Current Affairs - 5 October 2015

General Affairs

Under Grand Alliance, Bihar Would End Up in 'Jungle Raj 2': Amit Shah

• MUZAFFARPUR/KATIHAR:  It will be "jungle raj 2" if the grand alliance came to power in Bihar, BJP national President Amit Shah warned today, asserting that Chief Minister Nitish Kumar is the "mascot" of "corrupt" Congress and along with RJD the state will not progress.
  
  "The Congress had presided over scam to the tune of Rs 12 lakh crore during the UPA rule at the Centre and the RJD had presided over 'jungle raj' during its 15-year rule... how can Nitish Kumar bring development to Bihar by carrying these two allies on his shoulders," Mr Shah told party workers at Nehru Stadium in Muzaffarpur town.
  
  Urging the electorate of Bihar not to get swayed by the "bluff" of the senior JD(U) leader, Mr Shah warned that Bihar would end up with 'jungle raj 2' in the event of the grand secular alliance winning the Assembly elections.
  
  

  Dubbing Nitish as the master of "politics of betrayal", Mr Shah said she will not remain faithful to Bihar and its people given his penchant of betraying the socialist icons, namely Ram Manohar Lohia and Jai Prakash Narayan, BJP and lastly Jitan Ram Manjhi.
  
  Later, addressing a rally in Katihar in Bihar's Seemanchal region, "Bihar will see a tsunami of development" if NDA comes to power in the state.
  
  "On one shoulder of Kumar is (RJD chief) Lalu Prasad who is a symbol of jungle raj while corrupt Congress is on his other shoulder. He is just a mascot for them," he said.
  
  Though the Muslim-dominated region is going to polls in the last phase on November 5, the BJP is pulling out all stops to put up a strong show in Muzzafarpur as it seen as a weak link by the party in its quest to capture power in the state where it has never ruled as the dominant partner.
  
  Mr Kumar broke alliance with the BJP and "betrayed" the peoples' mandate for his "sheer greed" for the post of prime minister and joined hands with the RJD supremo against whom he had fought all his life and later had no remorse in roping in Congress against whom the socialist icons, Ram Manohar Lohia and Jai Prakash Narayan, had stood for all their lives, Mr Shah said.
  
  Mr Shah said Nitish had taken no time in becoming chief minister on the shoulders of the RJD supremo after junking the BJP despite the fact that the BJP workers had toiled hard against the RJD's 'jungle raj' and made him the Chief Minister of Bihar in 2005.
  
  Mr Shah held the RJD supremo and the JD(U) leader collectively responsible for backwardness of Bihar by ignoring development in pursuit of caste politics and dynasty rule and promised that the BJP-led coalition will retrieve old glories of the state in the event of being elected to power at the hustings.
  
  In Samastipur, External Affairs Minister Sushma Swaraj struck a similar note, asking voters to be wary of the grand secular alliance under which the state will return to "jungle raj".
  
  The NDA government is necessary for the state's rapid growth as it would work in tandem with the central government, she said, adding BJP has come out with a vision document for the state's development in the next five years.
  

West Bengal Election Commission Postpones Counting of Votes in Municipal Polls

• KOLKATA:  The West Bengal State Election Commission today postponed counting of votes in the election to Bidhannagar and Asansol municipal corporation following allegations of large-scale violence.
  
  "We have decided to postpone counting of votes," State Election Commissioner Susanta Upadhyay told newspersons at SEC office in Kolkata.
  
  The counting was scheduled to be held on October 7.
  
  He said the SEC would go through reports and video footages of violence from its own sources and also news channels before taking any further decision.
  
  Opposition parties in the state have demanded that the elections be countermanded and fresh elections held, alleging large-scale violence by the ruling Trinamool Congress.
  
  To a question on repoll, Upadhyay said, "There is no question of ordering repolls at this juncture. We will take a decision after going through reports and video footages."

Birth, Death Certificates to Be Linked With Aadhaar Card: Haryana Government

• CHANDIGARH:  To ensuring prompt availability of birth and death certificates in the state, Aadhaar card is being linked to them, said Haryana Health Minister Anil Vij today.
  
  This would ensure that people do not have to face any problem while getting birth and death certificates, he said in a release in Chandigarh.
  
