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Current Affairs - 17 July 2018

General Affairs 

Injuries Disable 200 Soldiers Every Year, Says Senior Army Doctor
  • Nearly 200 armed forces personnel become disabled every year due to road accidents and avalanches, especially in hilly terrains, a senior army doctor said
    Lt Gen Bipin Puri, Director General of the Armed Forces Medical Service, said the disability armed forces personnel suffer are not only related to spinal cord and limbs - they often involve injuries to lungs and intestines 

    He added that in the armed forces medical service, the primary motto is to save life by resorting to damage-control surgery.

    "Every year 200 armed forces personnel suffer from serious disability. It is a huge number. Battle injuries are of course the reason, but more of our injuries are because of accidents in hilly terrains, snow avalanche," Lt Gen Puri told PTI, citing data.

    The Indian Army is engaged in anti-terrorism and anti-insurgency operations in Jammu and Kashmir and northeast India. The Army alone has more than 10 lakh personnel.

    Lt Gen Puri said it is an immense challenge to overcome disability and the Army has taken steps to mitigate the problems faced by its soldiers in this regard.

    "There are physical, emotional, psychological and social issues involved in this," he said.

    The Army, he said, has an Artificial Limb Centre, a premier institute in Pune, to address the problems related to disability of limbs.

    The Army is also building five ALC sub-centres in Chandigarh and Guwahati, and a base hospital each in Delhi and Lucknow to minimize the distance a disabled soldier from the northern region may have to travel for treatment, he said.

Railways Plan To Cut Mumbai-Nagpur Travel Time With High-Speed Corridor
  • The Railways is working on a plan to connect Nagpur and Mumbai through a high-speed corridor which will reduce the travel time between the two cities to just five hours, Railway Minister Piyush Goyal said today.
    Mr Goyal was in Nagpur to witness the signing of an MoU between the Railways and the Metro Railway Project Company of Maharashtra for linking the railway line to the metro network and creating a Mass Rapid Transit System.

    He said his ministry was planning to connect railway lines to national highways across the country.

    "One such proposal is to connect the Nagpur-Mumbai Super Expressway (Samriddhi Mahamarg) to the railway line connecting Nagpur-Mumbai. The construction of such a high-speed corridor will make it possible to cover the distance between Nagpur and Mumbai in just five hours," he said.

    Currently, the minimum time a train takes to cover the distance between the two cities is around 13.2 hours.

    The MoU signing ceremony was witnessed by Union Minister of Road Transport, Highways and Water Resources Nitin Gadkari and Maharashtra Chief Minister Devendra Fadnavis.

    The Railways has also allocated a record Rs. 67,000 crore for the development of the suburban railway network in Mumbai which is used by one-third of the total Railway passengers in India.

    The foundation stone laying ceremony of the Nagpur Municipal Corporation's "waste to energy project" was also held on the occasion.

    The foundation stone laying ceremony of a project of the Maharashtra State Power Generation Company to carry coal from a cluster of mines of the Western Coalfield Limited through the pipe conveyor system was also held, the ministry said in a statement.

    Mr Gadkari, while speaking on the rising pollution in metro cities, advocated "public transport on electricity".

    He informed that the speed of air-conditioned metro coaches running on the Railway's broad gauge line will be 100 km/hr, which is much more than that of the ordinary passenger trains.

    Mr Fadnavis said that these three projects would be hailed as innovative steps. He informed that water acquired from mines and power plants is being used to irrigate over 10,000 hectares of land in Maharashtra.

    An MoU has been signed between the Vidarbha Irrigation Industrial Corporation and the Western Coalfield Limited for mine water distribution, he said.

    On the occasion, a booklet titled "New Railways New Maharashtra" on the Railway's development in Maharashtra was also unveiled. 

Waiting For BJP Proposal On Seat-Sharing: Nitish Kumar
  • Bihar Chief Minister Nitish Kumar on Monday said he is awaiting the BJP's proposal on seat-sharing for next year's Lok Sabha polls and expects the process to be finalised soon.
    "I will talk with BJP leaders on seat sharing. A proposal on this matter will come from the BJP in three to four weeks," he told media here.

