Current Affairs - 8 December 2015

General Affairs 

Chennai Floods: Rail, Air Services Restored

• CHENNAI:  Train services and flights today resumed operations in the city after days of disruption due to torrential rains that left thousands of passengers stranded.
  
  While services of trains partially resumed on Saturday, a Southern Railway spokesperson said all trains particularly to Chennai and its surrounding areas were operating in full swing from today.
  
  

  "Yes, train operation are on full swing from today especially in Chennai and surrounding areas..", a Railways spokesperson told news agency PTI.
  
  Chennai Airport Director Deepak Shastri said the airport is fully functional from today.
  
  Commercial operations, which began partially yesterday, were fully functional.
  
  "It is fully functional from today", Mr Shastri told PTI. He said the services were fully restored from today and airport was waiting to receive the schedule from private airlines.
  
  "It (Airport) is functioning one hundred per cent. In fact, I am waiting for the schedule from private airlines", he said.
  
  Several inter-city and intra-state trains including local trains had been cancelled following heavy rains leaving thousands of passengers stranded.
  
  Chennai Airport was shut since last week as runways were flooded.
  
  Several stranded passengers at Chennai Central railway station and Chennai Egmore were taken to their onward destinations by special trains arranged by Southern Railway.
  
  Air India, which began day time operations yesterday, transported passengers to various places from Chennai to Port Blair, New Delhi and Hyderabad.

Delhi Government's Odd-Even Number Cars Comes Under Attack in Rajya Sabha

• NEW DELHI:  Delhi government's decision to allow odd-even number cars to ply on alternative days from next month came in for sharp criticism from Opposition today. Rajya Sabha members have dubbed it as "impractical and weird" and called for its reconsideration.
  
  Raising the issue during Zero hour in Upper House, Pramod Tiwari (Cong) said it is an "arbitratory" and "impractical" decision that would cause major inconvenience to people in Delhi which does not have a robust public transportation.
  
  

  "This is a serious issue. We don't want to see a law and order situation and the Government of India should issue an advisory on this," he said, adding that other countries implemented such an idea after developing public transport.
  
  He sought to know how this kind of idea can be implemented when the state has not improved basic public infrastructure.
  
  Echoing his views, Karan Singh (Congress) said "it is very weird and unusual suggestion. Something has to be done. This suggestion should be reconsidered and other alternatives should be thought about to address pollution."
  
  To this, Minister of State for Parliamentary Affairs Mukhtar Abbas Naqvi said, "It relates to the decision of the Delhi government. We have to address pollution. In theory, we accept it, but the suggestion is impactical."
  
  However, Jairam Ramesh (Cong) disassociated with his party colleague on the issue saying air pollution was a serious issue. There is "no harm in trying for some days" the idea of allowing odd-even car numbers to ply on alternative days.

Kerala Concerned Over Mullaperiyar Dam Water Level, to Meet Centre

• THIRUVANANTHAPURAM, KERALA:  Kerala government will take up the state's safety concern with the Centre over rising water level in the Mullaperiyar reservoir at Idukki district with water level touching 141.8 feet.
  
  Answering a submission in the assembly on the issue by Opposition leader VS Achuthanandan, Home Minister Ramesh Chennithala said the government was closely monitoring the situation at the dam.
  
  

  "Government is closely watching the situation and is committed to provide protection to the life and property of people in the areas near the dam", Mr Chennithala said.
  
  "The state would inform the Centre its anxiety over rising water level at the 112-year old dam, which is a centre of inter-state dispute between Kerala and Tamil Nadu", he said.
  
  Chief Minister Oommen Chandy will take up this issue with Prime Minister Narendra Modi during his scheduled visit to Delhi later this week, he said.
  
  Achuthanadan said that state administration was "indifferent" even as water level at the Mullaperiyar dam was on rise.
  
  Idukki administration officials were camping at the dam site to face any emergency situation and take necessary measures in the event of opening the dam shutters when the water level crosses 142 feet, which was fixed by the Supreme Court.
  
  The Supreme Court on December 3 last year had dismissed the Kerala government's plea to review its May 7, 2014 verdict holding as safe the 120-year-old Mullaperiyar Dam and allowing Tamil Nadu to raise water level to 142 feet and ultimately to 152 feet after completion of strengthening measures on the dam.

Armenia Votes To Give President's Powers To Prime Minister

• YEREVAN, ARMENIA:  Early results show that Armenian voters at Sunday's referendum have supported constitutional changes that would give more powers to the prime minister and parliament at the expense of the president.
  
  Armenia's Central Election Commission said in a statement early today that 63 percent have supported the amendments that would make the president largely a figurehead.
  
