Thursday, October 31, 2013

Shri Subhas Goswami Appointed as Director General ITBP

Shri Subhas Goswami, IPS(AM:77), presently working as Director, Sardar Vallabhbhai Patel National Police Academy, Hyderbad has been appointed as Director General in Indo Tibetan Border Police (ITBP) .

The appointment of Shri Goswami will be effective from the date of taking over the charge of the post and till the date of his superannuation (Dec. 31,2014) or until further orders, whichever event takes place earlier.

India among world economies at risk of climate change impact

LONDON: India is among the "extreme risk" countries of the world where economic impacts of climate change will be most keenly felt by 2025, according to new research released on Wedesday.

Kolkata and Mumbai are among the cities where the economic exposure to the impacts of extreme climate related events will be highest over the next 30 years, the report found.

The annual release of British risk consultancy Maplecroft's 'Climate Change and Environmental Risk Atlas' reveals that 31 per cent of global economic output will be based in countries facing "high" or "extreme risks" from the impacts of climate change by the year 2025.

According to the Climate Change Vulnerability Index (CCVI), which forms a central part of the Atlas, this includes 67 countries whose estimated combined output of $44 trillion will come under increasing threat from the physical impacts of more frequent and extreme climate-related events, such as severe storms, flooding or drought.

The economic impacts of climate change will be most keenly felt by Bangladesh (1st and most at risk), Guinea-Bissau (2nd), Sierra Leone (3rd), Haiti (4th), South Sudan (5th), Nigeria (6th), DR Congo (7th), Cambodia (8th), Philippines (9th) and Ethiopia (10th), which make up the 10 most at risk countries out of the 193 rated by the CCVI.

However, other important growth markets at risk include: India (20th), Pakistan (24th) and Vietnam (26th) in the "extreme risk" category, in addition to Indonesia (38th), Thailand (45th), Kenya (56th) and, most significantly, China (61st), all classified at "high risk."

By 2025, China's GDP is estimated to treble from current levels to USD 28 trillion, while India's is forecast to rise to USD 5 trillion - totalling nearly 23 per cent of global economic output between them, according to the report.

Maplecroft has also calculated the risks to the world's largest cities to pinpoint where the economic exposure will be highest over the next 30 years.

According to the CCVI's sub-national calculations, of the 50 cities studied, five present an 'extreme risk' - Dhaka in Bangladesh; Mumbai and Kolkata in India; Manila in the Philippines and Thailand's Bangkok - while only London and Paris were classified as "low risk."

The report also said that India's economic exposure to the impacts of extreme climate related events was recently highlighted by Cyclone Phailin.

The storm caused an estimated USD 4.15 billion of damage to the agriculture and power sectors alone in the state of Odisha, which is also India's most important mining region, the report said.

"Cyclone Phailin demonstrates the critical need for business to monitor the changing frequency and intensity of climate related events, especially where infrastructure and logistics are weak," said James Allan, Head of Environment at Maplecroft.

Integrated Processing Development Scheme (IPDS) during 12th Five Year Plan

The Cabinet Committee on Economic Affairs has approved the launching of a new Integrated Processing Development Scheme (IPDS) with a total cost of Rs. 500 crore during the 12th Five Year Plan and to establish four to six brown field projects and three to five green field projects addressing the environmental issues faced by Textile Processing Units.

The eligible projects under the scheme would cover the following:

(i) Common Effluent Treatment Plant (CETP),

(ii) Captive power generation on technology preferably renewable/green technology,

(iii) Infrastructure such as storm water management, necessary roads and pipelines for water & wastewater and

(iv) Facility for testing and R&D centres.

The Scheme will facilitate the textiles industry become globally competitive using environmentally friendly processing standards and technology and create new processing parks. This scheme will support the upgradation of existing processing clusters/centres specifically in the area of water and waste water management and also encourage research and development work in the textiles processing sector.

Cabinet approves new pharma purchase policy

IT would provide necessary fillip in reviving the ailing CPSEs and make available quality medicines at low prices

New Delhi : The government today approved a policy for procuring medicines produced by Central PSUs, a move which aims at optimum utilisation of such units while ensuring availability of medicines at lower prices.

The policy will be applicable to 103 medicines for five years and will be consumed by central government departments, Public Sector Undertakings and autonomous bodies.
The renewal of the policy is aimed at ensuring optimum utilisation of the installed capacity of the pharma CPSEs. It would not only provide necessary fillip in reviving these CPSEs, which are ailing but also ensure availability of quality medicines at low prices to the masses…,” it said.
The policy will also be applicable to purchase of medicines by state governments under health programmes funded by the government such as the National Rural Health Mission, it said.
The pricing of the drugs will be done by the National Pharmaceutical Pricing Authority (NPPA) using the cost-based formula as mentioned in the Drugs Price Control Order, 95, the release said.
“A uniform discount of 16 per cent would be extended to all products. All the taxes, whatsoever, would have to be passed on to buyers,” it said, adding that the annual revision of prices would be linked to Wholesale Price Index as per provisions contained in Drugs Prices Control Order, 2013.
The policy will extend only to CPSEs, which are under the administrative control of Department of Pharmaceuticals, such as Indian Drugs and Pharmaceuticals Ltd; Hindustan Antibiotics Ltd; Bengal Chemicals and Pharmaceuticals Ltd; Karnataka
Antibiotics and Pharmaceuticals Ltd and Rajasthan Drugs and Pharmaceuticals Ltd and their subsidiaries where government owns 51 per cent or above shares, it said.
Further, it said, the procuring entity will purchase from pharma PSUs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule ‘M’ of the Drugs & Cosmetic Rules.
In case pharma PSUs and their subsidiaries fail to supply the medicines, procuring entity would be at liberty to make purchases from other manufacturers.

Sonia Gandhi third most powerful woman in Forbes list

Congress president Sonia Gandhi was ranked 21st among the world's most powerful people by Forbes magazine on Wednesday, making her the third most influential of women leaders included in the list.

German Chancellor Angela Merkel and Brazilian President Dilma Rousseff were the only women who figured ahead of the 66-year-old Gandhi in the list of 72 politicians, heads of state and business leaders.

Gandhi was also ahead of Prime Minister Manmohan Singh, who came in seven slots below her.

In a separate list of the world's 100 most powerful women, Forbes ranked Gandhi in the ninth position.

"As president of the Indian National Congress, Gandhi heads the ruling political party of the world's second largest population," read her brief profile on the Forbes website.

"Rumors persist of a rift between her and soft-spoken Prime Minister Manmohan Singh, with many expecting Singh to leave office before the 2014 general elections," it said.

The profile noted that Rahul, described as the "heir apparent in the nation's most famous political dynasty", had recently "snubbed Singh publicly".

Singh's profile noted that the 81-year-old Prime Minister was "credited with shaping India's economic and social welfare reforms". But it also said his "quiet intellectualism renders him a timid public figure".

Rahul's recent criticism of Singh over an ordinance to protect convicted lawmakers was "indicative of Singh's diminishing coterie; rumor has it he will soon resign", the profile said.

Soon after the criticism, Rahul had acted to mend fences with Singh.

India slips to 106th spot in World Prosperity Index

LONDON: India has slipped by five places to 106th spot, way below neighbouring Bangladesh, Nepal, Sri Lanka and China in the World Prosperity Index, largely due to poor 'safety and security' environment.

In the 'Prosperity Index' ranking of 142 countries compiled by London-based Legatum Institute, India dropped from 101st position last year, while Norway continues to remain at the top.

Besides, India has fallen down the prosperity index rankings consistently over the last five years, the report said.

The 2013 Legatum Prosperity Index evaluates nations in eight categories, including education, health, economy, safety and security.

India's position has dropped below neighbouring China (51), Sri lanka (60), Nepal (102) and Bangladesh (103).

At the top of the index, Norway defended its numero uno position for the fifth year. Switzerland is at second place, followed by Canada at third, Sweden at fourth and New Zealand at fifth.

Besides, in the 'Ease of Doing Business' report by World Bank and International Finance Corporation (IFC) released earlier this week, India was ranked at 134th place while neighbours like China, Pakistan, Nepal and Bangladesh were placed at better positions.

According to the report, India has slipped in the safety and security category by 21 places to 120 "due to an increase in property being stolen, assault rates, group grievances, and drop in the perception of feeling safe walking home alone at night."

Besides, the country has dropped by 45 places to 100 on personal freedom segment "due to a drop in the tolerance of immigrants and a drop in civic choice variables."

Moreover, the country ranked low on health ground (109 in the index), entrepreneurship and opportunity (104) and education (97).

Meanwhile, on the lower end of the rankings Chad stood at 142, Central African Republic (141), Congo (140), Afghanistan (139), Pakistan (132) and Iraq (130).

Today's Editorial 01 November 2013

                                                   A question of compatibility

Source: By B S Prakash: Deccan Herald
Are ‘Political Islam’ and democracy compatible? This is a provocative question that is being debated by scholars of Islam, students of political theory or analysts in West Asia. It is not a new question, but the withering of the Arab spring adds an element of topicality.

