Current Affairs - 6 September 2016

General Affairs 

G20: Modi takes a dig at Pakistan, says one single nation in South Asia is spreading terror

• 

  Prime Minister Narendra Modi today at the last session of the G20 Summit delivered a strong message on cracking down on terror emanating from Pakistan.
  

  Especially significant as he was speaking in China, Modi made an intervention on terror financing at the G20's last session, pointing out that it was an issue inextricably linked to global governance and stability.

  "There are some nations that use terrorism as an instrument of state policy," he said. "Indeed one single nation in South Asia is spreading these agents of terror in countries of our region."

  Modi said that "those who sponsor and support terrorism must be isolated and sanctioned, not rewarded." "For us a terrorist is a terrorist." the PM said, adding that "India has a policy of zero tolerance to terrorism because anything less than that is not enough."

  This came a day after he made a similar pitch to the BRICS leaders' informal meeting calling on countries to not politicise error. This has been a message that India has also been stressing to China bilaterally as it urges Beijing to rethink its stance of shielding Pakistani terrorists at the UN Security Council.

  Modi said India "appreciates the G20 initiative on combating financing of terrorism", with the issue featuring in the G20's last session, and also in the 7,000 word communique, partly at India's insistence.

  The final document said the G20 "will tackle all sources, techniques and channels of terrorist financing" and remains "committed to effectively exchanging information, freezing terrorist assets, and criminalising terrorist financing".
  
  BLACK MONEY

  At the G20, India and China found some common ground of sorts in making strong pitches to curb global corruption.

  India's campaign on black money has been mirrored by a push in China to repatriate economic fugitives, part of Xi Jinping's anti-corruption crackdown.

  Prime Minister Narendra Modi called for the G20's  "full commitment" to act against the corrupt and "to eliminate safe havens for economic offenders, track down and unconditionally extradite money launderers and break down the web of complex international regulations and excessive banking secrecy that hide the corrupt and their deeds".

  Xi, meanwhile, said members had agreed to a Chinese proposal to establish a research centre on fugitive repatriation and asset recovery in China. An anti-corruption action plan for the next year will be worked on as well as agreeing principles on persons sought for corruption and asset recovery. "This will leave corrupt officials no place to hide in G20 members' territories and in the world at large," Xi told a press conference following the end of the summit.
  
  MEETS FRANCE, UK, TURKEY LEADERS

  While the G20 Summit and the Prime Minister's all-important bilateral talks with Chinese President Xi Jinping to iron out recent strains in ties may have assumed the focus of his China trip, his two-day stay in Hangzhou has also provided India the opportunity to bolster several key relationships.

  Following his bilateral meetings with Australia and Saudi Arabia and his interactions with US President Barack Obama on Sunday, the PM on Monday reached out to France, the United Kingdom, Turkey and Argentina.

  In what officials said was a "pull aside" chat - not a structured bilateral meeting - the PM raised with French President Francois Hollande the leak of sensitive confidential data on the Scorpene class submarines.

  The meeting with Turkish President Recep Tayyip Erdogan, scheduled at the last minute, allowed India to push for the country's support for its entry to the Nuclear Suppliers Group. Turkey was among a group of countries that had raised procedural questions on India's bid at the last NSG plenary, and had called for a criteria-based approach for all
  non-NPT (nuclear non-proliferation treaty) countries. With the issue set to come up again in November, India's hope is to bring to its side Turkey and other countries that had raised procedural questions, even if they were not as strongly opposed to India's entry as China had appeared to be.

  In his talks with the new UK Prime Minister, Modi conveyed what officials described as a "significant" message that India's ties with the UK would be "just as strong" after Britain's looming exit from the European Union.

  At the same time, he also raised concerns on the UK's visa policy and whether it could have a negative impact on Indian professionals wishing to visit the UK for short term business visits.

Pakistan violates ceasfire in J-K's Poonch sector, Indian Army retaliates

• 
  

  Pakistani soldiers violated cease fire on line of control in Poonch sector in Jammu after starting indiscriminate firing at midnight on Indian Army posts along .

  Defence sources said that the Indian Army posts have retaliated appropriately.  Intermittent firing is presently on.

  Sources said that Pakistani troops started  indiscriminate mortar shells and small arms on our six posts on line of control in Shahpur Kerni area of Poonch sector in Jammu.
  
