Current Affairs - 21 February 2016

General Affairs 

Prime Minister Modi, Nepal PM Oli Launch Muzaffarpur-Dhalkebar Power Line

• NEW DELHI:  Prime Minister Narendra Modi and his Nepalese counterpart KP Sharma Oli today launched the Muzaffarpur-Dhalkebar power transmission line.
  
  Under the project, initial supply will be 80 MW, which will be augmented to 200 MW by October and 600 MW by December 2017, a Prime Minister Office's (PMO) press release said.
  
  Mr Oli is on a six-day state visit to India.
  
  According to the statement, the Nepal portion of the 400 KV Muzaffarpur-Dhalkebar line is being implemented by the government of Nepal, under an LoC (line of credit) of USD 13.5 million.
  
  The 80 MW power would flow immediately through this line, with an initial charge of 132 KV. Thereafter, it will be augmented to 200 MW in October 2016 at 220 KV, and then to 600 MW by December 2017 at 400 KV.
  
  The two nations also inked an MoU on strengthening of road infrastructure in the Terai area of Nepal.
  
  This pact will enable speedy implementation of remaining work on 17 roads in package 2, 3, 4, 5 and 6 of the Terai Road Phase-I project, totalling 518 km. Two roads in Package 1 totalling 87 km have already been completed, it said.
  
  India and Nepal also inked pacts on transit between Nepal and Bangladesh through Kakarbitta-Banglabandh corridor and operationalisation of Vishakhapatnam port.
  
  "This Exchange of Letters between India and Nepal would result in simplification of modalities for traffic of goods between Nepal and Bangladesh while transiting through India, through the Kakarbhitta (Nepal) and Banglabandha (Bangladesh) corridor," the statement said.
  
  On exchange of letters on Visakhapatnam port it said this would provide for transit facilities for Nepal.

Nabam Tuki Blames RSS And BJP For Dismissal Of His Government In Arunachal

• NEW DELHI:  Former Arunachal Pradesh chief minister Nabam Tuki today blamed RSS and BJP for the dismissal of his government, alleging that their aim is to topple all Congress governments in the Northeast.
  
  Mr Tuki, whose Congress government was dismissed by imposition of President's Rule on January 26 after 21 party legislators revolted against him, also alleged that Governor JP Rajkhowa and Union Minister Kiren Rijiju worked "to overthrow his democratically elected popular government".
  
  "The whole dissidence was funded and controlled by RSS and BJP. They just want to topple all Congress governments in the Northeast. RSS and BJP were firing through the shoulders of Congress dissident MLAs," he said at a press conference in New Delhi.
  
  Mr Tuki's statement came a day after leader of the Congress rebels, Kalikho Pul, was sworn-in as Chief Minister of Arunachal Pradesh following withdrawal of President's Rule.
  
  The former chief minister, flanked by 26 legislators loyal to him, said whenever the NDA came to power, the governments in Arunachal Pradesh were destabilised -- be it in the time of (former chief ministers) Gegong Apang or be it during Mukut Mithi.
  
  Mr Tuki claimed every effort was made by Governor Rajkhowa "to trample on democracy and defy the Constitution" to remove the Congress government.
  
  "There was no reason to dismiss my government. There was no law and order problem, there was no internal disturbance. Still, President's Rule was imposed undemocratically and unconstitutionally," he said.
  
  The Congress leader accused Union Minister of State for Home Kiren Rijiju of supporting and instigating rebel legislators against his (Tuki's) leadership.
  
  Demanding removal of Mr Rajkhowa as Governor, former Congress lawmaker Takam Sanjay said democracy and Constitution "were murdered in Arunachal Pradesh and this may lead to serious law and order problems in the sensitive border state".
  
  "Modi ji, please stop treating us as second class citizen. We are as much Indian as anyone else. Don't turn Arunachal Pradesh as another Jammu and Kashmir," he said.
  
  Congress has governments in Manipur, Assam, Meghalaya and Mizoram in the Northeast.
  
