Current Affairs - 19 October 2016

General Affairs 

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• NEW DELHI:  The Supreme Court today asked Karnataka to release 2000 cusecs of Cauvery water per day to Tamil Nadu till further orders. The court asked the two governments to ensure peace and harmony, saying citizens should not become law unto themselves.
  
  A three-judge bench headed by Justice Dipak Misra, which commenced the crucial hearing on various issues arising out of the dispute between Tamil Nadu and Karnataka over sharing of Cauvery waters, said it first intended to adjudicate the issue of maintainability of appeals filed by both the states and Kerala against the tribunal's 2013 award.
  
  "We intend to first adjudicate issue of maintainability of appeals filed by Karnataka, Tamil Nadu and Kerala. At this juncture, the interim order dated October 4 directing Karnataka to release 2000 cusecs of water per day to Tamil Nadu will continue till further orders," the bench also comprising Justices Amitava Roy and AM Khanwilkar said.
  
  The bench said "morality of respect for both the states, among people of both the states and properties, should be maintained".
  
  The court also noted the submission of Karnataka that it has complied with the earlier order of releasing 2000 cusecs of water to Tamil Nadu.
  
  Both Karnataka and Tamil Nadu said they were in dire need of water, which was even supported by Attorney General Mukul Rohatgi.
  
  

  
  During the hearing, Mr Rohatgi submitted that the top court-appointed Supervisory Committee, formed to inspect Cauvery basin to assess the ground realities in the region, has submitted its report.
  
  The bench said it would first go into the issue of maintainability of appeals filed by Karnataka, Tamil Nadu, Kerala and Puducherry against the award of tribunal and then hear the arguments on the report filed by the committee.
  
  The Attorney General said the appeals filed by the states were not maintainable as per article 131 and 262 of the Constitution and the provisions of Inter-state River Water Disputes Act, 1956.
  
  He said as per the constitutional provisions, a decree passed by a tribunal will be like a decree of Supreme Court which cannot hear the appeals against its own order.
  
  Senior advocate and noted jurist Fali S Nariman, appearing for Karnataka, said the appeals are maintainable as Supreme Court can only adjudicate the disputes between two states.

My Head Hangs In Shame Over Dalit Atrocities: PM Modi

• LUDHIANA: Prime Minister Narendra Modi today said his "head hangs in shame" over incidents of atrocities on Dalits that take place even after 70 years of Independence and called for more focused efforts to correct social anomalies.
       
  Citing the example of Guru Gobind Singh in raising his voice against casteism and untouchability, PM Modi said: "We know that due to our societal anomalies, hearing out some incidents targeting our Dalit brothers even today, my head hangs in shame. After 70 years of Independence, we cannot wait longer".
       
  At the launch of a National SC/ST Hub in Ludhiana, he said: "We will have to sharpen the focus of our direction. The aspirations of a Dalit or an Adivasi exceed those of other youth in the country. If they get an opportunity they will not lag behind in changing the fortunes of India."
       
  The Hub for Scheduled Castes and Scheduled Tribe will help Dalits and Adivasis become entrepreneurs so that they can provide jobs to others, he said.
       
  PM Modi also mentioned that under the Startup India, Standup India scheme, 1.25 lakh branches of nationalised banks in the country have been directed to sanction loans up to Rs. 1 crore to at least one woman, and one person each belonging to scheduled caste and scheduled tribe categories, adding that the move can help create 3.75 lakh such entrepreneurs.
       
  The National SC/ST Hub, under the MSME Ministry, was announced in the Budget. With an initial outlay of Rs. 490 crore, the hub will work towards strengthening market access/linkage, monitoring, capacity building, leveraging financial support schemes and sharing industry-best practices.
       
  It will also enable central public sector enterprises to fulfil the procurement target set by the government. The Public Procurement Policy 2012 stipulates that 4 per cent of procurement done by ministries, departments and CPSEs will have to be from enterprises owned by SC/ST entrepreneurs.
       
  "I have requested the state governments that 4 per cent should be procured from goods manufactured by Dalits to encourage them," PM Modi said.
       
  The Prime Minister emphasised upon efforts to bring backward sections of the society into the centre of economic activity.