  Speaking on female foeticide, Mr Vij said that the Pre-Conception and Pre-Natal Diagnostic Techniques (PCPNDT) Act, 1994 was being implemented in a strict manner.
  
  

  Under this, investigation and raids have been conducted in about 2,400 cases, and registration of 53 private centres has been canceled or suspended. In this duration, 41 ultrasound machines have been sealed and 28 cases have been registered in lower courts, he informed.
  
  Mr Vij said for the strict implementation of this Act, District Advisory Committee organised 93 meetings in various districts of the state, in which it was asked to make people aware and motivate doctors to avoid such acts.
  
  Apart from this, the Health Department is making efforts to spread awareness among the people to stop female foeticide.
  
  This is giving a fillip to the Prime Minister Narendra Modi's 'Beti Bachao, Beti Padhao' programme, he added.

Nepal Gets Respite as Cargo Trucks Enter From India

•  KATHMANDU:  Over 100 trucks carrying essential goods and petroleum products today entered Nepal from India bringing some respite to the country grappling with shortage of fuel and other commodities due to the blockade of key trade points with India by protesters opposing new Constitution.
  
  Several freight trucks, including some fuel tankers, which were stranded on the Indian side for over 11 days, entered the Nepali side through different border check-points.
  
  Hundreds of trucks with shipments including medicine, gasoline and cooking fuel had been stranded at the border citing security concerns due to the ongoing Madhes agitation against the new Constitution.
  
  Over 50 trucks today entered Nepal from Bhairahawa- Sunauli check point while dozens of trucks, including fuel tankers, entered the country from Biratnagar-Jogbani trading point.
  
  

  Yesterday, 140 cargo trucks, six fuel tankers and two liquefied petroleum (LP) gas bullets had entered through Bhairahawa-Sunauli point.
  
  However, obstruction continued in Raxaul-Birjung check point, the major entry point between Nepal and India, officials said.
  
  The blockade at the Nepal-India border had made life harder for the people in Kathmandu and other major cities as five major check-points were closed for the last 11 days due to the protests.
  
  India has dismissed suggestions that it has imposed any embargo against the supplies to Nepal and has maintained that the obstruction was due to protest and unrest in that country as Indian companies and transporters fear for their safety and security.
  
  Meanwhile, Indian Ambassador to Nepal Ranjit Rae today paid a courtesy call to Prime Minister Sushil Koirala and discussed the issues relating to resumption of supply of fuel to Nepal, according to Nepalese officials.
  
  In the meeeting, Ambassador Rae had assured him about easing the supply situation from today, according to state-run Nepal Television.
  
  Nepal's Ambassador to India Deep Kumar Upadhyay has said that as the transportation has been disrupted for the past few days, it will take some time before flow of supplies to Nepal return to normal.
  
  Meanwhile, the talks held between government team headed by Forest Minister Mahesh Acharya and the Federal Democratic Front led by Bijaya Kumar Gachhadar is heading towards positive direction, according to officials.
  
  At least 40 people have died in over a month of clashes between police and protesters from the Madhesi and Tharu communities and ethnic minorities.
  
  Madhesis are Indian-origin inhabitants of the Terai region bordering India who are opposed to splitting Nepal into seven provinces.

Bangladeshi Terrorist Arrested in Burdwan Blast Case Had Aadhaar, Election Card

• NEW DELHI:  Tarikul Islam, the Bangladeshi terrorist arrested in connection with Burdhwan blast, is believed to have acquired Aadhaar card and Voter Card to project himself as an Indian citizenship and avoid being arrested by the NIA, official sources said in Delhi.
  
  Even after he was picked up by the NIA last week from Jharkhand, he had been maintaining that he was not involved in the blast, they said.
  
  However, after his finger prints matched with one of the crime scene preserved by the NIA, he started spilling some of the beans about his association with banned Jamaat-ul Mujahideen Bangladesh (JMB) terror group, the sources said.
  
  

  He claimed during interrogation that he had been jailed in Bangaldesh prison for five years where he met Sheikh Rahamatullah alias Sajid, the mastermind of JMB terror group, and his radicalisation process begun, the sources said.
  
  This information has been shared with Bangladesh authorities to ascertain the veracity of his claim, they added.
  
