Current Affairs Current Affairs - 19 October 2018 - Vikalp Education

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Current Affairs - 19 October 2018

General Affairs 

Indian, Japanese Armies To Begin Combat Exercises In Mizoram In November
  • The armies of India and Japan will hold their first ever joint exercise from November 1 at a jungle warfare school in Mizoram's Vairengte with focus on strengthening counter-terror cooperation, officials said Thursday.
    The focus of the two-week-long exercise 'Dharma Guardian" will be to increase interoperability between the two forces and enhance coordination in dealing with various security challenges, they said.

    "Both sides will jointly train, plan and execute a series of well-developed tactical drills for neutralisation of likely threats that may be encountered in urban warfare scenario," the Army said in a statement.

    Security experts from both sides will also hold detailed discussions to share their views on various aspects of military operations as part of the exercise, it said.

    The Indian contingent will be represented by 6/1 Gorkha Rifles while the Japanese contingent will be represented by 32 Infantry Regiment of the Japanese Ground Self Defence Force.

    "It will contribute immensely in developing mutual understanding and respect for each other's militaries and also facilitate tracking the worldwide phenomenon of terrorism," the statement said.

    The Army also described the exercise as yet another step in deepening the bilateral strategic ties.

No Plan To Deploy Elite Commandos In Jammu And Kashmir, Says Governor
  • Jammu and Kashmir Governor Satya Pal Malik said there is no plan to deploy 'Black Cat' commandos of the elite National Security Guard (NSG) in counter-terrorism operations in the state, saying that the elite force could be used only in the "gravest of grave" situations.

    "This is absolutely wrong. The NSG chief had met me recently. God willing, I am sure that we may not have any such situation where we require a specialised force, but may be in the gravest of grave situation, we may request them and that too after consulting the centre," Mr Malik said in an interview.

    He was replying to a question whether there was any move to deploy the NSG and that such a proposal was under consideration of the Union Home Ministry.

    When asked that some of the NSG commandos were deployed in Jammu and Kashmir for training and other purposes, he said, "They have come for training and impart training as well to police personnel, but so far there is no involvement in anti-militancy operations."

    The governor went on to say that the police, Army and the CRPF were doing an exemplary work and come out of every situation in flying colours.

    "I must tell you something about the Jammu and Kashmir Police. The Army is doing a fine job in containing infiltration at the border, but the police is working very hard. They are fighting very valiantly. This situation would not have been possible without them.

    "See the recent Urban Local Body elections. Not even a bird was harmed. I have been complimented by the central leadership, but the credit definitely goes to the state police," Mr Malik, who took over in August 23 this year, said.

    The centre had earlier thought about deploying the NSG for their special skills of carrying out house intervention and hostage rescue can act as "clincher" during a terror siege.

    Home Minister Rajnath Singh, during a recent NSG event in Telangana, had said the government is planning as to how the role of forces could be "enlarged" vis-a-vis the new security challenges faced by the country, as these commandos can play a "big role" in operations such as those where terrorists take a human as shield and enter civilian premises.

    The centre had thought of deploying the NSG commandos in Kashmir due to increasing incidents of encounters where security forces have lost many soldiers during high-risk house intervention operations in densely-populated localities.

    The 'Black Cat' commandos were deployed to tackle the terrorists who carried out the 26/11 Mumbai terror attack, January 2016 attack at the Pathankot air base as well as eliminating the terrorists who attacked the Akshardham temple in Gujarat.

Will Visit Ayodhya, Ask PM Why Ram Temple Not Built Yet: Uddhav Thackeray
  • Shiv Sena chief Uddhav Thackeray today lashed out at Prime Minister Narendra Modi, questioning the "delay" in the construction of the Ram temple in Ayodhya.
    "You go to countries which we might not have even seen in geography textbooks. But why haven't you gone to Ayodhya?" Mr Thackeray asked Prime Minister Modi, addressing his annual Vijay Dashmi rally.

