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Current Affairs - 17 January 2017

General Affairs 

'Akhilesh Yadav Group Is Samajwadi Party': What Election Commission Said
  • Akhilesh Yadav had the support of 195 lawmakers and over 5,000 party delegates, the Election Commission said today as it decided that the Uttar Pradesh Chief Minister rightfully owns the Samajwadi Party that his estranged father Mulayam Singh Yadav founded over three decades ago.

    "The group led by Akhilesh Yadav is the Samajwadi Party and is entitled to use its name and its reserved symbol 'bicycle'," the powerful election body said in an order that shakes up political equations in Uttar Pradesh just before the February-March election.

    The commission said that the Chief Minister's faction has won the right to use the "cycle" symbol in the polls.

    "Akhilesh Yadav enjoys overwhelming majority support, both among the legislative and organizational wing of the party," said the Election Commission order, which set off massive celebrations outside the Lucknow home of the Chief Minister.


    The 43-year-old also has the support of four Lok Sabha members, 11 Rajya Sabha lawmakers, 31 members of the National Executive and 48 Members of the Legislative Council, said the Commission.

    To stake his claim on the party symbol, Akhilesh Yadav had submitted six boxes full of support pledges signed by party men who had also attended his January 1 convention and voted him national president in place of Mulayam Singh - or "Netaji" as the 70-year-old is popular as in his party.


    The Election Commission said in any democratic institution, "the will of majority should prevail in the internal functioning of the party and if the majority will is suppressed or not allowed to have a proper expression, it will amount to tyranny of the minority".

    The dispute within the Samajwadi "cannot be decided on the touchstone of the functioning of the rival groups", so the Commission said it has to necessarily apply the test of majority.

    UP Elections 2017: Akhilesh Yadav Wins Cycle. Coming Soon, Grand Alliance With Congress
    • Uttar Pradesh Chief Minister Akhilesh Yadav, recognised as the leader of the Samajwadi Party and granted its cycle symbol by the Election Commission today, will now swiftly move to finalise candidates in the next two days for the Uttar Pradesh elections, a senior leaders of the party said. He is also expected to announce a Bihar-style "Grand Alliance" with the Congress and several smaller parties like Ait Singh's Rashtriya Lok Dal or RLD. 

      This evening, the Election Commission rejected the claim of Akhilesh's father Mulayam Singh Yadav, who founded the party 25 years ago, saying "the group led by Akhilesh Yadav is the Samajwadi Party" and so gets the symbol.

      Mulayam Singh said earlier today that he will "abide" by the Election Commission's verdict and is ready to fight the faction led by his son, after his attempts to stop a split of the party failed. Mulayam Singh Yadav's faction will now have to pick a new symbol, to contest the UP elections, which are now less than a month away - nominations for the first phase begin tomorrow.

      Mulayam Singh had stoutly insisted that the Samajwadi Party has not split -  refusing to acknowledge the coup his son staged earlier this month when his supporters in the party - an overwhelming majority - declared the Chief Minister party president in place of his father.



      In the alliance that Akhilesh Yadav plans, the Samajwadi Party is likely to contest about 300 of UP's 403 assembly seats, while  the Congress could contest about 75, and the RLD and other parties could contest 25-30. It follows the Bihar experiment, where Chief Minister Nitish Kumar was re-elected after strategically partnering with old rival Lalu Yadav's RJD and the Congress.

      Mulayam Singh had pulled the Samajwadi Party out of the Bihar alliance at the last minute and has made it clear that he is dead against partnering with any party for the Uttar Pradesh elections.

      Akhilesh Yadav has favoured an alliance with the Congress all along, repeatedly assessing that such a combination can win over 300 seats in UP, where the BJP and Mayawati's BSP will give the Chief Minister a tough fight.

      Elections in UP will be held in seven phases starting February 11. Votes will be counted on March 11.

    GST Rollout Moved To July, Misses April Deadline, Says Finance Minister Arun Jaitley
    • India's most important tax reform in decades will roll out in July and not April 1 as planned because of unresolved disputes between the centre and states over taxation powers,  Finance Minister Arun Jaitley said today.