But why raise this question at all, some will ask? Are there not democratically elected and functioning governments in Turkey, Indonesia, Bangladesh, Malaysia and on occasion in Pakistan? Are these not Muslim majority countries and aren’t the governments ‘Islamic’ in some manner? First, a distinction needs to be made between a country with a large Muslim population, whether majority or minority, and an ‘Islamist’ country. Second, the ‘manner’ in which a country is Islamist, whether only in name, or in spirit, or in actual practice and if so the degree of detail and rigour, is at the core of this debate. The current arguments swirl around the Arab world and West Asia region since the ideologues of ‘political Islam’ of various shades have their origins there, in Egypt, Saudi Arabia or Iran. A certain view of the impact of Islam on governance has been developed and we have seen its fierce advocates emanating from that region. The governments in Turkey, Bangladesh or Indonesia may pay obeisance to Islam but are far less involved in an assertion and promotion of the principles of political Islam.

But what is ‘political Islam,’ a much bandied around term these days? By using this term, we are referring not to the individual faith of Muslims, but at a belief - system that seeks to organise the society and the polity based on principles of Islam. Let us look at some examples first before delineating the concept. To run a country according to Islamic beliefs and laws is the objective of Muslim brotherhood, a political party which came to power albeit briefly through elections in Egypt. Another major example is the Islamist Salvation Front (FIS) in Algeria which had won the elections in 1991, but was never allowed to form the government with the argument that if it came to power, it would never again allow other elections. Al Qaeda, to the extent that it is a political system is another example since it claims that its beliefs are derived from Islam, however, repugnant this idea may be to the peace loving. Iran’s polity, with its three decades of continuity too is a form of political Islam. There are other names and labels in Tunisia, Libya, Syria and it should be clear forming these examples that there are different strands under the common rubric.

What are the fundamentals of this world view? Simply stated, that Islam is/ has the answer not only to spiritual impulses or religious needs but for social and political order, as well. Islamism in this sense not only defines and regulates the relation between man and God but equally between man and man (and woman) and this includes the relation between the ruled and the ruler. The adherents also advocate that the ideal society is one in which Holy Prophet lived in Medina and there ought to be a reverting to the practices of that period. Governance according to the Islamic law, the sharia is a central tenet.

Political order
Before we look at the implications of this belief-system for a democratic political order, we need to be clear about what is meant by democracy.’ We need not see it necessarily in terms of a particular model, Jeffersonian, or Westminister, or another; or essentially as consisting of change of governments by elections. We should also keep in mind other features: the space for divergent beliefs, possibility of dissent, assertion of pluralism, minority rights, and individual liberties.

With this understanding, we can look at the interplay between the two nodes in the equation, the ‘Islamist’ and the ‘democratic’ character of the polity. Critics within these countries often contend that their polity is not sufficiently ‘Islamic’ or sufficiently ‘democratic.’ Analysis shows that it is when we move towards the inherent logical extremities of either of these nodes that problems arise.

Adherents of an absolutist form of political Islam contend that answers to all dimensions of life -- personal, social and political -- are already available and should be sought in Islamic texts and pristine practices. There is no room for compromise, mistakes, fallibility of beliefs or dissent in such a view. It must be noted that there are scholars who contend that such an absolutist view is unwarranted and that there is room in the Islamic tradition for interpretation of texts (ijitihad), for consultation (shura), and that in general space exists for accommodation of social practices dependent on contemporary realities. But such views are rejected and a roll back to original, pure, and non deviationist practice is advocated by the strict adherents. This is a debate within Islamism.

Islam does not prescribe a particular form of government. But an absolutist view as described above does not sit well with expectations under a democracy such as compromises, dissent, deviant behaviour that is tolerated, and unconventional personal practices. If by democracy, we mean expression of popular will alone, there is no inherent conflict. If we include respect for all forms of freedom and for all kinds of individuals, problems do arise between the two systems. Issues relating to gender, minorities, blasphemy and punitive code are obvious examples.

Is there a clear answer to the compatibility question, then? The answers will lie in state practice where Islamist governments actually rule and how their governance accommodates or confronts day to day realities. As of now, we have seen too little of such governments -- Iran, and Taliban and Muslim brotherhood for short periods - and their track record is insufficient, to come to conclusions.

Wednesday, October 30, 2013

Expert warns of Uttarakhand-like disaster in Western Ghats

The extremely fragile Western Ghats region is highly prone to natural calamities and chances of an Uttarakhand-like tragedy in the region cannot be ruled out if scientific conservation initiatives are not being implemented at the earliest, says a leading environmentalist.

Significantly, the foreboding has come at a time when the State is in a dilemma over implementing the Western Ghats Ecology Expert Panel report drawn up by noted ecologist Madhav Gadgil.

While business interests having stakes in granite quarrying, real estate, timber and tourism, who thrive in the biodiversity hotspot for decades, are opposing the report, the UDF government is under pressure to implement its salient recommendations.

According to Prof V.S. Vijayan, former chairman of the State Biodiversity Board, also a member of Gadgil committee, commercial interests with the support of political parties are trying to create tension among people and making false propaganda against the report.

“The Ghats region is highly prone to natural calamities like that happened in Uttarakhand recently. Indiscriminate plundering of natural resources and illegal and unscientific constructions have made it geologically fragile. Those who are agitating against the Gadgil report should try to understand the facts first before making a hue and cry,” Mr. Vijayan told PTI.

“The natural forest cover in the region has dwindled to seven per cent. Most of the rivers have dried up and waters are contaminated in the rest of them. Hills are also slowly disappearing due to quarrying,” he said.

Dismissing the argument that the Gadgil report is “anti-development” and “anti-farmer”, he said it is a pro-development report to the core but it wanted development initiatives in the region to be carried out in a sustainable manner.

“Development process has to go on. Livelihood of people should be met. But, these all should be achieved in a sustainable manner, without causing any more harm to the biodiversity and environment there,” he said. Gadgil committee report has evoked sharp criticism from various quarters including the mainstream political parties in all the six States concerned — Kerala, Tamil Nadu, Karnataka, Maharashtra, Gujarat and Goa —through which the Western Ghats is spread over.

In Kerala, political parties and church establishments, irrespective of their differences, are against implementation of the report. They fear that the implementation would result in large-scale displacement of small and marginal farmers settled on the slopes of the hill ranges.

Even the Kasturirangan report, which studied the recommendations of Madhav Gadgil report, has also not received total support. The State government formed an experts’ panel last week under the Biodiversity Board Chairman V. Ommen to create consensus among political parties and environmental activists on its implementation.

Disputing the contention of the sceptics, Mr. Vijayan said the Gadgil committee has not opposed all human activity in the demarcated regions.

“We have recommended the ban on polythene carry bags in the region. But, some churches told the faithful that they could not use even plastic buckets if the report was implemented.”

“Another propaganda is that the report is against the construction of new houses in Western Ghats. But what we objected to was the conversion of agricultural and forest land for other purposes. But exception could be given to families who live there for generations. The recommendation was actually to curb real estate lobby,” he said.

A recommendation to make all new constructions in the region eco-friendly, was twisted by vested groups and propagated that Gadgil committee wanted all new houses to be built with grass and bamboo, he said.

He also denounced the allegation that the report was “anti-farmer”, saying that the report recommendations actually would provide more monetary gains to the farming community.

“There are recommendations in the report to provide ’conservation charges’ for those farmers who use indigenous seeds for cultivation. The benefit is also recommended for farmers who rear indigenous fish species. Even those who grow native tree species in their homeyard are also recommended to get monetary benefit,” he said.

Holding that the Gadgil committee has used a “totally unbiased system” to study the Western Ghats, Mr. Vijayan said they first took Western Ghats as a huge “water tower” as it is the water repository for all the six states.

The entire Western Ghats was divided into three zones based on as many as 14 characters like geological and biodiversity factors, presence of rare species and so on. The entire region was demarcated as grids and grades were given to each grid based on these factors, he said.

“The most sensitive areas have been included in zone one. Areas like Silent Valley and Athriappally fell under the zone naturally. We have not included any place purposefully in it.”

The report, prepared thoroughly through a democratic process, envisaged to secure ‘grama sabhas’ and panchayats the ultimate power which the mafia groups in the region did not want to happen, he said.

“The Kasturirangan panel, formed to examine Gadgil report, also had references about the presence of these mafias. As many as 52 per cent of objections which the Kasturi panel received against Gadgil report were from mining lobbies.”

He criticised Kasturirangan report for discarding the zonal wise demarcation proposed by Gadgil panel and dividing the Ghats region just into ‘cultural and natural areas’ stating that it would open up the region for mafias.

The expert also urged the authorities to distribute a Malayalam version of the Gadgil report among local residents and hold public debates on the matter with the support of grama sabhas.

Meanwhile, V. Ommen, who has been made the chairman of the expert committee on the Kasturirangan report, said his main responsibility would be to hold grassroot level discussions on the report and create awareness among people that it would not harm their life.

“I will be clear about my responsibilities only when I receive the terms and references. When we receive a copy of Kasturirangan report, we will bring out a Malayalam version of it, giving focus on Kerala side.Later we will visit all 123 villages, said to be affected with its implementation, and try to create consensus among various sections of people with the support of panchayat authorities and political parties,” he said.