PM Modi Launches National Hub For Scheduled Castes And Tribes

• LUDHIANA:  Prime Minister Narendra Modi today launched the National SC/ST Hub here to provide support to entrepreneurs from the community.
  
  With an initial outlay of Rs. 490 crore, the hub will work towards strengthening market access/linkage, monitoring, capacity building, leveraging financial support schemes and sharing industry-best practices.
  
  It will also enable central public sector enterprises to fulfill the procurement target set by the government. The Public Procurement Policy 2012 stipulates that 4 per cent of procurement done by ministries, departments and CPSEs will have to be from enterprises owned by SC/ST entrepreneurs.
  
  

  
  The MSME sector, including the service segment, is a key driver of India's economic growth as it contributes nearly 38 per cent to the country's gross domestic product (GDP) and employs close to 11 crore people.
  
  Finance Minister Arun Jaitley in his budget speech had announced setting up of the National SC/ST Hub under the MSME Ministry. 

India, US Meeting To Discuss Trade, Investments

• NEW DELHI:  India and the US will review the progress achieved on the issues related to agriculture, trade, promotion of investment in manufacturing and IPR in a two-day meeting starting tomorrow.
  
  A high-level delegation led by US Trade Representative Michael Froman is attending the 10th India-US Trade Policy Forum (TPF) meeting scheduled on 19-20 October in New Delhi.
  
  Commerce and Industry Minister Nirmala Sitharaman on the sidelines of a function in New Delhi said that visa related issues would also figure in the meeting.
  
  The TPF meeting has focussed on increasing bilateral interaction and momentum on resolving trade concerns.
  

  As part of the annual work plan jointly agreed between India and the US, working groups on agriculture, trade in services and goods, promotion of investment in manufacturing and intellectual property have been meeting.
  
  The commerce ministry in a statement said that under TPF, there would be technical level discussions today.
  
  It will be be followed by Secretary and Deputy USTR level discussions tomorrow.
  
  Ministerial level meeting is scheduled for October 20, which will be led by Mr Froman and Ms Sitharaman.
  
  "Both the sides would be reviewing the progress achieved on the issues agreed upon in work plans for 2016, under all the four work streams and would be working out the way forward for 2017," the commerce ministry said.
  
  The bilateral trade between the countries stood at USD 109 billion in 2015-16.
  
  It also said that the bilateral cooperation under TPF has resulted in resolving several market access issues and cooperation in services, manufacturing and IPR.

Fake Degree Case Filed To Harass Smriti Irani, Says Delhi Court

• NEW DELHI:  Smriti Irani, Union Textiles Minister, will not be summoned a Delhi court said today, observing that a petition accusing her of faking a college degree has been filed to "needlessly harass her."
  
  "Complainant may not have filed it if she was not a central minister. Original evidence has already been lost due to passage of years, secondary evidence won't be enough for court," Metropolitan Magistrate Harvinder Singh said, dismissing the case.
  
  He noted "a great delay of 11 years" in filing the complaint.
  

  Today's order comes as big relief for the 40-year-old minister, who was shifted out of the high-profile Human Resource Development Ministry in a cabinet reshuffle a few months ago and was given the textile department, seen as a demotion.  
  
  The degree case was filed last year by a man called Ahmer Khan, who accused Smriti Irani of making contradictory statements about her education in affidavits that she filed while contesting different elections.
  
  Mr Khan's lawyer had said that while Ms Irani had in 2004 said she had a 1996 Bachelor of Arts or BA degree from Delhi University, in later elections she said her highest educational qualification was B.com, Part 1 (correspondence course) from Delhi University.
  
  Mr Khan alleged that the minister deliberately furnished incorrect details, which is punishable by law.  
  
  The court had asked the Election Commission and Delhi University to submit details of Ms Irani's graduation degree, but they both said it could be traced.

Business Affairs 

Sensex spikes 520 points to regain 28,000, Nifty ends above 8,650; Adani Ports top gainer

• The S&P BSE Sensex on Tuesday surged 520 points to reclaim its crucial 28,000 level, while the broader Nifty50 regained its key support level of 8,650.

  The headline indices bounced back from the previous session's multi-month lows, helped by short-covering in stocks such as Zee Entertainment Enterprises and Tata Steel, while broader sentiment was underpinned by positive global cues.

  The 30-share index ended the day at 28,050, up 520.91 points, while the broad-based 50-share index quoted 8,677, up 157.50 points at close.