    "I will go to Ayodhya on November 25 and ask this to PM Modi," he said.

    Giving an ultimatum to the BJP government, Mr Thackeray said, "Mandir wahin banayenge par taareekh nahi batayenge (We'll build the temple, but won't set a date) approach won't do...Construct the temple or admit that even this was a jumla (fake promise),"

    The BJP is facing pressure from several fronts on the Ram temple issue. Rashtriya Swayamsevak Sangh chief Mohan Bhagwat said in his Vijay Dashmi speech that the centre should bring an ordinance for the construction of the Ram temple in Ayodhya. He termed it as "necessary from the point of view of self-esteem".

    On the other hand the Nitish Kumar-led Janata Dal (United), which is BJP's ally in Bihar, has voiced its opposition to any such move.

    Responding to Mr Bhagwat's statement, Janata Dal (United) leader KC Tyagi said, "Wait for the court verdict instead of raking up the issue". He urged all parties to respect the court verdict.

    Uddhav Thackeray's criticism of the Prime Minister Modi wasn't restricted to the Ram temple. In his speech, he accused the BJP of failing on several fronts - from controlling inflation to ensuring the security of women.

    "(Union minister) Ravi Shankar Prasad says that inflation is not in our control or fuel prices are not in our control. I ask them 'what is in your control?' You can't control inflation, you can't ensure the safety of women," he said.

    "An avatar of Lord Vishnu is with you and yet nothing is in your control," Mr Thackeray said in a lighter vein, taking a dig at a recent statement made by Maharashtra BJP spokesperson Avadhut Wagh calling Prime Minister Modi the "Eleventh avatar of Vishnu".  

    Despite being an ally, Uddhav Thackeray has been deeply critical of the BJP and his Vijay Dashmi speech was consistent with his rocky relationship with the party.

    In his speech, he also accused the BJP of "lying to the people". In particular, he targeted Union minister Nitin Gadkari, who recently said, "We didn't expect we will come to power so we made several promises. Now that we came to power, people come and ask about those promises. So we just remain silent and get away".

    "Some say it is straight-talking but I say it is shamelessness. Such shamelessness is not expected from a Maharashtrian," he said, referring to Mr Gadkari.

    He predicted that the BJP could be voted out of power "because of its lies".

    "The country has become a volcano because of your lies. Once this erupts, you will never be able to come back to power," he said.

    The Shiv Sena chief took a tough line on Pakistan and accused Prime Minister Modi of not having a consistent policy on Pakistan.

    "Their prime minister comes for the swearing in of our prime minister. Our prime minister goes there to celebrate the birthday of their prime minister. Is Pakistan a friend when you say it is and an enemy when you say it is?" he asked. He further accused the government of not doing enough to stop terrorism emanating from Pakistan.

Punjab Expects 70 Per cent Drop In Stubble Burning This Season: Official
  • Punjab is expecting not more than 12,000 stubble burning incidents this season, a reduction of about 70 per cent compared to last year, on the back of a "vigorous" awareness drive and distribution of crop residue management machinery, an official said.

    Stubble burning in Punjab and neighbouring Haryana is a major cause of air pollution not only in the two states but also in the national capital.

    "We are not expecting more than 10,000 to 12,000 stubble burning incidents this season," Punjab Agriculture Secretary K S Pannu told PTI on Thursday.

    The number of farm fires have dropped over the years.

    In 2016, Punjab witnessed 80,879 stubble burning incidents, which came down to 43,814 in 2017, official data said.

    So far in 2018, the state has recorded 1,212 cases of paddy stubble burning as against 3,141 and 6,733 in the corresponding periods in 2017 and 2016 respectively.

    According to the data, Amritsar has reported 412 stubble burning incidents so far this year, the state's highest. It is followed by Tarn Taran with 225 incidents and Patiala with 159 incidents.