Highlights of Employment and Unemployment situation in Cities and Towns in India (NSS 66th Round, July 2009- June 2010)

These highlights are based on the eighth quinquennial survey on employment and unemployment conducted in the 66th round of NSS during July 2009 to June 2010. The survey was spread over 7,402 villages and 5,252 urban blocks covering 1, 00,957 households (59,129 in rural areas and 41,828 in urban areas) and enumerating 4, 59,784 persons (2, 81,327 in rural areas and 1, 78,457 in urban areas). Employment and unemployment were measured with three different approaches, viz. usual status with a reference period of one year, current weekly status with one week reference period and current daily status based on the daily activity pursued during each day of the reference week. Unless otherwise stated, usual status workers will mean all workers taking into consideration the usual principal and subsidiary status together. In this report, estimates of the employment and unemployment indicators are presented for each of the class 1 cities in India. The corresponding estimates are also presented for each State/UT for three size classes of towns, as per Population Census 2001, viz. class 1 cities (with population one million and above), class 2 towns (with population 50,000 to one million) and class 3 towns (with population less than 50,000).

Some of the key findings of the 66th round of NSS survey on employment and unemployment conducted during July 2009 to June 2010 are stated below:

·        The proportion of usually employed males of age 15 years and above was 73 per cent for class 1 cities and 74 per cent for size class 2 towns and about 76 per cent for size class 3 towns. For females of the same age group the corresponding proportions were - 17 per cent for class 1 cities, 18 per cent for size class 2 towns and nearly 21 per cent for size class 3 towns.

·        Between 2004-05 and 2009-10 the proportion of usually employed males of age 15 years and above decreased by 3 percentage points for class 1 cities, 2 percentage points for size class 2 and 3 towns each. During this period, corresponding decrease for females was 3 percentage points in class 1 cities, 4 percentage points for size class 2 towns and 7 percentage points for size class 3 towns.

·        Among the class 1 cities, the worker population ratio (WPR) for males of age 15 years and above in the usual status (ps+ss), was the highest in Surat (87 per cent) and the lowest in Meerut (49 per cent), while for females, WPR was the highest in Varanasi (35 per cent) and the lowest in Agra (2 per cent).

·        During the period 2009-10, the proportion of regular wage/salaried employees, in the usual status (ps+ss), both among males and among females was higher than that of self-employed persons or casual labourers in class 1 cities and size class 2 towns. For size class 3 towns, proportion of self-employed was higher than regular wage/salaried employees and casual labourers for both males and females.

·        Among male workers of age 15 years and above in the usual status (ps+ss), about 52 per cent in class 1 cities, about 43 per cent in size class 2 towns and about 31 per cent in size class 3towns were regular wage/salaried employees. Corresponding proportions for females were 58 per cent, 42 per cent and 23 per cent for class 1 cities, size class 2 towns and size class 3towns, respectively.

·        Among male workers of age 15 years and above in the usual status (ps+ss), about 39 per cent in class 1 cities, about 40 per cent in size class 2 towns and about 45 per cent in size class 3towns were self-employed. Corresponding proportions for females were 33 per cent, 41 per cent and 47 per cent for class 1 cities, size class 2 towns and size class 3 towns, respectively.

·        For males of age 15 years and above, the unemployment rate in the usual status (ps+ss) remained at the same level between 2004-05 and 2009-10 in class 1 cities and it decreased by 1 percentage point for size class 2 towns and by 2 percentage points for size class 3 towns. For females, between 2004-05 and 2009-10, the unemployment rate in the usual status increased by 1 percentage point in class 1 cities and decreased for both size class 2 and size class 3 towns by nearly 2 percentage points each.

·        Among the workers in the usual status (ps+ss), the tertiary sector had the highest share of workers in 2009-10 compared to other two sectors in all size class of towns. Among male workers of age 15 years and above in urban India, about 59 per cent were engaged in tertiary sector, about 35 per cent in secondary sector and about 6 per cent in primary sector. Corresponding proportions for females were about 53 per cent, 33 per cent and 14 per cent, respectively.

·        Among male workers of age 15 years and above according to the usual status (ps+ss) in all class I cities, about 64 per cent were engaged in tertiary sector, about 35 per cent in secondary sector and about 1 per cent in primary sector. Corresponding proportions for females were about 67 per cent, 31 per cent and 2 per cent, respectively.

·        Among male workers of age 15 years and above according to the usual status (ps+ss) in size class 2 towns, about 60 per cent were engaged in tertiary sector, about 36 per cent in secondary sector and about 4 per cent in primary sector. Corresponding proportions for females were about 57 per cent, 34 per cent and 9 per cent, respectively.

·        Among male workers of age 15 years and above according to the usual status (ps+ss) in size class 3 towns, about 54 per cent were engaged in tertiary sector, about 33 per cent in secondary sector and about 13 per cent in primary sector. Corresponding proportions for females were about 36 per cent, 34 per cent and 30 per cent, respectively.

·        Among male workers of age 15 years and above, according to usual status (ps+ss), the secondary sector registered nearly 3 percentage points decrease in the share of total workers during 2009-10 compared to 2004-05 for class 1 cities but increased for size class 2, size class 3 towns by 2 and 1 percentage points respectively.

Indian-origin scientist, US astronomers discover most distant galaxy in universe

A team of astronomers, including an Indian-origin scientist, has discovered the most distant galaxy in the universe ever found, which is said to be 13 billion light years away from the Earth.

"Because of its extremely large distance of 13 billion light years, we are seeing this galaxy as it was 13 billion years ago. In other words, we are exploring the universe when it was only 700 million years old -- the current age of the universe is about 13.7 billion years," Dr Vithal Tilvi, who is currently at the Texas A&M University and a co-author of the research paper, said.

"This finding is a great deal in astronomy not only because it is the most distant galaxy ever found but also because it gives us clues about the young universe," Tilvi said.

Born in Goa and having attended Goa University, Tilvi has also worked at the National Institute of Oceanography, Dona Paula, and National Antarctic Research Center, Vasco.

The results of the latest findings have been published in the most prestigious international journal 'the Nature'.

This work was led by Dr Steve Finkelstein at University of Texas with many other astronomers, including Dr Casey Papovich in the US.

"While we are thrilled about this discovery, we were more surprised to find only a single galaxy at such large distances because we were expecting to find more. This is telling us something that the Universe was fundamentally different when it was young," Tilvi said.

"Another surprise came to us when we discovered that this galaxy is forming stars tremendously, roughly about 300 Sun-like stars every year, compared to only about one Sun-like star produced in our own Milky Way galaxy. It is possible that when the Universe was young, galaxies were more active then they are now," he said.

"We are very fortunate to be born now, because after a few billion years the size of the universe will be so large that the light from such galaxies would never reach us and thus we won't see these galaxies," he pointed out.

"It is really exciting time to be in astronomy as new large telescopes like Giant Magellan Telescope and the Thirty Meter Telescope are being built now. India is also a partner in the construction of the Thirty Meter Telescope. When completed, this will be the largest telescope in the world," Tilvi added.

Today's Editorial 29 October 2013

                                                    On a higher trajectory
Source: By Gurmeet Kanwal: Deccan Herald
The major implication of the pact is that the US will treat India just like the UK, which is an alliance partner.

Contrary to most of the commentary that has appeared in the Indian media, the Obama-Manmohan Singh meeting at the White House was unexpectedly successful in setting the Indo-US strategic partnership on the path to a higher trajectory in the long term. The joint statement issued after the meeting and the Joint Declaration on Defence Cooperation endorsed by the two leaders have the potential to perceptibly shape the future contours of the relationship to mutual benefit.

The most notable achievement of the summit was in the field of defence cooperation and, more particularly, defence trade. President Obama and prime minister Manmohan Singh called for “expanding security cooperation between the United States and India to address 21st century challenges.” In an unexpected move the two leaders endorsed a Joint Declaration on Defence Cooperation “as a means of enhancing their partnership in defence technology transfer, joint research, co-development and co-production.” They decided to significantly enhance cooperation in combatting terrorism. President Obama appreciated India’s decision to participate in the Rim of the Pacific (Rimpac) naval exercise to be hosted by US Pacific Command in 2014.

For several decades, India’s procurement of weapons platforms and other equipment as part of its plans for defence modernisation has remained mired in disadvantageous buyer-seller, patron-client relationships like that with the erstwhile Soviet Union and now Russia. While India has been manufacturing Russian fighter aircraft and tanks under licence for many years, the Russians never actually transferred weapons technology to India. There is now realisation in India that future defence acquisitions must simultaneously lead to a transformative change in the country’s defence technology base and manufacturing prowess.