      The National Goods and Services Tax or GST replaces a jumble of complicated levies and creates a unified market. The GST Council, a decision-making body that combines Finance Minister Arun Jaitley with his counterparts from other states, met today and agreed that the April 1 deadline has been rendered unfeasible.  

      A major point of dispute has been who will assess -and therefore tax - businesses and entities with annual earnings of upto 1.5 crores. 90 per cent of this category will be handled by the states, and the rest by the centre, said Mr Jaitley today. Those with a turnover of more than 1.5 crores will be divided equally between the centre and states. States like West Bengal have been arguing that ahead of the loss in earnings that they will contend with when GST kicks in, removing the tariffs they charge when goods move across state borders, the recent demonetisation drive by the centre has already hurt their revenues, and therefore the centre must increase what it pays them as compensation over the next five years.

      Late last year, the GST Council decided that the new sales tax will apply in four slabs. The tax rates will range from 5 to 28 per cent, with 12 per cent and 18 per cent as standard rates.  



      The new tax also includes a separate central "cess" that will be levied on tobacco products, luxury cars and aerated drinks, charged on top of the 28 per cent tax bracket.

      The central "cess" will remain in place initially for five years and its proceeds would be used to compensate states for revenue losses following the GST's implementation.

      It's not clear yet which tax rate will apply to the services which contribute nearly 60 per cent of India's $2.08 trillion economy.

      The GST, a reform championed by PM Modi, could add upto two percentage points to India's growth.

    Supreme Court Issues Notice To Centre, Whatsapp And Facebook On Data Privacy
    • On a petition challenging the privacy of WhatsApp messages, the Supreme Court today sent notice to the centre, telecom regulator TRAI, WhatsApp and Facebook.

      "It's a free service. Take it or leave it," Chief Justice of India, JS Khehar, said as a petitioner argued that around WhatApp messages should be regulated and privacy should be protected as around 155 million users are involved.

      The petition asks that a privacy policy be framed for social media networks like Facebook and WhatsApp.

      The court has asked for a response within two weeks from the government and others.

      Last year, the Delhi High Court decided that WhatsApp will not share with Facebook or any other company users' data collected under its old privacy policy over the years up to September 25.

      WhatsApp has to completely delete its data of users who opted out of the instant messaging app after its new privacy policy, the court said.

      It also said that WhatsApp will delete users' data up to September 25, even of those who choose not to opt out of the instant messaging app and agree with new privacy policy.

      Facebook and WhatsApp are also facing trouble in Germany over this data-sharing, with the German privacy watchdog ordering Facebook to delete whatever data it has received from WhatsApp. Unlike India, where there are no specific privacy laws to deal with user data and how it is shared and stored, Germany has strict data privacy laws.

    After Controversy, Central Bureau of Investigation (CBI) Could Get First Woman Chief. Key Meeting Today
    • Archana Ramasundaram, a woman IPS officer is among those in the running for Central Bureau of Investigation or CBI chief.  Prime Minister Narendra Modi, Chief Justice of India JS Khehar and leader of second largest party, the Congress, in the Lok Sabha Mallikarjun Kharge, will meet today to decide on the top post. Ms Ramasundaram, said sources, could be a compromise candidate after the appointment of Gujarat officer RK Asthana as acting chief became controversial.

      If the PM-led panel of three picks Ms Ramasundaram, 59, a Tamil Nadu cadre officer of the Indian Police Service or IPS, she will be the first woman to head India's premier investigation agency. She is currently the chief of the Sashastra Seema Bal or SSB.

      Today's meeting is taking place in the shadow of a Supreme Court petition by activist and famous lawyer Prashant Bhushan challenging the appointment of acting CBI director, RK Asthana, who took over in December, when Anil Sinha retired.

      Mr Bhushan had alleged that Mr Asthana's appointment violates guidelines as he is too junior and contends that an acting director cannot be truly independent. The petition also points out that RK Datta, the officer who was next in line for chief was moved out of CBI just two days before the Mr Sinha retired and the government had to appoint a new director.


      While appointing Mr Asthana acting chief, the government said it had not been able to schedule a meeting of the panel that selects the next chief. Mr Kharge had written to the Prime Minister objecting to the appointment of the junior officer. The government has reportedly been keen to appoint Mr Asthana in the post, but as a 1984 batch Indian Police Service or IPS officer, he will only be eligible to be considered for CBI chief in 2019.


