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Current Affairs - 18 April 2016

General Affairs 

Sushma Swaraj's Iran Visit: Chabahar Port Project Put On The Fast Track
  • Sushma Swaraj's Iran Visit: Chabahar Port Project Put On The Fast TrackNEW DELHI:  India and Iran have agreed to move forward quickly on the crucial Chabahar port project during foreign minister Sushma Swaraj's trip to Iran today. Ms Swaraj also met Iranian President Hassan Rouhani in what is her first visit to the country as foreign minister.

    India believes the port is critical to its interests and wants to develop it as a counter to Pakistan's Gwadar port which was built with Chinese assistance. The modalities of the project, for which India is extending a 150 million dollar line of credit, have been stuck for several years. The Chabahar port in South East Iran will allow India to bypass Pakistan to transport goods to Afghanistan and Central Asia using a sea-land route.

    In February, the Cabinet had cleared the credit and formation of a company in Iran to handle the project. Ms Swaraj's visit is also expected to boost trade ties between the two countries.

    In a statement released after Ms Swaraj called on President's Rouhani, the Ministry of External Affairs said, "President Rouhani spoke of Chabahar as a defining partnership which has the potential of connecting the entire region. He hoped for closer consultations with India on regional issues esp Afghanistan and the challenge of terrorism."

    Ms Swaraj's visit is significant because it comes after sanctions on Iran were lifted by the US. Prime Minister Narendra Modi is expected to visit Iran later this year.

Earthquake Kills 233 In Ecuador; Emergency Workers Rush In
  • Earthquake Kills 233 In Ecuador; Emergency Workers Rush In
    PEDERNALES: The strongest earthquake to hit Ecuador in decades flattened buildings and buckled highways along its Pacific coast. President Rafael Correa said at least 233 people had died and rescuers were struggling to reach survivors trapped in the rubble.

    The magnitude-7.8 quake, the strongest to hit Ecuador since 1979, was centered on Ecuador's sparsely populated fishing ports and tourist beaches, 105 miles (170 kilometers) northwest of Quito, the capital.

    Correa reported the death toll on his official Twitter account while flying back from Rome to deal with the crisis. Officials earlier had reported more than 580 people injured.

    Vice President Jorge Glas said there were deaths in the cities of Manta, Portoviejo and Guayaquil - all several hundred kilometers (miles) from the center of the quake struck shortly after nightfall Saturday.

    In Pedernales, a town of 40,000 near the quake's epicenter, dozens of scared residents slept in the streets while men equipped with little more than car headlights tried to rescue survivors who could be heard trapped under rubble.

    "We're trying to do the most we can, but there's almost nothing we can do," said Gabriel Alcivar, mayor of Pedernales.

    Alcivar pleaded for authorities to send earth-moving machines and emergency rescue workers to help find people amid the rubble. He said looting had broken out amid the chaos but authorities were too busy trying to save lives to re-establish order.

    "This wasn't just a house that collapsed, it was an entire town," he said.

    Correa declared a national emergency and urged Ecuadoreans to stay strong while authorities handle the disaster.

    "Everything can be rebuilt, but what can't be rebuilt are human lives, and that's the most painful," he said in a telephone call to state TV before departing Rome straight for Manta.

    Glas said 10,000 armed forces had been deployed to help. In addition, 4,600 national police were sent to the towns near the epicenter.

    Officials said shelters had been set up and field hospitals were being deployed in Pedernales and Portoviejo. More than 3,000 packages of food and nearly 8,000 sleeping kits were being delivered. Electricity in Manabi province, the hardest hit, remained mostly down as authorities focused on finding survivors.
    "Compatriots: Unity, strength and prayer," Glas told a throng of residents gathered in the streets of Manta as he instructed them on how to look for survivors. "We need to be quiet so we can hear. We can't use heavy machinery because it can be very tragic for those who are injured."

    Homes were reduced to rubble along the quake's path, while in Guayaquil a shopping center's roof fell down and a collapsed highway overpass crushed a car. In Manta, the airport closed after the control tower collapsed, injuring an air traffic control worker and a security guard.

    Alberto Reynas, 58, was fishing off the coast of Pedernales when giant waves violently rocked his boat.

    "It felt the same on sea as it did on land," he said.