    Satellite images of farm fires are being captured by Ludhiana-based Punjab Remote Sensing Centre (PRSC). Based on the images, the concerned district authorities are alerted, officials said.

    The state has also launched a massive awareness drive for farmers to check the stubble burning incidents.

    As many as 8,000 nodal officers have been appointed to spread awareness about the ill-effects of stubble burning in paddy growing villages.

    "A large number of farmers in the state are cooperating with us in this drive. We have several instances in which villagers have sworn to not burn paddy straw," KS Pannu said.

    Schoolchildren have been roped in this awareness drive and asked to convince their parents to not burn paddy residue, he said.

    Besides running an awareness drive, Punjab is betting on machinery for effective crop management.

    The state has set a target to deliver 24,972 farm equipments including happy seeder, paddy straw chopper/cutter, mulcher, reversible mould board ploughs, shrub cutter, zero till drill, super straw management system on combine harvesters, rotary slasher and rotavator for managing paddy straw.

    "So far around 20,000 machines have been delivered to individual farmers, cooperative societies and custom hiring centres and within a week the rest of the machines will also be distributed," Mr Pannu said.

    When asked about the farmers claim that the use of machines puts an additional cost burden of Rs. 5,000 to Rs. 6,000 per acre on them, he said, "The cost of managing paddy residue through these machines is minimal."

    For promotion of agricultural mechanisation for in-situ management of crop residue, the Centre has sanctioned Rs. 695 crore to Punjab and Rs. 137 crore to Haryana.

    In addition to this, the two states are giving a 50 per cent subsidy on machines to individual farmers and 80 per cent to cooperative societies.

    Every year as winter approaches, the smoke from the farm fires in Punjab and Haryana, combined with vehicular and industrial emissions and low wind speeds result in thick smog enveloping parts of north India.

    The two states annually generate 220 lakh tonne and 65 lakh tonne of paddy stubble, respectively.

    Punjab has so far earned Rs. 10.77 lakh by penalising farmers who burnt paddy stubble. 

Joint Exercises Needed To Improve Coordination In Disaster Relief: PM Modi
  • Prime Minister Narendra Modi today stressed on the need to hold more joint exercises by various stakeholders such as the NDMA to improve coordination between agencies in disaster relief management.

    Chairing the sixth meeting of the National Disaster Management Authority in New Delhi, he reviewed the activities of NDMA to effectively manage and respond to disasters. He also reviewed ongoing projects undertaken by the authority, a brief statement by the Prime Minister's Office said.

    PM Modi emphasised on the need for better coordination among various stakeholders and undertake more joint exercises to bring about effective response to save life and property. He also stressed on the need to bring in global expertise in the field of disaster management, the statement said.

    Home Minister Rajnath Singh, Finance Minister Arun Jaitley and Agriculture Minister Radha Mohan Singh were present at the meeting, along with members and officials of NDMA.

Business Affairs

Indian e-tailing: Diwali sales numbers point to strong duopoly
  • Walmart-owned Flipkart beat Amazon hands down in the recently concluded festival sales, going by an analysis of RedSeer Consulting, a research and advisory firm.

    Flipkart, the research firm said, accounted for more than half of the Gross Merchandise Value (GMV) for the entire industry between the Diwali sale period of October 9 and October 14, 2018. The e-tailing industry raked in a GMV of Rs 15,000 crore or about $2.3 billion - Flipkart accounted for 51 per cent of this, while Amazon accounted for 32 per cent.

    Amazon disputed the numbers, questioning the research methodology.

    "We cannot comment on speculative reports that lack robust and credible methodology. We received an overwhelming response to the Great Indian festival, with first 36 hours nearly surpassing the entire first wave last year and the entire wave growing by 96 per cent versus last year," Amazon reacted in a statement.

    "Additionally, with orders from 99 per cent of pin codes in just four days, Prime member signups surging nearly 3X, over 60 per cent new customer growth with more than 82 per cent from lower tier cities, the festive season so far has exceeded our most aggressive plans," the statement added.

