KOTHARI INSTITUTE

DATE-19Jun2014

NATIONAL NEWS

1. Modi govt’s first overseas crisis: India caught in Iraqi crossfire 2. Now, apply for passports from post offices 3. U.S. push to tag India as ‘emerging economy’ aimed at market access 4. Army test-fires Akash missile 5. JD(U) wins Rajya Sabha bypoll in Bihar

Business

1. Reliance set to roll out 4G broadband services in 2015

INTERNATIONAL NEWS

1. Rebels attack Iraq’s largest oil refinery

2. Iraq seeks U.S. air strikes to combat rebels 3. US will send up to 300 military advisers to Iraq, Obama says

EDITORIAL

Democratic credentials on test

Dear students here are the news from “THE HINDU” and “TIMES OF INDIA”

NATIONAL NEWS

NEW DELHI, June 19, 2014

Modi govt’s first overseas crisis: India caught in Iraqi crossfire

ATUL ANEJA &

Concern for nurses, workers trapped in the conflict

Forty Indian men working in a construction company in Iraq were abducted by gunmen while they were reportedly trying to flee from Mosul, a city controlled by the Islamic State of Iraq and Syria (ISIS), External Affairs Ministry spokesperson Syed Akbaruddin said on Wednesday.

“No ransom calls or any other demands have been made by any group to the government so far,” Mr. Akbaruddin said. “We are in touch with officials of Red Crescent, which is the only humanitarian organisation operating in this area of the conflict.”

External Affairs Minister Sushma Swaraj assured the families of the missing men, most of them from Punjab, of the government’s efforts to bring them back safely.

Officials in the Indian Embassy in Baghdad are also in touch with the construction company, Tariq Noor Al Huda, which has been telling the families that they had not been kidnapped but taken to a safe a location in northern Iraq.

New Delhi is helping to facilitate the return of other Indians working in Iraq who wish to return home. But a complex set of factors, including the mushrooming of checkpoints set up by the Sunni tribesmen in tactical alliance with the militants, may hamper the rescue and evacuation operations. Baghdad asked Washington to carry out air strikes on militants in the north.

Official sources said those who had taken over the Tikrit General Hospital, where around 46 Indian nurses, mostly from Kerala, are working, were persuading the trapped health workers to continue their work, though at less wages.

“Those who have seized the hospital do not want it to close down in anticipation of heavier fighting and casualties that they may suffer in the future,” the sources said.

International Committee of the Red Cross officials met the nurses in Tikrit. Speaking from the town of Erbil, ICRC spokesperson Saleh Dabbakeh told The Hindu that the nurses were safe and had adequate food and water supplies.

Mr. Dabbakeh said he had not heard anything about the 40 Indian men, nor could he confirm which group may be holding the men. Determining their exact location is difficult because communication links in the general area of their detention have snapped. However, sources said the detainees appeared to have been moved to a cotton factory within 30 kilometres of Mosul.

CHENNAI, June 19, 2014

Now, apply for passports from post offices

K. LAKSHMI

Come July, the city’s residents can apply for passports online from post offices. The Department of Posts, in association with the Regional Passport Office, Chennai, is working out modalities to help customers register passport applications online and is identifying post offices to offer the facility.

Officials of the department said customers could get a printout of the application from the postal employees. Once the applicants submit filled-in forms, the staff will upload the data online. “It is better for applicants to bring necessary documents such as proof of age and residential address. The employees have also been trained to assist applicants in filling up the forms,” said an official.

Once registered, customers would be provided acknowledgment receipt generated with appointment date for personal interview at the Passport Seva Kendras.

Initially, the service will be launched in 25 post offices in the Chennai City Region (CCR), including some in Vellore and Puducherry.

Of this, a minimum of 10 post offices in Chennai will be identified and the service will be extended to more offices depending on the patronage. Applicants will have to pay Rs.100 for the online service.

