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Home , Adi Godrej, Akhtarul Wasey, Ashoke Sen, Balwant Thakur, Devendra Patel, Donald Davies

JAN 2013 CURRENT AFFAIRS

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CONTENTS:-

JANUARY 2013 CURRENT AFFAIRS – PART I

# Topic Page No 01 Awards/Honours...... 03 - 23 02 Committee/Panel/Commission……………………………. 24 - 32 03 Court Judgments……………………………………………… 33 - 43 04 Science & Technology………………………………………… 44 - 49 05 Tension in – Pakistan relation……………………… 50 - 60 06 Economics/Business………………………………………… 61 - 73

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Padma Awards 2013

EC: National Awards

Krishi Karman Awards

PART (I)

AWARDS / HONOURS

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PADMA AWARDS 2013

Noted physicist and space scientist were chosen for this year’s while yesteryear film actors late and and cricketer were selected for . Renowned sculptor and painter S. Haider Raza were chosen for Padma Vibhushan as the government came out with a list of 108 Padma awardees that included actress , actors and Malayalam star of Chemmeen fame and Olympians , and Vijay Kumar. In all four personalities were awarded Padma Vibhushan, 24 Padma Bhushan and 80 . Of the awardees 24 are women, 11 belong to the category of foreigners, NRI, PIOs and posthumous. Nobody was named for for this year too. The last awardee was late in 2008.

Here is the complete list of the award winners:-

PADMA VIBHUSHAN AWARDS 2013

S.NO NAME DISCIPLINE STATE/DOMICILE 1. Shri Raghunath Art Odisha Mohapatra 2. Shri S. Haider Art Raza 3. Prof.Yash Pal Science and Engineering 4. Prof.Roddam Science and Narasimha Engineering Note:* Indicates awardees in the category of Foreigners / NRIs/ PIOs/ Posthumous # indicates Duo Case.

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PADMA BHUSHAN AWARDS 2013

S.NO NAME DISCIPLINE STATE/DOMICILE 1. Dr. Ramanaidu Art Daggubati 2. Smt.Sreeramamurthy Art Tamil Nadu Janaki 3. Dr.(Smt.) Art 4. Smt. Sharmila Art Delhi Tagore 5. Dr. (Smt.) Saroja Art Delhi Vaidyanathan 6. Shri Abdul Rashid Art West Khan 7. Late Rajesh Khanna Art Maharashtra # 8. Late Jaspal Singh Art # Bhatti 9. Shri Shivajirao Public Affairs Maharashtra Girdhar Patil 10. Dr. Apathukatha Science and Delhi Sivathanu Pillai Engineering 11. Dr.Vijay Kumar Science and Delhi Saraswat Engineering 12. Dr. Science and Uttar Pradesh Engineering 13. Dr. B.N. Suresh Science and Karnataka Engineering 14. Prof. Satya N. Atluri Science and USA* Engineering 15. Prof. Jogesh Chandra Science and USA * Pati Engineering

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16. Shri Ramamurthy Trade and Tamil Nadu Thyagarajan Industry 17. Shri Trade and Maharashtra Industry 18. Dr. Nandkishore Medicine Maharashtra Shamrao Laud 19. Shri Mangesh Literature & Maharashtra Padgaonkar Education 20. Prof. Gayatri Literature & USA* Chakravorty Spivak Education 21. Shri Hemendra Singh Civil Service Panwar 22. Dr. Maharaj Kishan Civil Service Delhi Bhan 23. Shri Rahul Dravid Sports Karnataka 24. Ms. Mary Kom Sports

Note:* Indicates awardees in the category of Foreigners / NRIs/ PIOs/ Posthumous # indicates Duo Case. PADMA SHRI AWARDS 2013

S.NO NAME FIELD STATE/DOMICILE 1. Shri Art Andhra Pradesh 2. Swami G.C.D. Bharti Art Chhattisgarh alias Bharati Bandhu 3. Ms. B. Jayashree Art Karnataka 4. Smt. Sridevi Kapoor Art Maharashtra 5. Shri Kailash Chandra Art Orissa Meher 6. Shri Brahmdeo Ram Art Maharashtra Pandit 7. Shri Vishwanath Art Maharashtra Dinkar Patekar alias Nana Patekar 8. Shri Rekandar Art Andhra Pradesh

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Nageswara Rao 9. Shri Lakshmi Art Tamil Nadu Narayana Sathiraju 10. Smt. Jaymala Art Maharashtra Shiledar 11. Shri Suresh Art Maharashtra Dattatray Talwalkar 12. Shri P. Madhavan Art Kerala Nair alias Madhu 13. Shri Apurba Kishore Art Maharashtra Bir 14. Shri Ghanakanta Art Bora Borbayan 15. Smt. Hilda Mit Art Sikkim Lepcha 16. Smt. Art Maharashtra 17. Shri Ghulam Art and Kashmir Mohammad Saznawaz 18. Shri Ramesh Art Maharashtra Gopaldas Sippy 19. Ms. Mahrukh Art Maharashtra Tarapor 20. Shri Art Jammu & Kashmir 21. Shri Puran Das Baul Art 22. Shri Art Jammu & Kashmir 23. Shri Pablo Art Delhi Bartholomew 24. Shri S. Shakir Ali Art 25. Sh. S.K.M Social Work Tamil Nadu Maeilanandhan 26. Ms. Nileema Mishra Social Work Maharashtra 27. Ms. Reema Nanavati Social Work Gujarat 28. Ms. Jharna Dhara Social Work Bangladesh * Chowdhury 29. Late Dr. Ram Social Work Uttar Pradesh # Krishan

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30. Late Manju Bharat Social Work Delhi # 31. Prof. Mustansir Science and Maharashtra Barma Eng 32. Shri Avinash Science and Delhi Chander Eng 33. Prof. Sanjay Govind Science and Uttar Pradesh Dhande Eng 34. Prof. (Dr.) Sankar Science and West Bengal Kumar Pal Eng 35. Prof. Deepak B. Science and Maharashtra Phatak Eng 36. Dr. Mudundi Science and Andhra Pradesh Ramakrishna Raju Eng 37. Prof. Ajay K. Sood Science and Karnataka Eng 38. Prof. Krishnaswamy Science and Karnataka Vijayraghavan Eng 39. Dr. Manindra Science and Uttar Pradesh Agrawal Eng 40. Dr. Jayaraman Science and Andhra Pradesh Gowrishankar Eng 41. Prof. Sharad Science and Maharashtra Pandurang Kale Eng 42. Smt. Vandana Luthra Trade and Delhi Ind 43. Ms. Rajshree Pathy Trade and Tamil Nadu Ind 44. Shri Hemendra Trade and Assam Prasad Barooah Ind 45. Shri Milind Kamble Trade and Maharashtra Ind 46. Ms. Kalpana Saroj Trade and Maharashtra Ind 47. Dr. Sudarshan K. Medicine Delhi Aggarwal 48. Dr. C. Venkata S. Medicine Andhra Pradesh Ram alias Chitta Venkata Sundara

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Ram 49. Dr. Rajendra Achyut Medicine Maharashtra Badwe 50. Dr. Medicine Orissa 51. Prof. (Dr.) T.V. Medicine Tamil Nadu Devarajan 52. Prof. (Dr.) Saroj Medicine Uttar Pradesh Chooramani Gopal 53. Dr. Pramod Kumar Medicine Delhi Julka 54. Dr. Medicine Delhi Khatri 55. Dr. Ganesh Kumar Medicine Delhi Mani 56. Dr. Amit Prabhakar Medicine Maharashtra Maydeo 57. Dr. Sundaram Medicine Maharashtra Natarajan 58. Prof. Medicine Uttar Pradesh Chandra Chunekar 59. Dr. Vishwa Kumar Medicine Delhi Gupta 60. Prof. (Capt.) Dr. Literature & Bihar Mohammad Sharaf-e- Education Alam 61. Dr. Radhika Literature & Andhra Pradesh Herzberger Education 62. Shri J. Malsawma Literature & Mizoram Education 63. Shri Literature & Gujarat Education 64. Dr. Rama Kant Literature & Delhi Shukla Education 65. Prof. Literature & Delhi Education 66. Prof. Literature & Delhi Education 67. Shri Literature & Madhya Pradesh

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Education 68. Shri Surender Kumar Literature & Delhi Sharma Education 69. Dr. Jagdish Prasad Literature & Bihar Singh Education 70. Late Shaukat Riaz Literature & West Bengal # Kapoor Alias Salik Education Lakhnawi 71. Prof. Noboru Literature & Japan * Karashima Education 72. Shri Christopher Literature & UK * Pinney Education 73. Smt. Premlata Sports Jharkhand Agrawal 74. Shri Yogeshwar Dutt Sports 75. Shri Hosanagara Sports Karnataka Nagarajegowda Girisha 76. Subedar Major Vijay Sports Himachal Pradesh Kumar 77. Shri Ngangom Sports Maharashtra 78. Naib Subedar Sports Rajasthan 79. Ms. Ritu Kumar Fashion Delhi Designing 80. Dr. Ravindra Singh Archaeology Uttar Pradesh Bisht Note:* Indicates awardees in the category of Foreigners / NRIs/ PIOs/ Posthumous # indicates Duo Case.

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S. Janaki rejects the award:- Ms. Janaki, winner of four National Awards, stirred up a new controversy when she rejected the Padma Bhushan Award conferred on her describing it as “too late”. The singer said to mediapersons that, she deserved Bharat Ratna for having sung thousands of songs in various languages. She added that the government should show some more consideration to artists from south India in recognizing their talents and contributions. Long since these Padma awards have lost any merit. The practice of awarding posthumously had diluted its worth to zero. It is really surprising why Bharat Ratna was ever awarded posthumously, to or Netaji Bose or Sardar Patel or even Jhansi ki Rani! Because no longer they count for vote banks! We, as a country know how to spoil anything, instituted by us or borrowed from others! What Janaki said about the rejection of the award? http://murugesansenthil.blogspot.in/2013/01/i-deserve-much- more-s-janaki.html

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ARYABHATTA AWARD

The former secretary of the Department of Ocean Development, A.E. Muthunayagam, will receive the prestigious Aryabhatta award, instituted by the Astronautical Society of India (ASI), for 2010 and V.K. Saraswat, Scientific Adviser to the Defence Minister, will receive the award for 2011. They have been selected for their achievements in rocketry. The ASI awards for rocket and related technologies will go to G. Satheesh Reddy, associate director of the Research Centre, Imarat, , for 2010 and P. Kunhikrishnan of the Space Centre, Indian Space Research Organisation (ISRO), Thiruvananthapuram, for 2011. The awards for spacecraft and related technologies will go to P. Chakraborty of the Laboratory for Electro-Optics Systems (LEOS), ISRO, , (for 2010) and Yateendra Mehta, ISRO Satellite Centre, Bangalore (for 2011). Several other awards under various categories have been won by ISRO engineers and scientists. Dr. Muthunayagam was the director of the Liquid Propulsion Systems Centre, ISRO. In 2011, the Department of Atomic Energy appointed him as head of a committee to look into safety issues related to the Kudankulam Nuclear Power Project in Tamil Nadu. Dr. Saraswat, who is also the director-general of Defence Research and Development Organisation (DRDO), is an architect of the interceptor missile programme, the Agni and Prithvi programmes. Mr. Reddy is a specialist in navigation systems and he developed the avionics, including the ring-laser gyroscope-based navigation system, in the target missile (Prithvi) of the DRDO’s interceptor programme and the fibre-optic gyroscope-based inertial navigation system in the interceptor. Mr. Kunhikrishnan has been the mission director of several Polar Satellite Launch Vehicles.

EC: NATIONAL AWARDS

The Election Commission awarded Gujarat, Uttar Pradesh and West Bengal for best electoral practices and election management for the year 2012. The awards were received by their respective chief electoral officers.