    Anil Kumar, Founder and CEO of RedSeer told Business Today that the company arrives at the GMV and market share numbers through consumer interviews, and expert interviews across the ecosystem to get a broad sense of the total number of shipments.

    "We have also spoken to brands on the volumes they sold and on what platform. So it was lot of interviews across the supply chain, including brands, sellers, and consumer surveys among others. We then multiplied it by the average selling price (ASP) to get to the number," Kumar said.

    Kumar, however, did not disclose the number of overall people interviewed for the survey.

    RedSeer's numbers reflect how Flipkart and Amazon have polarised the industry. It is nearly a duopoly in the e-tailing market with Snapdeal, PayTM Mall, Myntra and Jabong sharing rest of the 17 per cent GMV share.

    Yes, that's right - Flipkart's numbers don't include that of its subsidiaries, Myntra and Jabong - which is why it is impressive.

    "Between Flipkart and Amazon, the share was 62-38. Higher share for Flipkart was driven by higher sales in both mobiles and fashion verticals," the company reported.

    Both Flipkart and Amazon are building out their fashion verticals.  Flipkart is also focussed on building out its large appliances business but according to the report, large appliances segment lagged fashion and mobile phone sales in terms of growth across the industry.  

    "While the fashion and smartphone verticals grew by 78 per cent and 70 per cent respectively, consumer electronics grew by only 45 per cent. This is despite large investments by both players in supply chain and affordability initiatives like Debit Card EMIs," the report stated.

    In terms of value, however, larger appliances form a chunkier part. Mobiles generated 55 per cent of the sales mix, followed by larger electronics at 23 per cent and fashion at 14 per cent.

    Diwali festive sales, meanwhile, has been steadily growing bigger every year. In the same period of 2017, the e-tailing industry garnered a GMV of $1.4 billion. In October 2015, the GMV was at $0.67 billion.

    "Day-2 of the five-day sale was the biggest in terms of GMV as it saw the launch of multiple new exclusives in mobile phones and offers on other platforms as well," RedSeer stated.  

    "Post second day, the growth of GMV stalled a bit with last three days accounting for only 42 per cent of sales compared to 60 per cent in the first two days. The same trend has been observed in the past years as well. This clearly indicates the customers' intent to buy before the sale starts."

Crazy rich Indians! 7,300 more millionaires added in one year; their collective wealth rises to $6 trillion
  • Amidst rising concern over the increasing inequality, the country created a whopping 7,300 more millionaires during the 12 months to mid-2018, taking the total number of dollar-millionaires to 3.43 lakh, who are collectively worth around USD 6 trillion, says a report. According to Credit Suisse, the country is home to one of the highest proportions of female billionaires at 18.6 per cent during the period, among the major countries.

    "By mid-2018, there were an estimated 3,43,000 millionaires in India, a rise of 7,300," Credit Suisse's 2018 global wealth report said, adding of these, 3,400 have wealth over USD 50 million, while 1,500 of them have wealth over USD 100 million each. By mid-2018, in dollar terms wealth in the country grew by a modest 2.6 per cent to around USD 6 trillion and wealth per adult stayed flat at USD 7,020 mainly due to the rupee plunge against the dollar, it said.

    And the number of the rich as well the inequality is set to widen by over 53 per cent by 2023 when their number is set to cross an estimated 5,26,000 millionaires worth around USD 8.8 trillion. It said Indians' personal wealth is dominated by property and other real assets, which make up 91 per cent of estimated household assets. Over the past 12 months, non-financial assets grew by 4.3 per cent, accounting for all of the wealth growth in the country, it noted.

    House-price movements are a proxy for the non- financial component of household assets, which reached a high of 9 per cent for the country. The report estimates that "women's share of global wealth is around 40 per cent, while recent studies for the country indicate a significantly lower share ranging between 20 and 30 per cent." 

