Current Affairs - 3 December 2015

General Affairs

Don't Name Assets under Parliamentarian Funds After Eminent Persons: Panel

• NEW DELHI:  A Parliamentary panel has shot down a proposal by the Ministry of Statistics and Programme Implementation to name assets created under Member of Parliament Local Area Development (MPLAD) scheme after eminent personalities, national icons or freedom fighters.
  
  The panel is of the "firm view that the existing guidelines which prohibit naming of assets created under MPLAD scheme after any person may continue and there is no need for any change in the guidelines", said Committee on MPLAD scheme headed by AIADMK leader M Thambi Durai, in its report tabled in Lok Sabha.
  
  

  It further said, "MPLAD scheme works are meant for fulfilling locally felt needs of the people. In case any provision is made for naming of those assets, demands may arise from different sections to name the assets after the person of their choice. Moreover, there may be political motivation in naming of assets."
  
  In another suggestion, it said there is absolutely no necessity for a separate committee to fix user charges for ambulance purchase under the MPLAD scheme to transport sick or injured animals.
  
  The panel recommended that the three-member committee empowered to examine the recommendations of lawmakers to purchase ambulances for animals should also be empowered to fix user charges.
  
  At present the three member panel headed by district magistrate, chief medical officer and chief veterinary officer examine such proposal of the lawmakers.
  
  However, as per guidelines of the scheme, the user charges will be fixed by the district authority on the recommendations of an appropriately formed committee who would also be responsible to ensure that the charges so fixed are reasonable and affordable.
  
  The panel pointed out that it does not appreciate the decision of the ministry to leave the process of fixation of user charges to another committee when there is a Committee to take decision on purchase of ambulances. Moreover, the composition of that committee has not been defined by the ministry.

134 Files on Netaji Being Examined for Declassification: Government

• NEW DELHI:  The government has 134 classified files related to Netaji Subhas Chandra Bose which are being examined for the purpose of declassification, the Rajya Sabha was informed today.
  
  In a written reply, Minister of State for Home Affairs Haribhai Parathibhai Chaudhary said, "Government is examining all the files in its custody for the purpose of declassifying the same.
  
  "As per available records on date, Ministry of Home Affairs is in possession of 12 files. Among these 12 files, three files are classified and nine files are unclassified," the minister said.
  
  

  He said as per available record, as on date, the Prime Minister's Office is in possession of 58 files.
  
  Among these 58 files, 41 files are classified and 17 files are unclassified, he said.
  
  The minister said there are approximately 90 classified files in the Ministry of External Affairs relating to Netaji.
  
  He said all classified records (total 990 files) with the Defence Ministry pertaining to Indian National Army were declassified and transferred to National Archives of India (NAI), Janpath, New Delhi in 1997.

Sushma Swaraj May Visit Pakistan, Say Sources, Days After Paris Handshake

• NEW DELHI:  External Affairs Minister Sushma Swaraj may visit Pakistan next week, top government sources told. She is likely to attend a 27-nation meeting on Afghanistan, which will be held in Islamabad, days after Prime Minister Narendra Modi and his Pakistani counterpart Nawaz Sharif shook hands in Paris.
  
  India had been invited for the conference, which will be held on December 7 and 8. But it had not been decided who would represent the nation, sources said.  
  
  The plans to send Ms Swaraj came days after the meeting between PM Modi and Mr Sharif in Paris, where they had gone to attend the global climate change summit.
  
  

  The two leaders had shaken hands and shared a sofa for a few minutes' tete-a-tete on November 30. Mr Sharif was seen listening attentively as PM Modi spoke to him.
  
  It is understood that the interaction was more than a "courtesy meeting," which was how government officials had described it. Later, Mr Sharif had said, "Talks with Prime Minister Narendra Modi were good. Doors of dialogue should open."
  