  He crossed over to India in 2012 for indoctrination of youth in West Bengal, Jharkhand and Bihar for recruiting them in the terror group with an aim of destalising Sheikh Hasina's government in Bangladesh and enforce Sharia-based Islamic rule "through violent terrorist acts".
  
  For the purpose of establishing his credentials as an Indian, he claimed to have bribed local election and Aadhaar card officials to procure the same, the sources said.
  
  He also married an Indian girl who was minor at that time, they said, adding that the wedding was solemnised at Simulia madrasa in Burdwan, West Bengal where the terrorist training camps were organised by JMB.
  
  The wife along with an eight-month old baby and his brother-in-law are missing from the day he was arrested from Jharkhand.
  
  Islam, who was arrested from Ramgarh district of Jharkhand by a team of NIA and Anti-Terror Squad of Jharkhand police, carried a cash reward of Rs. five lakh as he is alleged to be an important member of 'Shoora', the decision-making body of JMB. He is in the NIA custody till October nine.

Business Affairs 

PM Narendra Modi, German Chancellor Angela Merkel meet to give fillip to bilateral ties

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  India and Germany would seek to give a fillip to their close ties when German Chancellor Angela Merkel and Prime Minister Narendra Modi meet here on Monday, their second bilateral meeting after six months, during which trade, security and the India-EU trade agreement are expected to figure.

  Merkel, who arrives here on Sunday night, is on the India visit from October 4-6. She will be accompanied by a large delegation comprising six cabinet ministers and businesspersons, and will also be visiting Bengaluru.

  The German leader, who met Modi at Hannover Messe, is coming here for the 3rd Inter-Governmental Consultations (IGC) between both countries.

  Earlier, German Ambassador Martin Ney said the Inter-Governmental Consultations are expected to lead to the inking of "substantial agreements".

  Ney said the German side would seek resolution of certain issues like "questions of corruption, questions of framework for investments, safety of taxation, Intellectual Property Rights " and legal redressal for "ease of doing business ".

  "...Industries say we need greater progress in order to implement these planned investments. The two leaders will address these issues definitely in a friendly manner," the German envoy said two days ago.

  The two leaders are also expected to take up the India-European Union free trade agreement (FTA), which has been under negotiations for years.

  The IGC is a unique summit-level dialogue with cabinet participation of both governments to help advance the bilateral partnership across priority areas of mutual interest.

  The 3rd IGC will seek to build on Modi's visit to Germany in April 2015 to participate in the Hannover Messe where India was the partner country, said an official statement.

  On Monday, she will be accorded a ceremonial welcome at Rashtrapati Bhawan, followed by a visit to Rajghat and official meetings between the two leaders and Inter-Governmental Consultations between the two delegations.

  Merkel will also call on President Pranab Mukherjee.

  External Affairs Minister Sushma Swaraj will meet her German counterpart Frank Walter Steinmeir and also call on the chancellor.

  Modi and Merkel will hold talks on a wide range of issues of mutual interest, including deepening bilateral engagement in defence, security, education, renewable energy, high technology manufacturing, skill development, science and technology, railways, water and waste management, urban development and agriculture.

  They will also exchange views on regional and global issues of common concern.

  The two leaders will visit Bengaluru on October 6, where both will participate in a business event hosted by NASSCOM on Industry 4.0 and also visit the innovation and skilling centres at the German company M/s Bosch .

  India and Germany are strategic partners since 2001. Germany is India's largest trading partner in the European Union and the seventh largest foreign investor in India.

  Germany's competencies in manufacturing, high technology, clean energy, water and waste management etc provide a robust foundation for enhanced partnerships in a range of priority areas.

  This visit would be an opportunity to consolidate stronger strategic, political and economic partnership between India and Germany, said the official statement.

Climate change mitigation isn't bereft of solutions

• India's announcement that it will cut emissions by 35 per cent by 2030 at 2005 levels is certainly a welcome announcement. We all pray, it is achieved. But the key is to sensitise the international community and get it to help us with technology-transfer and low-cost finance to achieve this ambitious goal. For, we will need at least $2.5 trillion, if not more, to implement all the planned actions.