The country has now diversified its acquisition sources beyond Russia to western countries and Israel.  From the US, India has purchased weapons platforms and other items of defence equipment worth USD 10 billion over the last five years. Major procurements have included the troop carrier ship INS Jalashva (USS Trenton), six C-130J Super Hercules aircraft for India’s Special Forces, ten C-17 Globemaster heavy lift transport aircraft, 12 Boeing P-8I Poseidon long-range maritime reconnaissance aircraft and 12 AN-TPQ37 Weapon Locating Radars. Another six C-130J and seven C-17 aircraft are expected to be purchased over the next few years. Also in the acquisition pipeline are M-777 light artillery howitzers, Apache attack helicopters and Chinook medium lift helicopters.

However, none of the recent deals with the US have included transfer-of-technology (ToT) clauses. It is imperative that whatever India procures now must be procured with a ToT clause being built into the contract even if it means having to pay a higher price. The aim is to make India a design, development, manufacturing and export hub for defence equipment in two to three decades.

Stumbling blocks

This is indeed a landmark agreement that has codified previously expressed intentions. The major implication of this agreement is that the US will treat India just like the United Kingdom, which is an alliance partner, without India having to enter into a military alliance with the US. Also, presumably, India will not have to sign the CISMOA, BECA and LSA agreements that have been major stumbling blocks in the past and about which it has differences of perception with the US. India is hungry for cutting edge state-of-the-art defence technology and this agreement will help to a large extent to fulfil India’s hi-tech requirement. On its part, the US will secure lucrative defence contracts for its leading defence companies. This will give a fillip to the flagging economy and help to create jobs.

During his visit to India shortly before the Washington summit in September 2013, deputy secretary of defence Ashton Carter is reported to have offered India a “Defence Trade and Technology Initiative” under which the US will share sensitive cutting edge defence technology with India and to permit US companies to enter into joint production and co-development ventures with India. Subsequently, it was reported that Carter had offered a list of ten key technologies to India. "These include a maritime helo, a naval gun, a surface-to-air missile system, and a scatterable anti-tank system,” Carter said. "We changed our mind-set around technology transfer to India in the Department of Defence from a culture of presumptive no to one of presumptive yes," he said.

The Javelin anti-tank guided missile (ATGM) is also a key candidate for joint production though so far the US has been hesitant to offer its seeker technology. India is also looking for high-end counter-IED technologies. In future, the two countries will conduct joint research and development for new weapons systems and the US may offer even nuclear power packs for submarines and aircraft carriers and fighter aircraft engines. Cooperation of such a high order will raise India’s technology base by an order of magnitude and help the country to move several notches higher in its quest for self-reliance in defence production.

According to Shiv Shankar Menon, India’s National Security Advisor, the two countries now have a “Full spectrum relationship… the relationship has all the attributes of a strong and comprehensive strategic partnership.” In the years ahead, India and the US are bound to build further on the beneficial achievements of the last decade. Naturally, there will occasionally be some bumps on the highway, but there is reason to believe that the institutional mechanisms that are already in place will succeed in overcoming the obstacles that come up.

Mobile technology to track missing children in SAARC nations

Using mobile and GPS technologies, a SAARC body is trying to develop a digital system to track missing children at the regional level and combat cross-border trafficking.

"We are now seriously looking at how digital technology can be applied to control cross-border trafficking. Hopefully after 2015, we will have an integrated system based on mobile or GPS technologies which can be applied in all the eight SAARC countries," said Rinchen Chophel, director general for the South Asia Initiative to End Violence Against Children (SAIEVAC) secretariat.

SAIEVAC is a SAARC apex body which works to protect children in south Asia from all forms of violence, abuse, exploitation, neglect and discrimination.

In Kolkata recently to participate in a discussion on the issue of missing children organised by the Child In Need Institute (CINI), Chopel said technology can help locate trafficked children.

"With such a system, data will be shared at all levels between different governments so that when a child goes missing in one country, the government of all neighbouring countries get information on that. It would then be easier for them to locate the kids and rehabilitate them," he said.

The Union Ministry of Women and Child Development presently runs a web-based national tracking system for missing and vulnerable children.

It is estimated that around 1.2 million children are trafficked worldwide every year for various reasons including prostitution and forced marriage. Many of them are used as cheap or unpaid labour and also for sport and organ harvesting besides being recruited into armed groups.

SAIEVAC's focus, Dr Chophel said, is now on missing children. "Due to its geopolitical location, India is not only a destination country but also a source as well as a transit point for trafficking," he said.

The official said at present SAARC nations do not have a bilateral agreement for cross-border collaboration for trafficked victims.

"A MoU is now being negotiated between India and Bangladesh while the SAARC convention is limited by the fact that it does not have a reporting obligation. Therefore it does not put accountability on delivery. But there may be a revision in this next year," Dr Chophel said. They are also working to ensure that a uniform toll-free child helpline number 1098 gets operationalised in all the countries.

Mars rover begins epic climb on tallest hill yet

NASA's Mars rover Opportunity has begun scaling the tallest mountain it has yet encountered in nearly 10 years of its exploration of the red planet.

Guided by mineral mapping from orbit, the rover is exploring outcrops on the northwestern slopes of Solander Point, making its way up the hill much as a field geologist would do.

The outcrops are exposed from about 2 meters to about 6 meters above the surrounding plains, on slopes as steep as 15 to 20 degrees. The rover may later drive south and ascend farther up the hill, which peaks at about 40 metres above the plains.

"This is our first real Martian mountaineering with Opportunity," said Steve Squyres of Cornell University, the principal investigator for the rover.

"We expect we will reach some of the oldest rocks we have seen with this rover - a glimpse back into the ancient past of Mars," said Squyres.

The hill rises southward as a ridge from Solander Point, forming an elevated portion of the western rim of Endeavour Crater. The crater spans 22 kilometres in diameter.

Key targets on the ridge include clay-bearing rocks identified from observations by the Compact Reconnaissance Imaging Spectrometer for Mars.

This segment of the crater's rim stands much higher than "Cape York," a segment to the north that Opportunity investigated for 20 months beginning in mid-2011.

Opportunity reached Solander Point in August after months of driving from Cape York. Researchers then used the rover to investigate a transition zone around the base of the ridge.

The area reveals contact between a sulfate-rich geological formation and an older formation.

The sulfate-rich rocks record an ancient environment that was wet, but very acidic. The contact with older rocks may tell researchers about a time when environmental conditions changed.

Opportunity first explored the eastern side of Solander

Point, then drove back north and around the point to explore the western side.

"We took the time to find the best place to start the ascent," said Opportunity's project manager, John Callas of NASA's Jet Propulsion Laboratory, Pasadena, California.

"Now we've begun that climb," he said.

The rover began the climb on October 8 and has advanced

farther uphill with three subsequent drives.

"We're in the right place at the right time, on a north-facing slope," Callas said.

Supreme Court’s Judgement for “None of the Above” Option on EVM – Clarification.

The direction in the judgment dated 27th September, 2013 of the Hon’ble Supreme Court is to provide a NOTA option on the EVM and ballot papers so that the electors who do not want to vote for any of the candidates can exercise their option in secrecy. The Supreme Court held that the provisions of Rule 49-O under which an elector not wishing to vote for any candidate had to inform the Presiding Officer about his decision, are ultra vires Article 19 of the Constitution and Section 128 of the Representation of the People Act, 1951. As per the provisions of clause (a) of Rule 64 of Conduct of Elections Rules, 1961, read with Section 65 of the Representation of the People Act, 1951, the candidate who has polled the largest number of valid votes is to be declared elected by the Returning Officer. Therefore, even if the number of electors opting for NOTA option is more than the number of votes polled by any of the candidates, the candidate who secures the largest number of votes has to be declared elected.

Under the provisions of Section 53(2) of RP Act, 51, if the number of contesting candidates is equal to the number of seats to be filled, the Returning Officer has to declare all the contesting candidates to be duly elected. In the case of elections to the Lok Sabha and Legislative Assemblies, in cases where there is only one contesting candidate in the fray, the Returning Officer has to, in accordance with the provisions of the said Section 53(2), declare the sole contesting candidates as elected. The provision of NOTA option which is an expression of decision not to vote for the contesting candidates is not relevant in such cases.

China launches remote sensing satellite

Beijing:China launched Tuesday a remote sensing satellite from the Taiyuan Satellite Launch Centre in China’s Shanxi province, according to the centre.

The Yaogan XVIII remote-sensing satellite was successfully launched at 10.50 a.m. on the back of a Long March 2C carrier rocket from the Taiyuan Satellite Launch Centre in China’s Shanxi province, Xinhua reported citing a press release of the centre as saying.

The satellite will be used to conduct scientific experiments, carry out land surveys, monitor crop yields and aid in preventing and reducing natural disasters.

The launch marked the 183th mission for the Long March rocket family.

80% of girls don’t find safe shelter after disaster: Study

NEW DELHI: Nearly 80% adolescent girls in Uttar Pradesh, Bihar and Andhra Pradesh say that disasters have an adverse impact on their access to safe shelter, according to a report released on Monday. They also suffer from lack of privacy and dignity at home or relief camps after disaster, the study says.

'The State of the Girl Child India Report' , compiled by Plan International, points out that gender bias in terms of access to food was reported by about one-third adolescent girls across all four states, with the iniquities being higher in Bihar, UP and Andhra Pradesh as compared to Rajasthan.

