exclusively from the Rajya Sabha, first being his immediate

predecessor H.D. Deve Gowda.

Key contributor to Indias foreign policies. Gave a set of five principles famously known as Gujral Doctrineto guide the conduct of

foreign relations with Indias immediate neighbors.

5 Principles of Gujral Doctrine

1. With neighbors like Bangladesh, Bhutan, Maldives, Nepal and Sri Lanka, India does notask for reciprocity, but gives and accommodates what it can in good faith and trust.


27/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

2. No South Asian country should allow its territory to be used against the interest ofanother country of the region.

3.

No country should interfere in the internal affairs of another.

4. All South Asian countries must respect each others territorial integrity and sovereignty.5. They should settle all their disputes through peaceful bilateral negotiations.

According to Gujral, these 5 principles, conscientiously adhered to, would achieve a fundamental

remodeling of South Asias regional relationships, including the strenuous Indo-Pak relationship.

Further, the implementation of these principles would generate a climate of close and mutually

benign cooperation in the region, where the weight and size of India is regarded positively and as

an asset by these nations.

However, his doctrine invited severe criticism following a series of Pakistan-sponsored terrorist

incidents throughout the 2000s, culminating with the 2008 Mumbai attacks.

Sachin Dev Pavithran

Obama named a visually impaired Indian-American Sachin Dev Pavithran to head an

independent US agency devoted to people with disabilities.

Sachin Dev Pavithran will soon become a member of the Architectural andTransportation Barriers Compliance Board, the agency which is also known as the

Access Board.

The Access Board was established in 1973 to ensure design standards across the US toenable access to the physically impaired.

Architect Oscar Niemeyer

Architect Oscar Niemeyer, who recreated Brazils sensuous curves in reinforced concrete and

built the capital of Brasilia on the empty central plains as a symbol of the nations future died on

December 5. In works from Brasilias crown-shaped cathedral to the undulating French

Communist Party building in Paris, Niemeyer shunned the steel-box structures of many

modernist architects, finding inspiration in natures crescents and spirals. His hallmarks includemuch of the United Nations complex in New York and the Museum of Modern Art in Niteroi,

which is perched like a flying saucer across Guanabara Bay from Rio de Janeiro.


28/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Ranjit Sinha

Ranjit Sinha, senior IPS officer from 1974-batch Bihar cadre, has taken the charge as the new

CBI Director.

Guardsman Jatinderpal Singh Bhullar

An Indian-origin Sikh is all set to be the first person guarding the Buckingham Palace in his

turban after being given the privilege not to wear the mandatory bearskin on ceremonial duties.

Guardsman Jatinderpal Singh Bhullar, 25, who joined the Scots Guards this year, has been given

permission to wear a turban when on guard duty outside Buckingham Palace, breaking hundreds

of years of tradition. The regiment traces its origin back to 1642 and its soldiers have worn

bearskins on parade since 1832. Bhullar is based at Wellington Barracks in Birdcage Walk. The

base is used by soldiers from the Scots Guards' F Company, who are responsible for public

duties and guarding the Queen.

Rukhsana Kousar

On September 27, 2009, 20-year-old Rukhsana Kousar of upper Kalsi, a Class X dropout, didwhat no other woman even a man, perhaps had done ever since the insurgency broke outaround her birth in 1989. With an axe, she hacked to death a Lashkar-e-Taiba terrorist AbuUsama, forcing two other armed intruders to flee from her home. She became the first NationalBravery Award recipient from Rajouri district of Jammu and Kashmir.

Four months later, on Republic Day, Rukhsana and her younger brother, Aijaz, were conferred

the countrys second highest gallantry award in peace time, Kirti Chakra, for combating whattheir uncle Waqalat Hussain and aunt Kulsum Parri had perceived as inevitable death. Nobody inthe neighbourhood, less than 15 miles from the border with Pakistan-controlled Kashmir, wouldhave imagined an unarmed teenage Pahari girl foiling a kidnapping, killing a militant, snatchingaway his AK-47 and forcing others in the group to retreat in shame.

Sports

Keshavan bags gold in Asian Championship

Shiva Keshavan of India has won gold medal in luge and has set a new Asian record of 49.590

seconds in the Asian Championship.

What is Luge?


29/175


30/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

What is the issue?

IOC wants that election for top posts of IOA should be held as per Olympic Charter, which

insists that organizing committees for each country remain autonomous and free of governmentinfluence. Indias national sports code does not adhere to these requirements, and consequently, a

New Delhi court ordered the IOA to hold an election as per governments sports code instead of

adhering to the IOCs charter.