    But he was shaken again when he returned to land to find the facade of his two-story home had fallen off into the streets. He has been unable to communicate with members of his family and spent the night sleeping outdoors with neighbors, keeping a close watch against thieves.

    "It's pure sadness. Everything is destroyed," he said.

    Luis Quito said he spent the entire night delivering water to guests trapped under the rubble of a small, four-story Hotel Chimborazo owned by his father-in-law, who was missing and he believed dead.

    "We hear screaming all through night," said Quito, wailing as he expressed outrage over the slow response of authorities. "There are humans trapped below the terrace.  Babies. We need rescuers. But nobody has arrived so far."

    In the capital Quito, terrified people fled into the streets as the quake shook their buildings. It knocked out electricity in several neighborhoods and a few homes collapsed but after a few hours power was being restored.

    Among those killed was the driver of a car crushed by an overpass that buckled in Guayaquil, the country's most populous city. The city's international airport was also briefly closed. Hydroelectric dams and oil pipelines in the OPEC-member nation were shut down as a precautionary measure but so there were no reports of damage to them.

    Towns near the epicenter were evacuated as a precautionary measure in case of hazardous tsunami waves but several hours later authorities said was safe for coastal residents to return to their homes.

    Ecuador's ally Venezuela pledged humanitarian aid while neighbor Colombia, where the quake was also felt, said it stands ready to help in any way possible. The government is drawing on $600 million in emergency funding from multilateral banks to rebuild, Correa said.

    The US Geological Survey originally put the quake at a magnitude of 7.4 then raised it to 7.8. It had a depth of 19 kilometers (12 miles). More than 135 aftershocks followed, one as strong as magnitude-5.6, and authorities urged residents to brace for even stronger ones in the coming hours and days.

    David Rothery, a professor of geosciences at The Open University northeast of London said the quake was about six times as strong as the most powerful of two deadly earthquakes across the Pacific, in the southernmost of Japan's four main islands.

    A magnitude-6.5 earthquake struck Thursday near Kumamoto, followed by a magnitude-7.0 earthquake just 28 hours later. The quakes have killed 41 people and injured about 1,500, flattened houses and triggered major landslides.

    On Sunday, thousands of rescue workers searched a debris-strewn village in southern Japan for about a half-dozen missing people as US military aircraft rushed to join the relief mission.

Congress Backs Bihar Chief Minister Nitish Kumar's View Of 'Sangh-Mukt Bharat'
  • Congress Backs Bihar Chief Minister Nitish Kumar's View Of 'Sangh-Mukt Bharat'NEW DELHI:  Congress today backed Bihar Chief Minister Nitish Kumar's view that the country should be made 'Sangh-mukt' (RSS-free) as it is "posing a threat to democracy and unity" but said for any national-level alliance ahead of 2019 polls to take on BJP, parties should have "national existence".

    The party said people of the country will oust the Modi government themselves going by its work graph and there will be no need for an alliance.

    Asked if Mr Kumar can be projected at the national level, the party said he is "a popular chief minister" who is doing good work in Bihar.

    "There is no talk of leadership (led by Nitish). You are trying to create an imaginary alliance. I told you first, an alliance at the national level...all parties are state specific parties. The understanding is with such parties in states.

    "By the time 2019 elections come, the public themselves will oust the Modi government and there will be no need for any alliance," Congress general secretary Shakeel Ahmed said, replying to queries on the possibility of forging a Nitish-led national alliance.

    Congress is part of ruling alliance in Bihar.

    Echoing Mr Kumar's view against the RSS, the Congress leader said, "The country should be really made 'Sangh-mukt' and 'BJP-mukt' as they have created a threat to the nation's democracy and unity and integrity."

    Mr Ahmed said as far as alliances are concerned, they are state specific as some parties having strength in one state do not have strength in neighbouring states.

    "There is no national level alliance as yet. Parties need to have a national existence. Most parties have their existence in states and state-level alliances are already happening," he said.

    Asked if Mr Kumar was being pitted against Rahul Gandhi in leading an alternative coalition to BJP, he said, "There is no fight amongst us. We are all together. But before we get together, the people of the country will get together to oust Modiji. The time and things keep changing. Lohiaji was against Congress, but Congress and Lohia's followers are today together in an alliance. There is paradigm shift."

