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Current Affairs - 06 July 2018

General Affairs 

ISRO Tested Its Critical Crew Escape Feature At Sriharikota
  • As part of its preparations to send an Indian astronaut into space using an indigenous rocket in the future, the Indian Space Research Organisation (ISRO) today tested the crew escape module, which is critical to ensure safety of the astronauts in case a rocket explodes on the launch pad.
    "The system is an emergency escape measure designed to quickly pull the crew to a safe distance from the launch vehicle in the event of a launch abort. The first test (Pad Abort Test) demonstrated the safe recovery of the crew module in case of any exigency at the launch pad," the ISRO said in a statement.

    The five-hour countdown was smooth, the space agency said. It shared that the crew escape system along with the simulated crew module with a mass of 12.6 tonne, lifted off at 7 this morning at the Satish Dhawan Space Centre in Andhra Pradesh's Sriharikota.

    The test was over in 259 seconds, during which the crew escape system along with crew module soared skyward, reached an altitude of nearly 2.7 km, swerved over the Bay of Bengal and floated back to Earth under its parachutes about 2.9 km from Sriharikota.

    Three recovery boats are being exercised to retrieve the module as part of the recovery protocol. Nearly 300 sensors recorded its performance parameters during the test flight.

    As of now, the government has not cleared the Indian human space flight programme, which the ISRO estimates to cost upwards of $2.5 billion and would take about seven to 10 years after it gets clearance.

    isro escape plan
    Nearly 300 sensors recorded its performance parameters during the test flight.

    The successful satellite re-entry test in 2007 gave the country the confidence that it has the necessary technologies to bring a crew module safely back to the Earth from orbit without burning in the atmosphere.

    As part of the first trial flight of the geo-synchronous satellite launch vehicle (GSLV) Mark III in 2014, India flew a dummy crew module that can carry two to three astronauts into space.

    Till date, the only countries to have expertise in space operations are Russia, USA and China. As and when India conducts its first human space flight, it is likely that it will be the fourth country in the world to be able to independently fly humans into space.

    The ISRO has been working on the human space flight programme for the last several years and the government has sanctioned about Rs. 173 crore to build the technology. According to the ISRO's last estimate, it would need Rs. 17,000 crore for the programme.

On Jammu And Kashmir, Rajnath Singh Says Peace Through "Honest" Governance
  • On his first visit to Jammu and Kashmir after the imposition of Governor's rule, Union Home Minister Rajnath Singh said today that peace and stability could be brought to the state through an honest, effective and efficient administration.

    Mr Singh also reviewed the security situation in the state at a high-level meeting attended by Governor NN Vohra, National Security Advisor Ajit Doval and top civil and police officials in Srinagar.

    "The dream of a developed and prosperous Jammu and Kashmir will be realised when there is peace and normalcy in the state. It is our firm resolve to bring peace, stability and prosperity through an honest, effective and efficient administration for the problems facing the state," a statement quoted him as saying.

    Discussing the way forward for the state, Mr Singh said development and good governance had remained elusive for the people of Jammu and Kashmir and the central government was committed to taking all possible measures to bring accountability and transparency in the system.

    "With a renewed focus on good governance and development, the Centre is looking forward to kindle new aspirations and hopes amongst the people of the state," he said.

    The home minister said the solution to problems lies in empowerment of the people and strengthening the institutions of local self-government.

    Jammu and Kashmir was placed under governor's rule on June 20 after the BJP withdrew support to alliance partner PDP, prompting Mehbooba Mufti to resign as chief minister.

Sports Authority Of India To Be Renamed Says Union Minister
  • Union Ministers of Youth Affairs and Sports Rajyavardhan Rathore on Wednesday announced that the national sports body, Sports Authority of India (SAI), will now be known as 'Sports India'.

    The decision came after the meeting of governing council of the national sports body, where some major steps were taken keeping in view the betterment of sports in the country.

    "Sports Authority of India name is being changed. Authority word is being removed. For now, it will be known as Sports India," Mr Rathore announced.

    He said that a word like 'Authority' is no longer relevant in the sporting world.

    Putting light on some of the other decisions taken, Mr Rathore said that the council has decided to make the sports body leaner and they will no longer retain some of the posts in the organization after officers on them retire.

