Current Affairs - 15 August 2015

General Affairs

Will Work on Alternative Ways to Implement GST: Union Minister Piyush Goyal

• AHMEDABAD, GUJARAT:  The BJP led National Democratic Alliance could look at alternative options for implementation of the Goods and Services Tax Bill from April 1 next year, said Union minister, Piyush Goyal, after the monsoon session of Parliament ended yesterday without approving the biggest ever tax reform for India.
  
  The minister accused the Congress of insulting the people's mandate given to BJP last year by disrupting the legislative business in Parliament, where the GST bill is stalled.
  
  

  "There are less possibilities of implementing GST law by April 2016, but the government will work out alternative ways to ensure people get its benefits... We will hope that the Congress will realise the futility of stalling reforms like GST and will come on board," Mr Goyal told reporters in Ahmedabad.
  
  The minister was in town as part of BJP's strategy to expose the Congress across the country on the issue of stalling major legislations in Parliament.The 51-year-old ruled out the Ordinance route for GST by the government, as constitutional amendments cannot be implemented through them.
  
  Mr Goyal said, "I will not reveal the strategy, but I would clearly say we are determined and it would be our endeavour to roll out GST from April 1, 2016."
  
  The GST was passed in May by the Lower House or Lok Sabha, where the government has a huge majority, but it has been stalled in the Rajya Sabha, where the government and its allies are in a minority. Congress has been demanding three major changes to the Bill.
  
  The Bill aims to create a national sales tax to replace a matrix of levies in the 29 states. After it is sanctioned by Parliament, half of India's states need to endorse the reform.
  

Haryana's BJP Government to Spend Rs. 50 Crores to Promote Mythological River

• CHANDIGARH:  Purported signs of existence of a river considered sacred in Hindu mythology and a religious-minded BJP government being in power in Haryana are sufficient factors to try and "revive" the invisible Saraswati by spending a whopping Rs.50 crores ($7.5 million) in public money.
  
  
  Buoyed by the recent "discovery" of water at just seven feet in Rohlaheri village of Haryana's Yamunanagar district during digging work to find the mythological river, the Haryana government has pledged Rs.10 crore from the corpus to establish the Haryana Saraswati Heritage Development Board.
  
  Chief Minister Manohar Lal Khattar had in April announced the Rs.50 crore project to revive the river.
  
  "The Board will conduct meticulous field work to unearth and understand the past and the present content of the Saraswati heritage in Haryana for exposition of cultural patterns and values. It will help to preserve and promote the various archeo-cultural facets of the Saraswati Heritage Area," said a note of the state cabinet, which approved the setting up of the new board and release of funds for it.
  
  "A provision of Rs.10 crore has been made for establishment and smooth functioning of the Haryana Saraswati Heritage Development Board which includes a provision for recurring expenditure of Rs. 2.42 crore for petty expenses, payment of salaries and wages," a senior Haryana government official told IANS.
  
  Mr Khattar, who heads the first Bharatiya Janata Party (BJP) government in the state and has been a Rashtriya Swayamsewak Sangh (RSS) ideologue, and other BJP ministers have been quite inclined to dig up the mystery behind the mythological river, given its significance in Hindu mythology.
  
  The Saraswati river finds several mentions in ancient Hindu scriptures like the Rig Veda, the Mahabharata, the Ramayana and others, giving credence to the belief that the river existed during ancient times when it was held in great reverence.
  
  "In Yamunanagar district, there are several places where there is tell-tale evidence that the river flowed in the area at one time," Sohan Lal, a septuagenarian from the area, told IANS.
  
  The Haryana government has drawn up elaborate plans for reviving the river through the new board.
  
  "The Board will aim at revitalizing sacred places in the Saraswati Heritage Area. It will create effective linkages between tourism and cultural facilities by developing tourism circuits and conservation of natural resources in the area. It will develop and revive the existing Saraswati creek for irrigation, sanitation, recharging of ground water, plantation, development of herbal parks, landscaping to preserve and protect the environment and to ensure soil conservation," the state government's plan states.
  
  The board will associate with the Archaeological Survey of India (ASI), UNESCO and other related national and international institutions for the project.

Supreme Court Order on Aadhar Puts Brakes on Election Commission's Project

• NEW DELHI:  The Supreme Court order on Aadhar card has put brakes on Election Commission's project to link UIDAI (Aadhar) number with voters' electoral data to check multiple entries in electoral rolls.
  