  "I think markets today are drawing comfort from global markets, which are positive. The GST outcome is not expected before this evening or tomorrow, so it's the global cues that are supporting for now," said Neeraj Dewan, director at Quantum Securities.

  Adani Ports was the top gainer and added over 6 per cent on the BSE.

  Among other gainers, Tata Steel rose 3.46 per cent after falling nearly 2 per cent in the last three sessions, while Zee Entertainment gained 2.21 per cent after shedding 12 per cent in the previous four sessions.

  Housing Development Finance Corp gained 3.82 per cent after declining about 9 per cent in the last seven sessions.

  Logistics companies such as Gati and Allcargo Logistics rose 4.84 per cent and 2.79 per cent respectively, ahead of the GST Council meeting.

  Shriram EPC jumped 12.58 per cent after the engineering services company said it got an order worth over 610 million rupees ($9.16 million) from the Karnataka Water Authority.

  But Zensar Technologies dropped 2.2 per cent intraday after its September-quarter profit slumped nearly 41 per cent.

Here is how Mukesh Ambani lashed out at incumbent telecom players

• Months after disrupting the country's more than $50 billion telecom sector with the launch of Reliance Jio, Mukesh Ambani on Monday hit out at incumbents for creating trouble and refusing to play fair.

  Speaking on the problem Jio is facing with the incumbents, he said that Jio is being targeted by the rivals. Ambani went on to compare Jio's current situation to a bright student entering a prestigious institute on merit but getting ragged in the hostel.

  Ambani said that his company was willing to bear all the trouble, but not at the cost of millions of its subscribers.

  "You have to take it in the right spirit. There is a principal and there is an ecosystem so there is a governance system...I've no problem as long as I or Reliance get ragged, you are the big boys and you can take it but the consumer should not suffer and I think that is what Jio is doing," he said while speaking at 'Off the Cuff' show organised by The Print.

  Ever since Jio was launched in September, it has been facing massive call drop problem due to inadequate points of inter-connectivity. Earlier in a statement, Reliance Jio had claimed that the quantum of POIs released by Airtel was substantially less than the requirement.

  When he was asked to justify the investment of Rs 1.5 trillion on the new entrepreneurial "punt" he had taken, he said, "It is no punt. It is a well thought-out, well-executed, well-engineered ecosystem. It is a Rs 2,50,000 crore investment."

  At the time of launch, Ambani had said the company had invested Rs 1.5 trillion into his new venture. However, on Monday he said the group had already pumped in Rs 2.5 trillion with the aim of offering high-speed 4G services with focus on data.

  "The world has moved to the power of ideas. Financial resources are the least of problems," he said.

  On whether Jio had disrupted the telecom market with low data tariffs, Ambani said, "What I really don't understand is that you progress from generations of technology. It is not new as we had announced it in 2010-11. We didn't do anything on stealth. In all my AGMs we have said we are going to bring the Internet to the masses because I firmly believe that the benefits of technology should go to the end-consumer."

  Ambani also praised the Prime Minister and said, "India was fortunate to have Narendra (Modi) Bhai's guidance." He further said that the current rhetoric was swept with negativity and cynicism that "we owe to ourselves" to reverse.

  Ambani also spoke about the ban on Pakistani artists in Indian films, he said while he did not understand the politics around it, it was clear to him that "India is for Indians first."

GST Council meeting begins today; 5 issues that will set the agenda

• The critical three-day GST Council meeting will begin on Tuesday, which will oversee discussions on the tax rate and address issues on compensation for the new indirect tax.

  In its previous meeting that was held last month, the GST Council had finalised on the area-based exemptions and outlined how 11 states will be treated under the GST regime.

  Here are 5 issues that GST Council will deliberate during the 3-day meeting:

  1. GST Tax Rate

  A report in Business Standard stated that Centre may propose to implement a four-tier tax structure with an upper slab of 26 per cent. The proposal, if accepted, will lead to almost 20-25 per cent of all taxable goods falling under the peak rate slab.

  The discussion paper to be presented in the meeting is expected to have proposed a standard rate of 18 per cent while the states have been pushing for a standard 22 per cent rate. 