At present, customers have the option of paying the fee through internet or State Bank of India. Mervin Alexander, Postmaster General, CCR, said: “We are also working out modalities for using our e-payment service for paying passport fee. However, the employees will not be involved in verification of the documents of applicants.”

The department is also seeking a unique user name ID to facilitate its employees to register multiple applications.

NEW DELHI, June 19, 2014

U.S. push to tag India as ‘emerging economy’ aimed at market access

PUJA MEHRA

The crisis at the World Trade Organisation (WTO) talks in Geneva has deepened with the United States demanding that India and China be categorised as ‘emerging’ rather than as ‘developing economies’. India is resisting the move which, if it materialises, will halve WTO caps applicable to India’s food subsidies. It will also require India to grant market access to the U.S. The U.S. is insisting that India meet its food security law obligations with American imports, Commerce Ministry sources told The Hindu .

“The U.S. insists that economies such as India and Indonesia with high rates of growth can no longer be categorised as developing countries,” the sources said. “India’s stand is that going by per capita income, it is actually the world’s largest Least Developed Country where about 600 million live at less than $2 a day,” the sources said.

The U.S. has also tabled a study in Geneva, produced by its allies Pakistan and Canada, that claims food subsidies in India and China exceed those in the U.S. and the EU, sources said. India has countered the study, the sources added, with data to show that the U.S. farm subsidies to its corporate sector are to the tune of $20,000 to $30,000 per capita per year against India’s mere $200.

Besides, India’s subsidies go to subsistence farmers, said the sources adding: “To say that the subsidies that India and China give are greater than what the U.S. gives is over the top.”

At the Geneva talks, the U.S. has so far successfully thwarted India’s efforts aimed at finding a permanent protection against even the WTO’s agriculture caps currently applicable to its food subsidies. America’s own agenda of an agreement on Trade Facilitation, however, is well on track for the July 31 deadline as laid down at the Bali Ministerial.

“The U.S. is seeking to muddy the waters on the issue of subsidies in order to cause delays as it is in no position to give a commitment on the issue. The U.S. is engaged in its own domestic political arithmetic over the rejig of its Farm Bill and subsidies; it is not in a position to negotiate on the matter in Geneva,” the source said.

Emerging economy categorisation at the WTO will lower the agriculture subsidy caps applicable to India from 10 per cent to 5 per cent.

“The developing countries have managed a complete vilification by indulging in half truths; India needs to put forth its points more forcefully at Geneva,” said Biswajit Dhar, Professor of Economics at Jawaharlal Nehru University.

India is resisting the move as it will halve limits on food subsidies, force dependence on U.S. imports

CHENNAI, June 19, 2014

Army test-fires Akash missile

SPECIAL CORRESPONDENT

DRDO says the missile is ready for induction into Army

The surface-to-air Akash missile is test-fired in very low altitude at the Integrated Test Range in Balasore off the Odisha coast on Wednesday.— Photo: DRDO

The Army on Wednesday test-fired a surface-to-air Akash missile, which intercepted a fast-moving, small unmanned aerial vehicle called Banshee at an altitude of 30 metres above the sea level off the coast of Odisha.

The interception proved the missile’s capability against subsonic cruise missile, said officials from the Defence Research and Development Organisation (DRDO) which developed Akash. Wednesday’s launch was the last among the validation trials done by the Army on the missile’s production model.

A modern radar, which forms part of the entire Akash system, continuously tracked the low-flying target.

Special techniques developed by the DRDO for overcoming the reflections of the target vehicle Banshee coming from the sea worked perfectly in the mission. With this flight trial, the Army had accomplished all the validation trials on the missile’s production model and the Akash system was being delivered for induction into the Army, a DRDO press release said.

‘Export potential’

Avinash Chander, Scientific Advisor to the Defence Minister and DRDO Director-General said: “While the indigenous development, production and induction of Akash is

making a significant contribution to India’s self-reliance in air defence technologies, Akash also has export potential.”

G. Chandramouli, Project Director, Akash, supervised several flight trials of Akash by the Air Force and the Army in the past few weeks.