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ORDER OF CANADA

IIT-Madras alumnus, M.G. Venkatesh Mannar is one of 91 persons who have received the Order of Canada, one of the highest civilian honours of the Canadian government. The distinguished chemical engineer was given the awarded for his leadership in the global fight against malnutrition and micronutrient deficiency. For nearly 40 years, Dr. Mannar has been working to reduce debilitating micronutrient deficiencies amongst the world’s most vulnerable populations. He is the president of the Ottawa-based Micronutrient Initiative (MI). As a sixth-generation salt processor in India, he became interested in salt iodisation, given that iodine is extremely important for brain development. The process of adding nutrients to salt, without changing its colour, texture or taste and not complicating its manufacture, is not easy, but Dr. Mannar has not only developed different technologies to do so, but has also spearheaded the movement in different countries across the world. Dr. Mannar helped establish salt iodisation in over 50 countries and today, nearly 4 billion people have access to iodised salt. Dr. Mannar has also been associated with the State government’s initiative to offer double-fortified salt to school students as part of the noon meal scheme. In Uttar Pradesh and Bihar, where many children suffer from dehydration, Dr. Mannar has been developing dispersible zinc tablets that need to be placed on the tongues of children for them to develop resistance. He said that, the problem of iron deficiency is the worst in southern states of India, where people mostly rely on rice-based diets which comprise heavily polished rice and starch. He also said the situation of malnourishment in India was grave, and even worse than in Bangladesh and several African countries. Dr. Mannar also said that these days the double burden of nutrition has been a cause of concern too, with cases of lifestyle disorders and obesity increasing. Studies have shown that when undernourished children eat unhealthy food, their bodies tend to absorb them disproportionately.

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DSC PRIZE FOR SOUTH ASIAN LITERATURE

Kerala-born writer Jeet Thayil was named the winner of the prestigious DSC Prize for South Asian Literature for his debut novel ‘Narcopolis’. Thayil, who was at the centre of a controversy last year for reading excerpts from ‘The Satanic Verses’ after Salman Rushdie’s visit to the Jaipur Literature Festival was cancelled, is the first Indian to win the prize. The award carrying a prize money of $50,000 was given to Thayil for his novel which has a setting and deals with the lesser known aspects of drugs and its effects. The author who first made his mark as a poet said it was natural for him to choose the topic for ‘Narcopolis’ as he had lived the life

MAHARASHTRA BHOOSHAN AWARD

Eminent nuclear scientist, Dr , will be the recipient of the ‘Maharashtra Bhushan’ award for 2011-12. The announcement was made by the Chief Minister, Mr Prithviraj Chava. The award, instituted in 1997 by the Maharashtra Government to recognise distinguished work and achievements of eminent persons from the state, representing different walks of life, carries a cash prize of Rs 5 lakh and a citation. The State Government has been seeking guidance from Dr Kakodkar, former Chairman of the Atomic Energy Commission, on the issue of Jaitapur nuclear power project in coastal Konkan. He has also conducted interactive sessions with state legislators to inform them about the benefits of the nuclear project.

CHINA’S AWARD FOR INTERNATIONAL SCIENTIFIC COOPERATION

Noted Indian scientist Dr C N R Rao has been conferred with China's top science award for his important contributions in boosting Sino-India scientific cooperation. Chinese Academy of Sciences (CAS) gave its 2012 Award for International Scientific Cooperation to three scientists from India, Germany, and Russia. Rao, 79, founder of Centre for Advanced Scientific Research (JNCASR), Bangalore, shared the 2012 award with Herbert Jaeckle of Germany's Max Planck Society and Russian space physicist G A Zherebtsov.

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The awards are given every year by the CAS, which is China's top academic and research institution for natural sciences. It has so far honoured 17 international scientists for their contributions in Sino- Foreign research cooperation, since the prize was instituted in 2007. State-run Xinhua news agency quoted that, Rao is devoted to the research of solid-state and structural chemistry. He was awarded for his important contributions in boosting scientific cooperation between China and India, as well as raising the scientific capabilities of developing countries. Rao has won various prestigious awards. He is currently the Head of the Scientific Advisory Council to the Indian Prime Minister. German scientist Jaeckle specialised in the fields of molecular developmental biology. He has actively promoted scientific cooperation between China and Germany. He has explored and put into practice approaches that integrate a Max Planck management model with the CAS's scientific research system, as well as set up an international team of researchers. Zherebtsov has actively promoted the construction of a Sino- Russian weather research centre and is currently working to get Russia involved in a CAS space science programme.

ATOMIC ENERGY’S LIFETIME ACHIEVEMENT AWARD

Prime Minister, Dr. gave the lifetime achievement awards of the Department of Atomic Energy (DAE) to four of its veteran scientists. The scientists who were presented the lifetime achievement are:  R.B. Grover, who played a key role in negotiating the Indo- U.S. nuclear deal  K. Balaramamoorthy, who developed non-destructive testing techniques  Mathematician R. Balasubramanian  S.K. Sikka, a key player in the nuclear tests of 1974 and 1998. Known as India’s leading nuclear diplomat, Dr. Grover played a key role in opening ensuring India became a part of the international nuclear trade which was shut after the peaceful nuclear experiment of 1974. He was also in the forefront of talks that resulted in India's entry into the pioneering International Thermonuclear Experimental Reactor project to tap fusion energy to meet future global power needs. Among other things, he conceptualised and set up the Homi Bhabha National

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Institute to meet the human resources requirements of the nuclear programme. Dr. Balaramamoorthy, a former Chief Executive of the , was honoured for his pioneering contribution to the development of non-destructive testing techniques and outstanding work in the field of nuclear fuel and nuclear components fabrication. Dr. Balasubramanian, who is the Director of the DAE’s Chennai-based Institute of Mathematical Sciences, was conferred the award for his outstanding contribution to the field of higher mathematics, cryptology and theoretical . Dr. Sikka was honoured for his contribution to condensed matter and to the strategic programme of the department of atomic energy.

KRISHI KARMAN AWARD

President awarded the “Krishi Karman” awards to 18 States for excellence in production of foodgrains. President said the country could achieve the 12 Plan growth target of four cent through crop diversification, developing high-yield disease- resistant seeds, improvement in water management practices and promotion of balanced use of fertilizers and pesticides. Among the new States to be recognised this year for “exemplary performance” were Madhya Pradesh, Bihar, Jharkhand, Tamil Nadu, Nagaland and Manipur. States awarded for enhancing production/productivity of a particular commodity included,  Uttar Pradesh (coarse cereals)  Bihar (rice)  Jharkhand (pulses)  Haryana (wheat) Ten states namely, Punjab, Uttarakhand, Assam, West Bengal, Tripura, Rajasthan, Gujarat, , Mizoram and Himachal Pradesh received commendation awards.

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From the eight awards winning states, for the first time one male and one female farmer were also awarded for their outstanding performance. States awarded for enhancing total foodgrains production are given a trophy, citation and Rs. 2 crore each, while those recognised in individual crops are given a trophy, citation and Rs. 1 crore each. The rest are given Rs. 25 lakh each, while individual farmers are given Rs. 1 lakh, a citation and a trophy.

Total Food grains Category-I (production over 10MT)

State Production (Lakh Productivity Tonnes) (Kg/ha)

Previous Highest in 2011-12 %

last Five years increase

1. Madhya 160.16 190.46 18.91 Pradesh (2009-10)

2. Punjab 278.66 283.52 1.74

(2010-11)

3. Rajasthan 188.32 189.63 0.70

(2010-11)

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Total Food grains Category-II (production between 1 and 10 MT)

State Production (Lakh Tonnes) Productivity (Kg/ha)

Previous highest in last five years 2011-12 % increase

1. Tamil Nadu 82.63 (2006-07) 96.41 16.67

2. Gujarat 83.42 (2010-11) 90.66 8.68

3. Uttarakhand 18.16 (2010-11) 18.53 2.06

Total Food grains Category-III (production below 1 MT)

State Production (Lakh Tonnes) Productivity (Kg/ha)

Previous highest in last five years 2011-12 % increase

1. Manipur 4.22 (2007-08) 5.93 40.52

2. Nagaland 5.14 (2008-09) 5.68 10.52

3. Arunachal 3.09 (2009-10) 3.34 8.02 Pradesh

4. Tripura 6.479 (2009-10) 7.124 9.96

5. Mizoram 0.624 (2009-10) 0.668 7.05

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Rice

State Production (Lakh Tonnes) Productivity (Kg/ha)

Previous highest in last five years 2011-12 % increase

1. Bihar 55.9 (2008-09) 72.01 28.81

Wheat

State Production (Lakh Tonnes) Productivity (Kg/ha)

Previous highest in last five years 2011-12 % increase

1. Haryana 116.30 (2010-11) 126.84 9.07

2. Himachal 5.473 (2008-09) 5.958 8.86 Pradesh

Pulses

State Production (Lakh Tonnes) Productivity (Kg/ha)

Previous highest in last five years 2011-12 % increase

1. Jharkhand 3.296 (2010-11) 4.923 49.34

2. Assam 0.701 (2010-11) 1.08 54.06

3. West 1.761 (2010-11) 1.878 6.63 Bengal

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Coarse Cereals

State Production (Lakh Tonnes) Productivity (Kg/ha)

Previous highest in last five years 2011-12 % increase

1. Uttar 32.18 (2010-11) 35.49 10.30 Pradesh

About Krishi Karman Awards:- The award was instituted in the year 2010-11 for recognizing the meritorious efforts made by the states in production of food grains. The Awards include a trophy, a citation and a cash reward of 2 crore rupees for total food grain production and 1 crore rupees for each of the four individual crops. For commendation award winner the cash prize declared is of 25 lakh rupees and for individual farmers the prize amount is 1 lakh rupees, with a citation and a trophy. The awards are presented in two different sets and they are one for the total food grain production and second for the production of individual food grains that includes rice, wheat, pulses and coarse cereals. The awards were finalized and the states were selected by a selection committee that was headed by the secretary of agriculture and cooperation that accessed the performance of states following certain fixed criteria, which took into account the outcomes of production, implementation of programmes for crop production as well as the innovative approach adopted for delivery of effective services.

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COUNTDOWN TO OSCAR 2013

Steven Spielberg’s political biopic Lincoln is leading this year’s Oscars race with 12 nominations, while the tally for Ang Lee’s Indian drama Life of Pi rose to 11, including in the ‘Best Picture’ and ‘Best Director’ categories. Here is some of the list of 85th Annual Academy Award nominations,

Category Nominations Best Picture Amour Argo Beasts of the Southern Wild Django Unchained Les Miserbales Life of Pi Lincoln Silver Linings Playbook Zero Dark Thirty Best Actor Bradley Cooper (Silver Linings Playbook) Daniel Day-Lewis (Lincoln) Hugh Jackman (Les Miserables) Joaquin Phoenix (The Master) Denzel Washington (Flight) Best Actress Jessica Chastain (Zero Dark Thirty) Jennifer Lawerence (Silver Linings Playbook) Emmanuelle Riva (Amour) Quvenhzhane Wallis (Beasts of the Southern Wild) Naomi Watts (The Impossible) Best Supporting Actor Alan Arkin (Argo) Robert De Niro (Silver Linings Playbook) Philip Seymour Hoffman (The Master) Tommy Lee Jones (Lincoln) Christoph Waltz (Django Unchained) Best Supporting Amy Adams (The Master) Actress Sally Field (Lincoln) Anne Hathaway (Les Miserables) Hunt (The Sessions) Jacki Weaver (Silver Linings Playbook)

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Best Direction Michael Haneke (Amour) Benh Zeitlin (Beasts of the Southern Wild) Ang Lee (Life of Pi) Steven Spielberg (Lincoln) David O Russell (Silver Linings Playbook) Best Foreign Amour – Austria Language Film Kon-Tiki – Norway No – Chile A Royal Affair – Denmark War Witch – Canada Adapted Screenplay Chris Terrio (Argo) Lucy Alibar, Benh Zeitlin (Beasts of the Southern Wild) David Magee (Life of Pi) Tony Kushner (Lincoln) David O Russell (Silver Linings Playbook) Original Screenplay Michael Haneke (Amour) Quentin Tarantino (Django Unchained) John Gatins (Flight) Wes NAderson, Roman Coppola (Moonrise Kingdom) Mark Boal (Zero Dark Thirty) Animated Film Brave Frankenweenie ParaNorman The Pirates! Band of Misfits Wreck-It Ralph Original Score Dario Marianelli (Anna Karenina) Alexandre Desplat (Argo) Mychael Danna (Life of Pi) John Willimas (Lincoln) Thomas Newman (Skyfall) Original Song Before My Time…(Chasing Ice) – J Ralph Everybody Needs a Best Friend…(Ted) – Walter Murphy and Seth MacFarlane Pi’s Lullaby… (Life of Pi) – Mychael Danna and Skyfall…(Skyfall) – Adele Adkins and Paul Empworth Suddenly… (Les Miserables) – Claude-Michel Schonberg, Herbert Kretzmer and Alain Boubill