    Nitish Kumar, who is the president of the ruling Janata Dal-United, also said that "seat sharing will be settled soon".

    In a reference to his last week's meeting with Bharatiya Janata President Amit Shah, he said it was a good meeting. "We discussed many thing including next Lok Sabha polls."

    Amit Shah met JD-U chief Nitish Kumar at breakfast and at dinner last Thursday where both reportedly discussed seat sharing between NDA allies in the state for the 2019 general elections.

    Mr Shah then told his party leaders and workers that BJP-led NDA's alliance with Nitish Kumar will not break and will continue.

    Earlier, the JD-U National Executive meeting in New Delhi, chaired by Nitish Kumar had decided that it would like to contest the 2019 Lok Sabha elections with its coalition partner BJP.

With Several Rocket Launches Planned, A Busy Year Ahead For ISRO
  • The Indian space agency will have a busy year-end with several rocket launches planned from its rocket port at Sriharikota in Andhra Pradesh, said a top official.
    The GSAT-11 satellite, which had been recalled from Arianespace's rocket port in French Guiana for further tests, is also expected to be put into orbit by Arianespace's rocket Ariane by the year end, the official said.

    "The calendar year end will be a busy one for ISRO (Indian Space Research Organisation), launching satellites with our three rockets -- Polar Satellite Launch Vehicle (PSLV) and Geosynchronous Satellite Launch Vehicle (GSLV Mk II and Mk III).

    "Starting September there will be rocket launches with Indian as well as foreign satellites," K. Sivan, ISRO Chairman told IANS on Monday.

    According to Mr Sivan, in September ISRO will fly a PSLV rocket with two foreign satellites, earning revenue for the country.

    In October, another PSLV rocket will fly with an Indian remote sensing satellite and several foreign satellites.

    October will also see India''s heaviest rocket 640-ton GSLV Mk III flying up with GSAT-29 with Ka x Ku multi-beam and optical communication payloads. The mission targets Village Resource Centres (VRC) in rural areas to bridge the digital divide.

    In November, ISRO will fly a GSLV Mk II rocket to put into orbit GSAT-7A, to be used by the Indian Air Force (IAF). Earlier, ISRO had launched GSAT-7 or Rukmini satellite for the Indian Navy.

    Queried about the 5.8-ton GSAT-11, a communication satellite that was recalled from French Guiana this April, Mr Sivan said: "We expect the satellite to be launched before the end of this year. Discussions with Arianespace are on regarding the time and date of the satellite launch."

Pointing At Mamata Banerjee, PM Modi Says Bengal's Durga Puja In Danger
  • In Bengal today, Prime Minister Narendra Modi used the state's biggest festival, the Durga Puja, to launch a sharp attack on Chief Minister Mamata Banerjee. The Prime Minister is on a day's visit to the state to speak about his government's initiative for farmers in terms of the recent rise in Minimum Support Price for selected summer crops. But it also served as a platform to launch a sharp attack on the Trinamool Congress government.

    As one of the few non-BJP, non-Congress states in the country, Bengal ranks high on the wishlist of Amit Shah for next year's general elections. The BJP chief has already handed a 22-plus seat target to the state cadre. Bengal has 42 parliamentary seats.

    In his 40-minute address in Midnapore today, PM Modi's sharpest attack was reserved for what he called the "appeasement politics" of Mamata Banerjee, saying even Durga Puja, the heartbeat of Bengal, was in danger because of it. The reference was to the Chief Minister's last year's embargo on Durga immersion ceremony in view of Ramzan processions, which had triggered widespread anger in the state.

    The Prime Minister also accused the ruling party of running an extortionist regime in the state. Nothing moves in Bengal without paying up money to syndicates, he said. "Whether it is to build schools or hospitals, you have to pay syndicates". He also took on the ruling party over the recently concluded panchayat polls, saying "I salute the brave people coming out to support the BJP despite being afraid."
    "Things are worse in Bengal than during the Left rule," PM Modi said. "But while it took 34 years to oust the communists, the people of Bengal will not have to wait very long for the next change."

    "The BJP leader's speech proved that they have no development agenda at all. He came and gave a political bhashan. The net result is ZERO, ZERO, ZERO," read a press release signed by senior party leaders Derek O'Brien and Partha Chatterjee.