  A revolt by Congress rebels led by Mr Pul led to a political crisis in Arunachal Pradesh that finally led to imposition of President's Rule on January 26.
  
  Mr Tuki has the support of 26 legislators in the 60-member Assembly.
  
  Congress, which had 47 legislators in the 60-member Assembly, suffered a jolt when 21 of its lawmakers revolted against Mr Tuki's leadership.
  
  Eleven BJP legislators and two independents backed the rebels in the bid to upstage the government.
  
  Later, 14 rebel Congress legislators were disqualified by the Speaker.
  
  The Supreme Court was considering pleas against imposition of President's Rule in Arunachal Pradesh and also hearing petitions seeking examination of constitutional schemes on the scope of discretionary powers of the Governor.
  
  After Union Cabinet's recommendation for withdrawal of President's Rule, Congress moved the Supreme Court and got an order for maintenance of status quo in the crisis-ridden state till it examined judicial and Assembly records on disqualification of 14 rebel Congress legislators by former Speaker Nabam Rebia.
  
  However, on Thursday, the Supreme Court virtually paved the way for government formation in Arunachal Pradesh by vacating its order on maintaining status quo, after being satisfied with the Gauhati High Court order staying the disqualification of the 14 rebel Congress legislators.
  
  Congress again moved the Supreme Court yesterday but the court rejected its plea for an interim direction that it be allowed to go in for a floor test in the Arunachal Pradesh Assembly to prove majority.
  
  Mr Pul was sworn-in as Chief Minister of Arunachal Pradesh last night following withdrawal of President's Rule.

National Herald Case: Court Exempts Rahul, Sonia Gandhi, Sam Pitroda Granted Bail

• NEW DELHI:  A Delhi court on Saturday granted bail to Sam Pitroda, a former chairman of the National Innovation Council, and also granted exemption to Congress president Sonia Gandhi, vice president Rahul Gandhi and others in the National Herald case as per the Supreme Court directives.
  
  Metropolitan Magistrate Lovleen granted bail to Mr Pitroda after he appeared before him asking him to furnish a personal bond of Rs.50,000 and a surety of like amount.
  
  The court also granted exemption from personal appearance to Gandhis, Congress treasurer Motilal Vora, Suman Dubey and another party leader Oscar Fernandes, who are out on bail.
  
  The Supreme Court on February 12 exempted Sonia Gandhi, Rahul Gandhi and others from personal appearances, noting their presence in the trial court would cause more inconvenience than convenience.
  
  The court also fixed March 21 for further hearing of the case.
  
  Bharatiya Janata Party leader Subramanian Swamy has initiated the case against Gandhis and others.
  
  On June 26 last year, the trial court issued summons to the Congress leaders on Mr Swamy's complaint about "cheating" in the acquisition of Associated Journals Ltd., which published the National Herald newspaper, by Young India Ltd., "a firm in which Sonia Gandhi and Rahul Gandhi each own a 38 percent stake".
  
  Mr Vora, Mr Dubey, Mr Fernandes and Mr Pitroda were also named as accused in the case.

AAP Demands Sacking Of Delhi Police Chief BS Bassi Days Before His Retirement

• NEW DELHI:  Days before Delhi Police Commissioner BS Bassi's retirement, the Aam Aadmi Party (AAP) today demanded that he be sacked and charged that his loyalty was not to the police force, but to the RSS.
  
  AAP's Delhi unit secretary Saurabh Bharadwaj said Mr Bassi, who has had frequent run-ins with the Delhi government, should not be given a "respectable exit" and cited his stint as the city police chief which will end this month.
  
  "BS Bassi has often said that he owed loyalty towards the khaki, but inaction in the JNU case where journalists and students were attacked shows that he owed his loyalty not the unifrom, but khaki pants," AAP's Delhi unit convenor Dilip Pandey said, in a veiled reference to RSS.
  
  The commissioner, who is set to retire on February 29, has been facing intense flak for Delhi Police's alleged mishandling of the JNU row.
  
