2013 designated as the UN International Year of Water Cooperation by UNGA

2013 designated as the UN International Year of Water Cooperation by UNGA

March 29th, 2013

Subsequent to a proposal initiated by Tajikistan, in 2010 UN General Assembly (UNGA) declared 2013 as the UN International Year of Water Cooperation via its resolution : A/RES/65/154.
UN-Water has asked UNESCO to lead the initiative keeping in view of the UNESCO’s multi-dimensional potency in the region of natural and social sciences, culture, education and communication, and its substantial and long-standing contribution to the management of the world’s freshwater resources.
What is the objective of designating 2013 as International Year of Water Co-operation ?

• In assigning 2013 as the UN International Year of Water Cooperation, the UNGA has actually made out that cooperation is necessary to attain a balance between the various needs and priorities and share this valued resource equitably, using water as an instrument of peace.
• Encouraging water cooperation means an interdisciplinary approach bringing in cultural, educational and scientific factors, as well as religious, ethical, social, political, legal, institutional and economic dimensions.

• The UNGA designating March 22, 1993 as the first World Water Day.
• Each year, World Water Day highlights a specific aspect of freshwater.

ISRO designing GISAT

ISRO designing GISAT

March 28th, 2013

Indian Space Research Organisation (ISRO) is creating a GEO Imaging Satellite (GISAT) which it plans to launch during 2016-17.
About GISAT:

The satellite will carry a GEO Imager with multi-spectral (visible, near infra-red and thermal), multi-resolution (50m to 1.5 km) imaging instruments. It will be placed in geostationary orbit of 36,000 km.

Functions:  GISAT will provide near real time pictures of large areas of the country, under cloud free conditions, at frequent intervals. That is, selected Sector-wise image every 5 minutes and entire Indian landmass image every 30 minutes at 50m spatial resolution. It will function as ‘an eye in the sky’observe earth from geo-stationery orbit, enabling continuous observation of Indian sub-continent, to facilitate quick monitoring of natural hazards and disaster.

Green Tribunal prohibits roads construction, cutting of trees in Aravallis

Green Tribunal prohibits roads construction, cutting of trees in Aravallis

March 28th, 2013

The National Green Tribunal has ordered ban on construction of roads and cutting of trees in the Aravallis directing the parties concerned to restore the area to its original condition. The Tribunal also set up a three-member panel comprising Haryana Pollution Control Board environmental engineer, the Sub-Divisional Magistrate concerned and a senior forest officer to ensure execution of the order.

What was the case?

An applicant had filed a plea on violation of provisions of the notification issued by the Ministry of Environment and Forests on May 7, 1992 that prohibited certain activities in the Aravalli Hills in Gurgaon.

As per the plea, illegal activities were being carried by marble traders and others on a particular khasra of Sikandarpur Ghosi village. The encroachers were felling trees, adversely affecting the environment.

The Bench lambasted the Haryana administrative bodies for erring on their part in proper implementation of the provisions of the notification. It further ordered that each of the non-applicants would plant at least 50 trees and take care of them. It also directed demolition of all sheds of temporary or permanent nature within two weeks from the pronouncement of the order and restricted people from throwing debris at the site.

Revised National Food Security Bill cleared by the Union Cabinet

Revised National Food Security Bill cleared by the Union Cabinet

March 28th, 2013

The revised form of the National Food Security Bill has been cleared by the Union Cabinet. As per the revised Bill:

• 67% of nation’s population (including 75% rural and 50% urban) will be entitled for subsidized grains under the Targeted Public Distribution System (TPDS).
• 5 kg of rice, wheat or coarse cereals at Rs. 3, 2 and Re. 1 a kg a month to every beneficiary who will be identified by the States based on parameters prescribed by the Union government.
• Antyodaya Anna Yojna, which serves 2.43 crore beneficiary households with 35 kg grains a month under the TPDS, will continue.
• Maternal benefits will not be provided to a pregnant woman beyond two live births to encourage “two-child norm”.
• Subsidized prices of grains may be revised after 3 years to the level of the minimum support price paid for procurement of grains.
• Bill will be implemented in phases.
• While the existing allocation of grains to the States shall be protected, the cost of transporting grains to ration shops shall not be passed on to consumers as was proposed earlier.
• The additional burden on the food subsidy is estimated at about Rs. 23,000 crore at 2012-13 prices.
• The grain requirement is estimated at 61.23 million tonnes.

ISRO prepares palaeochannel map of River Saraswati

ISRO prepares palaeochannel map of River Saraswati

March 28th, 2013

Indian Space Research Organization (ISRO) has prepared an integrated palaeochannel map of River Saraswati from the origin in Himalayas to Rann of Kutchch. The origin of the mapped course of the River Saraswati palaeochannel in North West India was linked to Himalayan perennial source through Sutlej and Yamuna Rivers.

To carry out the study ISRO used Indian Remote Sensing Satellite data along with digital elevation model. It was observed that major Harappan sites of Kalibangan (Rajasthan), Banawali and Rakhigarhi (Haryana), Dholavira and Lothal (Gujarat) lie along the River Saraswati.

What is a Palaeochannel?

