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Current Affairs - 08 August 2018

General Affairs 

India Never Imposes Development Projects On Any Country: VK Singh
  • India has offered 262 concessional Lines of Credit (LOCs) amounting to USD 25.7 billion to 61 countries and it never imposes any developmental projects on any nation, minister of state for External Affairs VK Singh said today.
    He said India has granted LOCs to the countries mostly in Africa, South-East Asia, Central Asia, Latin America and small island nations, covering a range of sectors including clean energy.

    The union minister was speaking at an event jointly organised by the Ministry of External Affairs, Exim Bank and International Solar Alliance with an aim to bring on one platform all stakeholders implementing various projects in the field of solar energy.

    "India's model of developmental assistance is slightly different. We prefer that the countries which want assistance to identify their own projects. We don't want to impose any project on them," Mr Singh said, in presence of diplomats from several countries which have been beneficiaries of Indian aid.

    His comments are seen as an indirect reference to China which has been pumping in billions of dollars of investments into the African continent, with which India has been having traditionally close relationship.

    While talking about India's total assistance of USD 25.7 billion as LOCs, the minister did not specify any time period for implementation of the schemes under it.

    Mr Singh said India has set up project consultancy teams to speed up identifying of potential projects in the countries getting financial assistance from India.

    "You can tell the project consultancy team that you want to prepare a DPR (Detailed Project Report) for a project. Give it to us, take the LOC. Have it implemented the way you want to," he said.

    In the last few years, the foreign ministry has taken initiatives to speed up implementation of various developmental projects in Africa, Central Asia and South East Asia.

    Speaking separately after the event, Exim Bank Managing Director David Rasquinha said some amount of India's LOC can be used for solar energy projects.

    "We, as India, do not force a project on a country. If a country is interested, we are happy to finance. As the finance is available we would like the willing countries to make use of that," Mr Rashquinha said.

    The India-initiated International Solar Alliance came into force on December 6, 2017.

    India hosted the first conference of the ISA in March this year. So far, 68 members are signatory to the ISA and 40 have ratified the ISA framework agreement.

    The minister said India has laid out a target of 175 GW (giga watt) of renewable energy for itself, of which 100 GW is solar.

    Of the 100 GW of solar power capacity, 20 GW has already been attained, Mr Singh said.

M Karunanidhi Dies At 94: Full Text Of Press Release By Kauvery Hospital
  • After 11 days in intensive care at a hospital in Chennai, one of Tamil Nadu's tallest leaders, DMK patriarch M Karunanidhi, died this evening. He was 94.
    On July 26, the Kauvery Hospital said Karunanidhi was suffering from urinary tract infection and was being treated with intravenous antibiotics and fluids. The DMK leader's condition turned bad on July 28 with a drop in his blood pressure.

    Today, there was a "significant decline" in the condition of Karunanidhi and his vitals deteriorated "despite maximum medical support", said the Kauvery hospital, where the five-time chief minister was admitted on July 28.

    Following is the full statement of Kauvery Hospital on Karunanidhi's death:

    With deep anguish, we announce the demise of our beloved Kalaignar Dr M Karunanidhi on 07.08.2018 at 06:10 PM. Despite the best possible efforts by our team of doctors and nurses to resuscitate him, he failed to respond.

    We profoundly mourn the loss of one of the tallest leaders of India and we share the grief of family members and fellow Tamilians worldwide.

6,500 Teachers Who Committed Errors To Be Named And Shamed In Gujarat
  • The Gujarat government will publish in its monthly magazine the names of around 6,500 school teachers who committed errors while evaluating board examination answer sheets.

    The teachers had committed more than one mistake in evaluating the answer sheets of students of classes 10 and 12, who appeared for the board exams held in March-April this year, an official of the Gujarat Secondary and Higher Secondary Education Board (GSHSEB) said.

    The names of the erring teachers would be published in the board's monthly magazine 'Madhyamik Shikshan ane Parikshan', circulated in around 17,000 secondary and higher secondary schools in the state, GSHSEB Chairman A J Shah said today.

    At present, the board charges a penalty of Rs. 50 for each mistake in Class 10 board exam paper and Rs. 100 for Class 12 paper.