Both adolescent girls (70% or more) and boys (80% in Rajasthan , Uttar Pradesh and Bihar and 62% boys in Andhra) said that young girls are especially hard-hit because of lack of sanitation facilities at times of disasters as they cannot go for open defecation and are confronted with privacy issues.

The report said that 45-58 % adolescents feared being married off early. This opinion was held by 45% of all repsondents in Rajasthan, 50% of the respondents in Andhra and 58% in Bihar. More than one-fourth of girls in Bihar and Andhra Pradesh feared being sold off or trafficked after a disaster.

"There's growing need to look at disasters from a development perspective. Disasters can have devastating effect on communities and can significantly set back development efforts ," Plan International head Ellen Margrethe Loj said.

Australian PM declares end of 'longest war' on surprise Afghan visit

Australian Prime Minister Tony Abbott has declared the end of his country's "longest war" on a surprise visit to Afghanistan.

According to an ABC report, Abbott while speaking at a special ceremony at the Australian-run base in Tarin Kot in Uruzgan province on Monday, said "Australia's longest war is ending. Not with victory, not with defeat, but with, we hope, an Afghanistan that is better for our presence here."

Describing the Afghan war as complicated, he further said that the imminent withdrawal of Australian troops was "bittersweet".

"It's bittersweet because hundreds of soldiers will be home for Christmas; bitter because not all Australian families have had their sons, fathers and partners return," he said.

"Sweet because our soldiers have given a magnificent account of themselves; bitter because Afghanistan remains a dangerous place despite all that has been done."

More than 20,000 Australians have served in Afghanistan, 260 were wounded and 40 were killed in action. The war has cost over AUD 7.5 billion.

Under current plans, Australia will end all combat operations and withdraw some 1,000 troops from Uruzgan Province by the end of the year.

However, about 400 will remain in a variety of roles including mentoring the headquarters of the Afghan National Army (ANA) 205 Corps in Kandahar and assisting in training of ANA officer cadets in Kabul.

Rangarajan differs with RBI on inflation projection

Disagreeing with Reserve Bank’s projection on the price situation, former RBI Governor and PM’s Economic Advisory Council chairman C Rangarajan said WPI and CPI may not be as high as being projected by the central bank.

“Well I think the inflation rate may not be as high as (RBI) report seems to suggest. I would really think as far as WPI is concerned, it will be around 5.5 to 6 per cent. I don’t think that it will exceed 6 per cent...I expect the WPI as well as CPI to remain at slightly lower level than indicated,” Dr Rangarajan said.

Reserve Bank of India in its second quarter review of monetary policy, has said that “overall WPI (Wholesale Price Index) inflation is expected to remain higher than current levels through most of the remaining part of the year.”

Besides the central bank in its review unveiled today said that retail inflation measured by the consumer price index (CPI)...is likely to remain around or even above 9 per cent in the months ahead.

According to Dr Rangarajan, the whole (monetary) policy has focused on price stability and that is the right approach.

“I think.. as the Central Bank of the country, price stability is its dominate objective. Therefore the way to interpret the policy would be that it will depend very much on the behaviour of the inflation,” he said.

About chances of further rate hikes RBI, he said, “..if the situation (inflation) picks up from the current level then perhaps RBI is consistent with what it said in the policy review, it has to raise it (interest rate). But I will not at this particular point, make any guess. We would like to watch inflation behaviour all the next 6 weeks.”

Dr Rangarajan said he thinks there are prospects of inflation moderating in the next month or so because of better monsoon and the (other) impact on the food inflation.

About the lowering economic growth projection for this fiscal from 5.5 per cent to 5 per cent by RBI, he said, “We had estimated the growth rate to be at 5.3 per cent for the year. I don’t see any reason to alter that (projection) at present point.”

“Various reasons in the policy suggest that growth will pick up in second half of this fiscal. Some people think that agriculture growth will be in excess of 5 per cent. Taking all these factors into account, it can be higher than 5 per cent,” he added.

India, China to be among top 5 destinations for M&A: Report

India and China will be among the top five destinations for merger and acquisition activities across diverse sector over the coming year, according to a report by global consultancy Ernst & Young.

"The top five destinations for would-be deal-makers are: China, India, Brazil, United States and Canada," the report said.

It said sectors like life sciences, oil and gas, automotive, consumer products, automotive and technology are expected to see the highest level of activity in M&A deals.

Globally, the number of mergers and acquisitions (M&A)is expected to pick up over the coming year, with 35 percent of companies surveyed likely to pursue acquisitions compared with just 25 percent a year ago.

About 70 per cent of global executives expect deal volumes and deal sizes to improve over the next 12 months.

"All of this is underpinned by growing confidence in a global economy on sounder footing ¿ improving economic conditions in mature economies and more stabilisation in the major emerging markets," E&Y Global Vice-Chair (Transaction Advisory Services) Pip McCrostie said.

The survey found that 65 per cent of executives expect the global economy to improve over the coming year, up from just 22 percent a year ago.

Companies are expected to use more debt and equity to finance deals, instead of relying on cash, it added.

The survey was conducted among 1,600 executives from large companies globally and across industry sectors.

India' s richest woman is new Haryana Minister


This is the second time that she has become a minister in the Hooda government. She was earlier a minister of state in the 2005-09 Hooda government.

Ms. Jindal is a legislator from the ruling Congress from Hisar assembly constituency and is the mother of industrial tycoon and high-profile parliament member Naveen Jindal (Lok Sabha member from Kurukshetra).

She was listed by a leading business publication as the country’s richest woman as she lords over a multi-billion rupee steel and power sector empire and is the chairperson of the Jindal Group.

Her name also figures in the Top-100 richest people in the world.

Savitri Jindal’s industrialist-cum-politician husband O.P.Jindal, who too was a minister in the Hooda government, was killed when his private helicopter crashed near the Haryana-Uttar Pradesh border March 2005.

Ms. Jindal was sworn-in on Tuesday along with the other new minister, Aftab Ahmed, who is a legislator from Nuh assembly constituency in Mewat district and the only Muslim face in the Hooda ministry.

Two ministerial slots in the Hooda government were vacant ever since ministers O.P.Jain and Gopal Kanda resigned in June 2011 and August 2012 respectively, after their names figured in separate criminal cases.

The 90-member Haryana assembly goes to polls in October next year.

Earlier this year, Ms. Jindal was directed by the Punjab and Haryana High Court to vacate her government accommodation, which she had been occupying unauthorised.

She has been occupying a ministerial bungalow in Chandigarh’s upscale Sector 7, even though she ceased to be a minister in 2009.

The court said that eviction proceedings be started if she did not vacate the house. A penalty of Rs.89 lakh was also slapped on her for occupying the house.
The country’s richest woman, Savitri Jindal, was Tuesday inducted as a minister in the Haryana cabinet by Chief Minister Bhupinder Singh Hooda.

Arup Raha new IAF chief

Air Marshal Arup Raha, an ace fighter pilot, will be the next Air Force chief succeeding incumbent Air Chief Marshal NAK Browne, who is retiring on December 31.

Born on December 26, 1954, 59 year-old Air Marshal Raha is expected to have tenure of three years as the Chief of Air Staff.

“The government has decided to appoint Air Marshal Raha, who is at present the Vice-Chief of Air Staff, as the next Chief of the Air Staff after the retirement of Air Chief Marshal NAK Browne,’’ a Defence Ministry release said on Tuesday.

He was commissioned on December 14, 1974 in the fighter stream of the IAF and has held various command, staff and instructional appointments in his 39-year-old career. He has also served as Air Attaché at the Embassy of India in Ukraine. He has also done Strategic Nuclear Orientation course and Junior Commanders' course. He has commanded Central Air Command and Western Air Command.

He has served as Directing Staff at Flying Instructors School, Tambaram, Chennai as well as at the Gwalior-based Tactics and Combat Development Establishment of the IAF.

Mukesh Ambani India’s richest for 6th year

NRI steel tycoon Lakshmi Mittal continues to hold the second position, while Sun Pharma’s Dilip Shanghvi has jumped to third place

With a networth of $21 billion, Mukesh Ambani has retained his title as India’s wealthiest for sixth year in a row, while the country’s 100 richest persons saw their collective wealth soar by a modest 3 per cent in a year.

NRI steel tycoon Lakshmi Mittal (USD 16 billion) also continues to hold the second position, while Sun Pharma’s Dilip Shanghvi has jumped to third place with about 50 per cent surge in his wealth to $13.9 billion, pushing IT czar Azim Premji to fourth place ($13.8 billion).

As per US-based business magazine Forbes’ annual list of India’s 100 richest, released on Tuesday, their total wealth grew by a modest 3 per cent from a year ago to $259 billion.

“Growth in wealth was lacklustre due to India’s stumbling economy, which has been hit by inflation and a falling rupee,” Forbes said.

Amid the sluggishness, Reliance Industries chief Mukesh Ambani and ArcelorMittal’s Lakshmi Mittal saw no change in their respective networths, but pharmaceutical industry titan Shanghvi managed to buck the trend with a surge of $4.7 billion in his wealth to $13.9 billion.