  Let us also be pre-warned. A "business as usual" approach will take us to an increase in global temperature by 4.5 degrees centigrade by 2100 - this is unsustainable. Our common goal is to reach a maximum increase of 2 degrees centigrade by then, by limiting our carbon-dioxide emissions.

  We collectively need to have a strategy and action plan in place to meet this objective. The question is whether the collective submission of Intended Nationally Determined Contributions (INDCs) by 196 members of the United Nations Framework Convention on Climate Change, ahead of the Convention on Climate Change due in Paris from November 30 to December 11, is enough.

  Can these submissions achieve the goals of appropriately limiting their collective carbon-dioxide emissions? Will climate justice be done by all members? We will get the answer in December this year - in Paris. Our future is in the hands of the leadership of these 196 members.

  It is no coincidence that India chose to submit its own INDCs late on October 1. The submission actually coincided with Mahatma Gandhi's birth anniversary a day later, back home. Much before the climate change debate began, Gandhi said everyone should act as a trustee of the environment and use natural resources wisely.

  He said it was the moral responsibility of every human to bequeath to the future generations a healthy planet. "A man should be his own scavenger," the Mahatma said, wanting us to be sensible and take up the responsibility for resolving the climate change issue.

  As we race against time to ensure that there will be a far-reaching global agreement on climate change by the time the Paris meet concludes on December 11, we do have known technologies to be able to reduce our dependence on fossil fuels. The question is our collective determination to find the alternatives and availability of low-cost money to implement them.

  The fossil-fuel alternative has to become more expensive for the user. For example, there is clear link between energy and water. Take the case of national capital. Delhi is not an agriculture state, but pumping of water here takes up 50 percent of all the energy used.

  We need to have compulsory water harvesting and ban the production and sale of GLS lamps in India. These are very energy inefficient. Energy efficient systems need a strong promotion through taxation and pricing policy -- an example is of water heating in Delhi. Why is Solar not popular?

  Why has drip irrigation not taken off in agriculture? Why can we not price water adequately to conserve it and not give it away free to agriculture - and now, even to urban dwellers? Our 780 million cows can solve the energy storage issue for India:

  
  

  • Cow dung can be used to generate "Gobar Gas" that can further be used for producing electricity using Fuel Cells.
  • The by-product, "natural fertilizer" can be used to promote value added organic produce - fruits and vegetables, for domestic consumption and exports.
  • India can become the organic food basket for the world. This is in line with Prime Minister Narendra Modi's "Make in India" program..
  • This gobar gas produced can be directly used in villages for cooking and thereby reduce the health or wellness issues due to pollution.
  • Our 300 million people, who have no access to electricity today and are not grid-connected, can have electricity generated by solar panels and wind energy during the day.
  • Electricity generated by fuel cells using gobar gas can serve at night - and even towards education of children and mobile telephone towers, besides general lighting.
  • Telephone towers for these 300 million people could be powered by electricity and open up a new market for the telephone companies

  Cow dung from 100 cows can produce 30 KVA of electricity. From 780 million cows, we should be able to generate 234 GW at relatively low cost. The key is collection of the Cow Dung. We already have indigenous technology to grow fresh grass using hydroponics for the cows on the basis of daily demand.
  

  
  

  This apart, we should have DC distribution system in these villages and develop LED lamps that run on DC current and also Fans. This, if feasible and implemented, will be a game changer for India's economy and well-being.

Non-declarants of foreign assets to face consequences, says FM Arun Jaitley

• Finance Minister Arun Jaitley on Sunday warned that those who did not declare overseas black money during compliance window will face the consequences as the government will receive information about their wealth under automatic exchange of information, while others who took advantage of the scheme to come clean can "sleep well".

  The Minister also clarified that Rs 6,500 crore of black money, talked about by Prime Minister Narendra Modi in his Independence Day speech, pertained to illegal money of account holders in the LGT Bank of Liechtenstein and HSBC Bank, Geneva, while declarations made under the one-time compliance window totalled Rs 3,770 crore.

  The government's policy, Jaitley said, "is rationalisation of tax structures, taxing at reasonable rates, placing more money in the hands of small earners, encouraging and promoting the use of plastic money by all sections of society and creating deterrence against those who continue to use unaccounted money."