  2. Compensation to States

  The Centre has proposed many compensation strategies to states in its previous meetings. According to the proposals, a state can get compensated if:

  a. The states will get compensated if the revenues earned under the GST falls short of the average proceeds during states' best three years out of five years.

  b. Leaving out two outlying years and taking an average of the remaining three years, if the revenue from GST is still falling short, the state gets compensated.

  Other proposals for compensation were:

  a. Fixing a base year and growth rate for the states and monitoring whether the revenue from the GST falls short.

  b. Fix a rate of revenue growth and allocate the required compensation.

  However, in the area of compensation the Council has never been able to gather consensus.

  Since the Centre is determined to provide full compensation for the first five years of the GST, a decision on compensation will be arrived in this meet.

Defer interconnect usage charge review till March 17: COAI

• Cellular operators' association COAI has asked the telecom regulator TRAI to defer the review of interconnect usage charges-paid by one telecom operator to another for connecting phone calls-till March 2017.

  In its written response to TRAI's contentious consultation paper on interconnection usage charges or IUC, the association said the regulator has initiated various other consultations which depending upon their final outcomes "may have a significant direct impact on cost structures, changes in technology and other market dynamics."

  "It is therefore critical that the IUC review should not be held at this stage and be deferred by some months, that is, after end March 2017...By such time there will be more clarity on several issues," COAI said in its latest submission to TRAI.

  It further said proposed Fixed Mobile Telephony Service of BSNL and Internet Telephony could not be trigger for initiation of the IUC consultation.

  COAI, in August this year, had clashed with the regulator over IUC review terming the consultation on call connect charges as "unfair" on incumbent operators.

  At that time, it had also alleged that TRAI's discussion paper was an indicator of "bias creeping in". TRAI had fixed October 17 as deadline for receiving industry comments on the controversial discussion paper.

  It is learnt that COAI in its comments on the TRAI consultation paper has said that actual network-related costs incurred by telecom operators should be used to compute the interconnect charges, thereby batting for an increase in mobile termination charge.

  When contacted, COAI Director General, Rajan Mathews refused to comment on specific submission that the association has made to TRAI on the IUC issue.

  However, sources said that the COAI, in its response, has pointed out that "all our member operators support and recommend that mobile termination charge should be determined on the cost based principle... Only Reliance Jio has a divergent view that 'Bill and Keep' approach should be adopted for determining the MTC."

  The cost-based model includes network operating costs, overhead costs, spectrum costs and capital costs, and these, according to COAI, should form the basis of determining the mobile termination charge.

  The mobile termination charge is currently pegged at 14 paise per minute, and a cost-based model would imply an increase in termination charges.

  "We believe that an IUC or MTC (mobile termination charge) exercise when conducted should be based on a comprehensive costing review...the results of 2014, 2015 spectrum auctions were not factored in by the authority in 2015 calculation," the COAI submission said. 

How Infosys keeps its employees happy

• How do you measure your network or circle in a professional setup? The number of LinkedIn connections? The number of Facebook friends who also happen to be your colleagues? The people you follow on Twitter in your industry? Or the number of people you know at your workplace? If you work in a large organization, like ours, chances are that the last option given above would be the last answer on your list too. This is just an example of how, given the rapidly changing dynamic of the workforce today, the connection between a company and its employees is slowly weakening. Today's workforce deals with its employers in a more flexible and real-time manner than before. This does not mean that loyalty and other values that define an organization culture don't exist. They do, but they are probably more dependent on time and other factors than before.

  So, it is likely that the term Employee Value Proposition (EVP), which was difficult to define in most contexts, gets even more difficult to define here, where an employee has independent connections to alternate networks and seeks to significantly enhance them during the course of their employment. To be successful as a best employer, a company needs to redefine what is offered as a value proposition to something that enhances value during the course of employment, and also moves beyond the employer relationship.
  

  At Infosys, our Employee Value Proposition has covered three key areas in almost equal proportion - Financial, Learning and Emotional. We have endeavored to innovate on all three over the years to keep the EVP current and attractive. For example on the financial side, we had one of the most successful employee stock option programs that created wealth. It was discontinued when no longer relevant. This year, we have innovated and brought the program back with Restricted Stock Options (RSU).