  The opposition has seen the reform as an attempt by President Serzh Sargsyan to extend his rule.
  
  Sargsyan has denied the claim, saying he has no intention of shifting into the prime minister's seat after his second term in office ends in 2018.
  
  Sargsyan's government has promoted the constitutional changes as a step toward strengthening democracy in the former Soviet state by providing for a greater balance of powers and a stronger judicial branch.

Japanese Probe Fires Thrusters to Enter Venus's Orbit

• TOKYO:  The Japan Aerospace Exploration Agency (JAXA) today made a second attempt to put the Akatsuki probe into orbit around Venus.
  
  "It is very much expected to enter the planned orbit," JAXA professor Masato Nakamura, who is in charge of the Akatsuki programme, said.
  
  With the nozzle of the probe's main engine apparently wrecked, JAXA reprogrammed Akatsuki to use four thrusters for an attitude-control burn to send it into an elliptical orbit of upto 300,000 km and eight to nine days long around Venus, giving it two years to observe the planet's meteorological phenomena.
  
  

  JAXA will confirm on Wednesday whether the manoeuvre succeeded or not.
  
  Carrying six types of observation equipment, Akatsuki is designed to study the thick clouds shrouding Venus in three dimensions and how its strong winds, estimated to be faster than 360 kph, cause an atmospheric phenomenon known as super-rotation, in which the atmosphere rotates much faster than the planet.
  
  The probe was launched in May 2010 by an H-IIA rocket. After failing to achieve orbit around Venus, JAXA let the probe orbit the sun and adjusted its path in 2011 and this year to prepare for Monday's second attempt.
  
  Despite being exposed to more heat and radiation from the sun than it was designed to withstand, no damage has so far been detected to Akatsuki's equipment.

Business Affairs 

Sensex closes 108 points down; Nifty at 7,765; ITC top loser, down 6%

• Extending losses for the fourth straight session, the S&P BSE Sensex ended the day 108 points lower, while broader CNX Nifty settled below its key 7,800-mark.

  Markets fell as cigarette maker ITC slumped over 6 per cent to log its biggest fall in nine months, while oil producers slipped after OPEC left output targets unchanged.
  
  Sensex, the 30-share index, ended at 25,530.11, down 108 points, while Nifty, the 50-share index, closed at 7,765.40, down 16.50 points.

  Market breadth remained negative with 16 of the 30 Sensex components ending the day in red.

  Indexes hit their lowest since November 18 as sentiment soured ahead of the US Federal Reserve's meeting next week, where it is widely expected to raise rates for the first time in about a decade.

  Investors also kept an eye on Goods and Services Tax(GST), which edged closer to approval on Friday after a government-appointed panel backed the lower rate and simpler structure that the opposition Congress party had demanded.

  "It's being actively discussed so the markets expect progress on the GST front," said Deven Choksey, managing director at KR Choksey Securities.

  ITC shares ended 6.67 per cent lower, their biggest single-day percentage fall since March 2, after a Finance Ministry panel headed by Chief Economic Advisor Arvind Subramanian suggested 40 per cent tax on demerit goods such as tobacco, aerated beverages, pan masala and luxury cars.

  The tax was part of the recommendations on GST issued on Friday.

  Among other losers, oil stocks were trading lower as crude oil prices fell on Monday after OPEC failed to agree on output targets to reduce a bulging glut.

  Reliance Industries dropped 1.25 per cent, ONGC fell 1.54 per cent and Cairn India declined 2.62 per cent.

  But, GMR Infra shares gained 4.85 per cent after the company said it has raised $300 million (around Rs 2,000 crore) from Kuwait Investment Authority through a 60-year foreign currency convertible bond. 

  Among Asian markets, China's Shanghai Composite ended with an uptick of 0.34 per cent, while Hong Kong's Hang Seng closed with a downtick of 0.15 per cent, and Japan's Nikkei settled the day 0.99 per cent higher.

  On Friday, US stocks ended sharply higher with benchmark S&P 500 gaining 2.05 per cent to log its biggest gain since early September. The Dow Jones rose 2.12 per cent, while Nasdaq Composite added 104.74 2.08 per cent.

   Lowdown on markets today

  12:05 pm

  Sensex at 25,595.73, down 42.38 points

  Nifty at 7,782.95, up 1.05 points

  11:10 am

  Sensex at 25612.78, down 25 points

  Nifty at 7784.00, up 2 points
  

  9:26 am 

  Sensex at 25,752.63, up 114.52 points

  Nifty at 7,818.40, up 36.50 points

India to grow at 7.5% this fiscal: Fitch

• Fitch Ratings on Monday affirmed India's rating at 'BBB-' - the lowest investment grade - with a stable outlook, saying strong medium-term growth outlook and favourable external finances balance out weak structural features, including its business environment.