    He further stated that daily expenses of food for athletes are being raised and a committee will be formed for the same that would look after the budget and make plans accordingly.

    "They will be spending more on the food being served to the players. We are making a separate committee for that as well. A committee of experts will be formed who will decide how much more needs to be spent on the food," he said.

    "Nutrition count of players of national academies has already been increased. We have increased the amount to Rs. 450 which was till now less than Rs. 300," he added.

    The Olympic silver-medalist also revealed that coaches working under the organization will be inducted into the decision-making process.

Railways To Now Accept Digital Aadhaar, Driving Licence As Valid ID Proof
  • No more worries about losing your identity proofs while travelling by train. Indian Railways announced that they will accept soft or digital copies of Aadhar and driving licence provided they are in your DigiLocker, a digital storage service operated by the government that enables Indian citizens to store certain official documents on cloud.

    The Railways has sent an official notification to all zonal principal chief commercial managers that these two identity proofs on such service will be accepted as valid proof of identity of a passenger.

    "If a passenger shows Aadhaar or driving licence from the 'issued documents' section by logging into his DigiLocker account, the same should be considered as valid proof of identity," the order said.

    It has, however, clarified that the documents uploaded by the passenger himself that is the documents in the 'uploaded documents' section will not be considered as a valid proof of identity.

    As part of the Narendra Modi government's Digital India movement, DigiLocker can currently store digital driving licences and Aadhaar.

    The cloud-based platform had also tied up with CBSE to provide digital versions of marksheets of students.Subscribers can also integrate their Permanent Account Number (PAN) with DigiLocker.

WhatsApp Offers $50,000 For Help To Tackle Fake News After Mob Killings
  • WhatsApp is offering research grants to social scientists to help it combat the spread of "misinformation" through the cross-platform messaging service. The move comes in the wake of a string of lynchings in India from fake news rumors spread on the free messaging platform.
    The service, which is owned by Facebook, is offering up to $50,000 for proposals that "foster insights into the impact of technology on contemporary society in this problem space" including election-related content, digital literacy and "detection of problematic behavior within encrypted systems."

    WhatsApp has come under fire in recent days in India - its largest market - after a string of brutal slayings that left more than a dozen dead in more than five states - including eight dead in the past week alone. In most cases, innocent bystanders were beaten to death by mobs fed by WhatsApp rumors of child kidnappers or organ harvesting rings. On Sunday, a mob in Maharashtra set upon five people from a nomadic tribe of beggars,beating the victims to death and then turning on police who tried to intervene.

    The forwarding of fake news is a rising societal problem in India, where more than 200 million users - many of them on smartphones for the first time - send billions of messages each day on WhatsApp.

    The Ministry of Electronics and Information Technology issued a sharply worded warning Tuesday, saying WhatsApp cannot "evade accountability and responsibility" for messages that lead to the spread of violence and called for the company to "take immediate action to end this menace."

    "The abuse of [platforms] like WhatsApp for repeated circulation of such provocative content are equally a matter of deep concern," the ministry said. ". . . Deep disapproval of such developments has been conveyed to the senior management of the WhatsApp and they have been advised that necessary remedial measures should be taken to prevent proliferation of these fake and at times motivated/sensational messages."

    WhatsApp, in a response letter to the ministry, said it is "horrified by these terrible acts of violence" and that "false news, misinformation and spread of hoaxes are issues best tackled collectively: by government, civil society and technology companies working together."

    But the company also said that messages on its platform can become "highly viral" as users share them, they also are encrypted, making it more difficult to monitor for hate or illegal speech than other social media platforms.

    Unlike social media platforms, such as Twitter and Facebook - in which posts are put on websites and can be broadly viewed online, based on users' privacy settings - WhatsApp works like traditional text messaging services or Apple's Messages app, with users messaging other people they know.

    WhatsApp users, however, can create chat groups of up to 256 people, and those users can spread a message to other groups they belong to, quickly amplifying the effectiveness of fake news.

    WhatsApp said earlier this week that it had added a new feature that allows administrators of WhatsApp groups to control who can post. And it is testing a feature that would label "forwards." The company plans to start an engagement program with law enforcement officials in India and will increase its outreach in the coming months in advance of the country's general elections next year, officials have said.