    Asked if Mr Kumar can be projected at the national level, the Congress leader said, "Nitishji is a popular chief minister of our alliance in Bihar and is doing good work...And we want that his state should do better and he be strong and should do good public welfare works there and we all should support in this."

    He said Congress has been saying that Mr Kumar is a "good" chief minister and Lalu Yadav, who was once his adversary, has also admitted this.

    To a question on whether Mr Kumar has the potential to be a national leader, he said he was railway and agriculture minister at the Centre.

    Addressing an event in Patna, Mr Kumar yesterday mounted a counter-offensive against Prime Minister Narendra Modi for his 'Congress-mukt Bharat' slogan, saying, "Sangh-mukt Bharat banane ke liye sabhi gair BJP parties ko ek hona hoga (to usher in a Sangh-free India all non-BJP parties have to come together)."

AIADMK And DMK Fooling People In Tamil Nadu, Says BJP
  • AIADMK And DMK Fooling People In Tamil Nadu, Says BJP
    CHENNAI:  BJP today accused the ruling AIADMK government and DMK of doing "petty politics", saying both the Dravidian parties presented "corruption full bad governance" and were fooling people while Prime Minister Narendra Modi has presented "corruption free good governance."

    "Modiji has presented corruption free good governance but AIADMK and DMK has presented in Tamil Nadu, a corruption full bad governance. They are doing petty politics and fooling voters," Union Environment Minister Prakash Javadekar told reporters in Chennai.

    "AIADMK and DMK are playing smart politics, smart games here," he said.

    Flaying the AIADMK government for allegedly pasting 'amma' stickers on a centrally sponsored scheme, Mr Javadekar, also BJP election in-charge for Tamil Nadu, said, "in giving free rice to poor, 90 per cent is central government subsidy. 10 per cent is what state government gives. But they are putting label and calling it as Amma Free Arisi (Rice) scheme. What we are saying at least call it as Pradhan Mantri Arisi."

    "Poor people get Amma Arisi free of cost that is 20 kilos under free rice scheme. What is the proof of Amma free Arisi?...Central government gives Rs 32 where as Amma (Jayalalithaa) gives Rs three and that is labelled and stickers are pasted as Amma Arisi (rice)..This kind of politics they are playing."

    "It is not Amma Arisi. It is Modi Arisi. We can say it as Pradhan Mantri Arisi. We are not fond of names. But who is giving what and it must be named together...they are fooling people," Mr Javadekar said.

    Claiming that coconut growers in Tamil Nadu were not given government subsidy, he said, "I met coconut growers here and they are suffering...They are not given any subsidy. They are not allowed to tap coconut for making herbal drink."

    "Government does not want poor to take healthy drink but only TASMAC (state run liquor outlets) liquor. That is what they are interested in because it is their business," he charged.

    For importing palmolein from Malaysia, Mr Javadekar claimed the state government was giving subsidy to Malaysian farmers.

    "...You are not helping your own farmers. Why cannot you give subsidy on coconut oil. If you give subsidy on coconut oil, poor farmers growing coconut will survive and poor person will be happy to use coconut oil than palmolein for cooking."

BJP Terrorising Auto And Taxi Drivers To Strike Work, Alleges Aam Aadmi Party
  • BJP Terrorising Auto And Taxi Drivers To Strike Work, Alleges Aam Aadmi PartyNEW DELHI:  Aam Aadmi Party today alleged that BJP is trying to foil the odd-even scheme by "terrorising" a section of auto and taxi drivers into striking work tomorrow, which it said would benefit only the app-based cab companies like Ola and Uber.

    Sniffing "conspiracy" behind the proposed strike, AAP legislator Sanjeev Jha said BJP is leaving no stone unturned to make the road-rationing policy's second phase, which came into force on April 15, "a failure".

    "Bhartiya Mazdoor Sangh, the trade union behind the strike, is BJP and RSS backed so they are resorting to all sorts of tactics to fail 'odd-even' by even threatening to violate the rules. The amount of work we have done for auto drivers is unprecedented. This is a conspiracy to fail the scheme," Mr Jha, who is also Parliamentary Secretary to Transport Minister Gopal Rai, told reporters.