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How is the Oscar shortlist decided?  The nomination process kicks off in November, 2013 when about 6000 odd members of the Academy start viewing the entries  The Academy is split into 15 branches, or professions within the film industry  Each branch votes for nominees within their own category  Nominees for Animated Feature Film and a Foreign Language Film Categories are voted for by committees of mixed branches  Every member votes for the Best Picture  Members Started to vote on Dec 17, 2013  The deadline was extended this year due to the controversial electronic voting system  Votes are then sent to PricewaterhouseCoopers to be counted, verified and secured until the day of the announcement Life of Pi to inspire “Land of Pi” campaign Seeking to cash in on the worldwide popularity of Life of Pi, which has been shot in Puducherry and Munnar in Kerala, the Union Tourism Ministry has decided to launch a full-fledged “Land of Pi’’ campaign. Union Tourism Minister, Mr. K said that, the government would soon unleash the campaign across all media, including print, online, electronic and outdoor, to promote Puducherry and Munnar as major tourist destinations. Luxury buses plying between Chennai and Puducherry and Kochi and Munnar will carry ‘Land of Pi’ slogan. Special tours and walking trails will be organised for tourists visiting Puducherry and Munnar. Short films on tourist attractions in Puducherry and Munnar, as depicted in the film, have been created and they will be put on Youtube and other networks. The Minister said the campaign will be undertaken in English as well as in French, German, Chinese, Spanish and Japanese languages. ‘Land of Pi’ posters, produced by Tourism Ministry, will be exhibited worldwide through India tourism offices overseas. These would also be put on the Incredible India website and the websites of the Puducherry and Kerala Tourism Departments. The Ministry will also organise road shows to promote Indian destinations in China and Taiwan. Director Lee is of Taiwanese origin. T-shirts and caps branding the two destinations will also be distributed. The Ministry has already announced special National Tourism Awards for Ang Lee, Director, and Yann Martel, author of the book ‘Life of Pi.’

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Rangarajan Panel

Manipur Killings

Verma Panel

PART (II)

COMMITTEES/COMMISSIONS

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RANGARAJAN PANEL

The Prime Minister-appointed Rangarajan Committee has suggested mandating a price of domestically-produced natural gas at an average of international hub prices and cost of imported LNG instead of the present mechanism of market discovery. The panel, in its report made public, suggested first taking an average of the U.S., Europe and Japanese hub or market price and then averaging it out with the netback price of imported liquefied natural gas (LNG) to give the sale price of domestically-produced gas. The panel headed by C. Rangarajan, Chairman, Economic Advisory Council to the Prime Minister, said the PSC provided for arm’s length pricing and prior government approval of the formula or basis for gas pricing, subject to policy on natural gas pricing. The committee recommended deriving one price from “the volume-weighted netback price to producers at (LNG) exporting country well-head for Indian imports for the trailing 12 months. Simultaneously, the volume-weighted price of U.S.’ Henry Hub, U.K.’s NBP and Japan Custom Cleared prices for the trailing 12 months be calculated. The arm’s length price thus computed as the average of the two price estimates would apply equally to all sectors. The suggested formula will apply to pricing decisions made in future, and can be reviewed after five years. On the future exploration contracts, it said “a close scrutiny of costs becomes critical for the government since there is incentive for contractors to book as cost expenses that do not reflect the true economic cost to the contractor (for example, through transfer pricing)”. Audit is prerogative of CAG and so the power of audit remains with CAG. The comments come in the backdrop of intense bickering over the scope of CAG audit of ’ spending on the flagging eastern offshore KG-D6 gas fields. RIL has argued that while it is open to CAG doing a financial scrutiny as provided, the production sharing contract does not provide a performance audit by the official auditor. Dr. Rangarajan said blocks with low value could be audited by panel of auditors formed by CAG and for high value blocks, the official auditor should audit directly. The CAG had the power to decide the value of the block that would be audited by it directly. In its report, the Rangarajan Committee has suggested shunning the present cost recovery model that allows operators like RIL to first recover all their investment before sharing profits with the

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PANEL SET UP TO SUGGEST STEPS FOR AI TURNAROUND

A committee was set up to suggest measures to lower the high costs of Air India’s operations and improve utilisation of resources in line with best global practices to help the state-run carrier achieve the goals of its turnaround and financial restructuring plans. A five-member committee, headed by IIM- Ahmedabad’s Prof Ravindra H. Dholakia, was set up by Civil Aviation Minister after a review meeting of the ailing national carrier’s functioning. Though the panel has been given two months to submit its report, it has been asked to give interim recommendations without waiting for its final report so that these could be implemented by Air India immediately. With improvements in Air India’s performance in recent months, the airline is likely to end this financial year with a positive cash flow or earning before interest, taxes, depreciation and amortisation (EBITDA) positive. Expressing concern over the projected net shortfall of Rs.404 crore a month, the Minister had recently asked Air India to cut redundant costs and optimally utilise its resources to meet the annual financial projections envisaged in the Financial Restructuring Plan (FRP). Other members of the committee are: Prabhat Kumar, Joint Secretary in the Ministry; Rajesh Agrawal, Director Finance of ICRISAT; S Mukherjee, former Director Commercial and Inflight Services of Air India; and Nasir Ali, Joint Managing Director of the airline. It would go into the expenses, identify loopholes in the company’s existing structure and functioning leading to wasteful expenditure and recommend measures to plug them.

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PANEL TO PROBE MANIPUR FAKE ENCOUNTER KILLINGS

The Supreme Court appointed a commission headed by the former Supreme Court judge, Santosh Hegde; the former CEC, J.M. Lyngdoh; and a senior police officer to probe the fake encounter killings in Manipur. A Bench of Justices Aftab Alam and Ranjana Prakash Desai passed a formal order to this effect after getting consent from Justice Hegde and Mr. Lyngdoh. It was hearing a petition by Manipur-based Extra Judicial Execution Victim Families Association that sought a special investigation team probe into the extra-judicial killings by the Army and other security forces. The Bench said the Commission would initially probe six cases where the magisterial inquiry had raised questions on the genuineness of encounter and security forces had “unlawfully” killed people, including a 12-year-old boy. The Bench was upset at the stand of the Manipur government when it questioned the motives of the petitioner. The Bench observed that, nationalism is not a monopoly of the State. Simply because you represent the State, you don’t have the authority to impute motives on others. Questioning as to why petitioner families should establish their credentials as nationalists, the Bench said that, these are the allegations that drive people to anti-national activities. Justice Desai told Ranjit Kumar that, government talk about insurgency but don’t point fingers at them.

PANEL – TO CLEAR INFRA PROJECTS

Under fire for delaying clearances to infrastructure projects, the Ministry of Environment and Forests (MoEF) has set up a committee under Dr K Kasturirangan, former ISRO chairman and Planning Commission member, to review the existing rules. The committee will examine the Environmental Impact Assessment (EIA) notifications issued for projects like highways, SEZ projects, and high-rises in 2006. The move appeared to be prompted by the recent pull out by private companies such as GMR and GVK from highway projects citing delays in getting forest clearances. While GMR was building the 5,387 crore Kishangarh-Udaipur-Ahmedabad project, GVK had exited the 332 km Shivpuri-Dewas project over similar concerns.

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SAM PITRODA PANEL

Noted technocrat will head a panel set up by the Union Information & Ministry (I&B) to redefine the role of the national broadcaster -- Prasar Bharati -- and its relationship with the Centre. And the committee which was formed will review the role of the body that controls both the Doordarshan (DD) and the All India (AIR) which now face intense competition from over 800 private channels. The need to set up a panel has been prompted by the fact that despite being an autonomous body, the Prasar Bharati has had a chequered relationship with the government of the day, which controls its functioning.With a none-too-modest yearly budget of Rs. 1,500crore, the Prasar Bharati is dependent on the government to fulfil its public service role. And a whopping 70 per cent of the I&B Ministry’s budgetary outlay is used to fund the mammoth body which has around 38,000 employees on its rolls. A group of ministers (GoM) is already reviewing the functioning of Prasar Bharati. Recently, the Centre started refurbishing the DD news to take on the private news channels. The terms and reference of the Pitroda panel also include redefining the role of the public broadcaster as its monopoly of being the sole broadcaster has long been demolished. Unlike the BBC -- funded by the public exchequer and Queen’s charter -- whose programmes have effectively countered the private channels, the DD has not been able to compete with the private players on the Indian market. Pitroda, who is currently the adviser to the Prime Minister on Public Information Infrastructure and Innovations, will study and recommend ways of using the new media to deliver digital content -- both in the broadcast mode (DTH) and in a demand-based mode -- using social media like YouTube, and on payment via IPTV. The other members of the committee include , director and member of the National Innovation Council; Asha Swaroop, former Secretary; B K Gairola, Mission Director (e- Governance); M P Gupta, IIT Delhi; Jitendra Shankar Mathur, Additional Secretary and Jawhar Sircar, CEO Prasar Bharati. Moreover, the panel has been asked to study means by which the Prasar Bharati’s role as a public broadcaster can be sustained, strengthened and amplified. It will also study the previous reports on Prasar Bharati like those submitted by the Sengupta Committee, the Bakshi Committee and the Narayanamurthy committee.

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VERMA PANEL

The Justice Verma Committee formed to look into crimes against women ruled against recommending the death penalty even in the rarest of the rare rape cases, and also did not favour lowering the age of a juvenile from 18 to 16. The committee, which was tasked with suggesting legal reforms to deal with sexual assault cases, however said the minimum sentence for a rapist should be enhanced from 7 years to 10 and that life imprisonment must always mean jail for ‘the entire natural life of the convict’. It has also recommended forming a new constitutional authority like the CAG for dealing with issues related to education and non-discrimination of women and children. Presenting the report on ‘Amendments to Criminal Law’, Mr. Verma said at a time when there were talks of abolishing the death sentence, the committee has “enhanced the punishment to mean the remainder of life”. An overwhelming majority of scholars and women’s organisations told the committee they were strongly against death penalty. After the gangrape and death of the para-medical student in Delhi last month that led to a nationwide uproar, Union Home Minister had said that the government favoured death sentence in the rarest of the rare rape cases. He had then announced formation of a three-member committee headed by the former Chief Justice of India, with former Chief Justice of Himachal Pradesh Justice Leila Seth and former Solicitor General of India Gopal Subramaniam as its members. The Committee recommended that, according to the Working Group on Human Rights, the murder rate has declined consistently in India over the last 20 years despite the slowdown in the execution of death sentences since 1980. Hence we do take note of the argument that introduction of death penalty for rape may not have a deterrent effect. The Committee also said that in the proposed Criminal Law Amendment Bill, 2012, the minimum sentence for punishment for rape should be enhanced to a minimum of 10 years (currently it is 7 years) with maximum punishment being life imprisonment. The Committee said castration would be unconstitutional and inconsistent with basic human rights treaties to expose any citizen without their consent to potentially dangerous medical side effects. On the issue of reducing the age of a juvenile from 18 to 16, Mr. Verma said, assuming that a person at the age of 16 is sent to life

murugesansenthil.blogspot.com - 29 - JAN 2013 CURRENT AFFAIRS imprisonment, he would be released sometimes in the mid-30s. There is little assurance that the convict would emerge a reformed person. The Committee has criticised lack of reformatory and rehabilitation policies in jails and juvenile homes.

Comments in social network site about the panel report:-  It seems the juvenile gets more protection as per this report. The report is a total failure as it denied public opinion on hanging and even wasted others time by collecting opinions. Please try understand a bit the sufferings of those victims and their families and make a reasonable report.. Rapists should be hanged, if its proved.  NO death penalty to rapists..!! Juvenile age not reduced to 16, just a solitary confinement of 20 years..!...Huh..Why just a normal jail life, provide them with a T.V, radio set, fridge, wifi connection, a laptop too..  Why the committee isn't making it clear that what it means by "rarest of rare". Isn't the Delhi gang rape issue come under that? Going to the practical running of society can we ask whether the majority of scholars and women organization give safety to women as they are against capital punishment. All rape may not be come under capital punishment but "brutal rape and murder" deserves that. The committee shouldn't dilute such heinous crime with such light penalty.