IOC is against the election of candidates tainted with corruption charges. Individuals like Lalit

Bhanot (who was jailed on corruption charges), Abhey Singh Chautala (contesting for president

post) is a close ally of former IOA president Suresh Kalmadi are contesting for these positions.

Recently, Randhir Singh, incumbent secretary general, calling the elections unfair, withdrew his

name from the elections.

Manavjit Sandhu wins gold in Asian Shooting

India's Manavjit Singh Sandhu won the trap gold medal after he shot 138 (117+ 21) in the AsianShooting Championship Patial today. The silver was won by Japan's Oyama Shigetaka, whoscored a total of 135 (114+21), while Meqland Naser of Kuwait won the bronze scoring 134(114+20).

Shooters from 17 different countries participated in the event out of which four were in MQS

category.The team gold was won by India.Sandhu (117), Prithviraj (112), Anirudh Singh (109)

scored a total of 338 to bag the yellow metal.The silver in the men's team event was won byKuwait's Meqland Naser (114), Al Faihan Abdul Rahman (113) and Aldeehani Fehaid (105).The

bronze was won by Japan's Oyama Shigetaka(114), Uematsu Naoyuki (101) and TekenakaToshiaki (99).

International

Phantom Islands mystery resolved.

The mystery behind the missing of the Sandy Island in the South Pacific, displayed on the world

maps as well as Google Earth but did not really exist, has been claimed to be solved by a

researcher. A researcher at Auckland Museum after his investigations claimed that the island had

never existed.

Origin of the error: The error first crept in 1879, when Australian maritime directory showed the

island. These were reported by the masters of a whaling ship from the year 1876.


31/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Where was it shown on the map?

The landmass in Coral Sea which is shown as the Sandy Island on Google maps as well as

Google Earth is apparently somewhere b/w Australia and New Caledonia. The island has now

been removed from the maps.

Spaun the artificial brain can pass basic IQ test

Scientists in Canada have claimed to have developed worlds most sophisticated, large-scale

model simulation of human brain named Spaun which can pass the basic elements of IQ test.

SPAUN is Semantic Pointer Architecture Unified Network.

Main features:

Runs on supercomputer Digital eye for visual input Robotic arm to draw responses 2.5 million simulated neurons facilitating it to do 8 different tasks like copy drawing,

counting, question answering, fluid reasoning etc.

It has some limitations which are simulated like human brainCHAMP: A Missile which can shut down electronics

US aircraft manufacturer Boeing has developed and tested a new missile which uses

electromagnetic pulses to target buildings can permanently knock out a countrys electronics

without causing any harm to life.

During its test when it zapped over the Utah Test and Training Range, discharging

electromagnetic pulses on to targets, it permanently shut down their electronics.


32/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

The missile project has been code named Counter-Electronics High Power Microwave Advanced

Missile Project (CHAMP).

What makes this missile so capable?

The missile carries an electromagnetic pulse cannon, which uses a super-powerfulmicrowave oven to produce a concentrated beam of energy which causes voltage surges

in electronic equipment, leaving them useless before surge protectors react.

World Conference on International Telecommunications

World Conference on International Telecommunications (WCIT) in Dubai, United Arab

Emirates, from December 3-14, 2012.

UN telecommunications body has clarified that the freedom of the Internet will not be controlled.

It was declared in the World Conference on International Telecommunications (WCIT-12) in

Dubai in order to review the regulations which were introduced in 1988.

The conference also included issue about permission of censorship on legal content.

Google showed its concern about some proposals according to which the government would be

allowed to censor the legal speech or maybe even shut down access to the Internet. It also argued

that the ITU (UN agency for information communication technologies) was not the correct

institution for addressing the issues of the Internet.

COP18 DOHA ROUND

The developing countries have expressed grave dissatisfaction with the final texts of proposals

that dont set out a clear road map of action in terms of ambitious emission cuts from developed

countries or a financial commitment for adaption or loss and damage.

The developing countries said they would not be pushed into agreeing to weak outcomes even if

they were rushed for time. While strong protests from India and the G 77 plus China led to the

principles of equity, shared vision, finances and technology transfer being put back into the long

term cooperative action (LCA) track, there is no indication of commitment on funds. The African

Group, G 77 plus China and the Alliance of Small Island States (AOSIS) and others said the

outcome needed to be balanced with concerns of the developing world. For instance after

ministerial consultations, the draft decision on key finance only invites developed country

Parties to submit, by the 19th session of the Conference of the Parties, [a year from now], their


33/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

viable pathways for mobilising and scaling up the provision of climate finance from 2012 levels

to at least $ 100 billion a year by 2020.