    WhatsApp has already partnered with news organizations in Brazil and Mexico - with grants provided Facebook - to counter and fact-check news reports.

    The government has been contemplating ways to control the rise of fake news without much success, leaving police departments around the country to combat it on their own by launching WhatsApp channels.

    On Sunday, a mob in Maharashtra killed five people from a nomadic tribe of beggars and then turning on police who tried to intervene.

    Some low-tech measures have also been taken: In Tripura, officials hired rumor-busting announcers to travel from village to village with loudspeakers to warn villagers not to believe fake messages. Three people were killed there last week, including one "rumor buster." Authorities shut down internet service for 48 hours to help quell the violence.

    Officials ordered more than 70 stoppages last year compared with six in 2014, according to the Internet Shutdowns tracker portal. There have been 65 shutdowns so far this year.

    Critics and public officials have said WhatsApp should do more to combat the spread of fake news. Nikhil Pahwa, a technology expert warned in a blog post on his site, MediaNama, that the India's "massive" fake news problem is "going to get worse."

    Mr Pahwa argues that the company should allow users to make messages private or public, with the public messages tagged with a unique ID for the creator, which could make inflammatory messages easier to trace.

Business Affairs

Reliance AGM 2018: Mukesh Ambani unveils JioGigaFiber; ushers in RIL's 'Golden Decade'
  • The richest man in the country who runs India's largest private enterprise by revenue today announced his ambitious plan for taking India among Top 5 nations in fixed-line broadband. Currently, the country ranks 134th in the global ranking for wired internet connectivity. Mukesh Ambani-led Reliance Industries (RIL) has come a long way ever since its IPO in 1977. The world's largest producer of polyester fibre is now aiming to connect 50 million homes with its high-speed optic fiber network. RIL has already invested Rs 250,000 crore for creating digital infrastructure to provide mobile and broadband connectivity.

    Addressing the 41st annual general meeting (AGM) of the company, Ambani said, "I can tell you with confidence that Reliance has reached an inflection point." His telecom venture, Jio, which disrupted the sector in the past two years has made big strides. Jio has more than doubled its customer base to 215 million since last year. It has become the only company in the world to achieve this feat within 22 months after its launch.

    Before commencing his speech, Ambani pointed out that "this is the first AGM as Reliance begins its Golden Decade". The refining-to-retail-to-telecom conglomerate is now betting big on consumer business. And Jio could be its golden goose. RIL's consumer businesses - Jio and Retail - represented about 13 per cent of the consolidated EBIDTA, up from a mere 2 per cent last year. Ambani said this increase is especially remarkable because it is taking place at a time when the hydrocarbon businesses are growing rapidly.

    But this could just be the beginning for Jio. Ambani said that his telecom venture has nearly doubled its network capacity in the last one year. "Even after serving the needs of over 215 million customers, the capacity utilization of the Jio network is less than 20 per cent. Which means, we can multiply our customer base without additional investment," Ambani claimed.

    JioGigaFiber

    At the shareholders' meeting in Mumbai, Ambani said they will now extend this fiber connectivity to homes, merchants, small and medium enterprises and large enterprises simultaneously across 1,100 cities to offer the most advanced fiber-based broadband connectivity solutions. However, the company laid out a very critical condition for its rollout. "Starting this Independence Day, August 15th you can start registering your interest for JioGigaFiber through both MyJio and Jio.com. We will prioritize our JioGigaFiber rollout to those localities from where we receive the highest number of registrations," Ambani said. While this may hardly help Jio in fulfilling its motto - which is to connect everyone and everything, everywhere - but it could go a long way in keeping the capital outlay for JioGigaFiber in check. Ambani even asked people to exhort their neighbours to register for JioGigaFiber. 

    JioGigaFiber will not be your regular broadband connection. Along with the internet, the company plans Ultra HD entertainment on your large screen TV, multi-party video conferencing from the comfort of your home, voice-activated virtual assistance, smart home solutions where 100s of devices like security cameras, home appliances and even light switches can be securely controlled by owners using a smartphone - even from outside the home - and more. "This will redefine 24x7 emergency help for all homes across India," added Ambani.