    The public transport arrangements in the city are expected to come under strain tomorrow when schools and offices will reopen after an extended weekend, and taxis and autos going off roads can spell hardship for commuters.

    The party also fielded the functionaries of its auto union who claimed that more than 90 per cent of the collectives are with it and that the strike would only affect the income of the drivers.

    "Income of auto drivers have gone up due to the odd-even scheme. Now BJP is trying to terrorise many into striking work. This is aimed at benefitting app-based companies like Ola and Uber. This becomes clear when the Prime Minister himself recently took a ride on one such e-rickshaw during an event. He is promoting such companies," the vice president of the union said.

Business Affairs 

Gold, silver prices rise on global cues, seasonal buying
  • E-commerce rivals Flipkart and Snapdeal slug it out on social media over the Chinese online retailer Alibaba's plans to enter the Indian market.
    Alibaba, which has invested in Indian e-tailers like Paytm and Snapdeal, recently said that it plans a full-fledged entry into the Indian market.
    Taking a pot shot at competitors, Flipkart co-founder Sachin Bansal in a tweet said, "Alibaba deciding to start operations directly shows how badly their Indian investments have done so far."
    Hitting back, Snapdeal founder Kunal Bahl tweeted, "Didn't Morgan Stanley just flush 5bn worth market cap in Flipkart down the (toilet seat icon) Focus on ur business not commentary (smile icon)".
    Alibaba China has about 40 per cent stake in One97 Communications which runs Paytm.
    In February, a mutual fund firm under Morgan Stanley marked down the value of Flipkart's shares by 27 per cent. In a regulatory filing the firm said it valued Flipkart stake at $58.93 million in December 2015, as compared to $80.62 million in June 2015.
    Flipkart in February, before the filing by Morgan Stanley fund, had said it is valued at $15.2 billion then.
    In the recent times, online retailers such as Flipkart and Snapdeal have sparred on social media over various issues and have also run publicity campaigns to target rivals. 

    Next IMF chief should be from emerging economy: India

    • IMF chief Christine LagardeIndia has told the IMF that the next managing director of the top global financial body should be from an emerging economy and not from Europe, which traditionally has been the case.
      Last month, the International Monetary Fund (IMF) confirmed Christine Lagarde of France for her second five-year term beginning July 5. There was no other candidate in the race and India had supported her candidacy.
      "This time, there was no candidate from any other country. It was proposed by all European countries. India supported her candidature. But while doing so we have indicated, we have informed the Fund that in the next round the managing director (MD) position should go to an individual from an emerging economy," said Union Finance Secretary Shaktikanta Das.
      "Considering today's global economic reality, it is time that it (IMF's MD post) goes to a non-European, from an emerging economy. We have communicated our view (to the IMF). This round there was no other candidate as such," Das said in response to a question on the election of the IMF Managing Director during a round table with Indian mediapersons.
      When asked on the response from major IMF stakeholders, Das said it is too early to comment as the next election is five years away.
      "There has been no serious pitching by non-European (countries) so far," he said.
      When Lagarde was selected for this position five years ago, there was no unanimity among developing countries on this issue, he pointed out.

      5/20 rule set to be tweaked: Mahesh Sharma

      • Indicating that the decade-old norm for international operations by the domestic carriers, popularly known as 5/20 rule, is set to be tweaked, Union Minister Mahesh Sharma expressed hope the Union Cabinet will give its nod to the revised norm by this month.
        The rule was a "matter of concern," and has been addressed (appropriately), Sharma, who is Minister of State for Civil Aviation, said at an event in Mumbai.
        "(We) have sent the revised 5/20 rule for should be back in 10-15 days and then can be taken up by the cabinet anytime," he said.
        The existing regulation requires an Indian carrier to have a minimum five years of domestic flying experience and a fleet of at least 20 planes to fly overseas.
        The issue of 5/20 international flying norm has witnessed extensive debates with legacy carriers opposing any changes to the rule, while start-up airlines-AirAsia India and Vistara-are against continuing with the requirement.
        Sharma also said Civil Aviation Ministry has already sent the draft aviation policy for inter-ministerial consultation, adding that "it should be taken up by the cabinet anytime."
        All issues relating to the aviation sector will be addressed in new policy, he added.
        Measures suggested in the draft policy, which was unveiled last October, seek to give a boost to the Indian aviation sector, which has a high growth potential, and strengthen regional connectivity.
        It has suggested tax incentives for airlines, maintenance and repair works of aircraft besides mooting 2 per cent levy on all air tickets to fund regional connectivity scheme.
        There are other significant proposals such as increasing FDI limit for foreign airlines, setting up of no-frills airports and providing viability gap funding for airlines to bolster regional air connectivity.
        Sharma said that the Government was open to re-look at taxations on jet fuel for the states participating in the regional connectivity scheme.
        "We have already proposed a haircut to bring taxation to 1 per cent on the regional connectivity scheme," he said.
        On the issue of fixing thresholds for economy class air fares, Sharma said that the "price capping" was being looked at through a consensus method.