    "Out of the nearly 25,000 school teachers tasked with evaluating the answer sheets of both classes 10 and 12 students, around 6,500 teachers were found to have committed more than one mistake, such as wrong totalling of marks," Mr Shah said.

    "Apart from the fine that we collect from teachers, we have now decided to publish their names in our magazine. We hope that such an action will prompt teachers to be more accurate," he said.

    Mr Shah said the Gujarat education department had in 2002 floated the idea and a Government Resolution (GR) was issued back then.

    "However, we never implemented it. This time, the board's examination committee has decided to start publishing names of erring teachers in our in-house magazine," he said.

    The move has been welcomed by the Gujarat State Higher Secondary Teachers Federation.

    "During our seminars, we urge teachers to pay more attention while checking the answer sheets. However, some teachers fail to do their work properly. Due to these erring teachers, the entire fraternity gets a bad name," the federation's president, Pankaj Patel, said.


Supreme Court Creates History By Getting 3 Woman Judges At The Same Time

  • With the swearing-in of Justice Indira Banerjee, the Supreme Court will for the first time in its history have three sitting women judges.
    Justice Banerjee is the eighth woman judge in the Supreme Court since Independence.

    She became a judge of the Calcutta High Court on February 5, 2002 and was made the chief justice of the Madras High Court on April 5, 2017. She will retire from the Supreme Court on September 23, 2022.

    Before her, senior advocate Indu Malhotra was appointed as the seventh woman judge in the top court.

    Justice Malhotra was the first senior woman advocate to be directly appointed as the judge of the Supreme Court.

    Among the three sitting women judges, Justice R Banumathi is the senior-most and was elevated to the Supreme Court on August 13, 2014.

    The first woman judge of the Supreme Court was Justice Fathima Beevi who was appointed in 1989, 39 years after the Supreme Court was set up in 1950. She was elevated to the top court after her retirement as a judge of the Kerala High Court.

    The second was Justice Sujata V Manohar, who started her career as a judge of the Bombay High Court and rose to become the chief justice of Kerala High Court. She was elevated to the Supreme Court where she remained from November 8, 1994 till August 27, 1999.

    Justice Ruma Pal followed Justice Manohar after a gap of almost five months and became the longest-serving woman judge, from January 28, 2000 to June 2, 2006.

    After her retirement, it took four years to appoint the next woman judge. Justice Gyan Sudha Misra was elevated to the Supreme Court from the Jharkhand High Court where she was the chief justice. Her tenure in the top court was from April 30, 2010 to April 27, 2014.

    During her stint, she was joined by Justice Ranjana Prakash Desai, who served in the Supreme Court between September 13, 2011 and October 29, 2014.

    These two judges created a history by holding court together as an all-women bench for a day in 2013.

    After the retirement of Justice Desai on October 29, 2014, Justice Banumathi was the only woman judge in the Supreme Court till the appointment of Justice Malhotra on April 27, this year.

    Justice Banumathi will retire on July 19, 2020.

    This is the for the first time the Supreme Court is having three women judges.

69 Terrorists Infiltrated Into Jammu And Kashmir Till June 2018: Minister
  • Sixty-nine terrorists infiltrated into Jammu and Kashmir from across the Line of Control and International Border till June this year, Lok Sabha was informed today.

    There were 133 attempts of infiltration by terrorists from across the border and LoC, out of which there were 69 net infiltrations, Union Minister of State for Home Hansraj Ahir said in written reply to a question.

    A total of 123 terrorists entered Jammu and Kashmir following 406 infiltration attempts from across the border in 2017, the minister said.

    "As per reports, some locals have been found supporting terrorist activities in Jammu and Kashmir. Appropriate action under law is taken against such persons. Security forces have been tackling terrorism successfully and as a result 694 terrorists have been neutralized and 368 terrorists or suspects have also been apprehended since 2014 to July, 2018," he said.

    The minister said there were 308 incidents of violence in Jammu and Kashmir till July this year in which 113 terrorists were killed in 90 encounters. Altogether 49 security personnel were also killed so far this year.

    In 2017, till July, there were 191 incidents of violence in which 112 terrorists were killed in 69 encounters. As many as 39 security personnel were also killed.