  In his Facebook post, the Minister also expressed the commitment of the government to fight the menace of the domestic black money by making furnishing of PAN mandatory for cash transactions beyond a threshold.

  "The government is at an advanced stage in considering the requirement of furnishing PAN card details if cash transactions beyond a certain limit are undertaken," he said.

  Referring to the declarations made under the black money compliance window which closed on September 30, Jaitley said, "Those who chose to declare between this period would not be prosecuted under the new black money law... These declarants can now sleep well."

  Taking advantage of the one-time 90-days compliance window under the Black Money law, 638 persons declared their income amounting to Rs 3770 crore.

  About those who have undisclosed foreign assets but failed to file such a declaration, Jaitley said, "(They) will now be subjected to penal provisions of this law. They will be liable to pay 30 per cent tax and a penalty of 90 per cent, thus leading to confiscation of the assets plus more.

  "In addition, they will be liable to prosecution where they can be sentenced up to 10 years. This law will create a deterrent in future against the flight of capital from India", he said.

  "... thus those with illegal assets abroad, who have failed to make declaration, would now stand the risk of information relating to them eventually reaching the Indian taxation authorities", he added.

Pending tax issues will be referred to Shah panel, says CEA Arvind Subramanian

• Legacy tax issues like those involving Cairn and Shell can be referred to AP Shah panel for quick resolution, says Chief Economic Adviser Arvind Subramanian who feels the old issues that have held back private investments also need to be worked out.

  Moving to defuse a row with overseas funds about back-dated tax demands, the government had last month spared foreign portfolio investors (FPIs) from minimum alternate tax (MAT) for the years prior to April 1, 2015.

  This followed recommendations of the AP Shah Committee.

  "The government set up AP Shah Committee and the MAT on FII thing has been put to rest. The Minister (Arun Jaitley) has also said that we will address legacy issues (like) Cairn and Shell," Subramanian told PTI in an interview in the national capital.

  He said progress has been made on legacy tax issues and hoped to resolve them in the next few months.

  Cairn Energy had on March 10 this year slapped an arbitration notice against the tax demand with regard to 2006 internal business reorganisation. The government has decided to join the arbitration initiated by British oil explorer over a Rs 10,247 crore tax demand and is considering to appoint its arbitrator.

  As regards Shell, in November 2014, the Indian unit of Royal Dutch Shell won Rs 18,000 crore transfer pricing cases against I-T department at the Bombay High Court and the government is yet to take a view on appeal in the case.

  Asked if transfer pricing cases will also be referred to Shah Committee, he said, "The remit of Shah panel is open to all legacy issues.... so on need to address basis I think other issues could be taken by Shah panel."

  He said the legacy issues that have held back private investments need to be worked out.

  "I think two sectors holding back the economy are private investments and exports. We have discussed this several times.

  We have discussed this in the Economic Survey as well that the corporate sector is still challenged. It has legacy issues and those that are holding back private investments need to be worked out," Subranamian said.

  Ease of doing business, taxation, public investment and GST law are on all part of the agenda of reforms before the government.

  To a question about the complaints from the industry despite a number of measures that have been taken by the government to resurrect confidence, Subranamian said the point is the extent of problem is quiet deep.

  He said getting back the economy to 8-10 per cent growth trajectory was possible within the NDA government's tenure.

  "The external environment is quite challenging and our exports have come down. So, these are two factors that are still holding back the economy. That is why... public investment is going to fill in the gap," he said.

  He, however, ruled out possibility of a fiscal stimulus to prop up the economy.

  "Fiscal stimulus you provide when you think economy is cyclical and is operating at low potential. But when we are talking about 8-10 per cent sustained growth, we need much more structural policy then cyclically policy. That's the clear distinction we need to make," Subramanian said.

  He said the government has a "very good" fiscal deficit target. "It is very important for maintaining macro economic stability that we should meet that and I don't think there is any need for any fiscal stimulus at this stage", he added.

  Finding resources for a fiscal stimulus could be difficult and it could jeopardise macroeconomic stability.

  "And as I said we don't need fiscal stimulus for structural reforms. Fiscal stimulus is not part of our agenda," he said.