Some of the highlights of the report:

 New offenses have been created and stiffer punishment has been suggested by the panel. The new offenses include disrobing a woman, voyeurism, stalking and trafficking.  It has recommended enhancing the duration of punishment to up to 20 years in jail for rape leading to death or the victim being reduced to a vegetative state and life for gang rape. In case of gang rape leading to death, the person should be imprisoned for life. The present law provides for imprisonment to rapists ranging from seven years to life.  The panel sought amendments to Section 100 of the Indian Penal Code dealing with the right of private defense, which extends to causing death.

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 The committee rejected the suggestion of chemical castration of rapists as it considered handing down such a punishment would violate human rights and that mutilation of the body is not permitted under the Constitution.  The committee has also touched upon marital rape and safety of women in conflict zones suggesting a review of the Armed Forces Special Protection Act (AFSPA) that can be used by the forces for exploiting women in areas of conflict.  According to the report the judiciary has the primary responsibility of ensuring fundamental rights through constitutional remedies. The CJI can take suo motu cognizance; social activists should assist the court. The Chief Justice of the high court of every state should device appropriate machinery for administration and supervision of these juvenile homes in consultation with experts in the field.  All marriages in the country — irrespective of the personal laws under which such marriages are solemnized — should mandatorily be registered in the presence of a magistrate and the magistrate will ensure that the marriage has been solemnized without any demand for dowry having been made and that the marriage has taken place with the full and free consent of both partners.  Medical examination of victims of sexual assault which were prepared on the basis of the best practices advised by global experts in the field of gynaecology and psychology.  Trafficking of minor children must be made a serious offense. Trafficking must be punished with rigorous imprisonment for a term which shall not be less than seven years, but which may also extend to 10 years.  There is also a suggestion to bar elected representatives from holding office or for candidates to file nomination for election if a court has taken cognizance of the charge-sheet filed by the investigating agency.  The panel also recommended for Scraping ‘two-finger test’ for rape victims.

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 The panel rapped Union Home Secretary Mr. R K Singh for showering praise on Delhi Police Commissioner Mr. Neeraj Kumar in the aftermath of the Delhi gangrape. He said that he was shocked to see instead of an apology, appreciation is given.  The panel criticised the lathicharge on peaceful demonstrations. The lathicharge has scarred the democracy  There is a need to review the appointment of DGPs who failed to appear or did not respond to the panel request for suggestions.  Exempt disabled women from coming to police stations

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Gujarat Lokayukta – SC upholds

Cauvery Tribunal Award & SC

No more statues, idols in roads

PART (III)

COURT JUDGMENTS

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SC: NO MORE STATUES, IDOLS ON ROADS

The Supreme Court directed all State governments and Union Territories not to grant permission to erect statues or for construction of any structure at public places, pavements, sidewalks or on any other public utility, which obstructs traffic movement. A Bench comprising justices R M Lodha and S J Mukhopadhyaya said the right of citizens to move freely cannot be taken away. The Bench said that, public interest must be paramount. Public road is nobody’s property. Each and every citizen has a right to move freely on roads. That right cannot be taken away by putting statues, temples, mosques, churches etc... Such a practice must be done away with. The Bench further asked that, instead of glorifying the leaders, why don’t you use the funds for the upliftment of the poor? Why do you want to use public funds meant for people of India? The Bench was hearing an application opposing the Kerala government’s permission for erecting a statue of late Congress leader N Sundaram Nadar on the traffic island at Neyyattinkara junction on a national highway in Thiruvananthapuram district. The application was filed in a pending petition in which the apex court had already directed all state governments to remove unauthorised constructions, including places of worship, from roads and public places, without disturbing the law and order situation. The Bench also clarified that this order would not apply for installation of traffic utility structures like streetlights, which facilitate smooth traffic movement.

SC BANS TOURSITS IN JARAWA AREA

The Supreme Court banned tourists from taking the Andaman Nicobar Trunk Road that passes through the area where the Jarawas live. The road is used to reach the Limestone Cave. The court has already banned all commercial and tourism activities within a five-km radius of the Jarawa Tribal Reserve on the Andaman and Nicobar Islands. A Bench of Justices G.S. Singhvi and H.L. Gokhale passed the order, taking on record the Andaman and Nicobar Administration’s January 17 notification to comply with the court directives issued last year. Except 30 villages notified in the schedule, the notification

murugesansenthil.blogspot.com - 34 - JAN 2013 CURRENT AFFAIRS declares a buffer zone of an area up to a five-km radius, adjacent and contiguous to the Jarawa Tribal Reserve Area — starting from the Constance Bay in South Andaman to Lewis Inlet Bay in Middle Andaman. No person shall operate any commercial or tourist establishment directly or indirectly in the buffer zone. Furthermore, no one shall carry out any activity, which may be prejudicial to the safety, security and interests of the Jarawas in any of the settlement villages. The Bench directed that only government officials, persons residing in the reserve and vehicles carrying essential commodities for the Jarawas would be allowed on the Trunk Road. The Bench directed the Andaman and Nicobar Administration to file an affidavit, along with a detailed map indicating the areas of Jarawas and settlement of others. The October 30, 2007 notification, imposing the ban, was quashed by the Calcutta High Court. On an appeal, the Supreme Court, stayed the order and asked the administration to strictly enforce the notification till it was considered by the court.

Who are the Jarawas? Tribe indigenous to Andamans. Other tribes are Onges, Sentinelese, Andamanese. Of all the tribes in the islands, Jarawas have had the least contact with the outside world. As per 2001 census, there are 240 Jarawas.

SC: SPECIAL COURT TO TRY ITALIAN MARINES

The Supreme Court held that the State of Kerala had no jurisdiction to investigate into the `Italian marines shooting incident’ on February 15, 2012 in which two fishermen were killed and said only the Union of India had jurisdiction to proceed with the investigation and trial of the two marines. A Bench of Chief Justice Altamas Kabir and J. Chelameswar in two concurring judgments therefore directed the Centre, in consultation with the Chief Justice of India, to set up a Special Court to try the two marines Massimilano Latorre and Salvatore Girone cited as accused in this case. The Bench after the pronouncement of the judgment in a brief order in the afternoon said that, the order passed by the Kerala High Court restricting the movement of the petitioners is lifted, but the same conditions will stand reinstated. As and when the petitioners come to

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Delhi, they shall not leave the precincts of Delhi without the leave of the Court. Instead of reporting to the Police Station at City Commissioner at Kochi, they will now report to the Station House Officer of the Chanakayapuri Police Station, , once a week, subject to further relaxation, as may be granted. Once the said petitioners have moved to Delhi, they shall upon the request of Italian Embassy in Delhi, remain under their control. The Italian Embassy, in Delhi, also agrees to be responsible for the movements of the petitioners and to ensure that they report to the trial court, as and when called upon to do so. Since their passports had been surrendered to the trial court in Kollam, the same is to be transferred by the said court to the Union Home Ministry. The two marines will be under the custody of this court. The Bench directed the special court {to be set up} to dispose of the matter in accordance with the provisions of the Maritime Zones Act, 1976, the Indian Penal Code, the Cr.P.C. and most importantly, the provisions of United Nations Convention on the Law of the Sea (UNCLOS) 1982, where “there is no conflict between the domestic law and UNCLOS 1982.” The Bench said this would not prevent the petitioners from invoking the provisions of Article 100 of UNCLOS 1982 and the question of jurisdiction of the Union of India to investigate into the incident and for the Courts in India to try the accused. It said that, if it is found that both the Republic of Italy and the Republic of India have concurrent jurisdiction over the matter, then these directions will continue to hold good. In his judgment the CJI said “while India is entitled both under its Domestic Law and the Public International Law to exercise rights of sovereignty upto 24 nautical miles from the baseline on the basis of which the width of Territorial Waters is measured, it can exercise only sovereign rights within the Exclusive Economic Zone for certain purposes. The incident of firing from the Italian vessel on the Indian shipping vessel having occurred within the Contiguous Zone, the Union of India is entitled to prosecute the two Italian marines under the criminal justice system prevalent in the country. However, the same is subject to the provisions of Article 100 of UNCLOS 1982.”

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A NON-MEMBER CAN MOVE FOR SPEAKER FOR DISQUALIFICATION - SC

The Supreme Court held that, not only an MLA but any interested person is entitled to bring to the notice of the Speaker the fact that a member has incurred disqualification under the Tenth Schedule of the Constitution (anti-defection law) and the presiding officer is bound to take action on the complaint. A three-judge Bench of Chief Justice Altamas Kabir and Justices J. Chelameswar and Vikaramait Sen said that, on receipt of such information, the Speaker would be entitled to decide under paragraph 6 of the Tenth Schedule whether the member concerned had, in fact, incurred disqualification and to pass appropriate orders on his findings. Writing the judgment on an appeal filed by Odisha Speaker, the CJI said that, in a case such as this, where all four members elected from the Nationalist Congress Party had changed their allegiance to the Biju Janata Dal, there would be no one to bring the fact to the notice of the Speaker and ask for their disqualification. After the four MLAs crossed over to the BJD, the president of the NCP, Utkar Keshari Parida, who was not an MLA, filed an application to the Speaker seeking their disqualification. As no action was taken on the complaint, he moved the Orissa High Court, which held that the writ petition was maintainable. Dismissing the Speaker’s appeal against this order, the Supreme Court said that, although disqualified under paragraph 2(1) (a) of the Tenth Schedule, in the absence of any application for disqualification to the Speaker, they [the four MLAs] would continue to function as members of the Assembly, which was not the object sought to be achieved by the 52nd Amendment, by which the Tenth Schedule was introduced in the Constitution. The Bench said that, the Statement of Objects and Reasons of the Bill, which finally became the Constitution [52 Amendment] Act, 1985, indicated that the evil of political defection had become a matter of national concern and if it was not checked, it could very well undermine the very foundation of our democracy and the principles which sustain the same. In such an event, if the provisions of the Tenth Schedule are interpreted to exclude the right of any person interested to bring to the notice of the Speaker of the House the fact that any or some of its members had incurred disqualification on any of the eventualities indicated in paragraphs 2 and 4 therein, it would render the inclusion of the Tenth Schedule in the Constitution otiose and defeat the objects and intent of the 52nd Amendment.

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SC SET ASIDE THE APPOINTMENT OF UPALOKAYUKTA

The appointment of Justice (retd.) Chandrashekaraiah as Karnataka UpaLokayukta was set aside by the Supreme Court. The court held that the Chief Minister should have consulted the Chief Justice of the High Court in the selection process.

SC ISSUES NOTICE TO CBI ON MARAN CASE

The Supreme Court issued notices to the CBI and BSNL on a plea for inquiry against DMK leader Dayanidhi Maran for allegedly misusing public office by setting up a exchange in his Chennai house and routing 323 lines to his family-owned Sun TV Network offices during his tenure as telecom minister. A bench headed by Justice Aftab Alam sought responses of the CBI and BSNL on plea against Maran by a journalist, who alleged that the agency has "buried" the case under political pressure despite its inquiry revealing a loss of Rs 440 crore to the exchequer in the case. The petitioner said that, the fraudulent arrangement was executed to facilitate and satisfy the data transfer requirements of Sun TV Network and has caused, on the estimates provided by the CBI in its preliminary inquiry a whopping loss of Rs 440 crores to BSNL and national exchequer. The petition, filed through advocate Bina Gupta, said despite adverse findings in preliminary inquiry, neither the CBI nor the Centre has taken any step to pursue the matter. The petitioner also said that he had sent letter to the CBI director along with evidence in his possession but no further step was taken in the case. He also alleged the agency had recommended action in the case to telecom secretary in 2007 but the department had not given its nod.

WHY ALLOW CRIMINALS IN FRAY? - SC

The Supreme Court directed the Centre to file its response to a public interest litigation petition challenging the constitutional validity of certain provisions of the Representation of the People Act 1951 which allow convicted persons to contest elections to Parliament and the State Legislatures six years after release from jail. A Bench of Justices A.K. Patnaik and Gyan Sudha Misra said this.