Mr Premji’s wealth also rose by $1.6 billion, but he could not retain his third slot.

Pallonji Mistry, patriarch of construction giant Shapoorji Pallonji Group which is the biggest shareholder in Tata Sons, has moved down one place to fifth rank with a networth of $12.5 billion. His younger son Cyrus Mistry last year succeeded Ratan Tata as new Tata group head.

NRI businessmen Hinduja brothers have moved up to sixth place ($9 billion), from their 9th position last year.

Shiv Nadar ($8.6 billion) have moved into top-10 at the 7th place, while Sunil Mittal has also returned to this league at 10th place ($6.6 billion). On the other hand, Essar group’s Ruia brothers and Jindal group’s Savitri Jindal have moved out from the group.

Sahyadri is first reserve to get tiger plan approved by conservation authority

NAGPUR: The National Tiger Conservation Authority (NTCA) has approved tiger conservation plan (TCP) of Sahyadri Tiger Reserve (STR) in Western Maharashtra. Of the 41 tigers reserves in India, STR has become the first whose TCP has been approved.

A TCP is the road map for tiger reserves which ensures that forestry operations of regular forest divisions and those adjoining reserves are not incompatible with the needs of tiger conservation.

Of the four tiger reserves — Sahyadri, Melghat, Tadoba and Pench in Maharashtra — Sahyadri (741.22sqkm) was notified as a reserve on January 5, 2010. It was the last one to submit its TCP to NTCA in March 2013, but the first one to get the TCP approved. While TCPs for Pench and Tadoba were prepared in 2009, for Melghat it was done in 2010.

Talking to TOI, chief conservator of forests (CCF) and field director of Sahyadri, Mohan Karnat said the plan was sent in March this year. "We were asked by NTCA to comply with certain changes in the plan in August, which we did in September. The plan was finally approved on October 25. We now expect more grants to Sahyadri," said Karnat.

Karnat added that the tiger reserve has now got a road map. The TCP will be for a period of 10 years from 2013-23. The approved plan shall have a provision for midterm review after five years corresponding to appropriate alterations, if required.

On the delay about approval to TCPs of Tadoba, Melghat and Pench, TOI talked to respective field directors. CCF and field director of Tadoba-Andhari Tiger Reserve (TATR) Virendra Tiwari informed TOI that when the plan was submitted in 2009, NTCA sent it back with nine-page queries.

"We complied with the queries by May-end this year and resent volume 1, 2 and 3 of the plan. Volume 4, which contained queries on ecotourism, was sent by June-end. Now we have again been told to submit the plan with all compliances by November 30," Tiwari said.

On the delay, Tiwari informed the plan was ready in 2009, but first meeting to discuss the plan was held in 2011. Since then, there were several changes including buffer notification, reorganization of TATR and rescheduling of posts among other changes.

In November last year, the Supreme Court had already asked states to submit TCPs for tiger reserves in six months. However, even after a year Tadoba, Melghat and Pench TCPs had not reached the NTCA.

Melghat CCF and field director DK Tyagi said the NTCA has sought some clarifications. "I have been asked to resubmit the plan in 15 days. As I have taken over recently, I will have to find out why the TCP was delayed," Tyagi said.

CCF and field director of Pench MS Reddy said the plan was first sent in 2011. It was revised in April 2013 after compliances. "We revised it by submitting ecotourism plan, buffer, and change in area, especially after notification of Mansinghdeo sanctuary in Pench buffer," said Reddy.

When contacted, Kishor Rithe, member of the NTCA committee on TCP, said, "It seems wildlife department is now itself becoming a hurdle in development of villages in the buffer. As TCP includes buffer and core area, it would affect grants for buffer villages."

What is TCP?
TCP aims at ecologically compatible land uses in the tiger reserves and areas linking it to another for addressing the livelihood concerns of locals, so as to provide dispersal habitats and corridors for spillover population of wild animals from the designated core areas. The 2006 amendment to the Wildlife (Protection) Act, 1972 specifies that government shall, while preparing a TCP, ensure agricultural, livelihood, developmental and other interests of the people living in tiger-bearing forests or a reserve. For the first time, the 'core' and 'buffer' areas of a reserve have also been defined, the former being the critical, inviolate area, and latter being peripheral area to foster coexistence with local people for safeguarding the integrity of the core.

What is the status?
TATR

NTCA has set a fresh deadline of November 30, 2013 to resubmit the plan. The plan was delayed due to frequent changes like buffer, ecotourism plan and reorganization. It has to do latest changes, but it will be difficult.

Pench and MTR

According to sources, the Pench and Melghat TCPs are with the NTCA but officials are not aware where the plans are lying.

India ranks 134th in ease of doing business

India ranked a lowly 134 in the ease of doing business index, but implemented the most number of business regulatory reforms in 2012-13 reforms in the South Asian region.

A new World Bank Group released Tuesday also finds that India has made an improvement of 0.5 percentage points in what is called "the distance to frontier" measure with a range between 0 and 100, with 100 representing the best performance or the frontier.

India's "distance to frontier" in 2013 was 52.7 as against 52.3 in 2012.

The report also finds that six of eight economies in South Asia completed 11 reforms simplifying the process of starting a business, strengthening access to credit, or easing the process for paying taxes.

Since 2005, all economies in the region have implemented business regulatory reforms in the areas measured by Doing Business.

Together, the eight economies recorded 75 reforms. India implemented the most number of reforms in the region with 17 reforms during this period, followed by Sri Lanka with 16.

But Sri Lanka claims the region's highest spot in the global ease of doing business ranking, at 85 out of 189 economies.

Among the BRICS economies - Brazil, the Russian Federation, India, China, and South Africa - Russia made the most progress.

Singapore tops the global ranking on the ease of doing business. Joining it on the list of the top 10 economies with the most business-friendly regulations are Hong Kong, China; New Zealand; the US; Denmark; Malaysia; South Korea; Georgia; Norway; and Britain.

The report found that governments around the world significantly stepped up their pace of improving business regulations in 114 economies last year - an 18 percent jump from the previous year.

It is the 11th in a series of annual reports on the ease of doing business, and it documented 238 business regulatory reforms worldwide last year.

Today's Editorial 30 October 2013

                                                      Reviving the economy

Source: by Jayshree Sengupta: The Tribune

Recently the shrinking of the trade deficit to $6.7 billion in September from $10.9 billion in August 2013, has cheered the UPA government, which can now claim that its policy of curbing gold imports has been successful. The lowering of trade deficit means that there is hope of lowering the current account deficit in 2013-14 to around $55 billion. The widening of the current account deficit has been one of the reasons why India has got a poor rating by the international investment rating agencies.

Now the current account deficit (CAD) could be under control though one month’s trade data is not a sure sign of a long-term solution to the problem. If the trend of lowering of trade deficit continues, it would mean more FIIs and FDI will flow into the country which will ease the pressure on the rupee.

The rupee has depreciated by 16 per cent in the last few months and the widening of the CAD is one of the causes. A high trade deficit is usually unsustainable in the long run because it has to be paid for by exports (which are low) and forex reserves. On the other hand, a small trade deficit is a healthy sign of industrial activity because it shows that industry is importing capital goods that would improve the quality of production, especially exports.

If imports of important spare parts, components, capital goods and project-related goods decline, it signifies a low level of economic activity and lowering of India’s competitiveness. Imports have gone down by 18.1 per cent in September and between April and August 2013, and machinery imports as well as project goods imports fell by 12 per cent and 38 per cent, respectively.

Thus a deeper problem of an on-going downturn is surfacing and it is taking time to go away. The slow industrial growth is a warning and the slackening growth rate of the automobile sector is another indicator.

It was the automobile sector which was the driving force behind high manufacturing growth. Now for about a year, the automobile sector has been experiencing a stagnant growth rate. Associated with the growth of the automobile sector is the auto-component sector which is also experiencing a slow-down. It has led to a very low industrial growth of 0.6 per cent in August 2013.

Basically such low industrial growth is an ominous trend and it could be due to slow rate of investment and slack consumer demand which has been due to high inflation. The inflation rate as reflected by the WPI was 8.01 per cent in August. But food inflation was at 18.18 per cent and CPI too was high at 9.5 per cent. Since essential items like food grains, milk, edible oil and fuel prices have been experiencing continuous price hike, people have less money to spend on expensive goods. They are postponing buying big ticket items like consumer durables (TV, refrigerators, washing machines etc.) and consumer durables’ growth contracted by 7.6 per cent in August. Gold and silver being non- essential items, most people are now postponing purchases. Demand for oil has also been less in August.

People in India and abroad are now watching for signs of economic recovery. Officially, India is not in recession because only if there is a contraction of GDP consecutively for three quarters, a country is supposed to be in recession. But India is definitely undergoing a slowdown since GDP growth sank to 4.7 per cent in the last (third) quarter.

Many predictions have been made about the GDP growth on which economic recovery would depend. The IMF has reduced its forecast for India’s GDP growth recently to 4.25 per cent in next one year. Unless manufacturing growth picks up there cannot be recovery. Manufacturing growth contracted by 0.1 per cent in August. Industrial growth in July was however positive at 2.6 per cent. Around 11 out of 22 industry groups in manufacturing sector showed positive growth during July 2013 as compared to corresponding month the previous year.