The word Palaeochannel is formed from the words “palaeo” meaning “old” and “channel”. A palaeochannel is a remnant of an inactive river or stream channel that has been either filled or buried by younger sediment. The sediments that the ancient channel is either cut into or buried by can be unconsolidated, semi-consolidated, consolidated, or lithified.  Paleochannels are formed through aggradation (depositing sediment on their bed).

Kishenganga Project

Kishenganga Project

March 28th, 2013

Recently, India won the legal battle against Pakistan regarding construction of Kishenganga Hydro Electric Project in North Kashmir.

What is the issue?

Pakistan had pleaded before the Court of Arbitration at The Hague that India’s construction of Project over Kishenganga was a violation of Indus Waters Treaty (IWT) signed in 1960.

What is the Project?

India is constructing Rs. 3600 crore, 330 MW, run-of-the-river, hydro-electric project on Kishenganga River (known as Neelam in Pak) which is a tributary river to Jhelum. The power project is under construction by the National Hydro Power Corporation in Gurez valley near Bandipura in north Kashmir.

What is the opposition from Pakistan?

• The project involves diverting waters from a dam site to Bonar Madmati Nallah, another tributary of Jhelum. Pakistan sees it a breach of India’s legal obligations owed to Pakistan under the IWT, as interpreted and applied in accordance with international law, including India’s obligations under Article III (2) (let flow all the waters of the Western rivers and not permit any interference with those waters) and Article IV (6) (maintenance of natural channels).
•  Another objection is the use of modern drawdown flushing technique for the management of sedimentation on the dam. It requires waters to be brought below the Dead Storage Level.  Pakistan had objected to the drawdown flushing apprehending that it will affect flows at its downstream Neelam project.

 What was the award by the Court of Arbitration?

• The Court of Arbitration has allowed India to go ahead with the construction of the project in rejecting Pakistan’s plea that this was a violation of the 1960 Indus Waters Treaty.
• However, the court restrained India from adopting the draw down flushing technique for clearing sedimentation. India may have to adopt a different technique for flushing.

Is it for the first time Pakistan dragged India to international court on a river issue?

No. This was the second water dispute on which Pakistan dragged India to an international arena charging New Delhi with violation of the IWT. Earlier a neutral expert was appointed by the World Bank to adjudicate on the Baglihar dam built on Chenab River also located in Jammu and Kashmir.

What is Indus Waters Treaty?

Background:

After the partition of India-Pakistan, the issue of sharing of water of rivers originating from Indus basin surfaced. India had all the advantage of using the waters of the all six main rivers originating from either the Himalayan or the Chinese Tibet side. Pakistan was wary that since the sources of rivers of the Indus basin were in India, it could potentially create droughts and famines in Pakistan, especially at times of war.

During the first years of partition the waters of the Indus were apportioned by the Inter-Dominion Accord of May 4, 1948. As per this accord, India was required to release sufficient waters to the Pakistani regions of the basin in return for annual payments from the government of Pakistan. The accord was meant to meet immediate requirements and was followed by negotiations for a more permanent solution. However, neither side was willing to compromise its respective position thus the issue reached a deadlock.

The Treaty:

Finally, head of both countries (India’s then PM Jawaharlal Nehru and Pak’s then President Mohammed Ayub Khan) came to negotiation table to sign the Indus Waters Treaty brokered by the World Bank. As per the treaty proposed by the World Bank, Ravi, Beas and Sutlej, which constitute the eastern rivers, are allocated for exclusive use by India before they enter Pakistan. However, a transition period of 10 years was permitted in which India was bound to supply water to Pakistan from these rivers until Pakistan was able to build the canal system for utilization of waters of Jhelum, Chenab and the Indus itself, allocated to it under the treaty. Similarly, Pakistan has exclusive use of the Western Rivers Jhelum, Chenab and Indus but with some stipulations for development of projects on these rivers in India. Pakistan also received one-time financial compensation for the loss of water from the Eastern rivers. Now, as the moratorium is over, India has secured full rights for use of the waters of the three rivers allocated to it. The treaty resulted in partitioning of the rivers rather than sharing of their waters.