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WHAT’S DIFFICULTY IN NOTIFYING CAUVERY TRIBUNAL AWARD? - SC

The Supreme Court pulled up the Centre for dilly-dallying on notifying the final decision of the Cauvery Water Disputes Tribunal (CWDT) dated February 5, 2007, even though it informed the court on December 5, 2012 that it would notify the decision by the end of December. When Additional Solicitor General Harin P. Raval sought more time for the Centre to take a decision whether to notify the ‘final decision’ or not, a Bench of Justices D.K. Jain and Madan B. Lokur told that, it is strange. Supreme Court said that, the Cauvery Monitoring Committee (CMC) in its order dated December 7 has also recorded that the final decision will be notified by the end of December. Then what is the difficulty? Is it government argument that government is not bound by the CMC order? Produce the file, SC want to see it. Mr. Raval said the Water Resources Ministry had approved the notification and it was sent to the Legislative Department in the Ministry of Law and Justice for vetting. The Law Ministry took the view that since there was an earlier decision not to notify the ‘final decision,’ the matter required further consideration. He also drew the court’s attention to a letter written by Karnataka Chief Minister Jagadish Shettar asking the Centre not to notify the final decision. Mr. Justice Jain told senior counsel Fali Nariman, appearing for Karnataka that, SC don’t want this ‘hide-and-seek’ game from Karnataka of telling something in court and taking a different stand outside the court. Mr. Nariman, reiterated the stand that there was no objection in notifying the final decision without prejudice to the rights of the State.

FIRST FAST TRACK COURT FOR SEXUAL OFFENCES OPEN

Chief Justice of India Altamas Kabir inaugurated the first of the five newly announced fast-track courts set up in New Delhi to try cases related to sexual offence against women. Chief Justice of India Altamas Kabir said he appreciated people’s anger over rape but warned against letting it overwhelm the due process of law.

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He said that, people’s reaction has been that do not send the accused to trial. Hand them over to people, people will deal with them or hang them. But let us not get carried away. A swift trial should not be at the cost of a fair trial. He added that let us not lose sight of the fact that a person is presumed innocent until proven guilty. Appreciating the government for the fast-track courts, he said that it is welcome that the government has woken up to the need for courts which would try such cases on a priority basis. The perpetrators of such crimes should be brought to justice as quickly as possible.

He said that while handling such cases one has to understand the trauma of a rape victim. It is not a crime against the body but it is also a crime against the soul. Justice Kabir said that the gang-rape case could have been averted had the Supreme Court guidelines on tinted glasses in vehicles been strictly imposed. Justice Kabir said the root of the problem of sexual violence against women should be found. Blame game will not serve anything.

SC UPHOLDS GUJARAT LOKAYUKTA APPOINTMENT

The government in Gujarat suffered a setback with the Supreme Court upholding the appointment of Justice R.A. Mehta as Lokayukta by the Governor, saying it was done in consultation with the Chief Justice of the Gujarat High Court. Bench of Justices B.S. Chauhan and Ibhrahim Kalifulla said that, the facts make it clear that the process of consultation by the Governor with the then Chief Justice stood complete, and in such a situation, the appointment of Justice Mehta cannot be held illegal and thus dismissing the State government’s appeal against a 2:1 majority verdict of the High Court. It is pertinent to note that, in order to avoid an inquiry by the Lokayukta [anti-corruption ombudsman], an inquiry

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Writing the judgment, Justice Chauhan said the case revealed a very sorry state of affairs. The post of Lokayukta had been lying vacant for more than nine years since November 24, 2003 after the resignation of Justice S.M. Soni. A “few half-hearted attempts” were made to fill the post, but for one reason or another it could not be filled. SC criticised Governor: However, the Bench also criticised Governor Kamla Beniwal who, it said, “has misjudged her role and has insisted that under the Lokayukta Act, the Council of Ministers has no role to play in the appointment of the Lokayukta and she could therefore fill it in consultation with the Chief Justice of the High Court and the Leader of the Opposition. Such an attitude is not in conformity or in consonance with the democratic set-up of government envisaged in our Constitution.” The Bench said that, the appointment of the Lokayukta can be made by the Governor, as head of the State, only with the aid and advice of the Council of Ministers, and not independently as a statutory authority. The Supreme Court has reiterated that the Governor is bound to act on the aid and advice of the Council of Ministers, unless he acts as persona designata i.e., eo nomine under a particular statute or acts in his own discretion under the exceptions provided for in the Constitution itself. It is evident that the Governor enjoys complete immunity under Article 361(1) and that under this, his/her actions cannot be challenged for the reason that the Governor acts only upon the aid and advice of the Council of Ministers. If this was not the case, democracy itself would be in peril. The Governor is not answerable to either the House of the State or Parliament or even to the Council of Ministers,

murugesansenthil.blogspot.com - 41 - JAN 2013 CURRENT AFFAIRS and his/her acts cannot be subject to judicial review. In such a situation, unless he/she acts upon the aid and advice of the Council of Ministers, he/she will become all powerful, and this is an anti-thesis to the concept of democracy. Governor Kamla Beniwal’s version, stated in her letter, that she was not bound by the aid and advice of the Council of Ministers and that she had the exclusive right to appoint the Lokayukta “is most certainly not in accordance with the spirit of the Constitution”. It seems this was an outcome of an improper legal advice, and the opinion expressed is not in conformity with the rule of law. The view of the Governor was unwarranted and logically insupportable. The Bench said that, the Governor consulted the Attorney- General of India for legal advice and communicated with the Chief Justice of the Gujarat High Court directly, without taking into confidence the Council of Ministers … Be that as it may, it is evident that the Chief Minister had full information and was in receipt of all communications from the Chief Justice, whose opinion is to be given primacy in such matters and can be overlooked only for cogent reasons. The recommendation of the Chief Justice, suggesting only one name, instead of a panel of names [for the post of Lokayukta], is in consonance with the law laid down by this court, and we do not find any cogent reason not to give effect to the recommendation.

As for Chief Minister Narendra Modi’s objection that Justice Mehta was affiliated to certain NGOs, the Bench agreed with the reasoning given by the then Chief Justice of the High Court for rejecting it. “On a close scrutiny, the reasons discussed by the Chief Justice appear rational and based on facts involved. This establishes an application of mind and a reasonable approach with hardly any element of perversity to invoke a judicial review of the decision-making process. The issue appears to have been dealt with objectively.” Underlining the importance of the Lokayukta for having a check on corruption, the Bench said that, corruption often results from patronage of statutory/higher authorities and it erodes quality of life, and it has links with organised crimes [and] economic crimes such as money-laundering etc., terrorism and serious threats to human security to flourish. Its impact is disastrous in the developing world as it hurts the poor disproportionately by diverting funds intended for development. Corruption generates injustice as it breeds inequality and becomes a major obstacle to poverty alleviation and development…

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SC RAPS GOVT ON ILLEGAL CLINICAL TRIALS

The Supreme Court rapped the Centre for its failure to stop illegal clinical trials of untested drugs by multinational companies and said such drug trials are causing havoc in the country and claiming the lives of many citizens. A Bench comprising justices R M Lodha and A R Dave said the government seems to have gone into a deep slumber on the issue and has failed to put in place a proper mechanism to stop rackets of multinational firms which are conducting illegal clinical trials. Advocate Sanjay Parikh, appearing for the petitioner, told the Bench that in the 11,000-odd clinical trials between 2005 and 2011, as many as 5,700 people had died. But, Additional Solicitor General (ASG) Siddhartha Luthra disputed the figure and said only 87 people had died. Justice Lodha asked whether these clinical trials are essential. Justice Lodha remarked, government has slipped into deep slumber. It pains us that children of the country are being uses as guinea pigs by the companies. Government does not have even respect of the Parliamentary Committee which has said that the companies are running racket and showing just draft rules. The Judges strongly said that, committees are formed just to divert public attention. Government set up committees and commissions so that people’s attention is diverted. Supreme Court given government several opportunities, but people are dying. Supreme Court asked why the government is shying away from its responsibility. It also added that, it is very easy to form a committee or a commission. It is done just to divert people’s attention on the issue. It is the best way to divert attention on important issues.

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Internet@30

Filipino cities gain in outsourcing

Red Planet & Black Beauty

PART (IV)

SCIENCE & TECHNOLOGY

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“BLACK BEAUTY” FROM RED PLANET

Scientists said that a Martian meteorite containing 10 times more water than average could unlock clues to the Red Planet’s evolution from a warm, wet past to its current cold and dry state. The new meteorite, designated NWA (Northwest Africa) 7034 and nicknamed ‘Black Beauty’, is a dark, fist-sized rock that landed in the Sahara Desert in 2011. Unlike most Martian meteorites, it is thought to be from the planet’s surface, not deeper inside, and to date from a crucial time in its evolution. Many scientists think that Mars was warm and wet in its early history, but the planet’s climate changed over time. Scientists believe NWA 7034 was formed from lava from a volcanic eruption on Mars around 2.1 billion years ago that cooled and hardened on the surface of the planet, possibly with the help of water. The abundance of water molecules in the rock — about 6,000 parts per million, 10 times more than other known meteorites — suggest water activity persisted on the Martian surface at that time, known as the Amazonian epoch. More than 100 Martian meteorites have been discovered on Earth to date.

INTERNET TURNS 30

The world is moving in Internet. 2013 marks the 30th birthday for Internet. Here’s the storyline: the officially began functioning when it fully substituted previous networking systems January 1, 1983. On that day, it was the first time the US Department of Defence-commissioned Arpanet network fully switched to use of the Internet protocol suite (IPS) . This new method of linking computers paved the way for the arrival of the (www). Based on designs by Welsh scientist Donald Davies, the Arpanet network began as a military project in the late 1960s. It was developed at many American universities, including the University of California - Los Angeles (UCLA) and the Stanford Research Institute. In 1973, work on the IPS and Transmission Control Protocol (TCP) technology began. The new systems were designed to replace the more vulnerable Network Control Program

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(NCP) used previously, and made sure the network was not exposed to a single point of failure. By Jan 1 1983, the substitution of the older system for the new Internet protocol had been completed and the Internet was born. British computer scientist Tim Berners-Lee later used it to host a system of interlinked hypertext documents in 1989, known as the World Wide Web.

Internet users by language:

Top 10 countries with the highest number of internet users:

# Country Penetration Users (% Population) % World 1 China 40.1 22.4 2 USA 78.1 10.2 3 India 11.4 5,7 4 Japan 79.5 4.2 5 Brazil 45.6 3.7 6 Russia 47.7 2.8 7 Germany 83.0 2.8 8 Indonesia 22.1 2.3 9 UK 83.6 2.2 10 France 79.6 2.2

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EARTH’S TWIN MAY BE FOUND IN 2013

Scientists claim that the first truly Earth-like alien planet is likely to be spotted in 2013. Scientists said that the epic discovery would cause humanity to reassess its place in the universe. Astronomers may have found a number of exoplanets over the last few years that share one or two key traits with our planet - such as size or inferred surface temperature - they have yet to bag a bona fide "alien Earth". Astronomers discovered the first exoplanet orbiting a Sun-like star in 1995. Since then, they have spotted over 800 worlds beyond our solar system, and many more await confirmation by follow-up observations. Nasa's Kepler Space Telescope, for instance, has flagged more than 2,300 potential planets since its March 2009 launch. Only 100 or so have been confirmed to date, but mission scientists estimate that at least 80% will end up being the real deal.

ENGLISH IS PREFERRED LANGUAGE BY NET USERS

Here is an affirmation of one more Indian fact/stereotype — English communication is an urban phenomenon and that local languages are more popular in rural areas. According to the Vernacular Report, 2012, of the Internet and Mobile Association of India (IAMAI), a higher percentage of rural people are aware of regional language content than urban users. In India, 45 million users access content in the local language. Around 64 per cent of rural Internet users (24.3 million active users out of a total 38 million) use the Internet in the local language. But only 25 per cent of the total 84 million urban users browse the Net in regional languages (20.9 million). By and large, the applications that are most used by regional language users include emails, search engines and news content, text chat, matrimonial services and online banking services. In rural areas, the report shows a bias in favour of sites offering government services, land records and private initiatives such as eChoupal, which provides aggregated information of interest to farmers and facilitates sale of farm produce.

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Last March, Minister of State for Communications and Information Technology , speaking at a conference on initiatives, said the biggest challenge that would have to be addressed was the non- availability of online content in regional languages. According to the IAMAI report, Internet non-users have mentioned that lack of content in local language as one of the major reasons, along with lack of infrastructure. With a low working knowledge of English in India (according to the National Readership Survey, 2006, only 18.2% of the population is English-literate; 34.2% in urban and 11.1% in rural areas), Internet penetration in India is only 12%, since content is primarily available in English. However, the report says a number of websites have started offering translation and transliteration services that only require input of text in the phonetic equivalent of the local language in English. The study covered the top metros of Delhi, Mumbai, Chennai and , the cities of Bangalore, Hyderabad, Ahmedabad, and Pune, and 12 smaller cities. Five non-metro towns and 10 small towns were also included in the study. It was conducted by the e-Technology group of the Indian Market Research Bureau and the IAMAI, an industry body representing the online and mobile industry in India.