    Hitting back at the PM Modi's accusation of Trinamool Congress being a "syndicate", the party accused the BJP of being a "syndicate that peddles religious extremism", for "fanatics, lynching, torture and corruption".

    Accusing the BJP of bringing in  people from neighbouring states Jharkhand, Bihar and Odisha for the Prime Minister's meeting, the party brushed off his pitch to farmers. According to a parliamentary report, in the first quarter of 2017, the number of farmer suicides in Maharashtra was 635, while the figure for Bengal was zero, the party said.

    "Hope the BJP leader has got his answer. These numbers tell the true story of the farmers' situation in the country and their condition in Bengal," the party said.

Business Affairs

SBI tells its 70,000 employees to return 'compensation' paid for working overtime during note ban
  • More than 70,000 employees of associate banks of the State Bank of India are angry. Banking staff worked overtime post-demonetisation to meet the demands of long queues of people waiting to exchange old notes with the new ones.

    The bank staff had been promised "overtime compensation" by the employer banks for the "extra hours" they worked post-demonetisation. The 70,000 officers and employees of banks like State Bank of Patiala, State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner & Jaipur - these all merged with the SBI on April 1, 2017 - got the compensation but now they are being asked to "return the compensation for extra work".

    The SBI has issued a communication to all the zonal headquarters saying that only "its own employees" and not those, who were employees of the erstwhile associate banks (E-Ab), were supposed to get the money for extra work.

    The State Bank of India has instructed its various zones to examine the recovery of the "compensation" given to officers of its erstwhile associate banks. The SBI communication states that compensation was meant exclusively for those working with the SBI branches.

    It states that as the erstwhile associate banks had not merged with the SBI at the time of demonetisation, the responsibility to pay the staff compensation for overtime lies with the five employer banks and not the SBI. These five banks were autonomous entities back then, the SBI argued.

    The communication says, "The claim related to the period prior to the merger of e-Abs (erstwhile associate banks) should have been dealt by e-Abs at the material time and we have no record of any commitment to pay the same." It adds that instruction issued earlier this year for payment of compensation was only in respect to those, who worked in SBI branches.

    The SBI has asked for a review to find under what circumstances was the approval given for the payment of compensation to the officers of e-ABs. In fact, the SBI plans to take appropriate action against erring officials.

    Lakhs of employees worked for three-eight hours extra daily to meet the chaotic rush between November 16 and December 30 in 2016. The compensation amount was Rs 30,000 for officers and Rs 17,000 for other staff. It was paid from what is called the "out-of-pocket expense between March and May this year".

    The SBI's decision has not gone down well with bank unions. They claim that the recovery order was totally unfair as a merger meant a takeover of both the assets and liabilities of the merging entities. Moreover, the unions were upset that the compensation was due from December 31, 2016, but was not sanctioned for almost a year.

    The SBI has not responded to India Today's queries on the matter. However, a senior official, on the condition of anonymity, said, "The compensation was paid erroneously. Salaries and other dues of the employees of the erstwhile associate banks, which merged with the SBI in 2017, were not the liability of the SBI in March-May 2018. That's why a scrutiny has been ordered."

LIC board approves acquiring 51% stake in IDBI Bank through preferential share allotment
  • Life Insurance Corporation of India board on Monday gave its approval to buy 51 per cent stake in debt-ridden public sector lender IDBI Bank Ltd. Department of Economic Affairs Secretary Subhash Chandra Garg, who was also a part of the LIC board representing government, told media persons that the since the bank needs funds, the LIC would choose preferential share route to increase its stake. Experts say LIC could get at least four seats in the IDBI Bank board. Currently, the government holds 81 per cent stake in IDBI Bank.

    Garg also said that since the combined shareholding of both the government and LIC would be over 90 per cent, and that public shareholding is too low, an open offer might not be on the cards. He, however, clarified that LIC could make an open offer if needed. The deal would now have to be approved by both the Cabinet as well as the IDBI Bank board. Experts say there might not be an open offer, and acquisition, as Garg said, would happen by issuing preferential shares.