    JioGigaFiber will connect the GigaTV set-top box to your large screen TV, which will allow you to watch "600 plus" channels and every other type of content possible. What more, you will be able to "tell" your Jio Remote what you want to watch, and the voice-command feature - available in multiple Indian languages - will play it immediately on your TV. "This changes the way India will watch TV," Ambani's children Akash and Isha summed up in their demo.

    It's not only device (JioPhone/Giga TV) and carrier (Jio/JioGigaFiber), RIL has also been aggressively expanding in OTT content space. Last year, it acquired a 24.9 per cent stake in Balaji Telefilms. Jio TV app offers over 432 live channels across 15 regional languages. In February this year, it acquired 5 per cent stake in NYSE-listed Eros International for Rs 1,000 crore. The partnership with Eros is to set-up a fund to create and produce content. Jio had earlier joined hands with Hotstar to offer Jio TV service to its users. Viacom18, a joint venture of RIL-owned Network 18, and Viacom has a portfolio entertainment channels such as Colors, MTV, etc.

    Ambani also outlined his vision of creating a hybrid, online-to-offline new commerce platform. To achieve this, Reliance will partner with 3 crore small merchants and shop-keepers all over India who provide the last-mile physical market connectivity. "Our new commerce platform will redefine retail in India by enabling all customers - rich or poor, whether at home or on mobile - to transition from simple shopping to personalised Immersive shopping experience. This will be made possible by Augmented Reality, holographic technology and VR devices," Ambani said.

    However, only time will tell whether all this will help RIL take on the likes of Flipkart-Walmart or Amazon.

Centre may infuse fresh capital into ailing Air India, says official
  • After having failed to take the disinvestment plan of Air India ahead, the Centre is now mulling to infuse fresh capital into the ailing airlines, said an official in the Ministry of Civil Aviation on Thursday. RN Choubey, secretary, Civil Aviation, said the disinvestment plan would be taken up once the conditions were favourable. A decision will be taken (on capital infusion into Air India). It will be taken very soon," Choubey told reporters here.

    "No support is given without some kind of timeline being determined for Air India to deliver. Whenever a government support is extended, there will be a corresponding timeline given to Air India to deliver on those expectations," he further said. He said the government would provide necessary support to Air India for improving its working. Last year, Air India was breaking even as far as operational costs were concerned, he added. The proposed stake sale in Air India failed to attract any initial bidder when the deadline for bidding ended on May 31.

    Under the Air India disinvestment plan, the government was to sell 76 per cent stake in the national carrier along with complete divestment of low-cost arm Air India Express and a 50 per cent stake in Air India SATS Airport Services Pvt Ltd - an equal joint venture with Singapore-based SATS. "The government is committed to disinvestment in Air India. At present, the conditions are not quite favourable.

    So, we are reviewing the situation. Since, we are committed to disinvestment at an appropriate time, when the situation improves, and when we judge that there is a demand, we would certainly proceed again with the process, he said. Replying to a query, he said 20 airports have so far been connected under the Udan Scheme. The government has awarded 56 airports under the scheme. UDAN (Ude Desh Ka Aam Nagrik) scheme seeks to connect unserved and under-served airports as well as make flying more affordable, he added.

ArcelorMittal demands disqualification of NuMetal bid for Essar Steel; NCLAT disagrees
  • Locked in a direct fight to acquire Essar Steel, ArcelorMittal today sought disqualification of Russia's VTB Capital-backed NuMetal Ltd, alleging that the firm was acting in concert with delinquent promoters of Essar group but the NCLAT hearing the case did not agree to its contention.

    When first bids for loan defaulter Essar Steel were called in February, Rewant owned 25 per cent in Mauritius-based investment vehicle NuMetal. VTB Group bought out Aurora Trust to cure its ineligibility as bankruptcy rules disqualify owners of distressed assets from bidding for those assets in the insolvency process.

    At a hearing before a two-member bench of the National Company Law Appellate Tribunal (NCLAT), senior lawyer Abhishek Manu Singhvi, appearing for ArcelorMittal, said "NuMetal and Rewant Ruia are alter ego of each other. They both are the same."

    He alleged that the two are acting in concert with each other.

    The NCLAT bench posed several probing questions, including whether a company can be considered to be an alter-ego of its shareholder - especially when such minority shareholder is neither in management or control of the company (NuMetal).