  The party also listed out the cases like the Kaliash Parbat murder case where a girl was killed by eve teasers and the alleged "police inaction" over it as also the alleged targeting of AAP legislators.
  
  "This is the credibility of police under BS Bassi. He claimed that they had proof against Kanhayia, but no evidence has come out till today.
  
  "The Delhi Police is too quick to act against AAP MLAs but unable to find real culprits in JNU case. Rather, a fake video was circulated," Mr Pandey said.
  
  The party has been at odds with the Delhi Police and has often accused Mr Bassi of being a "BJP activist".
  
  "We not only demand his immediate sacking, but we don't want Bassi to have a respectable exit," Mr Bharadwaj added.

NASA Receives Record Number Of Applications For Astronauts

• WASHINGTON:  The aspiration to become astronauts seems to have rocketed in the US as more than 18,300 people applied to join NASA's 2017 astronaut class, far surpassing the previous record of 8,000 in 1978.
  
  The number of applications that the agency has received for the 2017 astronaut class is almost three times the number of applications received in 2012 for the most recent astronaut class, NASA said.
  
  "It's not at all surprising to me that so many Americans from diverse backgrounds want to personally contribute to blazing the trail on our journey to Mars," said NASA administrator Charlie Bolden in a statement on Friday.
  
  

  "A few exceptionally talented men and women will become the astronauts chosen in this group who will once again launch to space from US soil on American-made spacecraft," Bolden noted.
  
  Applications opened on December 14, and closed Thursday, but that is just the beginning of an 18-month process that will end with the selection of 8-14 individuals for the opportunity to become astronaut candidates.
  
  NASA hopes to announce its selections in mid-2017.
  
  Between now and then, NASA's Astronaut Selection Board will review the applications, assessing each candidate's qualifications.
  
  The board will then invite the most highly qualified candidates to the agency's Johnson Space Center in Houston for interviews before the final selection is made and the new astronaut candidates report to Johnson for training.
  
  After reporting at Johnson, the astronaut candidates will go through about two years of initial training on spacecraft systems, spacewalking skills and teamwork, Russian language and other requisite skills.
  
  Those who complete the training will be given technical duties within the Astronaut Office at Johnson before being assigned on any of four different spacecraft: the International Space Station, NASA's Orion spacecraft for deep space exploration, or one of two American-made commercial crew spacecraft currently in development -- Boeing's CST-100 Starliner or the SpaceX Crew Dragon, NASA said. 

Business Affairs 

130 start-ups may raise $700 million in a year, to create 5K jobs

• Start-up companies in India are expected to raise $700 million and create 5,000 jobs in next 12 months, as per India Startup Outlook Report 2016 by InnoVen Capital.

  "About 130 companies are expected to raise $700 million in the next 12 months," said the report.

  InnoVen Capital India has provided over 100 loans to 70 companies across early to mid-growth stage that include Snapdeal, Freecharge, Myntra, Practo, Portea, PepperTap, Byju's, Faasos, Capillary Technologies and Manthan Systems.

  As per the report, an industry-wise analysis revealed that irrespective of funding stage, consumer internet and e-commerce are the most popular segments and from a hiring perspective, 97 per cent start-ups felt they were likely to hire new employees where on an average 28 per cent would be on the technology front.

  "More than 5000 jobs are expected to be created by about 130 start-ups in the next 12 months. Interestingly, the startups surveyed displayed significant gender diversity in their workforce," the report said.

  As per the study, 41 per cent of the VC-funded startups had women founders or CXO level executives, while this number stood at 31 per cent for boot-strapped ventures and at 29 per cent for ventures with angel funding.

  At the end of current financial year, more than 50 per cent of bootstrapped start-ups and 45 per cent angel funded start-ups expected to turn profitable whereas only 22 per cent venture capitalist funded companies expected to turn profitable, the report said.

  It found that 65 per cent of all companies felt current business and political conditions are better than last year and 76 per cent expect next year to be even more favourable for start-ups.

  The study also noted that 74 per cent of bootstrapped and angel-funded companies were not aware of Angel Tax as per Section 56 of the Income Tax Act.