Italian envoy can’t claim immunity: CJI

Italian envoy can’t claim immunity: CJI

March 21st, 2013

A Bench of Chief Justice Altamas Kabir and Justices Anil R. Dave and Ms. Ranjana Desai has clarifies to Italian envoy Daniele Mancini that a person who came to the court as a petitioner could not claim any immunity. The Apex court has extended its direction until further orders restraining the envoy from leaving the country.
The Italian Ambassador Daniele Mancini claimed complete immunity under the Vienna Convention.
The Ambassador had signed an undertaking assuring the return of the two marines accused of killing two Indian fishermen. On his assurance the court had allowed the two accused to go to their country to exercise their votes in elections there. However, Italy refused to return the marines insisting that by planning to try the naval mariners India violates its international pledges, specifically the UN Law of the Sea Convention, since the incident occurred in the open sea (as claimed by Italy).
What is Vienna Convention on Diplomatic Relations?
The Vienna Convention on Diplomatic Relations of 1961 is an international pact that defines a framework for diplomatic relations b/w independent nations. It specifies the privileges of a diplomatic mission that enable diplomats to perform their function without fear of coercion or harassment by the host country. This forms the legal basis for diplomatic immunity. It has been ratified by 187 nations.
Summary of the Treaty:
The treaty consists of 53 articles. Key articles of the treaty are:
Article 9: The host nation may at any time and for any reason declare a particular member of the diplomatic staff to be persona non grata. The sending state must recall this person within a reasonable period of time, or otherwise this person may lose their diplomatic immunity.
Article 22: The premises of a diplomatic mission, such as an embassy, are inviolate and must not be entered by the host country except by permission of the head of the mission. Furthermore, the host country must protect the mission from intrusion or damage. The host country must never search the premises, nor seize its documents or property. Article 30 extends this provision to the private residence of the diplomats.
Article 27: The host country must permit and protect free communication between the diplomats of the mission and their home country. A diplomatic bag must never be opened even on suspicion of abuse. A diplomatic courier must never be arrested or detained.
Article 29: Diplomats must not be liable to any form of arrest or detention. They are immune from civil or criminal prosecution, though the sending country may waive this right under Article 32. Under Article 34, they are exempt from most taxes, and under Article 36 they are exempt from most customs duties.
Article 31.1c: Actions not covered by diplomatic immunity: professional activity outside diplomat’s official functions.
Article 37: The family members of a diplomat that are living in the host country enjoy most of the same protections as the diplomats themselves.

SEBI issues framework for colour coding, product labelling for mutual funds

SEBI issues framework for colour coding, product labelling for mutual funds

March 20th, 2013

With the aim to inform investors with the amount of risk involved in various mutual funds scheme, market regulator- the Securities and Exchange Board of India (SEBI) has issued guidelines on ‘product labelling’ with colour coding for mutual funds.
The guidelines would be effective from July 1, 2013, for all existing and forthcoming schemes, Securities and Exchange Board of India (SEBI).
As per the norms:

• The front page of initial offering application forms will carry product labels with details about the schemes.
• The labels would have to be placed in common applications forms and advertisements.

Color and Risk

• Blue colour : Low risk
• Yellow color : Medium risk
• Brown color: High risk

Labels would include details about the nature of schemes “such as to create wealth or provide regular income in an indicative time horizon (short/ medium/ long term)”.
Mutual funds should give a brief about the investment objective in a single sentence followed by kind of product in which investor is investing (equity or debt).
Mutual funds would have to include a disclaimer that “investors should consult their financial advisers if they are not clear about the suitability of the product”.

Xi proposes 5-point formula to boost ties with India

Xi proposes 5-point formula to boost ties with India

March 20th, 2013

The newly elected President of China Xi Jinping held that the resolution of the boundary dispute b/w India and China  “won’t be easy” and pending its final settlement “peace and tranquility” should be maintained on the border without affecting the overall relationships.
India asserts that the border dispute covered about 4,000 km, while China claims that it confined to about 2,000 km to the area of Arunachal Pradesh, which it refers as Southern Tibet.
Xi proposed 5-point formula to improve ties with India:

1. China and India should maintain strategic communication and keep the bilateral relations on the “right track”.
2. Both nations should tap each other’s comparative strengths and expand win-win cooperation in infrastructure, mutual investment and other areas.
3. Both countries should strengthen cultural ties and constantly increase the mutually expanding friendship between the two countries.
4. The two countries should expand coordination and collaboration in multi-lateral foray to jointly safeguard the legitimate rights and interests of developing countries and tackle global challenges.
5. Both should accommodate each other’s core concerns and properly handle problems and differences existing between the two countries.

H-1B and L-1 Visa Reform Act of 2013 – Legislation introduced in US to prevent misuse of H1B and L-1 visa programme

H-1B and L-1 Visa Reform Act of 2013 – Legislation introduced in US to prevent misuse of H1B and L-1 visa programme

March 20th, 2013

Legislation named the “H-1B and L-1 Visa Reform Act of 2013” has been introduced in the US which is aimed at eliminating fraud and abuse of the H-1B visa programme, but provisions of which would make it difficult for Indian-Americans to get this popular work visa.

Why this Bill?

• It has been observed that the H-1B programme is being abused by companies which are hiring foreign workers slashing the opportunities of US workers.
• The programme was never meant to replace qualified American workers, but it was instead intended as a means to fill gaps in highly specialized areas of employment.

What are the proposed provisions in the Bill?
As per the provisions of this Bill:

• An H-1B application filed by an employer that employs 50 or more US workers will not be accepted unless the employer attests that less than 50% of the employer’s workforce are H-1B and L visa holders.
• Prospective H-1B employers will have to list available positions on a Department of Labour sponsored Website for a period of 30 days prior to petitioning for foreign labour
• Prohibits employers from advertising only to H-1B visa holders and prohibits companies from outsourcing visa holders to other companies.
• Wages paid to H-1B visa holders must be the highest of the locally-determined prevailing wage for the occupational classification in the area of employment; the median average wage for all workers in the occupational classification in the area of employment; or the median wage for skill level two in the occupational classification found in the most recent occupational employment statistics survey.
• The ability of the departments of Labour and Homeland Security will be enhanced to enforce worker protections by allowing random audits, and removes onerous requirements for starting Department of Labour investigations and requires Department of Labour employees to share information about H-1B petitions with the US Citizenship and Immigration Services.
• Each employer filing an application for an H-1B visa holder must submit to the Department of Labour the W-2 tax form for each H-1B visa holder employed during the previous period.
• In case of violation, fines per violation have been increased from $1,000 to $2,000 and from $5,000 to $10,000 for wilful misrepresentation and the ability of these companies will be restricted to participate in the future recruiting of such employees.
• An L visa holder will have to prove that a legitimate business is being established in the US, modifies the wage requirements and outplacement rules, provides L visa holders with a brochure about their rights, and requires a report on the blanket petition application process.