    It said while wealth has been rising here, not everyone has shared in this growth. "There is still considerable wealth poverty, reflected in the fact that 91 per cent of the adult population has wealth below USD 10,000," the report said. By 2023, the wealth of Indian millionaires is expected to grow by 8 per cent per annum to reach USD 8.8 trillion with an estimated 5,26,000 millionaires, an increase of more than 53 per cent or 8.9 per cent per annum.

    Globally, the US continues to lead the rich club for the 10th year in a row. During the reporting period too, the US contributed the most to global wealth, adding an USD 6.3 trillion, taking the total to USD 98 trillion.  Since 2008, the US has been continuing its unbroken run of growth in total wealth and wealth per adult annually. China is home to the second largest number of wealthy households, having added USD 2.3 trillion to reach USD 52 trillion. The number of the Chinese rich is projected to grow by USD 23 trillion over the next five years, taking its share in global wealth from 16 per cent in 2018 to just above 19 per cent by 2023.

    Non-financial assets have continued their accelerated growth over the past 12 months, providing the main impetus for overall growth in all regions except North America, accounting for 75 per cent of the rise in wealth in China and Europe, and all of the rise in India.

UK court allows sale of 6 posh cars belonging to Vijay Mallya to repay Indian banks
  • Indian banks that were left in a lurch when liquor baron Vijay Mallya fled the country could be looking at a significant recovery in the days ahead. According to The Times of India, the London High Court recently issued an order stating that the court's enforcement officers are "at liberty to sell" six of the 62-year-old's posh cars to pay off the Rs 10,000 crore debt he owes to the consortium of 13 lenders.
    The cars to be sold include four with personalised number plates using his initials VJM. For instance, he owned a Porsche Cayenne with registration 'OO07 VJM' in a nod to James Bond and a 2006 Ferrari F430 with registration 'BO55 VJM', clearly meaning Boss VJM. While his 2014 Range Rover carried the number plate 'F1 VJM', referring to his former ownership of Force India Formula 1 team, he kept things simpler with his 2012 Maybach 62 with VJM1 on the plate.
    The October 11 order issued by Justice Cockerill made it clear that the cars mentioned above along with Mallya's 2016 Mini Countryman and a Ferrari F512M must be sold for no less than GBP 404,000.
    This development follows a separate UK High Court ruling in May that refused to overturn a worldwide order freezing Mallya's assets, maintaining that the Indian banks were entitled to recover funds. This reportedly marked the first recorded case of a judgment of the Debt Recovery Tribunal (DRT) in India being registered by the English High Court, setting a legal precedent. A month later, the London HC granted permission to enforcement officers to enter Mallya's properties near London "to search for and take control of goods belonging to [him]".
    Meanwhile, the ruling in Mallya's extradition trial at Westminster Magistrates' Court in London is scheduled for December 10. India has been seeking Mallya's extradition from the UK for trial at home on allegations of money laundering and fund diversion.

Air India gets Rs 1,000 crore from National Small Savings Fund: report
  • Cash-strapped Air India, which was asking the government for more funds, has reportedly received an equity infusion of Rs 1,000 crore from the National Small Savings Fund (NSSF). The state-run airline will now avail of its unused sovereign guarantee to raise another Rs 500 crore as a loan next week, the Times of India reported.

    "We got this equity infusion recently. The government had given us sovereign guarantee to raise Rs 3,500 crore as loan. We have raised Rs 3,000 crore so far and will avail the remaining amount by next week. The financial position is now slightly better after the equity infusion," an official told the daily.

    The beleaguered Maharajah, reeling under a debt burden of over Rs 48,000 crore, is scrambling for cash infusions ever since the failed disinvestment attempt earlier this year.

    Air India, which survives on Rs 4,600-crore annual bailout package, serves a mere 12.4 per cent of the domestic passenger traffic, and competes with aggressive private sector peers like IndiGo, SpiceJet and Jet Airways who are constantly baying for passengers.