      Indian Railways, Google launch free Wi-Fi at nine more stations

      • Indian Railways internet service arm Railtel and internet firm Google on Friday launched free high-speed public wi-fi service at nine railway stations across India.
        "After the first launch at Mumbai Central, starting today, users in Pune, Bhubaneshwar, Bhopal, Ranchi, Raipur, Vijayawada, Kacheguda (Hyderabad), Ernakulum Junction (Kochi) and Vishakhapatnam will be able to access the network using their smartphones for free," said a joint statement.
        "Travellers passing through these stations will now be able to easily stream a high definition video while they are waiting, research their destination, download a book or a new game for their journey," it added.
        The service built over Railtel's fibre network will be formally launched by Railway Minister Suresh Prabhu soon.
        In association with Indian Railways and Railtel, Google aims to spread the high speed wi-fi service across 100 of India's busiest railway stations by the end of 2016 to enable 10 million people access internet, and eventually spread the scheme to 400 stations.
        "As internet adoption grows in India, easy and affordable access to high-speed networks is the real need of the hour. But our real hope is that this project will set new benchmarks," said Google's Gulzar Azad while Railtel chairman RK Bahuguna said the long term goal of the wi-fi service is to make it self-sustainable.
        "And while the service will be free for a reasonable amount of time, our long-term goal is to make this project self-sustainable to allow for expansion to more stations and places in the future," he said.

        Infosys kicks start earnings season on Friday; here's what brokerages say on IT pack