  The last initiative for India Pakistan talks came in July, when PM Modi and Mr Sharif held a bilateral meeting in Russia's Ufa on the sidelines of a conference. Soon after, National Security Advisor-level talks were scheduled.
  
  But the initiative fell through at the last minute when the talks were cancelled over a proposed meeting between Pakistan's National Security Advisor Sartaj Aziz and the Kashmiri separatists. When Pakistan pushed for an "open agenda", India said there could be no such meeting and the agenda should remain confined to terrorism.
  
  In September, both prime ministers attended the United Nations General Assembly in New York and even stayed at the same hotel, but there was no formal meeting.

54,483 Cyber Security Incidents Reported This Fiscal Year: Government

• 

  NEW DELHI:  As many as 54,483 cyber security incidents such as phishing, spam and malicious code have been reported in the current financial year, Parliament was informed today.
  
  These incidents were reported to the Indian Computer Emergency Response Team (CERT-In) by various Indian organisations, individuals and agencies from other countries, Communications and Information Technolgy minister Ravi Shankar Prasad said in a written reply to the Lok Sabha.
  
  

  The area of information technology (IT) is characterised by rapid developments and fast changing obsolescence, Prasad said, adding that "with every IT product introduced into the market, newer vulnerabilities are discovered, leaving scope for malicious actions".
  
  He said however that CERT-In does not maintain any separate data with regard to the losses incurred by the Indian companies due to cyber-attacks.
  
  The minister said the government has taken various steps to curb cyber-attacks.
  

Success of 'Swachh Bharat' Lies in Usage of Toilets: Union Minister

• NEW DELHI:  Achieving complete success of 'Swachh Bharat Abhiyan' will not be possible until the entire population uses toilets, Union Minister Chaudhary Birender Singh today said as he urged social groups and communities to work towards the goal of making India open defecation-free.
  
  Urging communities to take efforts towards encouraging people who defecate in the open to change their habits, he said the campaign was in a mission mode.
  
  

  "Our physical target is to build 11.11 crore toilets, which we may achieve before 2019 itself. Complete success of the campaign lies in whether toilets are used or not... These efforts though will bear fruit only when social communities take part in it because only they can see at ground-level if the toilets are being used or not," the Union Rural Development, Drinking Water and Sanitation Minister said at the 'Water, Sanitation and Hygiene (WASH) for All' conference organised by ASSOCHAM.
  
  The minister suggested organisations volunteering for the campaign to figure out ways to encourage people to use toilets and convince them to do so for a certain period so that it becomes a habit and subsequently, part of their lifestyle.
  
  Mr Singh urged stakeholders present during the conference to produce a success story of the campaign to see that Prime Minister Narendra Modi's call for Clean India "does not remain only a call".
  
  He cited the example of Hindi film 'Chak De India' that depicts success story of Indian women's hockey team in international tournament in this regard.
  
  "That movie created a sense of honour, created a sense in our youngsters to rise to the occasion. This kind of movie I want from you. We should see Prime Minister's call does not remain only a call," he said.
  
  The minister advised technology providers to ensure their innovations in toilet constructions are conceived keeping in mind habits of Indian communities even as he cited examples from his personal life in this regard.
  
  He termed growing awareness amongst children about the Abhiyan over the past one year as the "biggest achievement". "They are our ambassadors of the campaign."

Business Affairs 

Sensex ends 74 points down; Nifty at 7,924; banking stocks drag

• Snapping the four-session long gaining spree, the domestic markets ended lower on Wednesday as banking stocks declined on caution ahead of the unveiling of a new methodology for calculating lending rates, with broader sentiment also hit by continued worries about a US rate hike.

  The S&P BSE Sensex settled the day at 26,095.59, down 73.82  points, while broader CNX Nifty ended below its crucial psychological level of 7,950. The 50-share index quoted 7,924.35, down 30.55 points at close.

  Market breadth remained mixed with 16 of the 30 Sensex components ending the day in green.