  The commission has asked its Chief Electoral Officers in all states and Union territories to "suspend with immediate effect till further orders" all activities to collect and feed Aadhar numbers of voters as part of its National Electoral Roll Purification and Authentication Programme (NERPAP).
  Quoting the apex court order of August 11, the Commission said, "Henceforth no more collection of Aadhar numbers from electors or feeding/seeding of collected Aadhar data shall be done by any election authority or official connected with NERPAP."
  The directions, issued yesterday, however, made it clear that all other activities under NERPAP to "purify" the poll process will continue to be carried out during the period of continuous updation and special summary revision, 2016.In its judgement, an apex court bench has made it clear that Aadhar card will be optional for availing various welfare schemes of the government and no personal information of the holders of such cards shall be shared by any authority.
  It said, "UIDAI (Universal Identification Authority of India)/Aadhar will not be used for any other purposes except PDS, kerosene and LPG distribution system."However, the court made it clear that even for PDS, kerosene and LPG distribution system, the card will not be mandatory.
  The bench directed that the information received by UIDAI shall not be used for any other purposes, except in criminal investigation with the permission of the court.Seeking to check multiple entries in electoral rolls and to make them error-free, Election Commission had embarked on an ambitious project to link Aadhar numbers with voters' electoral data.
  NERPAP was launched throughout the country from March 3 with the prime objective of bringing a totally error-free and authenticated electoral rolls. So far, 13 crore voters have applied to link their Aadhar numbers with their entries in electoral rolls. While 10 crore requests have been received through various means, three crore people have applied online.

How Many Times Will Rahul Gandhi be Repackaged, Asks BJP

• NEW DELHI:  The name-calling that marred the just-concluded parliament session has not subsided.  'How many times will Rahul Gandhi be repackaged?" asked the ruling BJP's Ravi Shankar Prasad today, accusing the Congress No 2 of being short of ideas and principles in politics. "He has two modes: hit and run, and spit and run," said Mr Prasad, who is a union minister.
  
  The BJP says that in the bitterness of their sizeable electoral defeat last year, Mr Gandhi and his mother Sonia are impinging upon the country's economic potential by using their party to obstruct major reforms.  The Congress deployed its lean group of 44 Lok Sabha members to procure repeated adjournments of parliament- not one day among the three-week session was free of chaos, ensuring that proposals  seen as essential for economic recovery - including the Goods and Sales Tax and new labour laws- were taken up for discussion.
  The Congress says it has an unbending one-point agenda: the PM must remove three of his colleagues, including Foreign Minister Sushma Swaraj, on charges of corruption.  Mr Gandhi has recalcitrantly pledged that unless that happens," the Congress will not keep quiet".  The 45-year-old, often accused by critics of lacking the acuity and rigor required of mainstream politics, has front-lined his party's demonstrations along with his mother and party boss, Sonia.  Earlier this week, in an uncharacteristically dramatic speech in parliament, Mr Gandhi said the PM, who was missing, "does not have the guts "to attend important debates.
  The BJP has commissioned a nationwide campaign to warn voters that the Congress is imperiling economic growth. Comparing the party's behaviour in parliament to the Emergency, the PM yesterday told his law-makers, "The BJP exists to serve the country.  The Congress exists to serve one family."  
  Describing Mr Gandhi as "an expert without knowledge", BJP leaders have underscored that the leader took a two-month time-out during the crucial budget session of parliament -ample proof, they say, of wavering interest in and commitment to his day job.

App Introduced With Tricolour Hoisting Feature in Hyderabad

• HYDERABAD:  Technology company Trendyworks has come out with a 'FamilyApp' on occasion of Independence Day through which one can experience the pride of hoisting the national flag from anywhere in the world in a single click.
  
  The application is available on Google Play Store.
  
  The company has built flag hoisting feature in the 'FamilyApp', which makes it possible to sing the national anthem in 10 languages - English, Hindi, Telugu, Tamil, Marathi, Gujarati, Bengali, Malayalam, Kannada, and Oriya, it said in a statement.
  
  "Once you download and open the app you will see the folded National Flag on a pole. The app works on voice commands and the flag rises along the pole when the user says 'Jai Hind'. The flag is completely hoisted when 'Jai Hind' is said three times.
  
  The flag unfurls to a resounding tune of the national anthem which ends with Prime Minister Narendra Modi's triumphant call of 'Jai Hind'," it said.
  
  "The best part is you can take a selfie with the tricolour and share it with your friends on Whatsapp and Facebook," the company, founded by Neeraj Jewalkar, a serial entrepreneur and an angel investor, said.

Business Affairs 

Sensex closes above 28k, Nifty above 8,500 as WPI falls

• The benchmark BSE Sensex reclaimed the 28,000-mark and the National Stock Exchange (NSE) Nifty the 8,500 level at close on Friday on across-the-board gains after WPI inflation fell for July, raising hopes of a rate cut by the RBI amid a pause in rupee's fall.