  "India's sovereign ratings and a stable outlook balance a strong medium-term GDP growth outlook and favourable external finances, including a strong foreign reserves buffer, with a high government debt burden and weak structural features, including a difficult - but improving - business environment,"Fitch Ratings said in a statement.

  BBB- is just a notch above the 'junk' status. "The stable outlook reflects Fitch's view that upside and downside risks to the ratings are balanced," it said.

  The sovereign rating and outlook for a country are often referred to as key parameters by foreign investors and global bodies to gauge its investment climate.

  Fitch forecast that India's GDP growth will accelerate to 7.5 per cent in the current fiscal and further to 8 per cent in 2016-17 supported by the government's beefed-up capex spending and gradual implementation of a broad-based structural reform agenda.

  "India's positive GDP growth outlook stands out globally. The RBI policy rate cuts of 1.25 per cent in total in 2015 are also likely to contribute to higher GDP growth even though monetary transmission is impaired by relatively weak banking sector balancesheets," it added.

  Indian economy expanded at 7.3 per cent in the previous fiscal. Of the 1.25 per cent RBI rate cut, banks have so far passed on up to 0.60 per cent to borrowers.

  Fitch said the government continues to steadily roll out its ambitious structural reforms agenda, including recent new measures that may improve the business environment, including changes in the foreign direct investment regime.

  Fitch also said decline in government debt burden, improved business environment through reforms, higher growth, investments and controlled inflation would lead to positive rating action.

  However, a deviation from the fiscal consolidation path, deterioration in the banking sector's asset quality, higher inflation and widening of current account deficit could lead to a negative rating action, Fitch warned.

  Fitch said India's relatively weak business environment and standards of governance are gradually improving as a result of pursued reforms, but obstacles faced by investors, including infrastructure bottlenecks have not been reduced overnight.

  India moved up four places in the World Bank's Ease of Doing Business rankings in 2015, but is still the worst- performing of all 'BBB' range nations at 130th out of 189.

  "Translation of structural reforms into improved indicators and higher real GDP growth depends on actual implementation. India's sovereign ratings continue to be constrained by limited improvement in its fiscal position," Fitch said.

  The Seventh Pay Commission's recommendation of a 23.6 per cent increase in remuneration for central government employees raises doubt about the feasibility of the medium-term consolidation path without any new revenue-generating measures, it said.

  Fitch projected the fiscal deficit, including both the central government and the states, at 6.7 per cent for the current fiscal, more than double the 'BBB' peer median of 2.8 per cent. Government debt burden could rise to 68.8 per cent of GDP in 2015-16, from 66.8 per cent last fiscal, one of the highest for 'BBB' range sovereigns.

  "The increase largely results from state governments taking part of the power distribution companies' debt onto their own balancesheets, a reform which overall is considered credit positive, as it is accompanied by reinforced incentives for states to improve functioning of these companies," it said.

  Fitch noted that it is difficult for the government to garner the required support in the Rajya Sabha for some big-ticket reforms, including the goods and services tax, but those reforms that only require executive approval continue to be implemented and legislative reforms can still be pursued at the state level.

AIA group to raise stake in Tata AIA Life Insurance to 49 per cent

• AIA group on Monday said it will raise stake in the life insurance venture with Tata group to 49 per cent from the existing 26 per cent.

  AIA will increase shareholding in Tata AIA Life Insurance Company, a joint venture company formed by Tata Sons and AIA, from the current level of 26 per cent to 49 per cent through the purchase of a 23 per cent stake in the company, a joint statement said.

  However, both the companies did not disclose the financial details.

  "The completion of the transaction is subject to securing all necessary regulatory and governmental approvals," the statement said.

  Tata AIA Life Insurance, which started operation in 2001 offers a wide variety of life insurance solutions that cover protection, savings and wealth creation needs.

  Following, Parliament passing the law for hike in foreign direct investment in private insurance companies to 49 per cent earlier this year, many overseas partners have proposed to raise stakes in their Indian joint ventures. Prominent names include Nippon in Reliance Life Insurance, AXA in Bharti AXA Life Insurance, Bupa in Max BUPA health insurance and Sunlife Financial Inc in Birla Sunlife.

Tata Steel may be nearing a sell-off deal on its UK plant

• Britain's largest steelmaker Tata Steel is believed to nearing a deal to sell-off one of its UK steel plants, in a move expected to secure thousands of jobs.