    According to the takeover plan approved by the Insurance Regulatory and Development Authority (IRDA), the state-owned insurance company would not have any management control over the state-owned bank. Also, LIC would present a comprehensive plan to reduce its stake to 15 per cent over a period of the seven years.

    RK Nair, former member IRDA, told CNBC TV 18 that though the LIC board has given the approval of strategic takeover in IDBI Bank, no guidelines have been issued about the divestment plan in the next five-seven years, which he said, might come from the IRDA.

    On the issue of investment duration, he said LIC would be a long-term investor, which he said would be coming from its live fund. He said with a good management team, IDBI bank could be easily turned around.

    While LIC already owns 10.82 per cent of IDBI Bank, acquiring another 41 per cent equity for majority 51 per cent equity will cost another Rs 9,408 crore, though its eventual cost of acquisition may be five-seven times higher. The IDBI Bank has the highest gross non-performing assets (27.95 per cent) as a percentage of total loans among all public sector banks. It has accumulated losses of over Rs 17,000 crore. The public lender has reported losses of Rs 8,237.92 crore in FY 18, Rs 5,158.14 crore in FY 17 and Rs 3,664.80 crore FY16.

    Besides, IDBI Bank is already under banking regulator RBI's prompt corrective action (PCA), which restricts the bank's ability to expand loan business; requires it to shed non-core business and focus on returning to profitability by cutting expenses. Out of its total outstanding loans of Rs 1.99-lakh crore, it already has recognised gross NPAs worth Rs 55,588 crore while it has already provisioned for NPAs worth Rs 26,902 crore. With such high NPAs, the health of its other loan outstanding is also being questioned.

    LIC has been looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergy despite the lender's stressed balance sheet. The insurance giant will get about 2,000 branches through which it can sell its products. The bank will get accounts of about 22 crore policyholders and subsequent flow of fund.

Airfares may rise as govt mulls imposing a surcharge on peak hour flights: report
  • Frequent fliers who travel for business or work often opt for peak hour flights to make the best use of their time. However, air passengers may soon end up shelling out more for travel during rush hour if the government has its way.

    Guruprasad Mohapatra, chairman, Airports Authority of India (AAI), told The Hindu that the government is mulling over a proposal to impose a surcharge on airlines for operating flights during peak hours to enhance airport capacity and to avoid flight delays. The idea, he added, has already been discussed with airlines at a meeting.

    What are peak hours? According to the daily, an airport typically sees four 'peaks' in a day: Around 6 a.m.-8.30 a.m.; 10.30 a.m.-noon; 4 p.m.-6 p.m. and 7 p.m.-9.30 p.m. Mumbai's Chhatrapati Shivaji International Terminal and the Indira Gandhi International airport in Delhi are two of the most congested airports in the country and see up to 52 and 73 movements - landings and take-offs - per hour, respectively, during peak timings.

    At present, the time of the day has no bearing on the landing fees paid by airlines - it is based on the weight of an aircraft. "There is a large window of non-peak hours that we are persuading airlines to consider. In fact, we are considering whether we can introduce charges for flight operations during peak hours. A concept note is being prepared and global models are being studied. We want to encourage use of non-peak hours. This is right now at a proposal stage and a final decision is yet to be taken," said Mohapatra, adding that congestion during peak hours should not be allowed.

    India is not the first country to think along these lines. London's Heathrow Airport, which is Europe's busiest, reportedly introduced the formula in 1972 to check air traffic congestion, when it was already witnessing 72 movements during peak hours. In addition, it levies a steep penalty on airlines that fail to be punctual.

    However, the concept has evoked mixed reactions from stakeholders at home. A senior official from a domestic carrier told the daily that "We don't welcome such a proposal. The move, if put into effect, is unlikely to change airline behaviour as peak-hour slots are almost impossible to get in large metros such as Mumbai and Delhi. It will become an additional charge on airlines holding peak-hour slots. A high-cost environment where airlines pay high fees for airport infrastructure as well as fuel is counter-productive to the growth of a burgeoning market like India."

    On the other hand, an aviation industry insider with experience at a major airport pointed out that the move would help spread demand through the day. Besides, if passengers can pay extra for more comfort and leg room and priority baggage, they are likely to be willing to pay more to fly during popular timings. In any case, leisure travellers looking for cheaper fares will still have the option of flying at non-peak hours.