  Wholesale price index-based inflation plunged to (-)4.05 per cent in July, from (-)2.40 per cent in June.

  The latest set of numbers followed data earlier this week which showed retail inflation eased in July, which raised hopes of a possible rate cut by Reserve Bank of India (RBI).

  Equity brokers said better-than-expected positive macro data fuelling hopes of a policy rate reduction triggered buying by participants, helping key indices regain their crucial levels.

  Besides, falling global crude oil prices, which slid to its lowest level in over six years, lifted sentiment, they said.

  The 30-share index, which rose over 162 points in early trade, continued its advance, soaring 517.78 points, or 1.88 per cent, to 28,067.31 at close.

  The gauge had gained 37.27 points in the previous session.

  All sectoral indices, led by realty, banking, auto and healthcare, were trading in the positive zone with gains up to 5.57 per cent.

  The NSE Nifty retook the crucial 8,500-mark by surging 162.70 points, or 1.95 per cent, to 8,518.55 at close.

  Vedanta led the pack of gainers, followed by RIL, HDFC, Bajaj Auto and ICICI Bank.

  Among other Asian markets, the Shanghai Composite index rose 0.27 per cent while Japan's Nikkei fell 0.37 per cent and Hong Kong's Hang Seng lost 0.14 per cent.

  Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 625.90 crore on Thursday, provisional exchange data showed.

Jet Airways logs profit in June quarter on lower fuel costs

• Jet Airways said on Friday it made a profit in the June quarter compared to a loss in the year-ago period, helped by a fall in fuel expenses and a one-time gain on sale and leaseback of engines.

  Mumbai-based Jet, country's second-largest carrier by market share, said net profit in the April-June quarter was at Rs 221 crore ($33.80 million), compared with a loss of Rs 218 crore the same quarter last year.

  Despite rapidly rising demand for air travel in India, Jet has not made an annual profit since 2007, dragged into the red by high operating costs and fierce competition for passenger fares.

  A drop in fuel prices has, however, eased the squeeze on Indian airlines this year-low-cost rival SpiceJet swung to a small net profit in the last quarter-but analysts say ticket prices are still too low and costs too high for sustained profitability.

  Jet, 24 per cent owned by Abu Dhabi's Etihad, last year announced a cost-cutting plan and said it expected to make a full-year profit in 2017.

  ($1 = Rs 65.0900)

Wholesale inflation falls to historic low of -4.05%

• The wholesale prices in the country fell to a historic low at a faster-than-expected annual rate of 4.05 per cent in July, their ninth straight decline and their lowest in at least a decade, mainly driven by weak food and fuel prices, government data showed on Friday.

  The wholesale price index-based (WPI) inflation for June stood at 2.40, the data showed.

  Vegetable prices declined 24.52 per cent, with potato prices slumping 49.27 per cent.

  However, pulses got dearer by 35.75 per cent as against 33.67 per cent in the previous month.

  Inflation in fuel and power category stood at (-)12.81 per cent in June.

  The manufactured product index inflation was (-)1.47 per cent as against (-)0.77 per cent last month. Prices eased for sugar, beverage, tobacco and tobacco products.

  Prices of cotton textile also declined 4.63 per cent, and those of leather and leather products 2.43 per cent.

  WPI inflation has been in the negative zone since November 2014. A year ago in July 2014, inflation was 5.41 per cent. During the month, pulses, milk, edible oil, egg, meat and fish turned dearer.

  The WPI number follows retail inflation (CPI) data, which had slipped to a record low of 3.78 per cent in July.  

  RBI Governor Raghuram Rajan after the monetary policy announcement on August 4 had said the central bank may cut interest rate even out of the policy cycle depending on how macroeconomic indicators play out. "We are waiting for information. There was more need to move fast in the early stages of the turnaround. We will take all information into account and decide whether at times it warrants moving in between policy cycle or it does not," he had said after the policy meet.

  RBI mostly tracks the consumer price inflation for its policy decision, and its next review is due on September 29.

No reason for further yuan devaluation, says China's central bank

• China's yuan firmed at open on Friday, after the central bank said there was no reason for the yuan to fall further given the country's strong economic fundamentals.

  The People's Bank of China set the midpoint rate CNY=SAEC at 6.3975 per dollar prior to market open, firmer than the previous day close 6.399.

  The spot market CNY=CFXS opened at 6.3990 per dollar and was changing hands at 6.3980 in the morning, -10 pips away from the previous close and 0.01 per cent away from the midpoint. The spot rate is currently allowed to trade with a range 2 per cent above or below the official fixing on any given day.