  The report said that more than 70 per cent respondents believed the Indian education system was not preparing future employees with the skills their business needed.

  "We are privileged to have a unique ring-side view into the venture ecosystem as it has matured over the years. By distilling that knowledge gained through the years into reports and research studies, InnoVen Capital hopes to share some of those insights with other fellow participants," Innoven Capital Group COO and CEO India Ajay Hattangdi said in a statement.

3G phone like Freedom 251 would cost Rs 2,300, according to Telecom Ministry

• With questions being raised over the promised price of Rs 251 for a 3G smartphone by new entrant Ringing Bells, the Telecom Ministry has found that a device with such specifications would cost about Rs 2,300.

  "The Ministry has analysed the issue and it feels that such a device can be manufactured for about Rs 2,300," sources said.

  However, they refused to say if any action will be taken against the company in the matter.

  Earlier this week, Noida-based firm Ringing Bells launched the world's cheapest phone -- Freedom 251 -- priced at Rs 251, hogging limelight globally.

  Indian Cellular Association, which represents the handset makers industry in India and has members like Apple, Samsung, Microsoft, Lava and Micromax, had also written to Telecom Minister Ravi Shankar Prasad.

  The body said the bill of material value for a product like this when sourced from the cheapest supply chain cost approximately $40 (Rs 2,700).

  When translated into retail price after addition of applicable duties, taxes and distribution and retail margins, the cost of the product would be at least Rs 4,100, it added.

  ICA requested the Minister to get into the depth of the issue, saying the price could not be below Rs 3,500 even after a subsidised sale.

  Ringing Bells, on its part, said the manufacturing cost of the phone is about Rs 2,500, which will be recovered through a series of measures like economies of scale, innovative marketing, reduction in duties and creating an e-commerce marketplace.

  Apart from the jaw-dropping price, the company that was set up five months ago by Amity University graduate Mohit Kumar Goel, is also in the midst of controversy with analysts alleging that its maker has merely rebranded a device by its rival, Adcom.

  Analysts allege that the design of Ringing Bells' Freedom 251 handset resembles that of Adcom's Ikon 4, which is already available in the Indian market at Rs 3,999.

  Interestingly, most built-in app icons on the Freedom 251 seem to be a direct copy of icons on Apple's iPhone, they added.

  Despite the controversies, the device has continued to grab attention from consumers. Following a heavy demand, Ringing Bells suspended bookings for 24 hours yesterday. It resumed bookings on Friday.

Smart cities can enhance Indian citizens' quality of life: US official

• India's ambitious plan to develop 100 smart cities can enhance quality of life for its citizens and help the country meet all environmental goals, a top US official has said.

  US Deputy Secretary of Commerce Bruce Andrews, who travelled to India last week leading a high-powered delegation of 18 American companies on a Smart Cities Infrastructure Business Development Mission, said the plan can also offer a unique and important opportunity for American businesses.

  "Prime Minister Modi's leadership in revitalising India's economic development and his vision to develop 100 smart cities can enhance the quality of life for India's citizens and help India meet its environmental goals," Andrews said.

  The smart cities plan, which involves the overlaying of urban infrastructure with IT connectivity, can improve core infrastructure and enhance citizen services, he said.

  During his visit, Andrews highlighted the need for India to address the fundamental 'ease of doing business' barriers that have traditionally hampered expanded trade and investment between the two countries.

  He also showcased the valuable contribution that the US industry can play in providing the products and services India's cities need to become global leaders in the deployment of "smart" technologies.

  The week before the trade mission arrived in India, Prime Minister Modi's government named the first 20 cities that will be provided $15 million annually for the next five years as seed money to facilitate "smart cities" updates and improvements.

  The Center's investment will be matched by state governments and used to catalyse private-sector investment.

  Visakhapatnam (Vizag), one of the three initial smart cities named as an official partner for the US, was included in the initial 20 cities that will receive the funding.