      The new chief will be appointed for a two year term, and critics have alleged that the government wanted Mr Asthana to be acting chief till he was senior enough to move seamlessly into the role.

      RK Datta, posted out of the CBI, is again back on the list of contenders, along with current Delhi Police Chief Alok Verma. Mr Bhushan has said in his petition that the Mr Datta, from the Karnataka cadre, is most qualified as he has had the longest experience in anti-corruption units.

      The government had said that he had to be moved out of the CBI because he was too senior and deserved a special pay grade and so was being given charge of a financial terrorism unit in the Home Ministry.

      Mr Asthana was one of the Gujarat officers handpicked fora move to Delhi when PM Modi took over in 2014.

    Business Affairs 

      Post-Demonetisation, IMF Cuts India's Growth To 6.6%
      • The IMF today cut India's growth rate for the current fiscal year to 6.6 per cent from its previous estimate of 7.6 per cent due to the "temporary negative consumption shock" of demonetisation, days after the World Bank also decelerated India's growth estimates.
        .
        "In India, the growth forecast for the current (2016-17) and next fiscal year were trimmed by one percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative," the International Monetary Fund (IMF) said in its latest World Economic Outlook (WEO) update released today.

        The IMF said that after a lacklustre outturn in 2016, economic activity is projected to pick up pace in 2017 and 2018, especially in emerging market and developing economies.

        The global growth for 2016 is now estimated at 3.1 per cent, in line with the October 2016 forecast. Economic activity in both advanced economies and emerging market and developing economies (EMDEs) is forecast to accelerate in 2017-18, with global growth projected to be 3.4per cent and 3.6 per cent, respectively, again unchanged from the October forecasts, it said. As per new IMF projections, India's growth in 2016 is now estimated to be 6.6 per cent as against 7.6 per cent earlier forecast. 


        In 2017, IMF has projected a growth rate of 7.2 per cent as against its previous forecast of 7.6 per cent.The Indian economy is likely to revive to go back to its previously estimated growth rate of 7.7 per cent in 2018, according to the WEO update.

        The cut in India's growth rates comes days after the World Bank decelerated India's GDP growth for 2016-17 fiscal to 7 per cent from its previous estimate of 7.6 per cent citing the impact of demonetisation. But forecast issued on January 11 said that India would regain momentum in the following years with a growth of 7.6 per cent and 7.8 per cent due to a reform initiatives.

        Despite IMF's downward revision of India's growth rate and a slight upward revision of China's growth projections, India continues to be the fastest growing countries among emerging economies.

        But in 2016, China with 6.7 per cent has edged past India (6.6) with 0.1 percentage point.

        The growth forecast for 2017 was revised up for China (to 6.5 per cent, 0.3 percentage point above the October forecast) on expectations of continued policy support, the IMF said. India's growth rate in 2017 as per the latest IMG projections is 7.2 per cent.

        In 2018, China's growth rate is projected to be 6 per cent against India's 7.7 per cent.

        Reliance Industries Reports Record Profit, Jio Subscriber Base Rises Over 7 Crore
        • Oil to telecom major Reliance Industries on Monday reported a record standalone profit of Rs. 8,022 crore for the December quarter, up 10 per cent from the same quarter of previous year, aided by strong refining margins.

          Its revenue (turnover) increased by 9 per cent on a standalone basis to Rs. 66,606 crore.

          The profit and revenue numbers were ahead of the Street's estimates. Analysts polled had expected Reliance Industries to post a net profit of Rs. 7,822 crore on sales of Rs. 65,455 crore.  


          Reliance Industries also said that the subscriber base of Jio, its telecom operations, had crossed the 7 crore mark as of December 31. Reliance Jio Infocomm (Jio) is a subsidiary of Reliance Industries.

          Commenting on the results, Mukesh Ambani, chairman and managing director of Reliance Industries, said: "Our robust integrated platform, sound operational processes and business portfolio aligned to the needs of emerging India enabled us to deliver another record performance in challenging market conditions. The refining business has delivered eight consecutive quarters of double-digit GRMs, benefiting from the global demand for transportation fuels and improved product cracks."