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FILIPINO CITIES GAIN IN OUTSOURCING RANKS

The Philippines, led by its capital Manila and followed by secondary cities such as Cebu, Mandaluyong and Taguig, has emerged as a key IT/ITeS destination, posing a challenge to India's outsourcing story. The latest annual ranking of the top 100 global outsourcing destinations by Tholons, an advisory firm for global outsourcing and research, places Manila at No. 3, up from No. 4 in last year's survey. It has pushed Delhi down to No. 4. Cebu City too went up one rank in the top 10, pushing Dublin (Ireland) down. Indian dominance continues though, with six Indian cities in the top 10 and Bangalore still the top. The critical factors that are adding momentum to Philippines are its cultural and accent similarities with the US, cost competitiveness, and a strong positive perception of BPO careers (they are not stop- gap careers like in India). The Philippines government is also keeping its focus firm on the development of the industry through grants and infrastructure developments. Salil Dani, practice director at outsourcing advisory and research firm Everest Group, said the Philippines is cheaper by up to 70% for US companies. The country is the leader in voice (call centres). But its non-voice story is still untold. A lot of Indian and global BPOs in the financial, analytical, HR and people-based services are expanding in the country. The Philippines' current IT/ITeS market is $14 billion, of which IT is only $2 billion. But remember, a few years ago the total market was barely $7 billion. Look at the way it's catching up. Ankita Vashistha, managing director, Tholons, said costs are rising in India. Infrastructure and quality of life are also under pressure in Indian cities and these could impact growth in the future. Convergys, a US-based customer management solutions company, has 18 call centres in the Philippines. UnitedHealth, a US- based healthcare provider, has back-office operations in Taguig City. EXL is opening its third centre in Cebu City. IBM is planning to grow its BPO services in the country, focusing on higher value analytics and high-value customer support services. Wells Fargo & Co is setting up a business support centre in Taguig City.

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PART (V)

INDIA – PAKISTAN TENSE

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INDIA – PAKISTAN LoC UNDER TENSE

Indian bunker construction on the northern reaches of the Line of Control — initiated after a grandmother crossed into Pakistan- administered Kashmir to be with her sons — sparked off a spiral of violence which culminated in the brutal killing of two soldiers. ( said like this, saying highly placed military and government sources have told the newspaper) The clashes, among the worst on the Line of Control since a ceasefire went into place, have provoked fears that the ceasefire may melt down. In India, news that the two soldiers (Naik Sudhakar Singh and Naik Hemraj) were beheaded has provoked widespread outrage and calls for large-scale military retaliation.

Why now tense in LoC?

Early in September, 70-year old Reshma Bi, left the village of Charonda, near Uri, to live with her sons and grandchildren across the Line of Control. Ms. Reshma and her husband Ibrahim Lohar, a highly- placed military source said, had remained in Charonda after their sons crossed into Pakistan-administered Kashmir several years ago, to

murugesansenthil.blogspot.com - 51 - JAN 2013 CURRENT AFFAIRS escape police investigations of their alleged role in cross-border trafficking. Police officers contacted by The Hindu said that Ms. Reshma appeared to have left in the hope of living out her last years with her family. Ms. Reshma’s September 11 flight, a senior Srinagar-based military official said, set off alarms at the Uri-headquartered 19 infantry brigade. There, the incident was seen as highlighting vulnerabilities in defences along this stretch of the Line of Control. Charonda is located within metres of the Line of Control, outside of the three-layer counter-infiltration fencing which runs along the frontier. After Ms. Reshma’s departure, troops of the 9 Maratha Light Infantry began constructing observations bunkers around Charonda, seeking to monitor the movement of villagers. The construction work — barred by the terms of the Line of Control ceasefire which India and Pakistan agreed on in 2003 — provoked furious protests from Pakistani troops. Indian commanders, the military source said, conceded that the construction was in violation of the ceasefire. However, they refused to stop work, arguing that the posts faced out towards the village, posing no threat to Pakistan. Early in October, tensions began to escalate. Pakistan even made announcements over a public address system, demanding that Indian troops end the construction work. Following the announcement, shells followed. Pakistani troops fired mortar and high-calibre automatic weapons at Indian forward positions. The fire missed its intended target, but killed three villagers, 25-year-old Mohammad Shafi Khatana, 20-year-old Shaheena Bano, and a ninth-grade school student, Liaqat Ali. In the weeks leading up to the New Year, military sources said, hardly a week went by without occasional shots being fired at troops headed to the new observation posts. Finally, on January 6, matters came to a head. Following a low-grade exchange of fire that night, 19 Infantry Division commander Gulab Singh Rawat sought and obtained permission for aggressive action against the Pakistani position from where his troops were being targeted. Pakistan insists its post, Sawan Patra, was raided by Indian troops. India has denied the allegation. Indian army spokesperson said that, none of Indian troops crossed the Line of Control. Either way, though, a Pakistani soldier was dead before the shooting ended — and another critically injured. Another Army official in New Delhi said that, there was no formal permission to stage a cross-border raid to target Sawan Patra. However, in the heat of fighting, these things have been known to

murugesansenthil.blogspot.com - 52 - JAN 2013 CURRENT AFFAIRS happen. Pakistan has done this, and our forces have done this, ever since fighting began in Jammu and Kashmir in 1990.

INDIA REJECTS PAKISTAN’S UN PROBE India has rejected Pakistan’s proposal for a United Nations (UN) probe into the chain of killings along the Line of Control (LoC) and led to the killing of two Indian soldiers. The Indian response was to a Pakistani suggestion for investigating the incidents by the UN Military Observer Group in India and Pakistan (UNMOGIP) which is present on both sides of the LoC.

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But high-level sources said the brutality with which the Indian soldiers were killed (soldiers were beheaded) will be taken up with Pakistan through back channels. After taking part in meetings of the Union Cabinet and the Cabinet Committee on Security which was briefed by Defence Minister A. K. Antony, Union Finance Minister P. Chidambaram said that, India is certainly not going to agree to internationalise the issue or allow the UN to hold an inquiry. That demand is obviously rejected out of hand, but India takes a serious view of what happened. Whatever has to be done will be done. He also added that the decapitation of an Indian soldier as brutal. At another news conference, National Security Advisor Shiv Shankar Menon said there had been an increase in ceasefire violations and infiltration attempts. In 2012 there was an increase overall over 2011. That is a fact. Both India and Pakistan have denied the involvement of their troops. Meanwhile Pakistan summoned Indian envoy Mr. Sharat Sabharwal and said to him that Pakistan is disappointment with India’s continual violations on ceasefire in LoC. Flag meeting at LoC:- While talking tough, India has suggested a flag meeting on the Line of Control with Pakistan to sort out the skirmishes that have led to the death of four soldiers from both sides. The Army has suggested a brigadier-level meeting at Baloni in the Mendhar sector, one of the four spots on the LoC where flag meetings are usually held. At first, there has been no response from the Pakistani side so far. Later, Paksitan agreed to the flag meet. On the other hand, Defence Minister A.K. Antony said that India had enough firepower on the border to take care of any situation and described the beheading of an Indian soldier as a

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“turning point.” The Minister, however, did not elaborate. He said that, it is not an isolated incident. Ceasefire violations and infiltration attempts are increasing. It is a matter of concern to us and the tragic, provocative actions two days back [killing of two Indian soldiers and the beheading of one] were a turning point. The intermittent exchange of fire between the Pakistan and Indian armies had an adverse impact on the cross-LoC trade ands people-to-people contact in the area. Pakistan stopped 65 Indian goods trucks from crossing the Chakan-da-Bagh point in Poonch district of Jammu and Kashmir into Rawalakote in PoK. It also cancelled the “Carvan-e-Aman”, bus service between PoK and Jammu.

Visa-on-arrival: ‘on hold’ Prime Minister Manmohan Singh warned that “business as usual” was not possible with Pakistan in the wake of the incident on the Line of Control in which two Indian soldiers were killed, the sudden chill in bilateral relations claimed its first casualties: elderly Pakistanis who had queued up at the Wagah border for the start of the visa-free entry regime for senior citizens were turned back as India cited “technical reasons” for putting on hold the much-awaited travel policy; and the Hockey Federation decided that nine Pakistani hockey players who were to take part in the Hockey India League tournament would be sent home as protests by radical outfits against their presence had allegedly raised security fears. External Affairs Minister issued a structured statement against the beheading of an Indian soldier. In the main, it asked Pakistan to come out of its state of denial and book those involved in the incident. There was no word on whether the scheduled month-end meeting of Commerce Ministers would take place, even as the Prime Minister said he hoped Pakistan realised that India wanted the prosecution of those involved in the beheading of Lance Naik Hemraj. The marked hardening of the government’s posture came soon after leaders and Arun Jaitey told National Security Adviser Shivshankar Menon that they expected the government to send a tough message to Pakistan. At the same time, Dr. Singh briefed President Pranab Mukherjee on the issues arising out of the flare-up on the LoC that has claimed the lives of four soldiers from both sides. The foreign offices of both countries have summoned the other side’s diplomats to protest against the killings.

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India has put on hold the ‘visa on arrival’ facility, which was to begin operating. Officially, technical reasons were responsible for the freeze but government sources said growing tension between the two neighbours led to India suspending the facility. Home Ministry officials said a decision on the issue would be taken at an appropriate time and quoted objections raised by various government agencies for the delay in implementation of ‘visa on arrival’ facility for Pakistani senior citizens. India revealed that it had demanded a Pakistani probe to book the culprits responsible for the beheading on at least two earlier occasions. The Director-General, Military Operations, first made the request for an investigation in his hotline conversation with his Pakistani counterpart. This was repeated during the Brigadier-level Flag Meeting held on the LoC.

Pakistan offers talks to ease tension:- Pakistan Foreign Minister Hina Rabbani Khar suggested a ministerial meeting with her Indian counterpart Salman Khurshid to de-escalate tensions between the two countries over cross-Line of Control (LoC) firings in which soldiers on both sides have been killed. Stating that continued tension along the LoC is not in the interest of peace and stability in the region, the Minister said it is imperative that both countries demonstrate requisite responsibility for ensuring peace by addressing all concerns through dialogue. Earlier, the Directors- General of Military Operations (DGMOs) of India and Pakistan agreed not to allow the situation in Jammu and Kashmir to escalate. The DGMOs spoke to each other for 10 minutes, Army sources said. Pakistan’s DGMO confirmed that orders have been passed to troops to observe ceasefire strictly and exercise restraint on the LoC where tension has prevailed.

U.S. Nuclear Component may have reached Pakistan via China:- Pakistan is circumventing matters of legality and geopolitical complexities in the procurement process for nuclear components. This may well be the conclusion reached in the case of Qiang Hu, a Chinese national who has been charged in Massachusetts with “conspiracy for violating U.S. export controls by allegedly selling thousands of pressure transducers to unnamed customers through his position of sales manager at MKS Instruments Shanghai Ltd. in China”.

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Among the list of nations that use pressure transducers to measure the gas pressure inside centrifuge cascades in nuclear plants is Pakistan. The list reportedly includes Iran and possibly , but Pakistan, according to experts at the Washington-based Institute for Science and International Security, is among those nations that “use a considerable quantity of the equipment in their centrifuge plants and have regularly sought them through surreptitious means as used in this alleged scheme”. That Islamabad was a likely final customer of Mr. Hu’s deceptions cannot be ruled out. According to a report published by ISIS on this case, “Hu and his co-conspirators allegedly arranged their unlawful export to unauthorised Chinese end-users or to other, unnamed country end-users”. The report’s authors, David Albright and Andrea Stricker, said that while recent case studies or evidence of Pakistani procurements of pressure transducers may not be available, Pakistan is “likely procuring them, assuming they don’t have enough in their centrifuge plants or haven’t made them themselves”. With the general assumption here that illicit procurement of components is quite a common practice experts are now urging that the U.S. ought to designate China a ‘Destination of Diversion Concern’, an action that would then require companies there to apply for special licences to import controlled or sensitive U.S. goods on account of the high risk that they may be diverted to rogue nuclear powers. Nuclear screws may indeed be tightened on China in the second Obama term as the Hu case also suggested acute embarrassment for U.S. law enforcement agencies. The Federal Bureau Investigation’s complaint in the matter, for example, cited “deception” that Mr. Hu and his co-conspirators resorted to, in order to procure export licences. The complaint argues that they used two primary means of deception to export the pressure transducers. First, “the conspirators used licences issued to legitimate MKS business customers to export the pressure transducers to China and then caused the parts to be delivered to other end-users who were not themselves named on the export licences or authorised to receive the parts”, the FBI said, adding that the conspirators then “obtained export licences in the name of a front company and then used these fraudulently obtained licences to export the parts to China, where they were delivered to the actual end- users”.