DRDO spokesman Ravi Kumar Gupta said the mobile Akash air defence weapon systems was designed, developed and led to production by the DRDO for protecting country’s important assets from aerial attacks.

“It has completed all the development flight tests, user trials and the system is in production for the Army and the Air Force,” he said.

THE TIMES OF INDIA

JD(U) wins Rajya Sabha bypoll in Bihar PTI | Jun 19, 2014, 08.52 PM IST

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Ruling JD(U) candidates — diplomat-turned-politician Pavan Kumar Varma and Gulam Rasool Balyawi, on Thursday

managed to win their seats in the Rajya Sabha byelections overcoming cross voting by party MLAs in favour of BJP-

backed independents.

PATNA: Ruling JD(U) candidates — diplomat-turned-politician Pavan Kumar Varma and Gulam Rasool Balyawi, on Thursday managed to win their seats in the Rajya Sabha byelections overcoming cross voting by party MLAs in favour of BJP-backed independents, thanks to the help from RJD and some other parties. Varma and Balyawi defeated independents Anil Sharma and Sabir Ali, assembly secretary Hareram Mukhiya told reporters here. Varma secured 122 votes against Anil Sharma's 108, while for the other seat, JD(U)'s Gulam Rasool Balyawi bagged 123 votes against Sabir Ali's 107, he said. There was cross-voting by members from JD(U), RJD and Congress.

JD(U) candidates should have got 143 votes on the basis of strength of 116 MLAs of the party, besides 20 of RJD, 4 of Congress, 2 independents and 1 CPI. Speaker Udai Narayan Choudhary from JD(U) did not vote. RJD MLA Kedar Singh did not vote as he was absconding in a some criminal case. The two independents — real estate baron Anil Sharma and Sabir Ali, bagged 17 and 16 votes of JD(U) dissidents, because of cross voting by two members each from RJD and Congress.

BUSINESS MUMBAI, June 19, 2014

Reliance set to roll out 4G broadband services in 2015

SPECIAL CORRESPONDENT

To invest Rs.1.80 lakh cr in the next 3 years

Reliance Industries Ltd (RIL) has announced plans to invest Rs. 1.80 lakh crore ($30 billion) in three years in petrochemicals, refining, retail and broadband businesses with an aim to be among the Fortune 50 companies by the time it completes 40 years of corporate journey in 2017.

RIL Chairman and Managing Director Mukesh Ambani said this while unveiling his vision for the company at the annual general meeting in Mumbai on Wednesday.

“In the past 37 years, we invested Rs.2.40 lakh crore, and in this current three years’ investment cycle, we will be investing over Rs.1.80 lakh crore. We are currently at the mid-point of largest investment programme in Reliance’s history,” Mr. Ambani told shareholders.

“The next three years are transformational in RIL’s journey. By the time we finish the four decades since our first public offering, we will again be a radically different company,” Mr. Ambani said.

RIL, which is at present debt-free, would raise debt of Rs.60,000 crore in the next two years and by the time this investment cycle was finished, it would once again be debt-free in 2017-18 on a much larger basis, the RIL Chairman said.

Speaking on the KG-D6 fields, Mr Ambani said “We have met with success with further discoveries in KG-D6 and CYD5 blocks. We are now in the process of carrying out our appraisal of the discoveries to access their potential. Timely regulatory approvals and market-based gas prices are the key to developing these resources.” Mr. Ambani said, “We are a matured corporate and we are committed to create value. We are convinced that what we are doing is right and we will gain trust (of opponents) through transparency.”

In organised retail, RIL said that this business had already achieved market leadership and the company would further expand in existing markets and explore newer markets. He said Reliance Jio would start offering 4G broadband service in 2015, and it would be one of the largest job-creating and wealth-creating business initiatives in India. About Rs.70,000 crore had already been invested in this business, and 10,000 people were working across the country.