  The offshore yuan was trading -0.82 per cent away from the onshore spot at 6.451 per dollar. 

Rupee recovers on dollar sale, trading above 65 level

• The rupee recovered from initial losses against the American currency quoting at 65.15 on fresh selling of dollars by banks and exporters on the back of smart recovery in the equity market. The rupee resumed lower at 65.19 as against Thursday's closing level of 65.10 and dropped further to 65.34 on initial dollar demand from banks and importers considering a firm dollar in the overseas market.

  However, it recovered from initial losses to 65.05 before quoting at 65.15 at 1218 hours. It moved in a range of 65.05 and 65.34. Overseas, the dollar edged higher on Thursday, extending its gains earlier in the session and snapping a six-session losing streak against the euro after a spate of strong economic data in the US.

  "Fulfilling the government's commitment to improve spectral efficiency and quality of service, which is very essential to fulfil the dream of Digital India, the Union Cabinet... today gave its approval to the guidelines on spectrum sharing arising from the recommendations of the Telecom Regulatory Authority of India (Trai)," an official release said.

  Oil prices looked set for their seventh weekly fall in Asia Friday, with US crude tumbling to fresh six-year lows as investors are worried a global supply glut is set to last. US benchmark West Texas Intermediate (WTI) for September delivery dropped 17 cents to $42.06 in late-morning trade after falling below $42 a barrel earlier in the session, the lowest since March 2009. 

General Awareness

Govt. nod for revised cost estimate of freight corridor

• • The Cabinet Committee on Economic Affairs (CCEA) approved the revised cost estimate of Rs. 81,459 crore for the Eastern and Western Dedicated Freight Corridor (DFC) Project. The Cabinet had in February 2008 approved the construction of the freight corridor.

    The revised estimate includes Rs. 73,392 crore of construction costs and Rs. 8,067 crore of acquisition costs.

    This cost does not include the cost of the 534 km Sonnagar-Dankuni section (in Eastern DFC), which is to be implemented through a Public Private Partnership (PPP).

    Status: Already 75 per cent of the 4,807 hectares of land needed for the Eastern DFC has been acquired, and 85 per cent of the 5,860 hectares needed for the Western DFC has been acquired so far. Adesh Sharma, managing director of DFCCIL(Dedicated Freight Corridor Corporation of India) recently said that he was confident of starting phased commissioning of the DFCs from 2018. Of the total 3,350 km of the DFC project, work is in progress in 360 km in EDFC and 650 km in WDFC.

    What are DFCs?

    With the present railway network in India becoming very congested, transportation of freight has been facing inefficiencies because of delays. To ease the overburdened network, government has envisaged dedicated freight corridors (DFCs). Of these the Eastern and Western DFCs are being implemented. They are expected to become the backbone of manufacturing sector in the country. They would be broad gauge corridors and fully electrified.

    Western DFC:

    • The Western DFC starts from JNPT Mumbai and passes through Maharashtra, Gujarat, Rajasthan, Haryana, and terminates at Dadri in Uttar Pradesh.
    • The total length will be about 1,483 km.
    • The Western DFC is projected to carry 161 million tonnes by 2021 and 284 million tonnes by 2036.
    • The Western DFC has secured a loan of 645.173 billion yen (around Rs.45,434 crore) from the Japan International Cooperation Agency

    Eastern DFC:

    • The Eastern DFC starts from Sahnewal near Ludhiana in Punjab and passes through Haryana, Uttar Pradesh, Bihar and Jharkhand and terminates at Dankuni in West Bengal.
    • The total length is about 1,856 km.
    • The Eastern DFC is expected to carry around 153 million tonnes of cargo by 2021-22. This is set to increase to 251 million tonnes by 2036-37.
    • The Eastern DFC has secured a loan of $2.725 billion (around Rs.17,327 crore) from the World Bank

    The corridors will be connected at Khurja junction in UP, near to Delhi.

    Requirement

    • For the speedy delivery of goods across the country by having a dedicated corridor exclusively for freight. A freight consignment today takes two to three to move between Delhi and Mumbai. After completion of DFC, the time will be reduced to less than 24 hours.
    • The average speed of trains will increase to 70 km per hour against 25 km per hour now. The unit cost of transport is also expected to reduce 40 per cent making DFC more economical than other modes of transport.
    • WDFC will involve movement of double-stack containers with electric traction for the first time in the world.
    • This will also help in improvement of railways’ share in transport from 36 per cent.
    • These Projects will significantly reduce transportation cost and benefit power plants, mines, ports, and boost trade and industry.