  State Bank of India was the worst-performer on Sensex and ended the day 1.8 per cent down as Reserve Bank of India Governor Raghuram Rajan said on Tuesday the central bank would soon announce a new methodology that will force them to set lending rates based on their marginal cost of funding.

  The BSE BANKEX was the top sectoral loser and settled the day 1.03 per cent down at 19654.24.

  Meanwhile, some software service exporters and auto firms such as TVS Motor fell as heavy flooding in the southern state of Tamil Nadu shut down factories and paralysed the airport.

  Sentiment also took a hit as investors braced for the prospect of a US rate hike in December. Federal Reserve Chair Janet Yellen is due to hold public appearances over the next two days at a high-profile economics group and before a joint committee of Congress.

  At the same time, investors also monitored progress in the current session of parliament as Prime Minister Narendra Modi's government seeks to pass its reform agenda, including a new goods and services tax.

  "Markets are cautious on the key tax bill's fate in the ongoing parliament session and expectations of a rate hike by the Fed. Markets would leave all the worries if corporate earnings rebound though in coming quarters," said G Chokkalingam, founder of Equinomics, a research and fund advisory firm.

  Among Asian markets, China's Shanghai Composite gained 2.33 per cent, while Hong Kong's Hang Seng ended with an uptick of 0.44 per cent. Japan's Nikkei dipped 0.37 per cent at close.

  Overnight, US stocks moved notably higher as health and consumer shares bounced back while auto sales suggested upbeat growth in November. Dow Jones, S&P 500 and Nasdaq added up to over 1 per cent.

  Lowdown on markets today

  2:00 pm

  Sensex at 26100.06, down 69 points

  Nifty at 7926.55, down 28 points

  1:00 pm

  Sensex at 26063.62, down 105 points

  Nifty at 7917.10, down 39 points
  

  10:45 am

  Sensex at 26,077.62, down 91.79 points

  Nifty at 7,921.60, down 33.30 points

  9:24 am

  Sensex at 26,207.70, up 38.29 points 

  Nifty at 7,963.30, up 8.20 points

Manufacturing growth at 25-month low in November: Nikkei PMI

• The manufacturing sector grew at its weakest pace in over two years in November as demand and output continued to soften, a business survey showed on Tuesday.

  Nikkei's Manufacturing Purchasing Managers' Index, compiled by Markit, fell to a 25-month low of 50.3 in November from October's 50.7. A reading above 50 indicates expansion.

  The output sub-index fell to 50.4 from 51.2 the previous month as domestic demand remained weak.

  The subdued domestic demand and competitive pressure appeared to slow new orders, whose sub-index fell to a 25-month low of 50.5, from 51.2 in October.

  "Signs of the sector slowing have been building up, as growth of both new orders and output has eased in each of the past four months," said Pollyanna De Lima, economist at Markit.

  The economic growth picked up in the July-September quarter, outpacing China on improving domestic demand and manufacturing activity, so the latest survey will make disappointing reading for the government and central bank.

  The Reserve Bank of India kept key rates unchanged this week as it looks to control inflation, which edged up to 5.0 per cent in October, leaving it to the government to implement growth policies.

  Input prices increased for a second month although firms did not pass on the cost burden fully to consumers.

Hyundai, Ford and Renault suspend operations temporarily in Chennai due to floods

• Auto firms Hyundai, Ford and Renault have temporarily suspended operations at their plants in Chennai due to floods.

  "We have suspended three shifts, one last night and two shifts for today, at our plant due to the rain," a Hyundai Motor India Ltd official said.

  The company will take a call on resuming operations depending on the rains that have flooded the city, the official added.

  Hyundai's Chennai plant has a capacity to produce around 6.8 lakh vehicles annually.

  Ford India, too, has suspended operations at its Chennai plant.

  "Continued heavy rains in Chennai have resulted in significant flooding in the area with many roads impassable. For the safety of our employees, we have halted production at our Chennai assembly and engine plants on Wednesday, December 2," a company spokesperson said in a statement.