    It observed that question of disqualification of NuMetal on the ground that one of its minority shareholders is related to promoters of Essar requires substantiation based on law.

    The NCLAT also observed that allegations of NuMetal acting in concert with the promoters of ESIL cannot be based on general analysis and needs be substantiated with legal grounds in accordance with law.

    The NCLAT is hearing cross-petitions filed by NuMetal and ArcelorMittal challenging each other's eligibility to bid for Essar Steel which is being auctioned after the company defaulted on payment of Rs 51,800 crore loans to lenders.

    NuMetal wants ArcelorMittal disqualified because it was the promoter of loan defaulting companies, Uttam Galva Steel and KKS Petron. The world's largest steelmaker says it has paid Rs 7,000 crore of loans of Uttam Galva Steel to cure its ineligibility.

    Arguments before the NCLAT today remained inconclusive and hearing would resume on July 9.

    "Today's argument was about why ArcelorMittal believes NuMetal should be ineligible...," a spokesperson of ArcelorMittal told over the phone.

    The counsel in his argument said there is a connection between all three and Section 29 A of the Insolvency Bankruptcy Code (IBC) does not allow connected parties to bid for any stresses asset, the person said.

    The NCLAT had on May 22 ordered status quo on insolvency of Essar Steel for two months as it admitted petitions of Numetal and ArcelorMittal over the bidding eligibility.

    ArcelorMittal and NuMetal put in a second round of bid in April after the first round of bids were opined to be invalid due to the delinquent promoter connection.

    In the second round, NuMetal says it has offered over Rs 37,000 crore for Essar Steel. ArcelorMittal is, however, opposed the opening of the second round of bids and sought only the first round of bids to be considered.

    In the second round of bidding, mining baron Anil Agarwal's Vedanta Resources joined the race. JSW Steel joined NuMetal in place of Rewant for the bid.

Titan Company stock falls nearly 6% on expectations of muted growth in Q1
  • The Titan Company stock fell in trade today after the jeweller firm said it expects to post muted growth in the first quarter pulled down by decline in demand for gold. At 15:17 pm, the stock was trading 5.78% or 51 points lower to 836.10 level on BSE.

    The stock opened with a loss of 2.07%. It has been falling for the last three days and lost 6.08% during the period. The stock which closed at 887.40 level yesterday fell 5.74% intra day to 836.40 level in today's trade. It stock closed 5.58% lower at 837.90 on the BSE today.

    The stock has clocked 58.51% gains during the last one year. The stock is down nearly 1.50%  since the beginning of this year.

    The firm said its watches and eyewear division showed good growth in Q1, but it sees revenue growth to be "optically subdued" due to GST transition

    Titan in a statement said, "The jewellery industry has been going through a significant soft patch in the first five months of calendar year 2018 as evidenced in the decline of imports of gold by 39% in volume terms. This is primarily led by decline in demand for bullion and to some extent by weak demand for adornment during the period. Channel checks have also corroborated the view that, while Akshaya Tritiya itself had decent sales, the remainder of quarter witnessed a significant decline compared to the previous year. The weakness in the consumer sentiment has had an impact on our sales also leading to recording of sales below our internal targets."

    Macquarie analysts believe inauspicious period based on the Hindu calendar in Q1 may be a reason for muted sales and expect H2 to be significantly stronger. They maintain "outperform" rating with price target of Rs 1,240.

    At least 24 of 32 brokerages rate the stock "buy" or higher, seven "hold" and one "strong sell"; their median price target is Rs 1,050 rupees

    Motilal Oswal on July 4 gave a buy rating on the stock when it was trading at 889 level. The brokerage sees the stock rising to 1130 level in an year.  

    Narnolia Financial Advisors on July 2 gave a buy rating on the stock when it was trading at 889.83 level. The brokerage sees the stock rising to 1050 level in an year.

    The Tata Group firm reported a 70.86 per cent jump in consolidated net profit at Rs 304.41 crore for the fourth quarter ended March 31. The company had reported a net profit of Rs 178.16 crore in the same quarter of 2016-17.

    Titan's total income stood at Rs 4,125.69 crore during the quarter under review. It was Rs 3,692.82 crore in the year-ago period.