    Mohapatra added that AAI is preparing a plan to increase Delhi's hourly capacity over the next three years, which will be presented to the Ministry of Civil Aviation. Furthermore, measures will be taken to reduce congestion at the Mumbai airport by measures such as replacing flights operated by smaller aircraft such as ATR72 with bigger planes like A320s, where two stations are capable of handling the bigger aircraft.

    The upside to the proposal, at least for business travellers, whose employers foot travel expenses, is lesser congestion at the airport.

At least six Indians on list of dormant, unclaimed Swiss bank accounts
  • At least six individuals with links to India feature on a list of over 3,500 Swiss bank accounts lying dormant, without any trace of owners, for around two-and-half years now. Of them, three hail from India and three others are of Indian origin but residents of other countries. While a specific figure for these India-linked accounts is not known, the total holding in all such dormant accounts is estimated at about Swiss Francs (CHF) 44 million (about Rs 300 crore).

    The list of all such accounts - of Swiss citizens and foreigners - was first published by the Switzerland Banking Ombudsman in December 2015, and it keeps getting updated as and when an account is declared dormant. This is to allow real owners of the accounts or their legal heirs to stake a claim with necessary proof. Only those accounts form part of the list which boast at least CHF 500 and have remained unclaimed for at least 60 years.

    While successful claims were made for as many as 40 accounts and two safe deposit boxes in 2017 alone, no claimant has come forward for the accounts with Indian links, as per the latest information shared by the Ombudsman.

    These belong to Pierre Vachek and Bernet Rosmarie from Bombay, as Mumbai was previously known, Bahadur Chandra Singh from Dehradun, Dr Mohan Lal from Paris and Suchah Yogesch Prabhudas from London. The place of residence of the sixth individual, Kishore Lall, was not disclosed. Incidentally, the date of birth had been disclosed in one case - Vachek's, listed as January 1, 1908.

    These six accounts and the other dormant accounts will remain on the public list till December 2020, unless a successful claim is made for the money. That is because the claim deadline for potential legitimate claimants is five years, if the assets in question have been dormant since at least 1954. The list also includes some such accounts from Pakistan, including of one Nawaz Haq of Wazirabad, which got added in November last year.

    Moreover, it features a large number of people from Switzerland itself, as also from Germany, France, the UK, the US, Turkey and Austria, among various other countries. If no legitimate party claims the assets that have been published within one year of publication, the banks can transfer the assets in question to the government.

    It has been often alleged that Indians and other nationals seeking to stash their illicit wealth abroad use multiple layers of various jurisdictions, including tax havens, to shift the money in Swiss banks.

    Till recently, the Alpine country with its famed banking secrecy practices was perceived to be among the safest havens globally for financial assets. But a global crackdown on alleged tax evasion leveraging on such financial privacy practices led to Switzerland agreeing to tighten its rules. Subsequently, the country framed new laws for greater cooperation with several other countries on exchange of information and for stricter clampdown on illicit activities like money laundering and tax frauds.

    India is one of the countries with which Switzerland inked an automatic exchange of information pact on financial matters just months ago, although it had already been providing details on bank accounts in cases where Indian authorities have been able to provide proof of wrongdoings. India will start getting the automatic data from next year.

    Last month, the official annual data of the Swiss National Bank (SNB), the central banking authority of the Alpine nation, revealed that money parked by Indians in Swiss banks rose over 50 per cent to Swiss Francs (CHF) 1.01 billion (Rs 7,000 crore) in 2017. This triggered a sharp opposition attack on the government, which retaliated saying that it would be wrong to assume that all funds deposited in Swiss banks was 'black money'.
    Indeed, the funds, described by SNB as 'liabilities' of Swiss banks or 'amounts due to' their clients, are the official figures disclosed by the Swiss authorities and do not indicate to the quantum of the much-debated alleged black money held by Indians there. SNB's official figures also do not include the money that Indians, NRIs or others might have in Swiss banks in the names of entities from different countries.

    In any case, the situation is not as alarming as it was a decade ago. The total funds held by Indians with Swiss banks stood at a record high of CHF 6.5 billion (Rs 23,000 crore) at end-2006.