    Mr Ahir also said there were 73 incidents of violence during the period of suspension of operation in the month of Ramzan in comparison to 34 such incidents during the previous month.

    A total of 23 terrorists, eight security personnel and three civilians were killed during the Ramzan ceasefire, while 14 terrorists, five security personnel and eight civilians were killed in the previous month.

    Replying to another question, the minister said the government was aware about the use of social media by the terrorists in Jammu and Kashmir and the law enforcement agencies monitor the web and social media and take appropriate action as per the law.

Business Affairs

After failed divestment bid, Civil Aviation Ministry plans Rs 11,000-crore bailout package for Air India
  • The Civil Aviation Ministry is in discussions with the Finance Ministry for a Rs 11,000 crore bailout package for ailing Air India, sources said. The discussions come against the backdrop of a failed effort to privatise the loss-making airline, which continues to grapple with financial woes. Sources in the know said that the Civil Aviation Ministry is working on a bailout package for the carrier, which would be utilised to reduce high cost working capital loans.

    The proposal, which is at a preliminary stage of discussions, is for providing around Rs 11,000 crore package to Air India, they added. "Cleaning up the balance sheet of Air India airline will make it attractive for investors as and when the government decides to once again attempt strategic stake sale of the airline," one of the sources said. Query sent to Civil Aviation Secretary R N Choubey remained unanswered.

    When contacted, an Air India spokesperson said the matter "comes under the domain of the Ministry of Civil Aviation and we should not be commenting on it". The airline is staying afloat on a bailout package extended by the previous UPA regime in 2012. The national carrier's debt burden was more than Rs 48,000 crore at the end of March 2017.

    Last month, the government sought Parliament's nod for Rs 980 crore as supplementary grants for equity infusion into the airline. In a reflection of financial crunch at the airline, salaries have been delayed for the staff for five consecutive months. In the current financial year, the airline has received an equity infusion of Rs 650 crore up to June. TAP and a Financial Restructuring Plan (FRP) were approved for Air India by the previous UPA regime in 2012.

    All government guaranteed loans and interests thereon are being paid by the government by way of equity infusion into the airline. Under the FRP, high cost of working capital loans have been converted into long term debt carrying lesser rates of interest so as to reduce the financial burden on Air India. "The TAP/ FRP includes budgetary support amounting to Rs 30,231 crore spread over 10 years ie. up to FY 2020-21 and also equity support for the payment of principal/ interest of the non-convertible debentures. "Air India has received an equity infusion of Rs 27,195.21 crore till date," Minister of State for Civil Aviation Jayant Sinha informed the Lok Sabha last month.

Parliamentary panel asks RBI to restore letters of undertaking at the earliest
  • In mid-March this year, as the Rs 14,000-crore fraud at Punjab National Bank was steadily unravelling, then Finance Minister Arun Jaitley had disclosed in Parliament that 1,213 fraudulent letters of undertaking (LoUs) had been issued to Nirav Modi's companies between March 2011 and May 2017. That was the modus operandi of the fraud perpetuated by the diamantaire-turned-fugitive and his uncle, Mehul Choksi.

    In response, the RBI had banned the instrument with immediate effect, but now finds itself hauled up by a parliamentary panel for its "kneejerk reaction".

    The Parliamentary Standing Committee on Commerce yesterday asked the apex bank to restore LoUs at the earliest with "proper safeguards" so as to increase the availability of credit for traders. "The Committee feels that the RBI got unnerved with the PNB fraud and it hastened the decision to ban LoU/LoC without much thought and consideration," read a report tabled in the Rajya Sabha, titled Impact of Banking Misappropriation on Trade and Industry.
    According to the committee, the RBI should have engaged more in consultations with stakeholders on the matter before resorting to discontinuation of LoU/LoCs [letters of comfort].

    The report further claimed that the ban resulted in a jump in the cost of credit by 2-2.5 per cent. Previously, these instruments were largely issued by domestic branches of Indian banks for customers to avail trade credit from foreign branches of other Indian banks and, thus, ease the high cost of imports.