  As part of the trade mission, US Trade and Development Agency Director Leocadia Zak concluded a grant agreement in presence of Andhra Chief Minister N Chandrababu Naidu to continue US Trade and Development Agency's (USTDA) support of India's goal of developing smart cities across the country.

  The agreement will advance the City of Vizag's efforts to make it more efficient and sustainable through the development of interconnected infrastructure, communications and data systems, the Commerce Department said.

Government approves Rs 34,000-cr road projects in February

• Government on Friday approved eight highway projects worth Rs 6,000 crore for six states - Punjab, Jharkhand, Madhya Pradesh, Rajasthan, Himachal Pradesh and Odisha.

  With the approval, the number of projects cleared by Road Transport and Highways Ministry this month so far has swelled to 37, entailing a total investment of about Rs 34,000 crore.

  "The Ministry has approved eight projects with a total length of about 350 kms and aggregate total project cost of Rs 6,000 crore," Road Transport and Highways Secretary Sanjay Mitra said.

  Of these, six will be implemented in EPC (engineering, procurement and construction) mode and two in hybrid annuity mode, he said.

  The projects approved today include construction of partially access controlled four-lane elevated highway between Samrala Chowk to Ludhiana Municipal limit on NH 95 in Punjab on hybrid annuity mode to be executed at a cost of Rs 910 crore.

  Another project for Punjab pertains to four-lane Laddowal Bypass (linking NH 95 WITH NH 1 via Laddowal seed farm at Ludhiana) under NHDP on hybrid annuity mode at a cost of Rs 444 crore.

  Two projects approved for Jharkhand today include four/two laning with paved shoulder of Govindpur Chas-West Bengal border section of NH 32 on EPC mode at Rs 946 crore and four-laning of Barhi-Hazaribag section of NH 33 on EPC mode at a cost of Rs 700 crore.

  A Rs 302 crore project was approved for Madhya Pradesh for balance work of 2 lane with paved shoulder of Bhopal to Sanchi section of NH 86.

  Three more projects -- one each for Rajasthan, Himachal Pradesh and Odisha -- were approved today at a cost of Rs 396 crore, Rs 887 crore and Rs 1,369 crore for NH 116, NH 22 and NH 23 stretches, respectively.

  No clearance is required for approval of these projects as their construction cost is less than Rs 1,000 crore, the limit fixed by the government recently for award of projects by the Road Transport and Highways Ministry.

  The government plans to award most of these projects within this fiscal.

  The government has a target of awarding road contracts of 10,000 kms for this fiscal and it has so far awarded 7,677 kms.

  It has already set a target to increase the length of National Highways to 2 lakh kms from the existing 96,000 kms.

  Last week, the Ministry had approved 13 projects worth Rs 10,300 crore that included five projects by National Highways Authority of India (NHAI) and eight projects by the Ministry.

  As many as 18 projects worth Rs 17,000 crore for building about 1,000 kms of highways, including nine on the recently approved hybrid annuity mode, were approved in a meeting, chaired by Mitra, earlier this month.

  No Cabinet approval is required for the projects cleared this month as the government, in a bid to fast-track highways projects, had recently empowered Road Transport and Highways Ministry to approve projects with civil construction cost up to Rs 1,000 crore.

  It has made it clear that civil construction cost would be segregated from capital cost of projects.

  This was done to reduce time as multiple stages of examination and appraisal of the same project by different Ministry/Department/Committees caused delays in award of National Highways projects.

  Taking note of such difficulties and with a view to minimise levels of decision making, the CCEA has empowered the Ministry of Road Transport and Highways to decide on the change in the mode of delivery of individual NH projects.

  The Cabinet had last month approved hybrid annuity model for building roads to fast-track highway projects, revive the Public-Private-Partnership (PPP) mode and attract more investments in the sector.

  Under this model, the government provides 40 per cent of the project cost to the developer while remaining 60 per cent investment has to be made by the developer.

  Road Transport and Highways Minister Nitin Gadkari had recently said, "No one (private players) was ready to participate in the PPP-based projects as they had lost faith (in the previous government).