IFRS

IFRS

March 19th, 2013

Investors prefer accounting levels close to IFRS: Survey
Majority of investors want the government to keep national accounting standards as close to the international norms (called IFRS) as possible, says a survey conducted by the global accounting firm Ernst & Young.
What is IFRS ?
International Financial Reporting Standards (IFRS):

• A set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements.
• IFRS are issued by the International Accounting Standards Board (IASB).
• The rules to be followed by accountants to maintain books of accounts which is comparable, understandable, reliable and relevant as per the users internal or external.

What is the need of IFRS?
Now, when huge number businesses are going global the international shareholding is also increasing. However, international investors face difficulties in understanding a company’s financial statements as companies in different countries follow different kinds of financial reporting standards like the US GAAP which is different from Canadian GAAP. Hence, the need was felt to evolve such standards in the form of IFRS which can even out these disparities across international boundaries.

• IFRS was started with an aim to synchronize accounting across the European Union but the value of harmonization quickly made the concept attractive around the globe. IFRS are sometimes confused with International Accounting Standards (IAS), which are the older standards that IFRS replaced. (IAS were issued from 1973 to 2000).

How is IFRS being implemented in India?

• India is also gradually trying to comply with IFRS.
• Indian companies had been till now using the U.S. GAAP (Generally Accepted Principles of Accounting) for reporting financial statements.
• As per RBI banks were to become IFRS-compliant for periods beginning on or after April 1, 2011. Companies are to comply with the new set of rules in a phased manner.
  

As per the plan IFRS proposed Roadmap for INDIA:
Opening balance sheet as at April 1* using IFRS-converged accounting standards.
*If the financial year of a company commences n a date other than April 1, then the opening balance sheet needs to be prepared from the beginning of the new financial year of the company.
2011:

• NSE – NIFTY 50 companies
• BSE – Sensex 30 companies
• Companies whose shares or other securities listed outside India
• Companies listed or NOT having a net worth in excess of Rs 1,000 Crore banking

companies (NBFCs)> 2012:

• All Insurance Companies

2013:

• Companies listed or Not, but having a net worth between Rs 500 Crores and Rs 1000 Crores
• All Scheduled Commercial Banks
• Urban Co-operative banks having a networth in excess of Rs 300 crores
• NBFCs – Nifty 50 or Sensex 30
• NBFCs listed or NOT, but having a networth more than 1,000 Crores

2014:

• Listed companies having a networth less than Rs 500 Crores
• Urban co-operative banks having a networth between Rs 200 to Rs 300 crores
• NBFCs (all other Listed)
  NBFCs (Other Unlisted) haveing net worth between Rs 500 to Rs 1000 Crores.

North Korea ends war armistice

North Korea ends war armistice

March 17th, 2013

North Korea has confirmed the end of the 60-year-old armistice signed after the end of the Korean War, and warned of “merciless” military retaliation against its enemies. The North has annulled the 1953 armistice in protest over joint South Korea-US military manoeuvres.
The armistice was approved by the UN General Assembly, and both the United Nations and South Korea have repudiated the North’s unilateral withdrawal.
The North has also threatened to launch nuclear strikes against the United States and South Korea in response to fresh UN sanctions adopted after the North carried out its third nuclear test.

What armistice is being talked about here? The Korean War, which was fought b/w the  the Republic of Korea (South Korea), supported by the United Nations, and the Democratic People’s Republic of Korea (North Korea), supported by the People’s Republic of China, ended on 27 July 1953, when the armistice agreement was signed. The agreement restored the border between the Koreas near the 38th Parallel and created the Korean Demilitarized Zone (DMZ), a 2.5-mile (4.0 km)-wide fortified buffer zone b/w the two Korean nations.

Outcome of Korean War:
North Korea which had invaded deep into the South was pushed back beyond the 38th parallel with the support of the UN army. At this stage People’s Republic of China joined the war from the side of North Korea which forced the Southern-allied forces to retreat behind the 38th Parallel. The Soviet Union didn’t play any direct role in the war but supplied material aid to both the North Korean and Chinese armies. The fighting ended on 27 July 1953, when the armistice agreement was signed. The agreement restored the border between the Koreas near the 38th Parallel and created the Korean Demilitarized Zone (DMZ), a 2.5-mile (4.0 km)-wide fortified buffer zone between the two Korean nations.   

The 38th parallel: It has been considered as the border separating the North from the South Korea. It came into existence with the victory of Allied in WW II ending the Empire of Japan’s 35-year colonial rule of Korea. The United States and the Soviet Union agreed to temporarily occupy the country as a trusteeship with the zone of control demarcated along the 38th parallel.