  On the learning side, we have created several new programs to enhance the EVP. An ongoing Apprenticeship program aims to find the best and brightest individuals to apprentice under leaders in challenging projects. COMPASS is our digital platform to mobilize opportunities on careers, learning and networks. It has been designed to be a self-service portal which empowers employees to design their own journey within the organization.
  

  The Emotional aspect of the EVP, possibly the most important of any EVP, must cater to more than just "support". Through the culture of the organization, the employee must be free to express who they are both professionally and outside of work. Open communication channels with peers and leadership, health and wellness support through our Health Assessment and Lifestyle Enrichment (HALE) initiative, emotional support through counsellors, etc. are just some of the available programs at Infosys. All of these, plus flexible policies and interactive internal networking encourages employees to "be who they are".

  This year, we have also tried to leverage the power of an individual's network. This work is at the frontier of redesigning a company's EVP. If an organization wishes to tap into the network of its employees, identifying the influencers is a key aspect. They can help you build your EVP too, by becoming brand ambassadors. At Infosys, we have identified a group of influencers through data analytics and online surveys, whom we believe have an extensive internal network that can be leveraged to disseminate strategy as well as get feedback. Helping influencers strengthen their internal network will help companies create better bonds between its employees and its strategy, leadership, etc.

  So, how should you view your people? As mere "employees"? That would be the biggest way to hurt your EVP and brand. The employer-employee relationship is no longer transactional. The workplace isn't just a space to spend x number of hours. The relationship is symbiotic, with the employer and employee adding value to each other. To empower its people, the Employee Value Proposition should focus on just that - the people. Customizing the experience, personalizing an employee's relationship with the company and focusing on learning more about one's employees through data analytics will help companies crack the code of a successful EVP, ensuring enduring appeal for potential hires and a satisfied workforce.  

  The future of talent management is about understanding networks. If you seek to have the best working for you, you need to be flexible to leverage your ability to add value to the individual's position and place in the larger talent network. It is not limited to an employer-employee relationship, but starts before and continues beyond. That is the way we will look at EVP in the future.

General Awareness

Renowned writer C Radhakrishnan has been selected for the Mathrubhumi Literary Award

• Renowned writer C Radhakrishnan has been selected for the Mathrubhumi Literary Award in recognition of his contribution to the field of literature. 

  About Mathrubhumi Literary Award :

  Mathrubhumi Literary Award is a literary award instituted in 2001 by leading Malayalam daily Mathrubhumi.

  • A sum of Rs.2 lakh, a plaque and citation constitute the award.
  • The award is conferred as a recognition of a writer’s overall contribution tothe Malayalam literature.
  • Radhakrishnan was selected by a panel chaired by novelist M Mukundan with Sethu and Sarah Joseph being the other members of the jury, Mathrubhumi Managing Director M P Veerendra Kumar and Managing Editor P V Chandran.

  About C Radhakirshnan :

  Radhakrishnan is a writer and film director in Malayalam language from Kerala state,  South India.

  • He was born in Chamravattom in Ponnani taluk in Malappuram district on February 15, 1939. Many of his works had garnered much attention at the publishing stage itself.
  • He has been honoured by both theNational Literary Academy of India (1989, for Spandamapinikale Nandi) and the Kerala Literary Academy (1962, for Nizhalpadukal).
  • He has been conferred the Vayalar Award (1990, for Munpe Parakkunna Pakshikal),Mahakavi G. Award (1993, for Verpadukalude Viralppatukal), Mooloor Award, Dr. C. P. Menon Award (for Aalochana), Achuthamenon Award (for Munpe Parakkuna Pakshikal), Abudhabi Malayali Samajam Award (1988, for Munpe Parakkunna Pakshikal), Pandit Karuppan Award, Devi Prasadam Award, Lalithambika Award (2004, for his total contribution toM alayalam literature) etc.
  • His works have been translated into variousIndian and foreign languages. He has been chosen for the Padmaprabha Puraskaram in 2007, which carries a cash prize of Rs. 55,000, ruby-studded plaque and citation. In July 2014, Radhakrishnan was awarded the Moortidevi Award for the year 2013 for his novel “Theekkadal Katanhu Thirumadhuram”.
  • Radhakrishnan is the editor of Malayalam magazine Piravi, published by the School Of Bhagavad Gita. He was the former chief editor of Madhyamam daily from 16 August 1999 to 1 September 2001.