Google open Wi-Fi to reach Indian malls, universities to connect Next Billion users
  • The Mountain View tech giant, Google, is all set to widen its horizons by providing Wi-Fi services in public places such as malls, cafes, and universities. Early in the year, in a bid to provide internet connectivity beyond railway stations, it had partnered with Larsen & Toubro (L&T) to bring 150 Google Station hotspots to Pune, which was part of the Pune Smart City Project.

    In September 2016, Google had rolled out free Wi-Fi services across railway stations in India in collaboration with the Indian Railways and RailTel, which focuses on providing broadband and VPN services at railway stations. With the success of the endeavor - given that it has connected 400 railway stations across the country with Wi-Fi and covers 8 million people every month - the US-based company expanded the service to Mexico and Indonesia.

    In order to give fruition to its current objectives, Google is liaising with various stakeholders, which include state governments, telecom operators, and internet service providers (ISPs). K Suri, Director, Partnership, India (Next Billion Users) at Google India, told the Economic Times, "Telcos are something we are definitely talking to for things like Wi-Fi coverage and data offload to decongest networks. Those are the reasons why telcos want to be in this space. Wi-Fi is in the nascent stages here." Further, "Whosoever is interested in public Wi-Fi ecosystem, we are engaging with them to drive the access. Our philosophy is: how do we connect the next billion?"

    Bharti Airtel and Vodafone have already collaborated to create FireFly Networks which aims to transform the mobile data landscape in India by creating, managing, and monetizing Wi-Fi Hotspots. In just a year, FireFly has established its presence in educational institutes, hospitals, malls, cafes, public hangouts, markets, institutional premises, transit points, and corporate parks across Mumbai, NCR, Pune, and Bangalore. It will soon expand its footprint in almost all key cities and urban centres in India. Concurrently, the government is pushing a 'Public Open Wi-Fi' project which aims at offering affordable internet connectivity in tier-2 and 3 towns in India. 

    Public Wi-Fi is expect to connect 40 million new users to the internet by 2019, as reported by The Economic Times, and around 100 million people may spend an additional $2 to 3 billion per year on handsets and cellular mobile broadband services to experience faster broadband on public Wi-Fi.

    General Awareness

    Common Services Centers (CSCs)
    • Context: CSC SPV, a Special Purpose Vehicle under the Ministry of Electronics & IT, has entered into agreement with HDFC Bank to enable its three lakh Village Level Entrepreneurs (VLEs) managing the Common Services centres operate as Banking Correspondents of HDFC Bank.

      Under the agreement, VLEs of CSC will work as Banking Correspondent of HDFC Bank and support the Government initiative to promote financial inclusion and make banking services more accessible in rural areas.

      Significance:

      This agreement is expected to be a game changer as it would significantly contribute to Government’s objectives of enabling Direct Benefit Transfer (DBT) of various schemes.
      Women, senior citizens and persons with disability will especially get benefitted through this initiative.
      This will facilitate withdrawal and deposit of government entitlements such as payments under MGNREGA as well as various social welfare schemes like widow pension, handicapped and old age pension, etc.

      What are CSCs?

      Common Services Centers (CSCs) are a strategic cornerstone of the Digital India programme. They are the access points for delivery of various electronic services to villages in India, thereby contributing to a digitally and financially inclusive society.

      CSCs enable the three vision areas of the Digital India programme:

      Digital infrastructure as a core utility to every citizen.
      Governance and services on demand.
      Digital empowerment of citizens.

      Significance of CSCs:

      CSCs are more than service delivery points in rural India. They are positioned as change agents, promoting rural entrepreneurship and building rural capacities and livelihoods. They are enablers of community participation and collective action for engendering social change through a bottom-up approach with key focus on the rural citizen.

      Key facts:

      The CSC project, which forms a strategic component of the National eGovernance Plan was approved by the Government in May 2006, as part of its commitment in the National Common Minimum Programme to introduce e-governance on a massive scale.
      It is also one of the approved projects under the Integrated Mission Mode Projects of the National eGovernance Plan.

      What’s important?

      For Prelims: CSCs, NEP, SIDBI.
      For Mains: CSCs and their significance, VLEs and their role in rural economy.

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