CITES (Convention on International Trade in Endangered Species)

CITES (Convention on International Trade in Endangered Species)

March 17th, 2013

CITES concludes, eight nations escape sanctions
The 16th meeting of the Conference of Parties to CITES (Convention on International Trade in Endangered Species), concluded in Bangkok, Thailand, after granting better protection to hundreds of threatened animal and plant species.
The eight countries accused of failing to do enough to tackle the illegal trade in elephant ivory escaped sanctions. The conference found that Kenya, Tanzania and Uganda, Malaysia, the Philippines and Vietnam, and top markets China and Thailand are making insufficient efforts to curb the trade. However, the nations avoided sanctions after 6 of them submitted draft action plans in response and China and Tanzania committed to do so by a specific date.
Possible punishment option: Under the convention, member states can halt trading with offender countries in the 35,000 species covered by the convention.

• CITES CITES is (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) is also known as the Washington Convention.
• It is an international agreement b/w governments to ensure that international trade in specimens of wild animals and plants does not threaten their survival.
  Currently 178 nations are members of CITES, Headquarter in Geneva, Switzerland.
  CITES was drafted as a result of a resolution adopted in 1963 at a meeting of members of IUCN.
  It is an effort towards regulation of cross-border trade in wild animals and plants b/w countries to safeguard certain species from over-exploitation.
  It provides protection to more than 35,000 species of animals and plants.
  Although it is legally binding on all Parties to the agreement to implement the Convention, it does not take the place of national laws. Rather it provides a framework to be respected by each Party, which has to adopt its own domestic legislation to ensure that CITES is implemented at the national level.

Operation Lal Dora

Operation Lal Dora

March 15th, 2013

 India planned ‘Operation Lal Dora’ in 1983 to prevent coup in Mauritius
India, during the regime of Indira Gandhi in 1983, had planned top secret military intervention-“Operation Lal Dora” to help the then Mauritian Prime Minister Anerood Jugnauth fight off a challenge from his radical rival Paul Berenger which New Delhi feared might take the form of an attempted coup. With this operation India wanted to ensure an Indian-origin Prime Minister remained in power there.
As per Operation Lal Dora, Indian Navy and Army were to land troops to the island nation to thwart any possible coup. The plan also included the deployment of major naval assets including as many as six destroyers with Alouette helicopters and MK 42C Sea Kings for slithering operations.
However, Mrs. Gandhi put on hold the military part of the operation due to differences between the the Navy and the Army over who would lead the intervention. Instead, she chose to task the Research and Intelligence Wing’s then chief, Nowsher F. Suntook, with supervising a largely intelligence-led operation to reunite the Indian community whose fracturing along ideological and communal lines had allowed Mr. Berenger to mount a political challenge. India’s overall intervention became successful and Anerood Jugnauth stayed as PM for more than a decade.
Though eventually aborted, Operation Lal Dora has a special significance today because of the Indian strategic community’s focus on promoting the Indian Navy’s role in the wider neighborhood, especially the Indian Ocean.

India’s other military interventions in the India Ocean:

• ‘Operation Flowers are Blooming’: India’s first military intervention in the Indian Ocean, first with INS Vindhyagiri helping to abort a coup in the Seychelles in 1986
  ‘Operation Cactus’:  In 1988 when commandos and naval ships were rushed to the Maldives after Sri Lankan Tamil militants sought to remove the then President, Abdul Gayoom.

Falkland islanders choose to stay with Britain

Falkland islanders choose to stay with Britain

March 15th, 2013

In a referendum in which people of Falkland Islands were asked whether they wished to retain their current political status as an Overseas Territory of the United Kingdom, 99.8% of voters have chosen to stay as British Overseas Territory.
What is the issue?
Falkland Islands: it is an archipelago located in the South Atlantic Ocean on the Patagonian Shelf. The islands, a British Overseas Territory, enjoy a large degree of internal self-government with the UK guaranteeing good government and taking responsibility for their defence and foreign affairs. The capital and only city is Stanley on East Falkland. Argentina calls these islands, Malvinas Islands.
There is controversy over the Falklands’ original discovery and subsequent colonization by Europeans. At various times there have been French, British, Spanish, and Argentine settlements. Britain asserted control of the south Atlantic islands by placing a naval garrison there in 1833. Britain and Argentina fought a brief war in 1982 after Argentina invaded the islands. The war ended with the surrender of all Argentine forces and the islands went back to British administration.
Argentina claims Malvinas Islands as its territory and wants UK to relinquish it. In reply to this claim UK has said that the future of the islands should be decided by the people who live there, through referendum.

CTT (Commodity Transaction Tax)

CTT (Commodity Transaction Tax)

March 14th, 2013

In Budget 2013-14, Finance Minister P Chidambaram proposed 0.01% tax on the trade of non-agricultural commodities futures, the new tax is called Commodity Transaction Tax (CTT). As per Budget speech, there is no distinction b/w derivative trading in the securities market and derivative trading in the commodities market, only the underlying asset is different.