Tata Motors, Ashok Leyland, Eicher Motors stocks fall up to 9% amid reports of likely rise in truck load capacity
  • The stocks of truck manufacturers fell on Monday amid a report that the government was likely to raise load carrying capacity of trucks and tractor trailers tomorrow. A report in a business news channel said the government would notify new rules with respect to hiking load carrying capacity on Tuesday.

    The report said the load carrying capacity of heavy trucks would be raised by up to 25%.

    This led to negative sentiments on the counters of truck manufacturers such as Tata Motors, Ashok Leyland and Eicher Motors on fears more goods could be transported via the same number of trucks which would hit the sales of these firms.

    The Ashok Leyland stock fell to intra day low of 120.55, falling up to 9.2% or over 12 points on the BSE.  

    It closed 5.34% or 7 points lower at 125.75 on the BSE.

    The firm offers a range of trucks, which include long haul trucks, mining and construction trucks, and distribution trucks.

    The Tata Motors stock closed 4.77% lower at 251.55 level on the BSE.

    The stock has been falling for the last four days and lost 8.66% during the period.

    The stock was already facing selling pressure after global ratings agency Moody's downgraded the corporate family rating on Tata Motors due to the weakening credit metrics at Jaguar Land Rover (JLR).

    Moody's Investor Services has downgraded Tata Motors rating to Ba2 with a stable outlook. Earlier, the agency had a Ba1 rating on the company.

    Another truck maker Eicher Motors fell 0.88% or 243.95 points to 27,357 on the BSE.

     The stock hit intra day low of 27,051.05 falling 550 points or 2% on the BSE.

    Shares of truck industry financer Shriram Transport Finance closed 3.29% or 41 points lower to 1212 level on concerns that lower truck sales would lead to lesser chances of financing truck buying deals.

    "The gross vehicle weight of a two-axle truck would be raised to 19 tonne from the current 16.2 tonne. Gross vehicle weight of a three axle truck to be raised from 25 tonne to 28.5 tonne. Gross vehicle weight of a five axle truck to be raised from 37 tonne to 43.5 tonne. The vehicle weight of tractor trailer with respect to five axles to be increased from 44 to 49 per tonne, " the CNBC TV 18 report said.

General Awareness

    President nominates four members to Rajya Sabha
    • Context: In exercise of the powers conferred by Article 80 of the Constitution of India, and on the advice of the Prime Minister, the President of India has made four nominations to the Rajya Sabha.

      The nominated members are- Ram Shakal, Rakesh Sinha, Raghunath Mohapatra and Sonal Mansingh.

      Nominated member of the Rajya Sabha:

      Under article 80 of the Constitution, the Council of States (Rajya Sabha) is composed of not more than 250 members, of whom 12 are nominated by the President of India from amongst persons who have special knowledge or practical experience in respect of such matters as literature, science, art and social service.

      Powers and privileges:

      Nominated members enjoy all powers, privileges and immunities available to an elected member of Parliament.
      They take part in the proceedings of the House as any other member.
      They, however, are not entitled to vote in the election of the President of India.
      But in the election of the Vice-President of India, they have a right to vote.
      A nominated member is allowed six months, should he decide to join a political party after he has taken his seat in the House in terms of article 99 of the Constitution.
      A nominated member has also been exempted from filing his assets and liabilities under Section 75A of the Representation of the Peoples Act, 1951 which requires the elected member to do so within 90 days of his making or subscribing oath/affirmation.
      Under MPLADS, the Nominated Members of the Rajya Sabha may select any Districts from any State in the Country for implementation of their choice of work under the scheme.

      Rationale behind the principle of nomination:

      By adopting the principle of nomination in Rajya Sabha, the Constitution has ensured that the nation must also receive services of the most distinguished persons of the country who have earned distinction in their field of activity, many of whom may not like to face the rough and tumble of the election.
      By nominating them to Rajya Sabha, the State not only recognises their merit and confers honour on them, but also enables them to enrich the debates by their expertise and knowledge that they have in different areas.

      What’s important?

      For Prelims: Article 80, the process of nomination of members to Rajya Sabha, powers and privileges of nominated members.
      For Mains: Rationale behind the principle of nomination.

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