  SIX POSTS TARGETED

  Pakistani posts Mochi Mohra, Dhakni Dhok, New Digging and Nezapir targeted our six posts . Indian army soldiers are retaliating  the Pakistan firing effectively .

  According to sources from the defence, this time Pakistani troops targeted Kasba village with mortar shells and own posts are also retaliating .

  No loss of life or damage has been reported from the spot.

Hurriyat leaders didn't show Kashmiriyat nor insaniyat, says Rajnath Singh

• 
  

  A day after separatist leaders shunned the offer of coming to discussion table, Home minister Rajnath Singh says their behaviour was not reflective of Kashmiriyat and Insaniyat. Singh today briefed media after the two-day long all-party delegation meet at Srinagar.

  Singh added that the government was concerned about the ongoing situation in Kashmir. The all-party delegation from the Parliament had arrived in the Valley on Sunday. Despite several attempts to have an inclusive dialogue, separatists snubbed the Parliamentary delegation.

  
  
  

  Here's what he said:

  1. As far as talks are concerned, our doors are open for everyone those who want peace and normalcy. Chief Minister Mehbooba Mufti also wrote letters.
  2. Not only our doors, but our window ventilation is also open for anyone who wants to talk to us for bringing in peace and normalcy in the state within the ambit of 'jamhooriyat', 'Kashmiriyat' and 'insaniyat'.
  3. Some members of the delegation went to meet Hurriyat leaders. We had neither said no nor yes to their meetings (with separatists). You know what happened. They had gone there in their individual capacity.
  4. What I learnt from some members of the all-party delegation, who went to meet the separatist leaders, was certainly neither 'Kashmiriyat' nor 'insaniyat'.
  5. Parliament, which is supreme "panchayat" of the country, is very serious about the situation in Kashmir and hence decided to send a delegation of its members for talks.
  6. I am fully confident that the situation will improve which people also want.
  7. Centre is giving full support to the state government which is also trying to bring improvement in the situation.
  8. We are fully cooperating with the state government to restore normalcy in Kashmir.
  9. The expert committee that was set up, has suggested use of PAVA shells instead of pellet gun.
  10. No two ways about fact that Jammu and Kashmir is a part of India, was a part of India and will be a part of India.
  11. Everyone is very concerned, we all are of the view that things in Kashmir need to improve.

Nitish Kumar says he is mocked for imposing liquor ban in Bihar

• 
  

  

  Bihar CM Nitish Kumar on Sunday said he has been mocked by a certain section of the society ever since prohibition has been imposed in the state.

  The Bihar chief minister added that the opposition has attacked him for bringing a draconian law. "Many say that I have lost my wisdom by imposing prohibition in Bihar", Kumar said.

  BIHAR CM NITISH KUMAR DEFENDS PROHIBITION

  Defending prohibition, Kumar said that this new law had brought a social change in the society. "There is an unbelievable atmosphere that has been created in the society post prohibition. Some people say that the prohibition law is Talibani in nature and some say I have turned insane. Some even say that I have been derailed", said Nitish Kumar.

  Nitish, who was speaking at an event, even cautioned people who are still continuing to consume liquor or are smuggling liquor into the state for some quick money. "There are people who are smuggling liquor into Bihar to make fast money. They are selling liquor costing Rs 500 for Rs 5000 by risking their lives. They think that if they do not get caught, that would mean huge profit. I caution them not to take such risk. Hands of law are very long," said the Bihar chief minister.

  "Whenever something new takes place, people first mock at it then they oppose it and later they accept it. I am sure this will be the case with prohibition law also. Majority of the people are in favour of prohibition and those against will soon accept it ", said Nitish.

  Nitish on Sunday received praise from an unexpected quarter for imposing prohibition in Bihar. VHP chief Praveen Togadia lauded Nitish for this revolutionary step by saying this will bring change in society.

Sixty-four per cent consumers in dark about Modi govt's Ujala scheme: Survey

• 
  

  The government has distributed over 15 crore LED bulbs across India under the Centre's Unnat Jyoti by Affordable LEDs for all (UJALA) scheme but a survey reveals that a majority of population is not aware about how to get these bulbs at subsidised rates.

  An online survey conducted across the country said 64 per cent consumers still don't know how to get LED bulbs under the scheme. The reason is that the scheme has not been communicated to consumers properly.

  They are not aware of where to procure these bulbs from, how many bulbs can they buy and what is the paperwork required for the same.