“Millions of new entrepreneurs and jobs can be expected to spring up in secondary and tertiary sectors in new and innovative digital enterprises and services. The boundaries of these start-ups and services are only limited by our imagination,” Mr. Ambani said. The day also witnessed the induction of Nita Ambani, wife of Mr. Ambani, into the board of RIL. Shareholders of the company approved her appointment at the AGM.

� Aims to be among Fortune 50 companies in 2017

Will raise debt of Rs.60,000 crore in the next two years

� Will be one of the largest job-creating business initiatives

Inducts

Nita Ambani

into the board of RIL

INTERNATIONAL

KIRKUK, June 19, 2014

Rebels attack Iraq’s largest oil refinery

Prime Minister Maliki vows to fight terrorism and teach the militants a lesson

SECTARIAN ANIMOSITIES:Iraqis inspect the site of a car bomb explosion in the mainly Shia Sadr City district in Baghdad on Wednesday.— PHOTO: AFP

Iraq’s Premier vowed on Wednesday to “face terrorism” and insisted security forces had suffered a “setback” rather than defeat, as militants pressing a major offensive attacked the country's largest oil refinery.

The militants also seized three villages in north Iraq on Wednesday, an Iraqi official said. “We will face terrorism and bring down the conspiracy,” Prime Minister Nuri al-Maliki vowed in televised remarks, adding that “we will teach [militants] a lesson and strike them.”

He also said that the security forces, which wilted in the face of a major militant offensive that in a matter of days overran all of one province and chunks of three more, had suffered a “setback” but had not been defeated.

The crisis, which has displaced hundreds of thousands of Iraqis, threatens to carve up the country while the assault on the Baiji oil refinery early on Wednesday will likely further spook international oil markets.

The attack on the refinery complex, in Salaheddin province north of Baghdad, was launched before dawn, according to a senior official and a refinery employee.

They said some tanks containing refined products caught fire and that the security forces had suffered casualties.

Mr. Maliki’s security spokesman, Lieutenant General Qassem Atta, later said that Iraqi forces had repelled the attack in fighting which left 40 militants dead. He did not mention security force casualties.

The refinery was shut down and most employees evacuated on Tuesday due to a drop in demand caused by the militant drive, which is being spearheaded by jihadists from the Islamic State of Iraq and Syria (ISIS).

World oil producers have cautiously watched the unfolding chaos in Iraq, which currently exports around 2.5 million barrels of oil per day, but have stressed that the country’s vast crude supplies, mostly in the south, are safe — for now.

Further north, security forces pushed into new areas of Tal Afar on Wednesday during heavy fighting, a provincial councillor said. The Shia-majority town is located in Nineveh province along a strategic corridor to Syria and has been the scene of fierce fighting.

But militants gained ground elsewhere, with a senior police officer saying they had moved into the Shia Turkmen area of Bashir in the northern province of Kirkuk early on Wednesday.

Meanwhile, Iraq has asked the U.S. to conduct air strikes against the militants, Foreign Minister Hoshyar Zebari said. “Iraq has officially asked Washington to help under the security agreement [between the two countries], and to conduct air strikes against terrorist groups,” Mr. Zebari told reporters in Saudi Arabia. — AFP

TODAY'S PAPER » INTERNATIONAL

BAGHDAD, June 19, 2014

Iraq seeks U.S. air strikes to combat rebels

Washington doesn’t rule them out; attack on key refinery creates panic in oil markets

Displaced Iraqis walk past the wreckage of military vehicles in al-Hamdaniyah, 76 km west of the Kurdish region’s capital Arbil, on Wednesday.— PHOTO: AFP

Baghdad asked Washington on Wednesday to carry out air strikes on militants who attacked Iraq’s main oil refinery and seized more territory in the north, amid warnings the country’s future was at stake.

The appeal came as fighters, led by the Islamic State of Iraq and Syria (ISIS), were pressing an eight-day offensive, with Prime Minister Nouri al-Maliki pledging to face down “terrorism.”

While officials touted progress, militants seized three villages in northern Iraq.