UCO Bank registers highest growth in gross NPAs

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  UCO Bank was the worst performer among the public sector banks registering highest increase in gross non-performing assets (NPAs) in percentage terms against total loans in the last fiscal.

  According to the provisional RBI data taking into account domestic operations of banks, gross NPA to gross advances ratio of Kolkata-based UCO Bank increased to 8.05 per cent at the end of March 2015 from 4.47 per cent, an accretion of 3.58 on an annual basis.

  It was followed by Indian Overseas Bank (IOB) and Bank of Maharashtra (BoM) with gross NPA rising to 8.30 per cent, and 6.18 per cent, respectively at the end of March 2015. In case of IOB variation compared to the previous financial year was 3.46 while for BoM was 3.02.

  Besides, the gross NPA taking into account the domestic operation of Dena Bank increased from 3.33 per cent to 5.29 per cent at the end of 2014-15, recording a variation of 1.96 per cent.

  At the same time, Corporation Bank's gross NPA level rose from 3.42 per cent to 4.80 per cent at the end of March 2015, showing an accretion of 1.38 over the previous fiscal.

  Rising NPA has hit the bottomline of banks and to strengthen their balance-sheet the government is providing Rs 25,000 capital support in the current fiscal.

  Last month Finance Minister Arun Jaitley had said though non-performing assets (NPAs) in the banking sector was a cause of concern, there was no ground to "panic".

  "The banking system that we inherited primarily, the public sector banks, was actually very challenging. When the economy slowed down, and when you inherit the economy at sub-5 per cent level, it has an impact on the banking system as well... primarily three or four sectors... (have) added to the NPAs of the public sector banks," he had said.

  He had said the NPA was mainly in sectors like highways, steel, state discoms and textiles.

General Awareness

FILA event 2015 – Salute to Indian Business Leaders

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    The fifth edition of Forbes India Leadership Awards (FILA), 2015 opened the doors for recognizing the efforts of business leaders and their contribution in raising the Indian economy up to another level. The awards were presented at an event in Grand Hyatt hotel, Mumbai.
    • The award acknowledged their valuable contribution to the Indian business community and exemplary transformations done by them over the years.
    • FILA was launched in 2009.
    
    The awards were judged by the powerful jury of India corporate sector.
    JURY MEMBERS
    Name	Company
    Harish Mariwala	Marico India chairman
    Naina Lal Kidwai	HSBC India chairman
    Noshir Kaka	McKinsey India MD
    Sanjay Nayar	Kohlberg Kravis Roberts Co. CEO
    Akhil Gupta	Former CMD of Blackstone India
    HERE ARE THE WINNERS
    Category	Name	Work
    Best CEO – Public Sector	Arundhati Bhattacharya (State Bank of India)	Boosting digital initiatives and restructuring of bank’s HR practices
    Best CEO – Private Sector	CP Gurnani (Tech Mahindra Ltd)	Fronted Satyam’s merger with Tech Mahindra thereof created India’s fifth largest IT services company.
    Best CEO – MNC	Uday Shankar (Star India Pvt. Ltd)	With his bold decision making quality Star India became the India’s largest television broadcaster
    Entrepreneur for the Year	Uday Kotak (Kotak Mahindra Bank Ltd)	Moved up the bank’s level by fronted acquisition of rival bank ING Vysya
    Entrepreneur with Social Impact	Samit Ghosh (Ujjivan Financial Services Pvt. Ltd)	Providing financial access to over 2.6 million of India’s urban and semi-urban working poor
    NextGen Entrepreneur for the Year	Siddhartha Lal (Eicher Motors)	Boosting the growth of commercial vehicle business through a JV with Volvo and revitalize Royal Enfield
    Outstanding Startup for the Year	Bhavish Aggarwal and Ankit Bhati (OLA)	Its mobile app can be used to book from over 250,000 cabs and 65,000 vehicles
    Lifetime Achievement Award	RC Bhargava (Maruti Suzuki India Ltd)	Transformed Indian automotive sector which has charted to small car hub for the world
    Conscious Capital for the Year	Godrej Consumer Products Ltd & Gujarat Cooperative Milk Marketing Federation Ltd (Amul)	Godrej developed ‘Good and Green’ products by generating employment and by reducing the carbon footprint & GCMMF increased the value for its shareholders