  Though the scheme for the distribution of LED bulbs was announced by the central government, its distribution and execution are in the hands of the state governments and to be more specific, with the state electricity boards. After observing multiple posts of citizens raising issues about getting LED bulbs, LocalCircles, the citizen engagement platform in the country carried out a poll across more than 56 cities and 20-plus states.

  Every state electricity board communicates with its customers by sending them bills through post. Not many SEBs have chosen to use the bills to communicate this offer to the consumer. About 23 per cent consumers said they have received the LED bulbs and that it was easy to get it.
  
  PROCESS FOR PROCURING LED BULBS SHOULD BE SIMPLE

  During the survey, consumers have said the process for procuring the LED bulbs should be simple. It should be communicated in all languages, including local regional language, in advertisements, and on the bills being sent to consumers. Citizens also suggested that local distribution agency should send SMS and have a hotline that citizens can call and find information.

  Moreover, they suggested that these bulbs be marked by specific identification codes that is visible so that this stock is not sold in the open market. Consumers feel that there is a huge chance that these subsidised LED bulbs are being sold in the open market by unscrupulous elements.

  GUJARAT TOPS CHART, DISTRIBUTES 2 CRORE LED BULBS

  According to the Power Ministry, Gujarat has become the first state to distribute 2 crore LED bulbs under the Centre's UJALA scheme.

  To get such bulbs, consumers have an option of paying upfront Rs 70 per unit or they can choose an EMI option.

  Consumers choosing the EMI mode will have to pay Rs 75 in total where an amount of nearly Rs 20 per LED bulb will be added to their bi-monthly electricity bill for four billing cycles.

  Union Power ministry officials claimed that the distribution of LED bulbs across the country is leading to an annual energy savings of 1,948 crore kWh and has led to avoidance of 3,900 MW of peak demand.

  Through the programme, the estimated cumulative cost reduction in bills of consumers annually is Rs 7,990 crore.

Business Affairs 

What you should know about new norms on SIM upgradation

• 
  

  

  The Department of Telecom has come out with new guidelines on SIM upgradation to 3G or 4G from 2G, which can be activated only with a clear go-ahead from mobile users and on their request.

  "The subscriber shall generate request for SIM upgradation to the licensee through customer care or online via the website or point of sale of the licensee. Upon receiving the request, the licensee will provide a new SIM card to the subscriber," the new guidelines on issuance of new SIM cards for upgradation, effective September, 1 said.

  The new norms will put an end to automatic upgradation of SIM to allow high-value service by some operators.

  To upgrade the SIM card, the subscriber will have to generate a request through customer care or online or point of sale of the company. Once the request is received, the operator will issue a new SIM card to the subscriber.

  The customer will then make use of her current working SIM to provide the new SIM number to the service provider either through SMS or IVR.

  After getting the intimation, the operator will have to send a system-generated SMS to the subscriber to provide consent for SIM upgradation or exchange.

  On receiving affirmative confirmation from the subscriber, the operator may initiate the process of deactivation of the old SIM card and activation of the new one.

  "The licensee must ensure the process shall proceed further only after receiving affirmative confirmation from the subscriber," the guidelines said.

  A confirmation SMS may be sent to the subscriber after completion of the above process, it added.

  "The process which was being adopted by the licensees for issuing new cards in case of upgradation till the issuance of this letter may also be treated as valid," the guidelines said.

  Meanwhile, to reduce burden on operators, DoT has approved tele-verification of subscribers on interactive voice response system (IVRS) that will help a subscriber submit her details directly before the service provider for SIM activation.

  The current rules require that operators should at least do a tele-verification of the user after activation of the SIM card.

  Those deploying IVRS-based tele-verification will need to provide an option to choose vernacular language used in the telecom circle where the subscriber resides. The system will ask for details submitted by the subscriber to the retailer for buying a SIM.

  The subscriber will be given three attempts to fill in correct details after which the call will be connected to the call centre agent.

As Raghuram Rajan departs, he warns global central bankers on interest rates

• 
  

  

  Warning against low interest rate, former RBI governor Raghuram Rajan has said such measures by central banks cannot substitute other policy instruments and broader reforms and expressed hope that his successor will finish the process of cleaning bank balance sheets.

  In an interview to the New York Times published on Monday, Rajan hoped that the country will finish "the process of bank clean-up, which is under way."