“Iraq has officially asked Washington to help under the security agreement [between the two countries], and to conduct air strikes against terrorist groups,” Foreign Minister Hoshyar Zebari told reporters in Saudi Arabia.

Baghdad has scrambled to repel the militant offensive, with Mr. Maliki firing disgraced security commanders and vowing to “face terrorism and bring down the conspiracy.” “We will teach [militants] a lesson and strike them,” he said.

Mr. Maliki said that security forces, which wilted in the face of the offensive that overran all of one province and chunks of three more in a matter of days last week, had suffered a “setback” but had not been defeated.

His security spokesman, Lieutenant General Qassem Atta, said security forces would shortly retake full control of Tal Afar, a Shia town in the north that lies along a strategic corridor to Syria. That would provide a base from which to launch operations to recapture Mosul, he said.

With regional tensions rising, Iranian President Hassan Rouhani said the Islamic republic “will do everything” to protect Shia shrines in Iraqi cities against the militant assault.

And Saudi Arabia warned of the risks of a civil war in Iraq with unpredictable consequences for the region, while the United Arab Emirates recalled its envoy to Baghdad, voicing concern over “exclusionary and sectarian policies.”

The crisis, which has displaced hundreds of thousands of Iraqis, threatens to break the country apart, while the assault on Baiji oil refinery on Wednesday further spooked international oil markets.

Officials said security forces controlled the refinery, but clashes were ongoing, with Lt. Gen. Atta saying 40 militants were killed.

The White House indicated on Wednesday that President Barack Obama had yet to rule out air strikes in Iraq.

Mr. Obama, who was due to meet top congressional leaders, including Republican critics, to discuss his strategy, was considering a range of options, his spokesman Jay Carney said.

“The only thing the President has ruled out is sending troops back into combat in Iraq, but he continues to consider other options,” Mr. Carney said.

“Work is being done that will help us see with more clarity what the options available to the President are,” Mr. Carney added, when asked to clarify whether Mr. Obama had ruled out air strikes. — AFP

THE TIMES OF INDIA

US will send up to 300 military advisers to Iraq, Obama says AP | Jun 20, 2014, 12.05 AM IST

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President Barack Obama says it's going to be hard for the current Iraqi govt to resolve the country's crisis unless the

government is more inclusive.

WASHINGTON: President Barack Obama said the United States is sending up to 300 military advisers to help Iraqi forces stem violent sectarian fighting and is prepared to take targeted military actions if they would help fight the growing threat from extremist militants. Obama said on Thursday US forces will not be returning to combat in Iraq but will help train Iraqis. The President said the US has increased its intelligence, surveillance and reconnaissance operations in Iraq to better understand the threats to Baghdad. Obama, who offered an update to US operations in Iraq after meeting with his national security team, said the United States is forming joint operations centers in Baghdad and northern Iraq. Obama and his national security team met to discuss how strongly to press Iraqi Prime Minister Nouri al-Maliki to undertake reforms and make his government more inclusive. Top US officials believe that giving more credence to Sunni concerns about al-Maliki may offer the best opportunity to stave off another deadly round of sectarian fighting of

the kind that engulfed Iraq less than a decade ago.

US officials said there was concern within the administration that pushing al-Maliki too hard might stiffen his resolve to stay in office and drive him closer to Iran, which is seeking to keep the Shiite leader in power. The Obama administration wants to see evidence of a leadership transition plan being put in place in Iraq. All of the officials spoke on the condition of anonymity because they were not authorized to discuss the internal deliberations by name. Vice President Joe Biden spoke with the Iraqi leader Wednesday and emphasized a need for him to govern in an inclusive manner. Biden also spoke to Iraq's Sunni parliamentary speaker and the president of Iraq's self-ruled northern Kurdish region. Al-Maliki, who has long faced criticism for not making his government more inclusive, went on a diplomatic offensive Wednesday, reaching out in a televised address to try to regain support from the nation's disaffected Sunnis and Kurds. His conciliatory words, coupled with a vow to teach the militants a "lesson," came as almost all of Iraq's main communities have been drawn into violence not seen since the dark days of sectarian killings nearly a decade ago.