  Several funds that specialise in trying to rescue troubled companies are battling it out to buy Tata's long products arm, which is at the heart of its Scunthorpe steel works in Lincolnshire.

  According to the Sunday Telegraph, the Tata Group could agree a deal as early as next week after receiving formal bids from three parties.

  Leading the pack are two of Britain's biggest turnaround investors: financiers Greybull and Endless and a third bid has come from a mystery American private-equity house.

  The business, which will have around 5,000 staff after the redundancies, produces parts that are used in construction and heavy industry.

  It has struggled to compete in the global steel market, where prices are depressed by China's state-backed steel mills dumping overcapacity.

  It is estimated that hundreds of millions of pounds will be needed to revive the business.

  A Tata Steel spokesperson said: "We are still assessing all strategic options for our long-products Europe business."

  Britain's steelmakers have been engulfed by crisis in recent months, resulting in 5,000 jobs being axed or earmarked for redundancies.

  Of these, 1,200 are at Tata's long-products division, with the bulk going at Scunthorpe and almost 300 at Dalzell and Clydebridge in Scotland, which are set to close.

  A further 720 jobs are set to go at Tata's bar business around Rotherham.

  More than 2,000 steel jobs went when SSI's Redcar plant closed in October, and the collapse of Caparo Industries claimed more positions.

Govt warns telcos of stern steps on call drop menace

• Private telecom companies are increasing their customers but not improving services which are "very bad", the government said in the Rajya Sabha on Monday and while asserting that it will take "stern" steps to address the menace of mobile call dropping.

  Communications Minister Ravi Shankar Prasad said private telecom companies have been asked to improve the infrastructure and the government is monitoring it.

  After the issue was raised by Naresh Agrawal (SP) during Zero Hour, Prasad said he shared the concern of the member and Parliament over the problem.

  "I understand the concern raised by the member on the issue and Parliament's concern. I and my government have taken this issue very seriously...I am concerned over the issue and we are rectifying it. For last two-three years, the issue was not taken seriously. I want to assure you that the effective steps taken now by me have never been taken earlier," he said.

  "I am a strong minister and will take more stern steps to improve the services," he said.

  Prasad said private telecom companies are increasing their customers but not improving services which are "very bad". He added that be it the chief of Vodafone or Airtel, both have admitted to the problems and said they will improve.

  Of the total 18 lakh mobile towers of private companies across the country, a survey has found 35,000 towers to be faulty, the Minister said.

  "While 20,000 such towers have been rectified, still 15,000 faulty towers are to be set right. My department is monitoring it and have been asking private companies for investing and improving the infrastructure," he said

  He said due to government's efforts and pressure in the last three months, private mobile companies have installed 14,000 new towers and in Delhi alone 700 new mobile towers have come up. A new tower is being installed in the Parliament annexe and library building, he said, adding that his department is monitoring it.

  Agrawal also sought a thorough discussion on the issue to end "comsumer exploitation", to which the Minister responded positively saying he was ready for one.

  Responding to the question of TRAI's decision to impose penalty on private companies for call dropping, the Minister said "As far as TRAI's decision is concerned, it will be implemented from January."

  Prasad further claimed that BSNL, which is in operating profit for the first time in the last five years,is installing 25,000 more towers across the country in the last one month.

  "I will also bring BSNL in profit...I would not talk about my efficiency. BSNL was in 10,000 profit in 2004 and was in loss thereafter. BSNL is in operating profit, for the first time in five years. It was in losses earlier," he said.

General Awareness

WHO released estimates of the global burden of foodborne diseases

• • The World health Organisation (WHO) has released its first ever report on global estimates of foodborne diseases. The report is named as “Estimates of the global burden of foodborne diseases” – the most comprehensive report to date on the impact of contaminated food on health and well-being.

    

    • The report has been prepared after a decade of work, including input from more than 100 experts from around the world. Based on the available information, it is known that the global burden of foodborne diseases is considerable, affecting people all over the world – particularly children under 5 years of age and people in low-income areas.

    Key Points of the report:

    • Burden of foodborne diseases is caused by 31 agents – bacteria, viruses, parasites, toxins and chemicals and due to which almost 1 in 10 people fall ill every year from eating contaminated food and 420 000 die as a result.
    • Children under 5 years of age are at particularly high risk, with 125,000 children dying from foodborne diseases every year.
    • Certain diseases, such as those caused by non-typhoidal Salmonella, are a public health concern across all regions of the world.
    • Food prepared with unsafe water, poor hygiene and in inadequate conditions in food production and storage, etc are some of the other factors making to foodborne diseases.
    • WHO African and South-East Asia Regions have the highest burden offoodborne diseases, including among children under the age of 5 years.