          Reliance Industries reported a gross refining margin or GRM of $10.8/barrel during the quarter. This is lower than the $11.5 reported during year-ago period. GRM is the margin earned on turning every barrel of crude oil into fuel.

          Mr Ambani also said that Reliance Industries also "successfully commissioned the first phase of Paraxylene plant during the quarter, further deepening the linkage between our refining and petrochemicals operations."

          Reliance Industries, which gets most of its revenue from its refining and petrochemicals businesses, has been expanding into consumer businesses such as retail and telecoms to aid growth.

          On a consolidated basis, Reliance Industries reported a net profit of Rs. 7,506 crore on turnover of Rs. 84,189 crore.

          Giving an update on its telecom or Jio operations, Reliance Industries said that it had 7.24 crore subscribers as December 31, 2016, in less than 4 months from commencement of services. 

          Since its commencement of services on September 5, Jio has become the fastest growing technology company in the world. It crossed 50 million subscribers in just 83 days, adding at an average rate of 6 lakh subscribers per day.

          Reliance Industries also said that Jio's operations are being "expanded to cover over 90 per cent of population shortly."

        RBI Raises ATM Withdrawal Limits From Rs. 4,500 To Rs. 10,000 Per Day
        • The Reserve Bank of India ( RBI) has raised the cash withdrawal limits from ATMs in the country. Consumers will now be able to withdraw Rs. 10,000 per day from their savings bank accounts through ATMs as against the previous limit of Rs. 4,500 per day. Though, there would be no change in the weekly withdrawal limits of Rs. 24,000 per week. The new withdrawal limits will be applicable with immediate effect.

          " The limit on withdrawals from ATMs has been enhanced from the current limit  of Rs.4,500 to Rs10,000  per day per card," said an RBI circular

          "It will be operative within the existing Overall weekly  Limit," added the RBI circular. 


          For current account holders, the cash withdrawal limit has been enhanced from the existing limit of Rs. 50,000 per week to Rs. 1,00,000 per week and it extends to overdraft and cash credit accounts also, as per the RBI circular.

          Earlier this month, finance minister Arun Jaitley had said the cash withdrawal limits would be removed  by the RBI "after assessing the market situation".

          Prime Minister Narendra Modi had demonetised high denomination currency notes on November 8 last year, leading to cash crunch in the banking system. The demonetisation of Rs. 500 and Rs. 1,000 currency notes led to 86 per cent of the currency in-circulation losing legal tender. While the last date to deposit all the old notes in the banking system was December 30, the RBI has not been able to replace the all the old notes, till date.

          RBI's printing presses have been working in three shifts to make up for the demand of new currency notes and experts have estimated the cash crunch to last for a few more months.There are only four currency note presses in the country.

          India most trusted nation in terms of institutions: Survey
          • Faring better than last year, India has emerged as the most trusted nation in terms of its institutions by general population even as there has been a "global implosion of trust" worldwide, says a survey.

            The Indian government is also the second most trusted after neighbouring China, according to the 2017 Edelman Trust Barometer released today ahead of the World Economic Forum (WEF) annual meet here.

            This year's barometer showed the largest-ever drop in trust across the institutions of government, business, media and NGOs. 


            The conclusions are based on an online survey of more than 33,000 respondents conducted during October 13 - November 16, 2016.

            Among the 28 nations, India has emerged as the most trusted nation in terms of institutions with 72 per cent of the respondents from general population feeling so. The country is followed by Indonesia (69 per cent), China (67 per cent), Singapore and UAE (both at 60 per cent).

            In 2016, India was the third most trusted after China and UAE.

            According to public relations major Edelman, trust has declined in 21 out of 28 countries -- "the broadest declines since beginning general population tracking in 2012".

            Globally, the trust level decreased to 47 per cent this year from 50 per cent in 2016.

            The barometer "reveals global implosion of trust," Edelman said.

            In terms of trust in government, China tops the league with 76 per cent trusting the country's government followed by India with 75 per cent respondents feeling so.