  The company is carefully monitoring the situation and will return to normal operations as soon as conditions improve.

  "We will assess the impact once operations return to normal. Our immediate concern is for the continued safety of our employees and the members of the Chennai community," the spokesperson added.

  Ford's Chennai plant has a capacity to produce 3.4 lakh engines and 2 lakh cars annually.

  Likewise, Renault India said operations at the plant in Chennai have been suspended for a day.

  "Today we are not operating at the plant. The safety of our employees is paramount. We are monitoring the situation closely and resumption of operations will depend entirely on the weather improving," Renault India Operations Country CEO and Managing Director Sumit Sawhney said.

  The Renault-Nissan Alliance plant in Chennai has a capacity to roll out up to 4.8 lakh vehicles per year.

Govt says no plan to disinvest in BSNL, MTNL

• The government said on Wednesday there is no proposal to disinvest stake in BSNL and MTNL as part of their revival strategy.

  To a question whether the government has any proposal to disinvest BSNL and MTNL as part of their revival strategy, Telecom Minister Ravi Shankar Prasad replied in the negative.

  In a written reply in the Lok Sabha, the minister said every attempt with effective monitoring is being undertaken to revive the two companies and make them competitive.

  "The results are positive. There is no proposal to disinvest them as part of revival plan," Prasad said.

  The minister further said the government has provided financial support of Rs 169.16 crore to BSNL and Rs 458.04 crore to MTNL for surrender of spectrum in the 800 MHz band.

  In reply to a separate question, Prasad said Rs 7,795.99 crore have been allocated and authorised by BSNL in 2015-16 for expansion of communication network capacity in various telecom services.

Watch out for US recession, zero interest rates in China next year, says Citi

• The outlook for the global economy next year is darkening, with a US recession and China becoming the first major emerging market to slash interest rates to zero both potential scenarios, according to Citi.

  As the US economy enters its seventh year of expansion following the 2008-09 crisis, the probability of recession will reach 65 per cent, Citi's rates strategists wrote in their 2016 outlook published late on Tuesday. A rapid flattening of the bond yield curve towards inversion would be an key warning sign.

  "The cumulative probability of US recession reaches 65 per cent next year," Citi's rates strategists wrote in their 2016 outlook published late on Tuesday. "Curve inversion will likely come more quickly than the consensus thinks."

  Normally, short-dated yields such as two-year yields are lower than longer-dated ones like 10-year yields, as investors demand a premium for taking on risk several years into the future. The curve has inverted before each of the last five US recessions since the mid-1970s.

  In China, deflationary pressures and downside risks to growth will force Beijing to loosen fiscal policy, let the yuan depreciate and perhaps become the first major emerging market economy to cut interest rates to zero, Citi said.

General Awareness

$500m World Bank facility to explore policy-based carbon market

• • World Bank launched a $500 million market-based scheme designed to help developing countries pay for emission reductions and combat climate change.

    • Germany, Norway, Sweden and Switzerland have jointly pledged an initial $250 million to get the Transformative Carbon Asset Facility (TCAF) while the bank hopes further contributions will take the eventual total to $500 mn.

    Launch of new Scheme
    During UN climate summit in Paris, a scheme was launched which will award countries forreducing emissions by paying a fee for each ton of carbon dioxide (CO2) reduced aimed at thrashing out a global deal to cut greenhouse gas emissions.

    • The price per ton paid would be set on a case-by-case basis and the scheme would support energy efficiency, renewable energy and waste management projects, as well as schemes to cut emissions in cities and from the transport sector.

    The facility will contribute to helping countries implement their emission reduction plans calledIntended Nationally Determined Contributions (INDCs) in U.N. jargon submitted to the U.N. ahead of the talks.

    Climate summit is expected to achieve significant impact on the ground through the TCAF and ensure the sustainability of reducing emissions even beyond the Facility’s initial support.