    The panel pointed out that the increased cost of financing would only hurt the cost-competitiveness of country's trade and industry, and have a cascading effect on jobs. And the loss of jobs is something the country can ill-afford.
    "It is of the considered opinion that LoU/LoC should be restored at the earliest albeit with proper safeguards. Its restoration assumes more significance in the face of the fact that the content of imports is over 20 per cent of India's total exports," said the report. "The ban on LoU/LoC takes away the benefit of cheap source of funds availed by the importers. Costly imports shall lead to higher costs of production and erode the competitiveness of the domestically produced goods."

    The committee also pointed out that at a time when the rupee is witnessing high depreciation, it is imperative that the cost of credit for imports be minimal.

    Significantly, the report stated that the discontinuation of LoU/LoC as a response to the fraud and misappropriation not only hurt importers, but also set in a contagion of conservatism in banking sector. "The caution has inadvertently made banks becoming inaccessible to MSME [Micro, Small & Medium Enterprises] sector," it said, adding, "The Committee is concerned that such an approach has the dangers of making banking services elitist and subservient to a few large corporates leaving out the vast majority of MSME units which are not able to measure to the standards and parameters laid down by external credit rating agencies for getting AAA or AA ratings."
    This development is sure to bring cheer to the Federation of Indian Export Organisations (FIEO). The apex exporters lobby had written to the RBI and finance ministry in April, asking the authorities to lift the blanket ban on LoUs/LoCs. At the time, FIEO director general Ajay Sahay had said that the gems & jewellery exports - which used to rely heavily on these instruments - had contracted by a massive 36 per cent following the ban. It was the small traders in particular, who were left paying the price for a billionaire scamster's greed.

7th Pay Commission: 17 lakh Maharashtra govt employees start 3-day strike for salary hike
  • Around 17 lakh employees of the Maharashtra government began their three-day strike on Tuesday to press for various demands, including implementation of the Seventh Pay Commission report. Essential services in various departments, including government hospitals, are likely to be affected as class 3 and 4 government employees have joined the strike, Maharashtra Rajya Sarkari Karmachari Madhyavarti Sanghatna general secretary Avinash Daund claimed.

    He accused the state government of paying a mere "lip-service" to their long-pending demands. "About 17 lakh government employees from various departments, including zilla parishads, teachers and state-run corporations, will take part in the three-day strike," said Milind Sardeshmukh, president of the organisation which has called for the protest.

    The government employees are yet to receive arrears accrued to them since the implementation of the Sixth Pay Commission by the state government, he said. He claimed that 1.85 lakh posts of class 3 and class 4 employees are lying vacant in Maharashtra. Moreover, the demand for filling up 30,000 posts on compassionate ground is also not accepted by the state government, he said.

    Around 30-40 per cent of total posts are lying vacant in hospitals and other essential services departments, he added. The government-appointed K P Bakshi committee was only holding meetings for the last one-and-a-half years with various departments for the implementation of the Seventh Pay Commission's recommendations, Sardeshmukh said.

    "The state is dilly-dallying on the issue of granting Dearness Allowance arrears for 14 months despite issuing a Government Resolution to this effect," he said. The government's reluctance to fill up vacant posts in various departments has increased the workload on employees, he claimed.

    The government has not done anything beyond giving assurances for raising the retirement age from 58 years to 60 years, five-day week working system, continuation of the old pension scheme and two-year child care leave to women employees, he said.

    Daund said their organisation was against outsourcing of some government jobs to private sector and appointment of contract labourers.

    In an order late last night, the government said the employees' decision to go on strike will be construed as "misbehaviour" and disciplinary action will be taken against them. It said the Centre's policy of 'kaam nahi, vetan nahi' (no work, no salary) will be followed in the state as well.

    The order directed employees in essential services departments - such as hospitals, fire brigade and water supply - not to join the strike, or else provisions of the Essential Services Maintenance Act (ESMA) will be invoked against them.

    Chief Minister Devendra Fadnavis said last week that recommendations of the Seventh Pay Commission will be implemented for state government employees from January 2019.

    "The arrears of Seventh Pay Commission will be given with retrospective effect from January 2016, while the Dearness Allowance will be given retrospectively for the last 14 months," he had said after holding a meeting with various employees' unions.