  RBI undertook an asset quality review of banks by issuing blanket orders to classify loans to certain accounts as non-performing assets. The provisions led to record losses by lenders and Rajan set them a deadline of March 2017 to get done with the clean-up act.

  Gross non-performing assets ratio has shot up to 7.6 per cent from 4.2 per cent in September 2013 while the overall stressed assets are estimated to be over 14.5 per cent, almost double the level when he took over.

  Rajan, who demitted the office on Sunday as RBI Governor, cautioned that low interest rates globally could distort markets and will be difficult to abandon.

  Countries around the world, including the United States and Europe, have kept interest rates low as a way to encourage growth. But countries could become "trapped" by fears that when they eventually raised rates, they "would see growth slow down", he said.

  Low interest rates should not be a substitute for "other instruments of policy" and "various kinds of reforms" that are needed to encourage growth, he said, adding that "often when monetary policy is really easy, it becomes the residual policy of choice, ...when deeper reforms are needed".

  The statement assumes significance as central banks around the world appear to be at a loss about how to get global growth moving again.

  Rajan, who predicted the 2008 global financial crisis, also rejected claims that tight policy stance followed by him was the reason behind the government not obliging him with a second term.

  "I don't think it's fair to say that it's because of tight policy that the government wanted to move on," he said.

  He was ably assisted by his deputy -- now his successor Urjit Patel -- in keeping a tight leash on inflation, earning criticism from the industry as well as others, including many BJP functionaries.

  He said his successor played an important role in setting the country's tough inflation targets.

  Defending his tight monetary policy, he said it had helped bring down the rate of inflation currently about 6 per cent to the upper end of the government's target range.

Bharti Airtel could lose revenue, but may withstand Reliance Jio: S&P

• 
  

  

  Bharti Airtel's revenue growth in India may halve over the next two fiscals, but it has enough room to weather Mukesh Ambani-led Reliance Jio 's disruptive entry into the telecom market, S&P Global Ratings said on Monday.

  "We expect Bharti Airtel's operating performance to weaken because of competitive data tariffs and free voice calls," the agency said.

  S&P said the impact of Jio's entry is uncertain, but on a conservative basis, it assumes that "revenue growth for its (Airtel) domestic business could decline to below 5 per cent during the fiscal year ended March 31, 2018 and fiscal 2019, from about 10 per cent in fiscal 2016".

  The agency also said its credit rating on Bharti Airtel is unaffected by higher competition with the launch of Reliance Jio.

  "Based on our forecasts, we consider Bharti Airtel has financial headroom to withstand weaker operating performance from intensifying competition. Reliance Industries provides fourth generation (4G) services under the Jio brand...," S&P said.

  This is despite the assessment that Bharti Airtel's funds from operations to debt could decline to about 23 per cent for the next 2-3 years, from 25.4 per cent in 2015-16, which is materially above S&P's downgrade trigger of 20 per cent.

  "The rating on Bharti Airtel remains vulnerable if significantly higher spectrum acquisition costs and a weaker operating performance than our expectations were to occur and Bharti Airtel fails to make commensurate measures to offset the financial deterioration," S&P said.

  The agency assumes that Ebitda margin for the company's Indian operations could tighten by 300-400 basis points to about 37 per cent in 2018-19, from 41 per cent in 2015-16.

  "This pressure could ease in the long term as the current competitive environment will accelerate consolidation in the Indian telecom sector," the agency said.

  Bharti Airtel, according to S&P, is best placed among the incumbent players in India to compete with Reliance and should be able to maintain its strong market position with over 250 million customers.

  "Moreover, Bharti Airtel has first-mover advantage in 4G technology, having launched the services in many parts of the country over the past 1-2 years. In comparison, Reliance Jio has just launched commercial services and has about 1.5-2 million customers," S&P said.

  It feels that Bharti Airtel could support its financial ratios through strategic measures such as the sale of Bharti Infratel shares, given that it can reduce its 71.7 per cent holding to 51 per cent without losing control.

  "Every sale of a 5 per cent stake in Bharti Infratel can provide $500 million of proceeds. This could help offset the potential adverse impact of Bharti Airtel's spending in the upcoming spectrum auction, which we assume would cost about $1 billion," S&P said.

Equity investors richer by Rs 10.70 lakh crore in 2016

• 
  

  

  Dalal Street investors have become richer by Rs 10.70 lakh crore in 2016, mainly helped by new listings and robust stock market trend where the BSE Sensex has surged over 9 per cent.