What is CTT?
Commodities Transaction Tax (CTT)

• Proposed in Finance Bill, 2013 for enhancing financial resources.
• A tax which shall be levied on non-agricultural commodities futures contracts at the same rate as on equity futures that is at 0.01% of the price of the trade.
• CTT would tax trading of non-farm commodities like gold, silver and non-ferrous metals such as copper and energy products like crude oil and natural gas in India.
• Here both parties—buyer & seller of contract—will be taxed depending on the amount of contract size.
• Similar to the Securities Transaction Tax (STT) levied on the purchase and sale of equities in the stock market.
• So far, commodity transactions have been exempted from any levy.
• Agricultural commodities have been left out of CTT.

What are the Advantages of levying CTT?

• It will open up new resources for the augmentation of government finances.
• CTT would generate revenues of around Rs.45 billion to government.
• It is also aimed at bringing transparency in the commodity exchange market.

What could be the disadvantages of CTT?

• CTT has been opposed by the experts and the PMEAC had also suggested against levying such a tax.
• CTT will increase the transaction cost because traders already pay brokerage, deposit margin, brokerage, stamp duty and transaction charges.

Prisoner X

Prisoner X

March 12th, 2013

‘Prisoner X’ worked for Israel: Australia
Australia acknowledged for the first time that the dual Australian-Israeli citizen who died in a maximum-security Israeli prison had been working for Israel. Australia has raised the possibility of a diplomatic fuss if the man’s Australian passport was used for espionage.
Who is Prisoner X?

• Prisoner X, Mr. X and Mister X were proxy names for Ben Zygier while he was imprisoned in Israel in strict secrecy for unspecified crimes at Ayalon Prison.
• Ben Zygier was an Australian-Israeli citizen.
• The Israeli government has accepted that a prisoner held under a fictitious name died in their custody and has affirmed the prisoner’s identity as Ben Zygier.
• The name Prisoner X has previously been used for other unidentified prisoners and is the name of an X-Men book by Ann Nocenti.

Timeline of Prisoner X scandal

• December 10, 2010: A man is found hanged in cell at Ayalon prison, in Ramla, Israel
• Story was reported  about the details of the death in Israeli news website Ynet, but is soon then taken down. Rumours continued to circulate that Prisoner X, as he became known, was a Mossad agent.
• February 12, 2013: Australia’s ABC News names Prisoner X as Ben Zygier who was reportedly born in Melbourne to a prominent Jewish family and who later moved to Israel in 2000
• February 13, 2013: Israeli justice ministry affirms the existence of Prisoner X
• February 14, 2013: Australia admits it was told of Mr Zygier’s detention in February 2010
• March 2013: Australia contends that the ‘Prisoner X’ worked for Israel

- The Mossad (short for HaMossad leModi’in uleTafkidim Meyuhadim) is the national intelligence agency of Israel.
- It is believed that Prisoner X (Mr. Zygier) met Australian Security Intelligence Organisation (ASIO) agents and told them about secret and sensitive Mossad operations he was involved in, including one to set up a shell company in Italy that would export electronic equipment to Iran and Arab countries.

FUA (Flexible Use of Airspace)

FUA (Flexible Use of Airspace)

March 11th, 2013

Government approves Flexible Use of Airspace (FUA)
The Cabinet Committee on Security (CCS) cleared Flexible Use of Airspace (FUA) by civil and military users. The issue was pending for last so many years.
Why such a step ?

• In the fast changing environment of air warfare and national security, there is an urgent sense of need of airspace use by the military. Therefore, sharing of airspace on a need basis, by civil and military users was an urgent national requirement.
• Now, the airspace of the nation is a finite sovereign asset, which is used by civil, military and aerospace authorities. Thus, Fa lexible utilization of airspace is essential from the view point of efficiency of operation, viability of airlines and minimizing damage to environment. The same can be achieved by the introduction of the concept of FUA (Flexible Use of Airspace).

What will be the environmental benefits of implementation of FUA?

• Fuel saving of 20,29,380 Kg/year
• Reduction of CO2 emissions by 63,93,600 Kg/year

This will be achieved via direct routing between 7 city pairs of: Delhi-Mumbai, Delhi-Kolkata, Delhi–Chennai, Delhi-Hyderabad, Delhi- Begaluru, Kolkata-Chennai and Chennai-Mumbai for which the information is available.
What are the Objectives of FUA?
Primary objective:

• Enhance airspace Capacity – sharing of airspace on a need basis, by civil and military users

Other Objectives:

• Minimize delays
• Fuel conservation
• Emission reduction
• Benefits to travelling public

What is the framework of this model?
In this model a coordinated procedure between the civil and the military and vice versa, as per need and on a real time basis if it is not being used by the user assigned with the responsibility for its control.

• First step would be implementation of a National High Level Airspace Policy Body (NHLAPB) for airspace use will be set up in order to take up the job of strategic planning and assess/reassess the national airspace requirements of various stakeholders.
• NHLAPB will establish flexible airspace use structure/committee’s and introduce procedures for allocation of these airspace structures.
• The NHLAPB will be chaired by Secretary, Ministry of Civil Aviation with representation from Ministry of Defence, Indian Air force, Indian Navy, Indian Space Research Organization, Airport Authority of India and Directorate General of Civil Aviation. It can co-opt new members in future depending upon requirement.