  "However, to encourage private participation, we have also introduced a hybrid model, where we will share the risk with them," he had said, adding that majority of land acquisition has been done for all these projects.

Yahoo board hires investment banks to mull possible sale

• Yahoo's board has hired three investment banking firms to evaluate potential bids for its Internet operations in the clearest sign yet that CEO Marissa Mayer may not have much more time to turn around the struggling company.

  The move announced Friday comes 2 1/2 weeks after Yahoo disclosed it would consider "strategic alternatives" while Mayer cuts costs through mass layoffs, office closures and a purge of unprofitable products.

  Mayer believes the overhaul will boost profits and sharpen Yahoo's focus on mobile apps and other services most likely to revive the company's revenue growth after years of decline.

  Some Yahoo shareholders frustrated with a steep drop in the company's stock price have been pushing for a sale of the Internet operations instead.

  The board has now responded to that pressure by hiring investment bankers Goldman Sachs, J.P. Morgan and PJT Partners to set up a process for meeting with companies interested in buying all or parts of Yahoo's business. A special committee of Yahoo's directors will discuss the options with the bankers and the company's legal advisers, Cravath, Swaine & Moore.

  While the board mulls those alternatives, Mayer will continue to pursue a turnaround plan that includes jettisoning 15 percent of Yahoo's workforce.

  "We believe that pursuing these complementary paths is in the best interests of our shareholders and will maximize value," Yahoo Chairman Maynard Webb said in a statement.

  Mayer also is trying to spin off Yahoo's Internet operations into a newly created company while leaving behind prized stakes in Alibaba Group, a rapidly growing Internet company in China, and Yahoo Japan. The proposed spinoff might not be completed until next year, if Yahoo's Internet business isn't sold before then.

  Yahoo Inc. didn't identify any of the potential bidders that it might meet. Verizon Communications has publicly said it might be interested in buying parts of the company after paying $4.4 billion last year to snap up another fading Internet company, AOL Inc.

  Analysts believe Yahoo's other likely suitors may include AT&T, Comcast and various private equity firms that specialize in snapping up troubled companies with well-known brands such as Yahoo.

  Virtually all of Yahoo's current market value of $28 billion is tied to its stakes in Alibaba and Yahoo Japan. The holdings in Alibaba alone are valued at $26 billion.

  Analysts still believe Yahoo's line-up of still-popular services such as email, sports and finance could fetch several billion dollars in a sale.

  Yahoo's stock gained 62 cents, or 2 percent, to close Friday at $30.04. The shares have plunged by 40 percent since the end of 2014.

General Awareness

Indigenously developed Prithvi-II missile successfully test-fired

• • India’s indigenously developed Prithvi-II missile had been successfully test-fired from the Chandipur, Odisha.

    

    Key Highlights

    • Prithvi II is capable of carrying 500 kg to 1,000 kg of warheads.
    • It has a strike range of 350 km.
    • It is a surface to surface medium range ballistic missile.
    • Scientists from Defense Research and Development Organization (DRDO) had monitored its activities.
    • The Strategic Force Command (SFC) had checked its performance and launched activities.
    • The missile test was carried out from a mobile launcher from launch complex-3 of the Integrated Test Range (ITR).
    • It is thruster by liquid impulsion twin engines.
    • Under India’s prestigious IGMDP (Integrated Guided Missile Development Program) Prithvi II is the first missile to be developed by DRDO
    • Prithvi II is developed for theIndian Air Force.
    • It has aninertial navigation system which will help in improved navigation.
    • It was firstly test-fired on January 27, 1996 and then the development stages were completed in 2004.
    • Prithvi II was introduced into India’s Strategic Forces Command in 2003.

    About Strategic Force Command

    • TheStrategic Forces Command (SFC) is responsible for the management and administration of the country’s tactical and strategic nuclear weapons supply.
    • SFC is also known asStrategic Nuclear Command as a part of India’s Nuclear Command Authority (NCA).
    • It was established on January 4, 2003.
    • Air Marshal Teja Mohan Asthana became its first commander-in-chief.
    • SFC manages and administers all strategic forces.