            The figure is 75 per cent of UAE also and is followed by Indonesia (71 per cent) and Singapore (69 per cent).

            Out of the 28 countries, there was distrust in government in 75 per cent of the nations.

            "Trust in media (43 percent) fell precipitously and is at all-time lows in 17 countries, while trust levels in government (41 percent) dropped in 14 markets and is the least trusted institution in half of the 28 countries surveyed.

             "The credibility of leaders also is in peril: CEO credibility dropped 12 points globally to an all-time low of 37 per cent, plummeting in every country studied, while government leaders (29 percent) remain least credible," the report said.

            As many as 53 per cent of respondents believe that the current overall system has failed them as it is unfair and offers little hope for the future whereas only 15 per cent believe it is working.

            "Even the elites have a lack of faith in the system, with 48 per cent of the top quartile in income, 49 per cent of the college-educated and a majority of the well-informed (51 per cent) saying the system has failed," the report said.

            Edelman President and CEO Richard Edelman said the implications of global trust crisis are deep and wide-ranging and that it began with the Great Recession of 2008.

            "...but like the second and third waves of a tsunami, globalisation and technological change have further weakened people's trust in global institutions.

            "The consequence is virulent populism and nationalism as the mass population has taken control away from the elites," Edelman noted.

            As per the report, the cycle of distrust is magnified by the emergence of a media echo chamber that reinforces personal beliefs while shutting out opposing points of view.

            "Respondents favour search engines (59 per cent) over human editors (41 per cent) and are nearly four times more likely to ignore information that supports a position they do not believe in," it said.

            The participants included 1,150 general population aged 18 years and over, 500 informed public respondents in the US and China. There were 200 informed public respondents in all other countries across 28 markets.

            According to the report, the informed publics met various criteria such as their age was 25-64 years, college-educated and household income in the top quartile for their age in their country.

            Besides, these people read or watch business/news media at least several times a week as well as follow public policy issues in the news at least several times a week.

          No Returning To Subsidies On Petrol, Diesel: Government
          • The government today ruled out reverting to the system of subsidising auto fuel but said it may resort to cut in excise duties if rate hike "pinches hard" even as there has been Rs 5.21 per litre hike in petrol price and Rs 4.45 in diesel rates since December.

            "There will be no subsidy regime in petrol and diesel," Oil Minister Dharmendra Pradhan said. "Petrol price was deregulated in June 2010 and diesel in October 2014 and the same will continue."

            The surge in international oil prices has led to petrol prices being hiked for the fourth time since December and thrice in case of diesel. Petrol price was hiked by 42 paisa and diesel by Rs 1.03 a litre (excluding local levies), effective last midnight. 

            Petrol in Delhi now costs Rs 71.14 a litre as against Rs 65.93 in end November. Similarly, diesel rates have gone up from Rs 54.57 a litre to Rs 59.02.

            "There will be no going back to subsidisation. Subsidies are anti-poor. Subsidy should be given only to needy persons and not to people who can afford," he said, indicating that auto fuels are being mostly consumed by people who can afford them.

            Asked if the government will look at cutting excise duty, he said no developed country had passed on the entire slump in global oil prices that began in second half of 2014 to take crude to more than a decade low, to consumers. 

            Even oil producing nations like Saudi Arabia and UAE used it as an opportunity to cut subsidies, he said, adding that India raised excise duty to take away part of the gain arising from slump in global oil prices then.

            "We passed on 50 per cent of the benefit of oil prices slump to consumers and the rest 50 per cent we recouped by way of raising excise duty. This additional revenue was used to fund infrastructure and social projects," he said.

            When oil prices slumped in the second half of 2014 and early 2015, the government hiked excise duty on petrol and diesel nine times to mop up additional revenues that helped it meet its revenue and fiscal deficit targets. In all, it raised excise duty on petrol by Rs 11.77 a litre and that on diesel by Rs 13.47.

            But global oil prices have been moving up since oil cartel OPEC last month agreed to cut output for the first time in eight years.

            India, which depends on imports to meet 80 per cent of its oil needs, will have to spend Rs 9,126 crore ($1.36 billion) more every year for one dollar per barrel increase in crude oil. Besides, the rising crude oil trajectory impacts inflation and growth.