India expects HSBC account data from Swiss authorities in 10 days, says Piyush Goyal
  • India expects to receive data from Swiss authorities on HSBC accounts of its citizens in about 10 days after Switzerland's apex court directions that data be shared with the Indian government, Finance Minister Piyush Goyal said today. Serious efforts are on to check black money. Though there are no official estimates of such money stashed in foreign countries, a tax demand of Rs 5,447 crore has been made in HSBC undisclosed income of Rs 8,448 crore, Goyal said in the Rajya Sabha during the Question Hour.

    "The Supreme Court of Switzerland has ordered the Swiss government to share with us that data in about a week or ten days... We are going to get that," the Finance Minister said replying to a supplementary on a question on black money deposited in foreign banks. He said the HSBC list was released somewhere in the year 2010-11 and from 2011-12 to 2014 the government kept trying to make efforts but was stalled by the Swiss government from getting any information on the ground that this is secret information as the source is a stolen source which is illegal.

    "It is only after this government came in that we sent our Revenue Secretary to Switzerland. We had high-level discussions with the government of Switzerland and a joint statement was issued on October 15, 2015 by which both sides agreed that they will share information with each other and since then we have started getting information on HSBC accounts," the minister said. He said now the same process has been initiated with other countries and automatic sharing of information pacts are with several countries.

    On the HSBC list, the minister said that undisclosed income of Rs 8,448 crore was detected with a tax demand of Rs 5,447 crore. Penalty of Rs 1,290 crore has been levied in 164 cases. So far 199 prosecutions complaints have been filed in 84 cases. With regards to Panama papers, the minister said, it contained details of 426 persons and investigations are going on in all cases.

    "So far 62 invasive actions have been conducted which included seizure action in 50 cases and survey action in 12 cases," the minister said. Similar prosecution complaint cases have been filed in 16 cases and in 33 cases notices under section 10 of the Black Money Act, brought by the Modi government, have been issued, he added.

    "As an outcome of these investigations, so far undisclosed foreign investment to the tune of Rs 1,532.88 crore has been detected. I have paradise papers also," Goyal said and added there is no verifiable data on black money.

    In reply to another query Goyal said as part of the drive to crackdown on black money and corruption, the government had to strike off more than 2 lakh shell companies from the companies' register. Of these only 5,000 companies came back which proves the robust mechanism and 98 per cent accuracy in the case of shell companies, he said.

    "Process is on for another 2 lakh shell companies and notices have been served on 80,000," he said adding that based on the reply a drive to clean the system will be undertaken bringing them in Income tax trail. Claiming that it is the present government which launched a crusade against black money, Goyal said the government in its first Cabinet meeting appointed an SIT on black money headed by two eminent judges including Justice MB Shah.

    "The SIT has been tasked with the work to detect where the black money is, quantum of black money and what are steps needed to recover the black money. The important point is, it is only under this government that actually people have started increasingly filing their returns," the minister said. He said the number of tax filers have increased by over 50 per cent in the last four years, while the quantum of income tax collected has increased by about 75 per cent during the period and leakages that were happening in the previous government were stopped. Quoting a former prime minister without naming him, Goyal said the PM said that for every rupee "which I have to give to a poor man I have to send seven times that amount. When I send Rs 100, Rs 15 reaches the poor. This government has given almost four lakh crore to the poor people in their bank accounts."

    In reply to another supplementary, the minister said the crusade against black money has paid off and FDI has shown galloping trends with India's improved image and added that global agencies like Moody's have upgraded India's ratings.

Indian banks lose Rs 70,000 crore due to frauds in last 3 financial years
  • Indian banks reported a total loss of about Rs 70,000 crore due to frauds during the last three fiscals up to March 2018, the Rajya Sabha was informed today.

    The extent of loss in fraud cases reported by scheduled commercial banks (SCBs) for 2015-16, 2016-17 and 2017-18 was Rs 16,409 crore, Rs 16,652 crore and Rs 36,694 crore, respectively, Minister of State for Finance Shiv Pratap Shukla said in a written reply quoting RBI data.

    The minister said that data of frauds is as per the year of reporting and not the year of occurrence of fraud or sanction of loan, letter of undertaking, which may might be of an earlier period.

    The minister also informed the House that gross advances by SCBs increased from Rs 25.03 lakh crore as on March 31, 2008, to Rs 68.75 lakh crore on March 31, 2014.