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However, MKS Instruments itself was not a target of the government’s investigation into these matters, the FBI noted, adding that Mr. Hu remained in custody and faced a maximum sentence of 20 years in federal prison, to be followed by up to three years of supervised release, and a $1 million fine.

15 YEARS OF BLOODLETTING AT LoC In classified protests to a United Nations watchdog that have never been disclosed till now, Pakistan has accused Indian soldiers of involvement in the torture and decapitation of at least 12 Pakistani soldiers in cross-Line of Control raids since 1998, as well as the massacre of 29 civilians. The allegations, laid out in confidential Pakistani complaints to the United Nations Military Observer Group in India and Pakistan (UNMOGIP), suggest that Indian and Pakistani troops stationed on the Line of Control remain locked in a pattern of murderous violence, despite the ceasefire both armies entered into in November 2003. UNMOGIP set up after the India-Pakistan war of 1947-1948 to monitor ceasefire violations, does not conduct criminal investigations, or assign responsibility for incidents. The reports of its ceasefire monitors are sent to the organisation’s headquarters in New York, and forwarded to the Ministry of Defence in New Delhi.

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Ever since 1972, India has responded to UNMOGIP queries with a standard-form letter, saying it believes the organisation has lost its relevance following the demarcation of the LoC. Earlier this month, India argued in the United Nations that the organisation ought to be wound-up. The most savage cross-LoC violence Indian forces are alleged to have participated in was the killing of 22 civilians at the village of Bandala, in the Chhamb sector, on the night of March 26-27, 1998. The bodies of two civilians, according to Pakistan’s complaint to UNMOGIP, were decapitated; the eyes of several others were allegedly gouged out by the attackers. The Pakistani military claimed to have recovered an Indian-made watch from the scene of the carnage, along with a hand- written note which asked, “How does your own blood feel”? Even though the large-scale killings of civilians did not take place again, Pakistan continued to report cross-border attacks, involving mutilations, to UNMOGIP. Six months after the Kargil war, on the night of January 21-22, 2000, seven Pakistani soldiers were alleged to have been captured in a raid on a post in the Nadala enclave, across the Neelam River. The seven soldiers, wounded in fire, were allegedly tied up and dragged across a ravine running across the LoC. The bodies were returned, according to Pakistan’s complaint, bearing signs of brutal torture. Indian troops, Pakistan alleged, killed a JCO, or junior commissioned officer, and three soldiers in a raid on a post in the Baroh sector, near Bhimber Gali in Poonch, on September 18, 2003. The raiders, it told UNMOGIP, decapitated one soldier and carried his head off as a trophy. Near-identical incidents have taken place on at least two occasions since 2008, when hostilities on the LoC began to escalate again. Indian troops, Pakistan’s complaints record, beheaded a soldier and carried his head across on June 19, 2008, in the Bhattal sector in Poonch. Four Pakistani soldiers, UNMOGIP was told, died in the raid. The killings came soon after a June 5, 2008 attack on the Kranti border observation post near Salhotri village in Poonch, which claimed the life of 2-8 Gurkha Regiment soldier Jawashwar Chhame. Finally, on August 30, 2011, Pakistan complained that three soldiers, including a JCO, were beheaded in an Indian raid on a post in the Sharda sector, across the Neelam river valley in Kel. In October last year, highly placed military sources said, Pakistan’s Director-General of Military Operations complained about Indian construction work around Charunda, in Uri. His Indian

murugesansenthil.blogspot.com - 59 - JAN 2013 CURRENT AFFAIRS counterpart, Lieutenant-General Vinod Bhatia, however, responded that India’s works were purely intended to prevent illegal border crossings. The unresolved dispute led to exchanges of fire, which eventually escalated into shelling and the killings of soldiers on both sides. The November 2003 ceasefire, Indian diplomatic sources say, was based on an unwritten “agreement,” which in essence stipulated that neither side would reinforce its fortifications along the LoC — a measure first agreed to after the 1971 war. In 2006, the two sides exchanged drafts for a formal agreement. Since then, the sources said, negotiations have stalled over differing ideas on what kind of construction is permissible. “In essence,” a senior government official said, “we accept that there should be no new construction, but want to be allowed to expand counter-infiltration measures and expand existing infrastructure.” India insists that it needs to expand counter-infiltration infrastructure because of escalating operations by jihadist groups across the LoC. Pakistan argues that India’s own figures show a sharp decline in operations by jihadists in Jammu and Kashmir. Last year, according to the Indian government, 72 terrorists, 24 civilians and 15 security personnel, including police, were killed in terrorist violence in the State — lower, in total, than the 521 murders recorded in Delhi alone. In 2011, the figures were, respectively, 100, 40 and 33; in 2010, 232, 164 and 69.

You can’t say that you need more border defences to fight off jihadists when you yourself say there is less and less jihadist violence - Pakistani military The only reason there are less jihadists, is because we’ve enhanced our defences - Indian military officer

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14th Finance Commission

RBI Cuts Policy Rates

Taxes for Super Rich

PART (VI)

ECONOMICS / BUSINESS

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TAXES FOR SUPER RICH

Pitching for higher rates of taxes for super rich, Prime Minister’s economic advisor C. Rangarajan said that the forthcoming budget could look at imposing surcharge on income above a threshold. His suggestion comes ahead of the Budget for 2013-14 for which Finance Minister P. Chidambaram has started consultations with different interest groups. India taxes income at three rates — 10 per cent, 20 per cent and 30 per cent. These rates were fixed in 1997 by the then Finance Minister Mr. Chidambaram. Interestingly, recently at a lecture to honour , Mr. Chidambaram had called for a debate on the need of inheritance tax in India, wondering if the country had paid enough attention to accumulation of wealth in the hands of a few. The U.S. Congress voted for raising taxes on rich Americans, as part of resolutions of crisis over the so-called ‘fiscal cliff’. The U.S. legislation raises taxes on individual earning more than $400,000 per year, and on couple earning more than $450,000. The veteran economist, a former RBI governor, also stressed for fiscal discipline to promote growth.

INDIA’S GROWTH ESTIMATES FOR 2012-13

Rating Agencies/Org/Banks Growth Rate (in %) ADB 5.4 Morgan Stanley 5.4 HSBC 5.7 Union Finance Ministry 5.7 – 5.9 RBI 5.8 Planning Commission 6.0 Fitch 6.0 SCB 6.2 S&P 6.5 UN-ESCAP 6.8

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ENGINEERS INDIA – 10% DISINVESTMENT

The government, decided to offload its 10 per cent stake in Ltd. (EIL) through public offer, which might fetch it around Rs.800 crore this fiscal. Finance Minister Mr. P. Chidambaram said that, government expects to get around Rs.800 crore at current prices. The disinvestment would take place through further public offering. Mr. Chidambaram expressed the hope that disinvestment of the leading engineering consultancy firm would happen this fiscal. After the disinvestment, the government’s shareholding in the company would come down to 70.40 per cent. The paid-up equity capital of the company, as on March 31, 2012, was Rs.168.47 crore. The government holds 80.40 per cent stake in EIL.

NATIONAL INVESTMENT FUND – TO BUY PSU SHARES

Aimed at taking the disinvestment exercise forward at a faster clip, the Cabinet Committee on Economic Affairs (CCEA), authorised the National Investment Fund (NIF) to buy shares of public sector undertakings (PSUs), including banks and insurance companies. As per the of approvals given by the CCEA at its meeting chaired by Prime Minister Manmohan Singh to align the NIF operation to enhance the disinvestment policy, the NIF will also be used to recapitalise public sector banks (PSBs) and state-owned insurance companies. According to an official release, the disinvestment proceeds with effect from the fiscal year 2013-14 will be credited to the existing ‘public account’ under the head National Investment Fund (NIF), and they would remain there until withdrawn/invested for the approved purposes. The NIF will be used for “subscribing to the shares being issued by the Central public sector enterprise (CPSE) including public sector banks (PSBs) and public sector insurance companies, on a rights basis so as to ensure that 51 per cent ownership of the government is not diluted.” Alongside, the Fund will also be utilised for issuing “preferential allotment of shares of the CPSE to promoters as per the Securities and Exchange Board of India SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, so that government shareholding does not go down below 51 per cent, in all cases where the CPSE is

murugesansenthil.blogspot.com - 63 - JAN 2013 CURRENT AFFAIRS going to raise fresh equity to meet its capital expenditure programme.” Fund managers now managing the NIF will stand discharged of their responsibility from the date the funds and the interest income are transferred to the NIF, it said. Set up in 2005, the NIF is being hitherto managed by three fund managers — UTI Asset Management Company, SBI Funds Management Company and LIC Mutual Fund Asset Management Company. Essentially, while about 75 per cent of the income from NIF is being used to fund select social sector programmes, the balance amount is utilised to meet the capital investment requirements of profitable PSUs and revival of sick state-owned units. However, following the global meltdown and its impact on the domestic economy, the government, in November, 2009, decided to utilise the disinvestment proceeds only for social sector spending.

UN REPORT PROJECTS 6.1% GROWTH FOR INDIA

Indian economy is projected to grow at a slower pace of 6.1% this year even as exports and capital investments are likely to be much better than in 2012, according to the United Nations. The UN has trimmed its growth forecast from 7.2% estimated in June 2012. However, the forecast of 6.1% growth for this year is much better than 5.5% expansion seen in 2012, as per the UN 'World Economic Situation and Prospects 2013' report. The report said that, GDP growth in India will accelerate to 6.1 per cent in 2013 and 6.5 per cent in 2014 as a result of stronger growth of exports and capital investment. Investment demand is expected to respond to a more accommodative monetary policy stance and slightly improved business confidence. UN ESCAP's (Economic and Social Commission for Asia and the Pacific) Chief Economist Nagesh Kumar said that India has huge growth potential in the long term. He said that, India and China are playing a major role in the growth of world economy. The slowdown in growth to 5.5 per cent last year reflected weaker consumption and investment demand as a result of persistent inflation, high nominal interest rates, large fiscal deficits and political gridlock. According to the UN, India's annual growth declined from over 9 per cent clocked in 2010 to about 5.5 per cent last year, "the slowest pace in ten years". Indian economy accounts for almost three-quarter of South Asia's overall GDP. Other countries in South Asia region include Bangladesh, Nepal, Pakistan and Sri Lanka.

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RBI CUTS POLICY RATES

For the first time in nine months, the Reserve Bank of India cut the indicative policy rate (Repo) by 25 percentage points, from 8 per cent to 7.75 per cent, and the Cash Reserve Ratio (CRR) by 25 percentage points, from 4.25 per cent 4 per cent. The step is likely to benefit retail borrowers, as lending rates are likely to come down. The RBI first cut the Repo rate in the current fiscal in April 2012, with a reduction of 50 percentage points, from 8.5 per cent to 8 per cent. It reduced the CRR from a peak of 6 per cent to 4.25 till mid- December 2012. Repo is the rate at which banks borrow funds from the central bank. CRR is the portion of deposits banks must keep with the RBI. The RBI has scaled down the projection for GDP growth for the current year, from 5.8 per cent to 5.5 per cent, and for the wholesale price inflation in March 2013, from 7.5 per cent to 6.8 per cent. However, the RBI has warned that retail inflation is still at a higher level. As of January 31, 2013 the important policy rates are:- Bank Rate: 8.75% Repo Rate: 7.75% Reverse Repo Rate: 6.75% CRR: 4% SLR: 23%

GROSS DIRECT TAX COLLECTIONS UP 8%

Direct tax collection has improved marginally, with the gross growth rate at over eight per cent during April-December. However, it is still lower than the Budgeted target of 15%. A Finance Ministry statement said gross direct tax collections during April- December increased to Rs 4.28 lakh crore from Rs 3.96 lakh crore, showing a growth of 8.01%. However, with lower refund, net direct tax collection grew to Rs 3.68

murugesansenthil.blogspot.com - 65 - JAN 2013 CURRENT AFFAIRS lakh crore from Rs 3.24 lakh crore registering a jump of 13.7%. The Ministry aims to mop up Rs 5.70 lakh crore through direct taxes, which constitute personal income tax, corporate tax, securities transaction tax and wealth tax. Experts believe that with the slowdown in industrial activity, corporate tax collection may not be on expected lines, affecting overall direct tax collection. Achieving the tax collection as targeted is crucial for capping the fiscal deficit within the revised target. The Budget projected the fiscal deficit at 5.1 per cent of GDP.