There is a global element too in the reduced demand facing manufacturers which is the continuing economic crisis in the EU which has dampened the demand for Indian exports. Most of India’s merchandise exports have been adversely affected by the economic slowdown in EU and recently even the service sector exports have been affected. Service sector growth is important for boosting GDP growth.

Yet it is heartening to note that export growth is up and is in double digit (12.9 per cent). Imports would also pick up when recovery takes place because manufacturers would require more raw materials, capital goods and spare parts for production for domestic and export market.

Agricultural growth is also important for the recovery of the manufacturing sector which is dependent on rural demand. Agricultural growth has been sluggish at 1.9 per cent. There is however a bumper crop this year and agricultural growth is slated to be over 5 per cent. How the supplies are managed will be important for controlling food inflation.

Reviving the manufacturing sector would require lower interest rates. Unfortunately many of the recent decisions regarding interest rates, vital for lowering the financial costs of companies have not been conducive to promoting a higher rate of industrial investment and growth. The RBI has actually raised the repo rate in its last policy review on September 20th by 250 basis points, to 7.5 per cent and this will affect investors’ sentiments. As has been the experience in the past of many countries, tinkering with the interest rate cannot offer an effective antidote to inflation. There has to be supply - side measures also which will effectively increase the supply of those goods (especially food items) for which there is excess demand.

It is also the infrastructure and the high transaction costs that need to be improved to boost exports further. There will have to be easier clearances for trade between neighbouring countries and more jobs could be created on both sides which will lead to greater traction in the demand for goods and services from new wage earners. Fortunately, agricultural demand is likely to go up.

Thus we need to be cautious about favourable signs like a reduction of the trade deficit. Because though it is going to reduce one of the disturbing parameters that are slowing down growth, it could also be indicative of slack industrial activity.

Reviving the economy should be the first priority of the government now. There is need for a more proactive role of the government in trade facilitation and investment promotion. But with general elections so close at hand, will that be possible? Besides, gold imports have to remain low for trade deficit to decline further.

Saturday, October 26, 2013

India to extend on arrival visa for 40 more nations soon

Decks are being cleared to make India a more tourist friendly destination by extending on arrival visa for 40 more countries, simplifying online visa and attracting senior citizen foreign visitors.

A high level committee having representatives from Home Ministry, Tourism Ministry, Foreign Ministry, Planning Commission and National Security Advisor has decided to take the initiative forward.

The decision taken in the meeting of the panel to ease tourist visa norms earlier this month at Yojana Bhavan has been sent to the Tourism and Home Ministries for administrative action by the Planning Commission.

"Now Home Ministry Will take necessary action. It is an administrative decision which will soon see light of the day," Planning Minister Rajeev Shukla told PTI.

According to the Minister, besides increasing the ambit of Tourist Visa on Arrival (TVoA) facility, the panel has decided to allow visa under TVoA category to delegates visiting India for meetings, conferences and exhibitions.

At present, visa is issued to delegates on the basis of report about the credentials of the conference organisers. Moreover there is a separate category of visa for delegates of such events.

Shukla further said that it has also been decided to simplify and standardise the visa application form and photograph for the same.

Moreover, the column for disclosing religion in the visa application form is proposed to be deleted.

The panel has also called for initiating Electronic Travel Authorisation (ETA) facility to all countries except the ones in Priority Reference (PR) list.

The Minister said that India will also take initiatives to facilitate tourists or couples whose age is 60 years or above from all countries except PR list (nations) to tap the pensioners market.

The panel was unanimous that the issue of TVoA and ETA facility to China may be taken up bilaterally and decided on the basis of reciprocity.

The countries for which visa on arrival facility would be extended include the US, the UK, Canada, Brazil, Australia, the UAE and Saudi Arabia, Germany, France, Italy, Swedan, the Netherlands, Switzerland, Spain, Belgium, Austria, Denmark, Poland, Norway and Ireland.

Under TVoA system, India has agreement with 11 countries - Japan, Finland, Singapore, Indonesia, Laos, Luxembourg, New Zealand, Cambodia, Vietnam, Philippines and Myanmar.
At present, the TVoA facility on arrival visa facility is available at international airports of Delhi, Chennai, Kochi Kolkata, Mumbai, Hyderabad, Bengaluru and Thiruvananthapuram. The panel has also decided to expand this faclity to other airports.

Besides Commission's Deputy Chairman Montek Singh Ahluwalia, others who participated in deliberations on the issue include Foreign Secretary (Sujatha Singh), Tourism Secretary (Parvez Dewan), Additional Secretary, Home Affairs and representatives from the Intelligence Bureau and the PMO (Prime Minister's Office).

Shukla said these initiatives will help in attracting more foreign tourists and garnering larger foreign exchange, thereby helping bridge the wide current account deficit.

The current account deficit is the difference between inflow and outflow of foreign exchange.

During 2012-13, the CAD was at an all-time high of 4.8 per cent of GDP or USD 88.2 billion. Government proposes to bring it down to USD 70 billion or 3.8 per cent of the GDP this fiscal.

In 2012, India received 6.58 million foreign tourists, up 4.3 per cent over the previous year. India's foreign exchange earnings in 2012 from tourism were at USD 17.74 billion, showing an increase of 7.1 per cent year on year.
India's share in the international tourist receipts in 2012 stood at 0.64 per cent, with an overall ranking of 41.

Foreign exchange earnings from tourism during January to August 2013 were at USD 12.025 billion, a growth of 6.7 per cent, as compared to USD 11.273 billion during the same period of last year.

India Signs an Agreement with World Bank

An agreement for credit of US$ 360 million (equivalent) from World Bank for the Uttar Pradesh Water Sector Restructuring Project Phase-II was signed here yesterday by Shri Nilaya Mitash, Joint Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr.Onno Ruhl, Country Director, World Bank on behalf of the World Bank.

Similarly the Project Agreement was signed by Shri Deepak Singhal, Principal Secretary, Department of Irrigation on behalf of the Government of Uttar Pradesh.

The Objective of the project is to support the State Government on capacity building of Water Users Association (WUA), rehabilitation and modernization of Irrigation and Drainage systems, rehabilitation of dams, development of Basin River planning strategies, groundwater studies, knowledge base and flood management systems. The Project’s Development objective is to (a) strengthen the institutional and policy framework for integrated water resources management for the entire State; and (b) increase agricultural productivity and water productivity by supporting farmers in targeted irrigation areas.

The project has six main components:

• Strengthening of State Level Water Institutions and Inter Sector Coordination
• Modernization and Rehabilitation of Irrigation and Drainage Systems
• Consolidation and Enhancement of Irrigation Institution Reforms
• Enhancing Agriculture Productivity and On-Farm Water Management
• Feasibility studies and Preparation Activities for the Next Phase
• Project Coordination and Monitoring.

The closing date for the project is 31 October, 2020.

Parliamentary panel takes up Bill to give Sebi more teeth

The parliamentary standing committee has taken up the Securities Laws (Amendment) Bill for consideration and has invited some individuals and institutions to submit their views on it on November 1.

A source close to the development told The Indian Express that the bill is moving ahead and the standing committee has now taken it up for consideration.

The bill, which seeks to widen the definition of collective investment schemes and provides Sebi chairman with the power to authorise search & seizure and arrest people, was earlier re-promulgated as an ordinance by the President.

While the bill will replace the ordinance, it will amend the Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996.

The source informed that while the bill looks to make Sebi a lot more powerful regulator, there are views emerging that there should be some provision on checks and balances to the powers being conferred upon Sebi and also for capacity building of Sebi as the regulator needs to have adequate resources to carry out its responsibilities.

The bill seeks to widen the definition of collective investment scheme and will now include all pooling of funds beyond Rs 100 crore or above that are not regulated by any law. It also empowers the Sebi chairman to authorise search and seizure of documents relevant to an investigation.

Sebi will not only get explicit powers to order disgorgement of unfair gains but also permits the regulator to attach bank accounts, arrest a person for failing to comply with disgorgement orders or paying the monetary penalty.

The Global Financial Crisis 5th anniversary: All you ever wanted to know

The meltdown originated in the sub-prime mortgage crisis in USA in 2007. The meltdown originated in the sub-prime mortgage crisis in USA in 2007.

* Boom in World Economy and Surge in Asset Prices

The years that preceded the turbulence saw an exceptionally strong performance of the world economy – another phase of what has come to be known as the “Great Moderation”.

Following the global slowdown of 2001, the world economy had recovered rather rapidly, posting record growth rates in 2004, 2005 and 2006. The long period of abundant liquidity and low interest rates prior to the crisis led to a global search for yield and a general under-pricing of risk by investors. Across a wide spectrum of asset classes, volatilities and risk premia looked exceptionally low compared with fixed income credit, equity and foreign exchange markets.