            India spent $63.96 billion on crude oil import in 2015-16, about half of $112.7 billion outgo in the previous fiscal and $143 billion in 2013-14. For the current fiscal, the import bill has been pegged at $66 billion at an average import price of $48 per barrel.

            International oil prices currently are trading above $52 per barrel.

            Every rupee per litre increase in petrol price leads to 0.02 per cent rise in WPI inflation and 0.07 per cent for the same amount of increase in diesel rates.

          General Awareness

          62nd Filmfare Award 2017 Winner list

            1. The 62nd Filmfare Awards ceremony was held in Mumbai, Maharashtra on January 14, 2017. The show was co-hosted by Kapil Sharma, Karan Johar and Shahrukh Khan.
              • This year Shatrughan Sinha received the Filmfare Lifetime Achievement Award presented by his daughter and actress Sonakshi Sinha. Shatrughan Sinha completed close to five decades in the film industry.
              The Movies that won highest number of awards include
              • Neerja – 5
              • Kapoor & Sons – 5
              • Dangal – 4
              • Udta Punjab – 4
              • Ae Dil Hai Mushkil – 4
              2017 List of Winners
              AwardWinner
              Best FilmDangal
              Best DirectorNitesh Tiwari for Dangal
              Best Actor (Male)Aamir Khan for Dangal
              Best Actor (Female)Alia Bhatt for Udta Punjab
              Best Actor (Male) in a Short FilmManoj Bajpayee for Taandav.
              Best Male DebutDiljit Dosanjh for Udta Punjab.
              Best Female DebutRitika Singh for Saala Khadoos.
              Best Director DebutAshwini Iyer Tiwari for ‘Nil Battey Sannata’
              Best Film People’s ChoiceKhamakha
              Best Short Film (Fiction)Chutney
              Best Short Film (Non-fiction)Matitali Kusti
              Best Actor (Female) in a Short FilmTisca Chopra for Chutney.
              Best DialogueRitesh Shah for Pink.
              Best ScreenplayShakun Batra, Ayesha Devitre Dhillon for Kapoor & Sons
              Best StoryShakun Batra, Ayesha Devitre Dhillon for Kapoor & Sons
              Best Actor in a Supporting Role (Male)Rishi Kapoor for Kapoor & Sons.
              Best Actor in a Supporting Role (Female)Shabana Azmi for Neerja.
              Filmfare Lifetime Achievement AwardShatrughan Sinha.
              Best Music DirectorPritam for Ae Dil Hai Mushkil.
              Best LyricistAmitabh Bhattacharya-‘Channa Mereya’,Ae Dil Hai Mushkil
              Best Male Playback SingerArijit Singh for the song Ae Dil Hai Mushkil
              Best Female Playback SingerNeha Bhasin for ‘Jag Ghoomeya’ from Sultan
              Best Visual EffectsRed Chillies for Fan
              Best EditingMonisha Baldawa for Neerja
              Best CostumePayal Saluja for Udta Punjab
              Best ActionShyam Kaushal for Dangal
              Best Background ScoreSameer Uddin for Kapoor & Sons
              Best ChoreographyAdil Shaikh for ‘Kar Gayi Chull’ from Kapoor & Sons
              RD Burman Award for New Music TalentAmit Mishra for ‘Bulleya’ from Ae Dil Hai Mushkil
              Best CinematographyMitesh Mirchandani for ‘Neerja’
              Filmfare Critics Award
              Best FilmNeerja
              Best Actor (Male)Manoj Bajpayee (Aligarh) and Shahid Kapoor (Udta Punjab)
              Best Actor (Female)Sonam Kapoor for Neerja

              About the Filmfare Award

              The Filmfare Awards are presented annually by The Times Group to honour both artistic and technical excellence of professionals in the Hindi language film industry of India.
              • The Filmfare ceremony is one of the oldest film events in India. The awards were first introduced in 1954. They were initially referred to as the Clare Awards or The Clares after Clare Mendonca, the editor of The Times of India.
              • A dual voting system was developed in 1956. Under this system the Filmfare Awards are voted on by both the public and a committee of experts. The expert jury comprises of both Bollywood personalities

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