  The total market valuation of all listed firms on the BSE rose by Rs 10,70,320 crore to Rs 1,11,08,054 crore from Rs 1,00,37,734 crore at the end of 2015.

  Riding on a strong stock market sentiment, the total market capitalisation (m-cap) of BSE-listed companies surged to a lifetime high of Rs 1,11,22,815 crore on August 31.

  The market valuation of all listed firms on BSE had first hit a record high of Rs 100 lakh crore in November 2014. Last year, the total m-cap of BSE firms had risen by Rs 2,02,493 crore to Rs 1,00,37,734 crore.

  After falling 1,381.88 points or 5 per cent in 2015, the BSE benchmark Sensex has already surged 2,414.57 points or 9.24 per cent so far this year, scaling its 52-week high of 28,581.58 on September 2.

  Experts said the rise in investor wealth was also on account of rise in the number of listed firms. This year, 17 new companies have already made their stock market debut.

  More than 5,500 companies are listed on BSE. In stock market, TCS continue to remain the most valued firm with a market valuation of Rs 4,95,267.06 crore followed by Reliance Industries (Rs 3,28,477.87 crore), HDFC Bank (Rs 3,26,549.50 crore), ITC (Rs 3,17,554.46 crore) and Infosys (Rs 2,36,826.48 crore).  

Britain, India to look at ways to retain strong trade ties after Brexit

• 
  

  

  British Prime Minister Theresa May and Prime Minister Narendra Modi agreed on Monday to look at ways to retain strong trading links after Britain leaves the European Union, a British official said.

  "The Indians said they wanted to look at how we could continue to have a strong trading relationship and there was agreement that as we prepare to leave the EU, we should be exploring what that looks like," the official said.

  "Prime Minister Modi said that we had always been an important partner for India and nothing about leaving the European Union would change that."

  The two leaders were meeting on the sidelines of the G20 summit in the Chinese city of Hangzhou.

General Awareness

Kudankulam Nuclear Power Project Director R S Sundar was elevated to the post of Distinguished Scientist

• Noted Kudankulam Nuclear Power Project Director R S Sundarwas elevated to the post of Distinguished Scientist, in honour for his meritorious service.Kudankulam Nuclear Power Project 1 and 2 Station Director H N Sahu and Chief Superintendent S V Jinna were also elevated as ‘Outstanding Scientists’.
  • Sundar graduated from the Coimbatore Institute of Technology as a Mechanical Engineer and joined the Department of Atomic Energy in 1980.
  About KNPP :
  Kudankulam Nuclear Power Plant – KKNPP, is a nuclear power station in Koodankulam in the Tirunelveli district of the southern Indian state of Tamil Nadu. Construction on the plant began on 31 March 2002,but faced several delays due to the fishermen’s objection.
  • Unit 1 was synchronised with the southern power grid on 22 October 2013.The original cost of the two units was Rs.13,171 crore, but it was later revised to Rs.17,270 crore ($2.6 billion). Russia advanced a credit of Rs. 6,416 crore ($0.97 billion) to both the units.
  • In 2015, Nuclear Power Corporation Ltd (NPCIL) announced a price of₹ 29/kW·h (6.4 ¢/kW·h) for energy delivered from Kudankulam nuclear power plant.
  • The ground-breaking ceremony for construction of units 3 & 4 was performed on 17 February 2016. Work is expected to begin in April 2016. Due to operators and suppliers requirement to insure the two following units, at Rs.39,747 crore (US$5.91 billion), the cost of units 3 & 4 is twice the cost of units 1 & 2.
  • The reactors are pressurised water reactor of russian design, model VVER-1000/V-412 referred also as AES-92. Thermal capacity is 3,000 MW_t and gross electrical capacity is 1,000 MW_e. Net capacity is 917 MW_e Construction is by NPCIL and Atomstroy export.
  • When completed the plant will become the largest nuclear power generation complex in India producing a cumulative 2 GW of electric power.Both units are water-cooled, water-moderated power reactors.
  Government of India announced the power allocation from the two units of the reactor on 29 August 2013 as follows,
  Beneficiary	Power (MW)
  Tamil Nadu	925 MW
  Karnataka	442 MW
  Kerala	266 MW
  Puducherry	67 MW
  Not allocated	300 MW
  Total	2,000 MW