        • IT Q4 preview: Will Infy, TCS live up to the mark?With the domestic stock market heading for a long weekend, a few important developments would be setting the course of equities for the next week. The first and foremost among them would be the kick-start of March quarter earnings with Infosys' results on Friday.
          The IT pack is expected to report a modest revenue growth of  2-3.9 per cent (in constant currency terms) in an otherwise traditionally weak quarter, with Infosys or HCL Tech topping the chart. Experts believe that Infosys would keep its underlying strong momentum intact, while they expect ramp-ups for HCL Technologies on large deals.
          New technologies like digital, Internet of things (IoT) and automation will drive the growth for the IT companies and will help them provide robust outlook for the fiscal year 2017, they said, adding that the absence of one-time costs related to Chennai floods, seasonality factor and impact of rupee depreciation is likely to expand their margins by about 120 bps.
          In all likelihood, Infosys will earn back its bellwether title by logging best ever Q4 in several years.
          Brokerage firm Edelweiss Securities believes Infosys' revenue guidance will beat even most optimistic estimates, but expects Tech Mahindra and TCS may face portfolio-specific headwinds. Wipro may fail to provide an upbeat FY17 outlook and its organic growth (excluding acquistions) may not be impressive.
          TCS and Wipro are scheduled to report their fourth quarter numbers on April 18 and April 20.
          Among midcap IT firms, dollar revenue growth will be the best in Persistent Systems and Cyient, whereas Mphasis and NIIT Tech will likely witness muted dollar revenue trends.
          The only negative, brokerages believe, will come from the depreciation of currencies against US dollar (cross-currency headwinds) and will amount to 20 to 80 bps loss in dollar revenues.
          Here's what brokerages are expecting from the tier 1 IT firms:
          1) Infosys
          Brokerage Prabhudas Liladhar expects Infosys to report revenue growth of 2.3 per cent (in CC terms) in the March quarter, its best ever Q4 in several years. The brokerage estimates year-on-year (y-o-y) CC revenue growth to come in at 15.4 per cent against 7.8 per cent in the March quarter of last fiscal year indicating sharp improvement in growth trajectory.
          Prabhudas Liladhar believes the company will guide for above industry growth in FY17.
          "Our channel checks indicate healthy deal pipeline and a significantly better win rate in large deals. Infosys is in the midst of an earnings upgrade cycle and that should drive premium valuations and stock performance," said PL.
          Infosys stock figures among the top picks of the brokerage.
          2) TCS
          Brokerage Edelweiss Securities expects TCS to post 1.2 per cent revenue growth in Q4, implying almost 1.9 per cent constant currency
          growth. Due to absence of Chennai flood impact and significant deceleration in sore points, it also expects the IT firm to post margin expansion of 90 bps quarter-on-quarter (q-o-q). 
          "The above numbers imply the company will end the year with 7 per cent dollar growth, slightly lower than Infosys' FY16 dollar growth of 9.2 per cent. While FY16 growth will be lower, we believe fading of sore points like Diligenta, LATAM and Japan will be a relief and enable the company to issue robust demand outlook for next year," said Edelweiss Securities.
          The brokerage mantains 'hold' on the TCS stock.
          3) HCL Tech
          Broking firm ICICI Securities expects HCL Tech to report revenue growth in constant currency terms of 3.5 per cent q-o-q and in dollar terms of 2.9 per cent q-o-q. The brokerage said only 2 of ten large ITO deals had ramped up for HCL Tech in the December quarter with the rest expected to ramp-up in the March quarter.
          The IT company's commentary on margin would be keenly watched. The broking firm expects target range of 21-22 per cent to be retained if only external IT operations of Volvo were included. The brokerage added that the internal IT deal target range should be lower by nearly 50 bps.
          The brokerage recommends 'buy' rating on the stock.
          4) Wipro
          Edelweiss Securities expects Wipro to post 2.3 per cent and 2.9 per cent growth in US dollar and CC terms, respectively. Growth will be
          broadly at mid-point of guidance provided by the management, it said.
          "In our view, stabilising of E&U vertical and some recovery foreseen in the telecom vertical will enable Wipro to issue robust outlook for the next year in qualitative comments," said Edelweiss Securities.
          The brokerage maintains 'buy' on the Wipro stock.
          5) Tech Mahindra
          ICICI Securities expects revenue growth in constant currency terms to be nearly 1 per cent q-o-q with enterprise segment expected to grow in the range of 2-3 per cent and Communications expected to be flattish or witness a modest decline.
          The brokerage said dollar growth is expected to be about 0.2 per cent q-o-q given the cross currency headwind of nearly 80bps.
          Centrum Broking also said Tech Mahindra's dollar revenues are likely to decline by 0.5 per cent q-o-q due to weakness in Lightbridge Communications Corporation (LCC).
          ICICI Securities recommends 'buy' on TechM stock.

        General Awareness

        ISRO to launch 21 satellites in one shot

          • ISRO is set to launch its seventhand last of the regional navigation spacecraft on April 28, The Space Agency has lined up a record-making feat towards the end of May.
            • The Space Organisation will put Indian Spacecraft as well as 21 small and mostly foreign commercial satellites into the orbit by PSLV-C33 launcher.
            • Earth observing, high-resolution Cartosat-2C weighing around 700 kg.
            • The Satellite Cartosat-2C will give a resolution of about 60 cm, it is the best Indian eye yet in the sky. This will cater to the country’s military requirements.ISRO to launch 21 satellites in one shot
            • Castrosat’s camera can spot objects that are 60 cmwide from its orbit of around 600 km.
            ISRO’s Mission:
            • On behalf of ISRO mission, PSLV has launched 10 spacecraft’s including eight small foreign ones in April 2008. It also launched six small Singapore satellites into orbit in last December.
            • NASA holds the 2013 record for placing the highest number 29 of mostly small customer satellites in orbit on a Minotaur launcher.
            • The upcoming mission of the ISRO would carry Lapan A3 of Indonesia, Biros of Germany, SKYSAT GEN of US, and MVV of Germany among the micro satellites.
            • Founder: Vikram Sarabhai
            • Inception: 1969
            • Chairman: Kiran Kumar

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