In the stocktaking plenary after the texts on the Kyoto Protocol, LCA and the Ad Hoc WorkingGroup on the Durban Platform for Enhanced Action (ADP) were released in the morning, the

developing countries, led by China, said they were not satisfactory and that their concerns were

not reflected. The text on the Kyoto Protocol leaves much to be desired and it is vague on

emission cuts by the developed countries and the period of commitment of the Protocol in the

next phase which starts from January 2013.

There is a raging controversy over the text of the ADP where issues of equity dont find mention.

The U.S. has been arguing that the principles of equity are enshrined in the United Nations

Convention on Climate Change (UNFCCC) and there was no need for a specific inclusion here.

The big battle is over equity and common but differentiated responsibility and if these have to be

included in ADP. The ADP is a subsidiary body that was established in Durban to develop a

protocol, another legal instrument or an agreed outcome with legal force under the Convention

applicable to all Parties.

The ADP is to complete its work as early as possible but no later than 2015 in order to adopt this

protocol, legal instrument or agreed outcome with legal force at the twenty-first session of the

Conference of the Parties and for it to come into effect and be implemented from 2020.

Meena Raman from the Third World Network (TWN) said the feedback from the finance text

was very worrying. As for commitments under the Kyoto Protocol, the concern was that the textdoes not address emission cuts which are at low levels, for instance the European Union (EU)

still aims at cutting only 20 per cent of its emissions.

The issue of surplus emissions is not addressed, and the length of second commitment to the

Kyoto Protocol is left vague - from five to eight years.

The tricky zone of intellectual property rights (IPR) in relationship with technology transfer

remains vague. It has been one of the most controversial issues in Doha and the U.S. was very

clear it didn't want it, Ms. Raman said.

As for cutting emissions, the texts propose deep reduction in global greenhouse gases or

urge developed countries to increase ambition or set long term goals for emission reduction.

Late on Friday night, president of the Conference of Parties (COP) 18 Abdullah Bin Hamid Al


34/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

Hattiyah of Qatar called on countries to focus on ambition and balance which, he said, were the

keys to the success of the Doha Climate gateway.

Recent reports on GHGs and global warming

The climate data from numerous sources conclusively makes the point that we are

heading towards calamity. More than a dozen studies made this point just ahead of the climate

talks in Doha.

A number ofscientist have warned that time is running out to avert a climate catastrophe. While

they acknowledge that it is still possible to stave off the worst effects of climate change, they

note that the window of opportunity is rapidly getting smaller.

In November, the World Meteorological Associations (WMO) annual Greenhouse Gas

Bulletin indicated that global atmospheric carbon levels are at 391 parts per million, the highestthey have ever been in human history. Scientists warn that 350 parts per million is the upper limit

for a stable planet. Levels of CO2 have been steadily rising at about 2 parts per million every

year for the past decade. Current measurements of atmospheric carbon are 40 percent higher than

at the start of the Industrial Revolution. Since the dawn of industrialization in 1750 humans have

emitted 375 billion tonnes of carbon dioxide into the atmosphere. The WMO Bulletin indicates

that future emissions will make the situation far worse.

The US National Oceanographic and Atmospheric Administration (NOAA) contributed to the

WMO report by providing data published in their Annual Greenhouse Gas Index (AGGI). Their

report stated: Increases in the abundance of atmospheric GHGs since the industrial revolutionare largely the result of human activity and are largely responsible for the observed increases in

global temperature.

On November 12, the Paris-based International Energy Agency (IEA) warned that ongoing

reliance on fossil fuels will make it impossible to curtail climate change. They further state

that renewable energy is being neglected in favor of coal, oil, and natural gas.

In a November 13 press release, Renewable Energy Industry (IWR) indicated that last years

GHGs reached a record high. In total, there were 34 billion tons of GHG emissions in 2011,

which is 800 million more tons than in 2010.

On November 18, the World Bankissued a report suggesting that the climate could warm a full 4

degrees by the end of the century. The study further suggests that we will not be able to avert this


35/175



Contact: 7373059333, 044-23725102.


Park Bus stop.

temperature increase even in the unlikely event that countries fulfill their current emissions-

reduction pledges.

On November 21, UNEP issued a warning saying that we are on the brink of a climatecatas

Date post:	14-Apr-2018
Category:	Documents
Upload:	nageswaran-gopu
View:	219 times
Download:	0 times

December 2012 With Watermark

Documents