URJIT PANEL – DY GOVERNOR OF RBI

Economist Urjit Patel’s name has been cleared for appointment as the new Deputy Governor of the Reserve Bank of India (RBI). Dr. Patel is at present a non-resident senior fellow at the Brookings Institution, a U.S.-based think—tank. RBI Team: The current Governor of RBI is Duvvuri Subbarao. The RBI extended the period of the present governor up to 2013. There are four deputy governors, Deputy Governor K C Chakrabarty, Urjit Patel, Shri Anand Sinha, and Shri H.R. Khan. Deputy Governor K C Chakrabarty's term has been extended further by 2 years. (Subir Gokarn was replaced by Mr. Urjit Patel in January 2013)

IMPORTS OF GOLD TO BE MADE COSTLIER

Worried over the widening current account deficit (CAD), in a large measure owing to rising imports of gold, Finance Minister P. Chidambaram, indicated that steps were under consideration to render its imports ‘a little more expensive’ to curb demand for the yellow metal. Mr. Chidambaram said that, gold imports constituted a substantial chunk of the imports and is a huge drain on the Current Account and therefore government appeal to the people to moderate the demand for gold which leads to large imports of gold. Government left with no choice but to make it a little more expensive to import gold. This matter is under Government’s consideration.

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Mr. Chidambaram noted that CAD — representing the difference between exports and imports after considering cash remittances and payment — had risen to $38.7 billion or 4.6 per cent of the GDP (gross domestic product) during the first half of the current fiscal. Of this, a major contribution was by way of gold imports, amounting to $20.25 billion. Citing figures, the Finance Minister went on to point out that as against the marginal accretion of $0.4 billion to the country’s forex reserves during April- September, the increase would have been many times more only if gold imports had been half the actual level. “Suppose gold imports had been one half of the actual level, that would have meant that our foreign exchange reserves would have increased by $10.5 billion,” he said Mr. Chidambaram argued that the country cannot afford to spend so much on importing gold. Nobody says gold within the country should not be used for whatever purpose. There is enough gold within the country. But import of gold is huge strain on the current account. During 2011-12, gold imports amounted to a foreign exchange spending of $56.2 billion and to curb the rising demand for the precious metal, the then Finance Minister, in his Budget for the current fiscal, had double the basic Customs duty on standard gold bars to 4 per cent from 2 per cent and on non-standard gold to 10 per cent. Even as certain other measures had to be moderated, the hike in duty did lead to some decline in imports. Gold imports during the first six months of 2012-13 in value terms stood pegged at $20.2 billion, marking a decline of about 30.3 per cent over the like period a year ago. Thus, the decline can partly be attributed to increase in customs duty on gold imports by government in January and March, 2012. He also said that, the gap in export and import, was partly made up “by an increase in services exports of 4.2 per cent and, consequently, surplus in services which amounted to $29.6 billion and remittances of $32.9 billion.” What was particularly positive a worrying situation was

murugesansenthil.blogspot.com - 67 - JAN 2013 CURRENT AFFAIRS that the widening CAD was financed without drawing on country's foreign exchange reserves, mainly because of adequate inflows of FDI ($12.8 billion) and FII ($1.7 billion). The net result is that, India have not drawn on the foreign exchange reserves and, in fact, there is a marginal accretion of $0.4 billion to the reserves. RBI panel for tough measures on gold: The Reserve Bank of India (RBI), in its bid to curb investments in gold bars and jewellery, has come out with a draft report suggesting revision in gold loan rules and introduction of new gold-backed products, which would bring down India’s gold import bills. The working group constituted for studying gold and goal loans by Non-Banking Finance Companies (NBFCs), under the chairmanship of KUB Rao, Advisor, Department of Economics and Policy Research has recommended that banks and NBFCs put the pledged gold to productive use and has also recommended tough guidelines for gold loan companies. Some key recommendations include having banks design innovative financial instruments to provide real returns to investors; conversion of both rural and urban demand for gold into investment in gold-backed financial instruments through dematerialisation of gold, and introduction of tax incentives on instruments that could impound idle gold. To prevent the mushrooming of gold loan firms, the panel has recommended that activities of gold loan NBFCs be monitored continuously and the interconnectedness of gold loan NBFCs with the formal financial system be reduced gradually. It has also suggested measures to review the current guidelines pertaining to gold loan NBFCs raising resources through NCDs. It has also mooted the idea of thoroughly reviewing operational practices followed by gold loans NBFCs. The Working Group was assigned with the task of studying whether large gold imports of India are a threat to external stability. It was asked, among other things, to study the recent trends in gold loans extended by large gold loan NBFCs and see whether there are any systemic stability issues. The report, however, has outlined that there was no systemic implications in the financial system because of gold loan NBFCs. Also the report outlines that there is no risk to gold loan companies because of various factors such as volatility in prices of the gold, sources of funds, capital adequacy and asset quality.

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14TH FINANCE COMMISSION

The government announced the constitution of the 14th Finance Commission under the chairmanship of former RBI Governor Y. V. Reddy. The five-member panel is to submit its report by October 31, 2014. Apart from its recommendations on the sharing of tax proceeds between the Centre and the States which will apply for a five-year period beginning April 1, 2015, the Commission has been asked to suggest steps for pricing of public utilities such as electricity and water in an independent manner and also look into issues like disinvestment, GST compensation, sale of non-priority PSUs and subsidies.

Finance Minister Chidambaram said that, among other things, the Commission would look into the “need for insulating the pricing of public utility services like drinking water, irrigation, power and public transport from policy fluctuations through statutory provisions”. Apart from Dr. Reddy in the chair, other members of the Commission are former Finance Secretary Sushma Nath, NIPFP Director M. Govinda Rao, Planning Commission Member and Former Acting

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Chairman of National Statistical Commission Sudipto Mundle. The Commission, the Finance Minister said, would review the state of finances, deficit and debt levels of the Centre and States, keeping in view, in particular, the fiscal consolidation roadmap recommended by the 13th Finance Commission. Besides, the 14 Finance Commission would suggest measures for maintaining a stable and sustainable fiscal environment consistent with equitable growth. About Finance Commission:- The Finance Commission of India came into existence in 1951. It was established under Article 280 of the Indian Constitution by the . It was formed to define the financial relations between the centre and the state. The Finance Commission Act of 1951 states the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission. As per the Constitution, the commission is appointed every five years and consists of a chairman and four other members. Since the institution of the first finance commission, stark changes have occurred in the Indian economy causing changes in the macroeconomic scenario. This has led to major changes in the Finance Commission’s recommendations over the years. Article 280 of the Indian Constitution states that:  The President will constitute a Finance Commission within two years from the commencement of the Constitution and thereafter and at the end of every fifth year or earlier, as the deemed necessary by him/her, which shall include a Chairman and four other members.  Parliament may by law determine the requisite qualifications for appointment as members of the Commission and the procedure of selection.  The Commission is constituted to make recommendations to the President about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same amongst the States themselves. It is also under the ambit of the Finance Commission to define the financial relations between the Union and the States. They also deal with devolution of non-plan revenue resources. Functions of the Finance Commission can be explicitly stated as:  Distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes.

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 Determine factors governing Grants-in Aid to the states and the magnitude of the same.  Work with the State Finance Commissions and suggest measures to augment the Consolidated Fund of the States so as to provide additional resources to Panchayats and Municipalities in the state. Qualifications of the members The Chairman of the Finance Commission is selected among people who have had the experience of public affairs. The other four other members are selected from people who: . Are, or have been, or are qualified, as judges of High Court, or . Have knowledge of Government finances or accounts, or . Have had experience in administration and financial expertise; or . Have special knowledge of economics

FINANCE COMMISSIONS – SO FAR # Year Chairman Duration I 1951 K C Neogy 1952-1957 II 1956 K Santhanam 1957-1962 III 1960 A K Chanda 1962-1966 IV 1964 P V Rajamannarr 1966-1969 V 1968 Mahaveer Tyagi 1969-1974 VI 1972 K Brahmananda Reddy 1974-1979 VII 1977 J M Shellet 1979-1984 VIII 1983 Y B Chavan 1984-1989 IX 1987 N K P Salve 1989-1996 X 1992 K C Pant 1995-2000 XI 1998 A M Khusro 2000-2005 XII 2003 C Rangarajan 2005-2010 XIII 2007 2010-2015 XIV 2012 Y Venugopal Reddy 2015-2020

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NEW NORMS FOR INDEPENDENT PSU DIRECTORS

The government has come up with a set of guidelines for independent directors on boards of public sector units, defining their roles and responsibilities aimed at improving corporate governance in state-owned companies. Earlier, the department of public enterprises (DPE) had not defined these norms for non-official directors appointed on boards of central public sector enterprises (CPSEs). This is the first time that role and responsibilities of independent directors for CPSEs have been defined. This is an improvement in respect to corporate governance and to advise independent directors to play their role more effectively. Under the norms, non-official directors should have a candid view of the faults or shortcomings of company's plans and accordingly suggest measures for improvement, he added. However, these guidelines would be reviewed in light of experiences gained and brought in line with the relevant provisions once the companies law comes into effect. The norms state that independent directors should satisfy themselves on the integrity of financial information and financial controls, besides ensuring that the risk management systems of the company are robust and defensible. DPE has asked other ministries/departments to inform CPSEs, under their administrative control, about the norms. Under these guidelines, independent directors are expected to arbitrate in the interest of the company as a whole, in situations of conflict between management and shareholder's interest. The DPE had given the task of defining role and responsibilities of independent directors to the Institute of Chartered Accountants of India after obtaining comments from relevant stakeholders. The fulfilment of the responsibilities in an efficient manner by an independent director would lead to good corporate governance in a PSU which will further help in protecting stakeholders' confidence. Defining the duties of NoDs, the norms state they should not use confidential information acquired as NoDs for their personal advantage or for any other entity. They also mentioned that independent directors should report concerns about unethical behaviours, actual or suspected fraud or violation of the company's code of ethics policy. Besides, NoDs should not disclose confidential information including commercial secrets, unpublished price sensitive information unless such disclosure is expressly approved by the board or required by law.

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SBI’S PRE-PAID MOBILE WALLET

State Bank of India (SBI) has launched State Bank MobiCash Easy, a mobile wallet which offers facilities such as fund transfer, bill payment, balance inquiry, mini statement, mobile top-ups and DTH recharge to name a few. It is a pre-paid account accessible over mobile phones, enabling consumers to send remittances to any bank account, transfer funds to other wallets issued by SBI. At present, money withdrawal is not allowed, and the customer is not required to fulfil the KYC (know your customer) norm. The service, initially launched in Mumbai and Delhi, is available over Wallet Application and plain text SMS. SBI has tied up with a private service provider Oxigen for round-the-clock money transfer and other services. Targeted at migrant labourers who send money back home from SBI branches, the youth and those seeking to pay bills, SBI’s mobile wallet is easy to use and SBI’s customers and non- customers can use this facility. The user needs to top up the wallet by depositing cash at any Oxigen retail outlet and this facility is completely risk-free. To start with Oxygen CSPs and retail outlets will be the cash in points and the location of this point can be obtained by sending an SMS to 9870888888. The registration process is simple, and can be done over . State Bank MobiCash Easy will contribute significantly in increasing mobile payments which are at present in a nascent stage. This service will also address the requirement of financial inclusion as it enables us to extend financial services to un-banked masses through the ubiquitous mobile phones. SBI customers have an additional option of topping up the wallet using SBI’s mobile banking service. Till March, the charge of topping up is waived and for remittances the customer need to pay a minimum of Rs.5 to a maximum of Rs.20. Up to Rs.5,000 remittance is allowed at a time. But customers with KYC have higher limits.

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