Bloody Friday: Global financial crisis 5th anniversary

Growth in the US Economy

There were ‘global imbalances’, the phenomenon of huge current account surpluses in China and few other countries coexisting with the unsustainably large deficits in the US. This imbalance was caused by the propensity of the countries with high saving rate to park their savings often at low yields, in the US. The flood of money from these countries into the US kept interest rates low, fueled the credit boom and inflated real estate and other asset prices to unsustainable levels.

– Rapid increase in credit

Against the backdrop of the historically low interest rates and booming asset prices, credit aggregates, along side monetary aggregates, had been expanding rapidly. Despite the rapid increase in credit, however, the balance-sheets and repayment capacity of corporations as also the households did not appear to be under any strain. The high level of asset prices kept the leverage ratios in check while the combination of strong income flows and low interest rates did the same with debt service ratios.

-- Failure of the US Leadership in anticipating the crisis

During the housing boom, most of the US authorities failed to comprehend the problem. Alan Greenspan, the then head of Federal Reserve, in his book 'The Age of Turbulence', recalled what he used to say about the housing boom: "I would tell audiences that we were facing not a bubble but a froth – lots of small local bubbles that never grew to a scale that could threaten the health of the overall economy."

* Key Triggers

- Sub-prime mortgage

The meltdown originated in the sub-prime mortgage crisis in USA in 2007. With easy availability of credit at low interest rates, real estate prices in US had been rising rapidly since the late 1990s and investment in housing had assured financial return. US home-ownership rates rose over the period 1997-2005 for all regions, all age groups, all racial groups, and all income groups.

The boom in housing sector made both banks and home buyers believe that the price of a real estate would keep going up. Housing finance seemed a very safe bet. Banks went out of their way to lend to sub-prime borrowers who had no collateral assets. Low income individuals who took out risky sub-prime mortgages were often unaware of the known risks inherent in such mortgages. While on the one hand, they were ever keen to become house-owners, on the other, they were offered easy loans without having any regard to the fact that they were not in a position to refinance their mortgages in the event of the crisis. All this was fine as long as housing prices were rising. But the housing bubble burst in 2007. Home prices fell between 20 per cent and 35 per cent from their peak and in some areas more than 40 per cent; mortgage rates also rose. Sub-prime borrowers started defaulting in large numbers. The banks had to report huge losses.

- Excessive Leverage

The final trigger came from excessive leverage. Investors bought mortgage-backed securities by borrowing. Some Wall Street Banks had borrowed 40 times more than they were worth. In 1975, the Securities Exchange Commission (SEC) established a net capital rule that required the investment banks who traded securities for customers as well as their own account, to limit their leverage to 12 times. However, in 2004 the Securities and Exchange Commission (SEC) allowed the five largest investment banks – Merrill Lynch, Bear Stearns, Lehman Brothers, Goldman Sachs and Morgan Stanley – to more than double the leverage they were allowed to keep on their balance sheets, i.e. to lower their capital adequacy requirements.

* The Meltdown

Initially started as a liquidity problem, it soon precipitated into a solvency problem, making US financial institutions search for capital that was not readily available. Bear Stearns was sold to the commercial bank J.P. Morgan Chase in mid-March 2008; Lehman Bros filed for bankruptcy in mid-September 2008; Merrill Lynch was sold to another commercial bank, Bank of America and finally Morgan Stanley and Goldman Sachs signed a letter of intent with US Federal Reserve on September 22, 2008 to convert themselves.

* Impact of the Economic Crisis on India

With the increasing integration of the Indian economy and its financial markets with rest of the world, there were downside risks from these international developments. These included:

- Capital Outflow

The main impact of the global financial turmoil in India has emanated from the significant change experienced in the capital account in 2008-09, relative to the previous year. Total net capital flows fell from US$17.3 billion in April-June 2007 to US$13.2 billion in April-June 2008.

-Impact on Stock and Forex Market

With the volatility in portfolio flows having been large during 2007 and 2008, the impact of global financial turmoil was been felt particularly in the equity market. Indian stock prices were severely affected by foreign institutional investors' (FIIs') withdrawals. FIIs had invested over Rs 10,00,000 crore between January 2006 and January 2008, driving the Sensex 20,000 over the period. But from January, 2008 to January, 2009 this year, FIIs pulled out from the equity market partly as a flight to safety and partly to meet their redemption obligations at home. These withdrawals drove the Sensex down from over 20,000 to less than 9,000 in a year.

- Impact on the Indian Banking System

One of the key features of the current financial turmoil had been the lack of perceived contagion being felt by banking systems in emerging economies, particularly in Asia. The Indian banking system also had not experienced any contagion, similar to its peers in the rest of Asia. The Indian banking system was not directly exposed to the sub-prime mortgage assets. It had very limited indirect exposure to the US mortgage market, or to the failed institutions or stressed assets.

A detailed study undertaken by the RBI in September 2007 on the impact of the sub-prime episode on the Indian banks had revealed that none of the Indian banks or the foreign banks, with whom the discussions had been held, had any direct exposure to the sub-prime markets in the USA or other markets.

However, a few Indian banks had invested in the collateralised debt obligations.

(CDOs)/ bonds which had a few underlying entities with sub-prime exposures.

Scientists solve mystery of odd patterns of oxygen in solar system's earliest rocks

Cosmochemists have solved a long standing mystery in the formation of the solar system: Oxygen, the most abundant element in Earth's crust, follows a strange, anomalous pattern in the oldest, most pristine rocks, one that must result from a different chemical process than the well-understood reactions that form minerals containing oxygen on Earth.

"Whatever the source of the anomaly must be a major process in the formation of the solar system, but it has remained a matter of contention," said Mark Thiemens, dean of the University of California, San Diego's division of physical sciences and professor of chemistry. "Our experiments essentially recreate the early solar system in that they take gas phase molecules and make a solid, a silicate that is essentially the building block of planets."

By re-creating conditions in the solar nebula, the swirl of gas that coalesced to form our star, the planets and the remnant rocky debris that circles the Sun as asteroids, the researchers demonstrated that a simple chemical reaction, governed by known physical principles, can generate silicate dust with oxygen anomalies that match those found in the oldest rocks in the solar system, they report in the early online edition of Science October 24.

Scientists first noted the discrepancy forty years ago in a stony meteorite that exploded over Pueblito de Allende, Mexico, and it has been confirmed in other meteorites as well. These stony meteorites, asteroids that fell to Earth, are some of the oldest objects in the solar system, believed to have formed nearly 4.6 billion years ago with the solar nebula's first million years. The mix between oxygen-16, the most abundant form with one neutron for each proton, and variants with an extra neutron or two, is strikingly different from that seen in terrestrial rocks from Earth, its moon and Mars.

"Oxygen isotopes in meteorites are hugely different from those of the terrestrial planets," said Subrata Chakraborty, a project scientist in chemistry at UC San Diego and the lead author of the report. "With oxygen being the third most abundant element in the universe and one of the major rock forming elements, this variation among different solar system bodies is a puzzle that must be solved to understand how the solar system formed and evolved,"

Oxygen isotopes usually sort out according to mass: oxygen-17, with just one extra neutron, is incorporated into molecules half as often as oxygen-18, with two extra neutrons. In these stony meteorites though, the two heavier oxygen isotopes show up in equal proportions. The rates at which they are incorporated into minerals forming these earliest rocks was independent of their masses. Thiemens and John Heidenreich demonstrated such mass-independent fractionation of oxygen isotopes in the formation of ozone thirty years ago, but the mechanism for a similar process in forming the solid building blocks of rocks has not be demonstrated experimentally before now.

Indeed, several competing ideas have been put forth as potential explanations for the anomaly. Some have suggested that the mix of oxygen isotopes was different back when the earliest solid matter in the solar system formed, perhaps enriched by matter blasted in from a nearby supernova. Others had proposed a photochemical effect called self-shielding, which this team has previously ruled out. The last-standing idea was that a physical chemical principle called symmetry could account for the observed patterns of oxygen isotopes.

To test that idea, Chakraborty filled a hockey puck sized chamber with pure oxygen, varying amounts of pure hydrogen and a little black nugget of solid silicon monoxide. He used a laser to vaporize a plume of silicon monoxide gas into the mix. These are ingredients seen by radiotelescopes in instellar clouds, the starting point for our solar system.

The silicon monoxide gas reacted with the oxygen and hydrogen to form silicon dioxide, a solid that settled as dust in the chamber and is the basis of silicate minerals like quartz that are so prevalent in the crust of the Earth. These reactions of gases formed the earliest solid materials in the solar system.

When Chakraborty and Petia Yanchulova, a physics student and co-author of the paper, collected and analyzed the dust, they saw a mix of oxygen isotopes that matched the anomalous pattern found in stony meteorites. The degree of the anomaly scaled with the percentage of the atmosphere that was hydrogen, an observation that points to a reaction governed by symmetry.

"No mattter what else happened early on in the nebula, this is the last step in making the first rocks from scratch," Thiemens said. "We've shown that you don't need a magic recipe to generate this oxygen anomaly. It's just a simple feature of physical chemistry."

Day set for India’s Mars Orbiter Mission (MOM) ‘Mangalyan’

z8_GND_5296: New galaxy ‘most distant’ yet discovered