"American combat troops are not going to be fighting in Iraq again." —President Obama

"The United States will not pursue military options that support one sect inside of Iraq at the expense of another." —President Obama

— The White House (@WhiteHouse) June 19, 2014

The US withdrew the last American troops from Iraq in late 2011 after more than eight years of war. The withdrawal came after Washington and Baghdad were unable to reach an agreement to extend the US troop presence. But faced with a growing Sunni insurgency, Iraq's government has asked the US to launch airstrikes to contain a militant group that seized Mosul, Tikrit and other towns in Iraq as the country's military melted away. Obama held back from announcing airstrikes. His decision-making on airstrikes has been complicated by intelligence gaps that resulted from the US military withdrawal, which left the country largely off-limits to American operatives. Intelligence agencies are now trying to close gaps and identify possible targets that include insurgent encampments, training camps, weapons caches and other stationary supplies. House Democratic leader Nancy Pelosi voiced concern about Obama dispatching even

a small contingent of Americans to Iraq. "I think that you have to be careful sending special forces because that's a number that has a tendency to grow. And so I'd like to see the context, purpose, timeline and all the rest for anything like that," Pelosi told reporters at her weekly news conference. Separately, Republican House Speaker John Boehner said he couldn't tell if limited airstrikes would be effective until more was known about overall US strategy. He said Obama must craft a strategy for combating terrorism in the entire Middle East, not just Iraq. Boehner and Pelosi were among the congressional leaders who met with Obama on Iraq Wednesday. The leaders said the president told him they do not believe he needs authorization from Congress for some steps he might take to quell the al-Qaida-inspired insurgency.

EDITORIAL

June 19, 2014 Updated: June 19, 2014 01:15 IST

Democratic credentials on test

The National Democratic Alliance government’s attempt to nudge some Governors appointed by the previous regime to quit, amidst reports that not all of them are willing to go on their own, has revived the debate on the politicisation of the office of Governor. In 2004, the United Progressive Alliance government removed some Governors appointed by the regime that preceded it, and the present dispensation wants to follow that precedent. The difference between 2004 and the present is quite marked. Until 2010, the predominant notion was that since a Governor holds office at the pleasure of the President, subject to a five-year term, she could be removed at any time and for no reason at the Centre’s instance. However, in B.P. Singhal vs. Union of India (2010), the Supreme Court ruled that a Governor’s removal is justiciable and there should be good, valid and compelling reasons for such a removal. The power should not be exercised arbitrarily, capriciously or unreasonably. It is quite ironic that the Bharatiya Janata Party, which was aggrieved by the removal of its appointees as soon as the UPA took charge in 2004, is now in a hurry to ease out at least some of the UPA appointees.

The view that a new regime can remove a Governor on the ground that she is out of sync with the policies and ideology of the party in power at the Centre or that the ruling party has lost confidence in her, has been rejected by the Supreme Court. For too long, the office has been used to rehabilitate politicians defeated in elections or as a reward for retired bureaucrats and intelligence officials. It is surprising that in over six decades since the Constitution was adopted very few eminent persons in fields other than politics and civil or military service have been appointed Governors. Several Governors have acted as partisans of the ruling party at the Centre and hindered the smooth functioning of State governments. The Sarkaria Commission on Centre-State relations suggested that a Governor should be someone eminent in some walk of life, one “not too intimately connected with the local politics of the State,” and should not be one “who has taken too great a part in politics generally, and particularly in the recent past.” It suggested that a politician from the ruling party at the Centre should not be appointed Governor of a State run by another party. If only these norms are followed in practice, the need to ease out “inconvenient” Governors will not arise. The real test of the new government’s democratic credentials would be whether it resists the temptation to replace the Congress politicians and favourites with its own party men put out to pasture, and appoints suitable eminent personalities in line with the Sarkaria Commission’s recommendations.