    As regards the stressed assets in the banking system, Shukla said the spurt was due to aggressive lending practices, wilful default, loan frauds, corruption in some cases and economic slowdown.

    Replying to another question, he said as per RBI data, there were 139 borrowers with aggregate gross NPAs of more than Rs 1,000 crore.

    Shukla said the RBI has apprised that it issued directions to banks in June 2017, instructing them to file applications for initiation of corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IPC) in respect of 12 borrowers.

    The 12 borrowers had cumulative fund-based and non-fund based outstanding amount of Rs 1,97,769 crore as on March 31, 2017.

    "It subsequently issued further directions to banks advising them to finalise and implement resolution plans in respect of 29 accounts by December 13, 2017, failing which these too had to be referred to CIRP under IBC," Shukla said.

    The cumulative fund-based and non-fund based outstanding amount of these accounts was Rs 1,35,846 crore, as on June 30, 2017.

General Awareness

    Criminal Law (Amendment) Bill, 2018
    • What to study?

      For Prelims: Highlights of the Bill.
      For Mains: Need for such harsh penalties- issues associated.

      Context: Parliament has passed the Criminal Law (Amendment) Bill, 2018. The main highlight of the bill is that it seeks to amend the Indian Penal Code (IPC), the Evidence Act, the Code of Criminal Procedure (CrPC) and the Protection of Children from Sexual Offences (POCSO) Act to introduce a new provision to sentence convicts of such crimes punishment of death.

      Highlights of the Bill:

      Punishment:

      It provides for stringent punishment including death penalty for those convicted of raping girls below the age of 12 years.
      The minimum punishment in case of rape of women has been increased from rigorous imprisonment of seven years to 10 years, extendable to life imprisonment.
      In case of rape of a girl under 16 years, the minimum punishment has been increased from 10 years to 20 years, extendable to imprisonment for rest of life, which means jail term till the convicts’ “natural life”.
      The punishment for gang rape of a girl below 16 years will invariably be imprisonment for the rest of life of the convict.
      Stringent punishment for rape of a girl under 12 years has been provided with the minimum jail term being 20 years which may go up to life in prison or death sentence. Gang rape of a girl under 12 years of age will invite punishment of jail term for the rest of life or death.

      Speedy investigation:

      The measure also provides for speedy investigations and trial. The time limit for investigation of all cases of rape has been prescribed, which has to be mandatorily completed within two months.
      The deadline for the completion of trial in all rape cases will be two months. A six-month time limit for the disposal of appeals in rape cases has also been prescribed.

      Bail related provisions:

      There will also be no provision for anticipatory bail for a person accused of rape or gang rape of a girl under 16 years. It has also been prescribed that a court has to give notice of 15 days to a public prosecutor and the representative of the victim before deciding bail applications in case of rape of a girl under 16 years of age.

      Need for a stringent law:

      The number of reported cases of rapes of children increased in India by 82% in 2016 compared to 2015. A climate of violence, social and economic insecurity, alienation, and a progressive undermining of the status of women and children seem to have given an impetus to carry out crimes against women and children.

      Therefore, the legal system must give a clear signal that we as a nation consider the rape of children below the age of 12 as among the most heinous of offences. Making such crimes punishable by capital punishment certainly gives such a signal.

      Is it sufficient?

      Statistics have not been able to prove or disprove the efficacy of capital punishment as a deterrent. While the U.K. has seen an increase in murders since 1965 when capital punishment for murder was removed from the statute book, Canada has not seen any such impact since it abolished the death penalty in 1976. The underlying socio-economic conditions in a society that cause crimes seem to have as much of an impact on the increase or decrease of crimes as the law does.

      What is needed?

      It is not the severity of the punishment but the certainty and uniformity of it which will reduce crime. Even for capital punishment to work as a deterrent, the fairness of the investigation, the certainty of conviction, and the speed of the trial are vital. With the police and judicial independence being under a cloud, especially after the incidents in Kathua and Unnao, the deterrent value of capital punishment seems diminished unless police reforms and fast-track courts are a part of the package.

      Facts for Prelims:

      Rajasthan and Madhya Pradesh have passed a Bill providing for death penalty to those convicted of raping girls of 12 years and below.

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