Implementation of FUA via effective civilian military co-ordination is a crucial prerequisite to promote the traffic growth with ultimate benefit to the nation’s economy. FUA will allow both military and civil users to expeditiously and efficaciously utilize the available airspace on sharing basis so as to gain optimal usage, thus enhancing its capacity, which will result into efficient operations.
What are the dangers involved ?

• It has to be strictly ensured that appropriate safeguards in the system are there in order to prevent any accidental leak of Military information and and to ensure that the any information on Military Aviation activities is disseminated strictly on “need to know” basis.

Viability Gap Funding (VGF)

Viability Gap Funding (VGF)

March 8th, 2013

India’s first transmission project viability-gap funding unveiled
India’s first viability-gap funded, 99-km power transmission line project, in Haryana, was unveiled. The 400 KV double circuit Jharli-Kabulpur-Rohtak line was established by a joint venture of Kalpataru Power Transmission and Techno Electric and Engineering Company.
The Rs 444-crore public-private-partnership project with the Haryana Government has received Rs 92 crore of viability gap funding from Government of India.
What is Viability Gap Funding (VGF)?
VGF is a government’s initiative to assist private investors or entities to set up projects of high economic worth. It is usually seen that many projects, like a road connecting a rural area, generates high economic returns, but the financial returns may not be sufficient for a profit-seeking investor. Although such a project would yield huge economic benefits by linking these villages with the market economy, but because of low incomes it may not be possible to charge user fee. In such condition, the project would not attract private investment. In such cases, the government extends its support to the investors by sharing a fraction of the cost, making the project viable. This method is known as viability gap funding.
How does it work?
Typically, VGF is provided in competitively bid projects. The central government meets up to 20% of capital cost of a project being implemented in Public Private Partnership (PPP) mode by a central ministry, state government, statutory entity or a local body. The state government, sponsoring ministry or the project authority can provide another 20% of the project cost to make the projects even more attractive for the investors. Potential investors bid for these projects on the basis of VGF needed. Those needing the least VGF assistance will be awarded the project. The Ministry of Finance administers the scheme.
Eligible sectors:
Projects in a number of sectors such as roads, ports, airports, railways, inland waterways, urban transport, power, water supply, other physical infrastructure in urban areas, infrastructure projects in special eco-nomic zones, tourism infrastructure projects are generally eligible for VGF. The government intends to add social sectors such as education and health to the list.
What are the benefits of VGF for the government?
If the government builds all the infrastructure on its own then it would require huge expenses as well as time to create it on such a vast scale. But, with VGF, the limited resources of the government can be distributed more widely through private participation implementing more number of projects as well as saving money for other schemes and activities. Thus VGF works as a force multiplier, enabling government to invest its resources more effectively.

‘Electronics Project Proposal System (e-PPS) launched by Ministry of Communication and IT

‘Electronics Project Proposal System (e-PPS) launched by Ministry of Communication and IT

March 8th, 2013

The Ministry of Communications and IT has launched the `Electronics Project Proposal System (e-PPS), developed by the Department of Electronics and Information Technology, through the Centre for Development of Advanced Computing (C-DAC).
What is e-PPS?
The Electronic Project Proposal System (e-PPS) is a web-based system that covers the complete life-cycle of funding of R&D projects, starting from online submission of project proposals for funds, to monitoring and management of funded projects. It supports the following processes:

• • Online submission of project proposals
• • Evaluation of proposals by experts
• • Project recommendations
• • Project Monitoring

What’s more:
This system will replace the current manual procedure of project funding wherein the Project Investigators (PI) submit hard copies of R&D proposals, which are presented to a Working Group and based on the recommendations of the Working Group the proposals are further processed in DeitY. It would cut down the total processing time of proposals and facilitate easy dissemination of project information.

Rail Budget 2013: Highlights

February 28th, 2013

 

Highlights of the Rail Budget 2013-14 as presented by Railway Minister Mr. P.K. Bansal relating to the following Headings:
Manufacturing:

• A new wheel factory to be set up at Rae Bareli
• A greenfield Mainline Electrical Multiple Units (MEMU) manufacturing facility at Bhilwara (Rajasthan) in collaboration with State Government and BHEL.
• Six more Rail Neer bottling plants to be set up
• Coach Manufacturing Unit in Sonepat District (Haryana) in collaboration with State Government.
• A Midlife Rehabilitation Workshop at Kurnool (Andhra Pradesh) in
  collaboration with the State Government.
• Bikaner and Pratapgarh workshops to undertake POH of BG wagons.


• A workshop for repair and rehabilitation of motorized bogies at Misrod
  (Madhya Pradesh).
• A new wagon maintenance workshop in Kalahandi (Odisha).
• A modern signaling equipment facility at Chandigarh through PPP route.

Environment:

• Railway energy Management Company (REMC) to be set up to harness solar and wind energy
• 1,000 crossings to be energized by solar power
• Deployment of new generation energy efficient electric locomotives and EMUs.
• More usage of agro-based and recycled paper and ban use of plastic in
  catering.

Jobs:

• 1.51 lakh vacancies to be filled up

Technology:

• Locomotive cabs to be air-conditioned
• Free Wi-Fi to be provided on some trains
• e-ticketing via mobile phones
• SMS alerts for passengers on reservation status
• Smoke and fire detection system to be installed
• Internet booking to be strengthened with next-generation e-ticketing system to eliminate delays. Next generation e-ticketing system by end of 2013
• 179 escalators and 400 lifts at A 1 and other select stations
• Induction of crash worthy LHB coaches with anti-climb feature.
• Using 60 kg rails, 260 meter long welded rail panels and improved flash
  butt welding technology.
• Extension of Unreserved Ticketing System (UTS), Automatic Ticket Vending Machines (ATVMs), Coin-operated Ticket Vending Machines (CO-TVMs) and schme of Jan-Sadharan Ticket Booking Sevaks (JTBSs).

Safety:

• Fire extinguishers to be kept in guard vans
• Smoke and fire detection system to be installed
• Raised four companies of women RPF personnel, and another eight to be raised for women’s safety
• Seventeen bridges identified for repair
• Special A/C coaches ‘Anubhuti’, to be introduced in select Shatabdi and Rajdhani trains to give excellent ambience with commensurate fareIntroduction of Train Protection Warning System on Automatic
  Signalling Systems.
• Induction of crash worthy LHB coaches with anti-climb feature.
• Using 60 kg rails, 260 meter long welded rail panels and improved flash
  butt welding technology.
• Use of fire retardant furnishing materials in coaches.
• Measures initiated to deal with elephant related accidents.
• Four companies of women RPF personnel set up and another 8 to be set up to strengthen the security of rail passengers, especially women passengers.

Recruitment to RPF with 10% vacancies reserved for women.

Introductions:

• Azadi Express to be introduced to travel to places associated with freedom struggle
• Common rail-bus ticket to be introduced for Katra-Vaishnodevi pilgrims
• Internet booking to be provided from 0030 hours to 2330 hours
• Identification of 104 stations for upgradation in places with more than one million population and of religious significance
• Special A/C coaches ‘Anubhuti’, to be introduced in select Shatabdi and Rajdhani trains to give excellent ambience with commensurate fare
• ‘Fuel Adjustment Component’ concept to be implemented linking tariffs
  with movement of fuel prices;

Other Targets/Plans:

• By end of 2013-14, 1,500 km of contracts to be awarded for two dedicated rail corridors
• Rs 1 lakh crore target set for public-private-partnership route
• Corporate plan for 10 years to be drawn up
• Aim to eliminate 31,846 level crossings
• Planning Commission pegged 12th Plan at Rs.125.19 lakh crore
• Making a Corporate Safety Plan for a ten year period (2014-2024).
• 
  
• Funds:
• Rs.100 crore for improving stations in New Delhi.
• New fund – Debt Service Fund – to be set up to meet committed liabilities of debt servicing for WB and JICA loans for DFC and other future liabilities.

Facts presented:

• Railways set to enter 1 billion ton freight club of China, Russia and US
• Losses mounted from Rs.22,500 crore in 2011-12 to Rs.24,600 crore in 2012-13
• Planning Commission pegged 12th Plan at Rs.125.19 lakh crore
• Fall in accidents – per million accidents down from 0.41 to 0.13
• Losses mounted from Rs.22,500 crore in 2011-12 to Rs.24,600 crore in 2012-13
• Operating ratio expected to improve to 87.8 per cent in 2013—14 from 88.8 per cent in the current fiscal
• 5.2 per cent growth in passenger traffic expected in 2013—14
• Railways set to enter 1 billion ton freight club of China, Russia and US

 

ISRO scientists successfully launch Indo-French satellite PSLV-SARAL

ISRO scientists successfully launch Indo-French satellite PSLV-SARAL

February 28th, 2013

ISRO launched Indo-French satellite SARAL and six foreign mini and micro spacecraft from Sriharikota in Andhra Pradesh. Thus, PSLV-20 successfully puts seven satellites in orbit.
Some more information:

• PSLV 20
• 23rd mission of PSLV
• PSLV has an impeccable record of 21 consecutive successful flights.
• 9th time ISRO is using the ‘core alone’ variant of the rocket.

Besides SARAL, the other 6 mini and micro spacecrafts were:

1. Micro-satellite UniBRITE from Austria
2. Micro-satellite BRITE from Austria
3. AAUSAT3 from Denmark
4. STRaND from United Kingdom
5. Micro-satellite NEOSSat from Canada
6. Mini-satellite SAPPHIRE from Canada

The ISRO-built SARAL is a 410-kg satellite with payloads – Argos and Altika – from French space agency CNES for study of ocean parameters towards enhancing the understanding of the ocean state conditions which are otherwise not covered by the in-situ measurements.
Objective:
SARAL satellite is aimed for oceanographic studies. SARAL will furnish data products to operational and research user communities, in support of marine meteorology and sea state forecasting; operational oceanography; seasonal forecasting; climate monitoring; ocean, earth system and climate research.
Altimeter (Altika) would assist in studying the sea surface heights while Argos payload is a satellite-based data collection platform.