    With international crude oil prices hitting new highs, Air India's losses are expected to shoot up. In August, the Ministry of Finance had rejected Air India's demand for Rs 30,000 crore fund infusion plan and instead suggested ways to reduce its debt burden by selling non-core assets.

    The airline is staying afloat on over Rs 30,000 crore bailout package extended by the previous UPA regime in 2012 for 10 years. Of the total bailout package, the airline has received Rs 27,195 crore so far. In June, the government had called off the proposed sale of a 76 per cent stake in Air India after no one showed interest in picking up the stake in the loss-making airline.

RIL to buy majority stakes in Den, Hathway for Rs 5,230 crore before JioGigafiber rollout
  • Reliance Industries on Wednesday said it will buy majority stakes in Den Networks Ltd and Hathway Cable and Datacom Ltd for Rs 5,230 crore, a move aimed at becoming the largest player in the broadband as well as the cable TV and direct-to-home market. The acquisition gives Reliance access to 24 million existing cable connected homes of these companies across 750 cities, thereby covering around half of its target to connect 50 million homes across 1,100 Indian cities.

    According to latest data of the Telecom Regulatory Authority of India, there were little over 18 million fixed line broadband connections in the country in July, with BSNL leading the chart. RIL announced to acquire 66 per cent stake in Den Networks for Rs 2,290 crore and 51.3 per cent in Hathway Cable for Rs 2,940 crore.  RIL said it will make "primary investment of Rs. 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs 245 crore from the existing promoters for a 66 per cent stake in Den Networks Limited".

    "We are glad to join hands with Rajan Raheja and Sameer Manchanda, two of the pioneers in the MSO industry. Our investments in DEN and Hathway create a win-win-win outcome for the LCOs, customers, content producers and the eco-system," RIL Chairman and Managing Director Mukesh Ambani said. Through this transaction, Reliance Jio will be strengthening the 27,000 local cable operators (LCOs) that are aligned with DEN and Hathway.

    Reliance said it will work together with Hathway and DEN and all the LCOs to offer a "quick and affordable upgrade" to JioGigaFiber and Jio Smart-Home Solutions to the 24 million existing cable connected homes of these companies.  Reliance has plans to offer ultra high definition entertainment, multiparty video conferencing, virtual reality gaming and digital shopping, converged calling service between mobile and fixed line etc through its optical fibre based broadband network. RIL would also make open offers in DEN and Hathway as well as for the GTPL Hathway, a company jointly controlled by Hathway with 37.3 per cent stake and Hathway Bhawani Cabletel and Datacomm Limited -- a subsidiary of Hathway.

General Awareness

    LPG set to make Kerala the first smoke-free State
    • What to study?

      For Prelims: PMUY- features.
      For Mains: Significance of PMUY.
       Context: Kerala is now set to become the first smoke-free State in the country with public sector oil companies eyeing 100% LPG penetration here.

      Key facts:

      LPG is being supplied beyond commercial considerations with the Pradhan Mantri Ujjwala Yojana initiated by the Ministry of Petroleum.
      With three bottling plants at Kochi, Kozhikode, and Kollam, LPG is being brought to 49.79 lakh customers through 308 distributors.


      Kerala is one of the States with the highest penetration of LPG, which is transforming lifestyles. The target has almost been achieved in most villages, towns and cities in the Kerala.

      LPG consumption was 933.3 TMT (thousand tonnes) in the Kerala in 2017-18. It is estimated that one crore tonnes of emissions, from poisonous gases like firewood cooking, have been contained and 25 lakh trees have been saved.

      About Pradhan Mantri Ujjwala Yojana:

      Pradhan Mantri Ujjwala Yojana aims to provide LPG (liquefied petroleum gas) connections to poor households.

      Who is eligible? Under the scheme, an adult woman member of a below poverty line family identified through the Socio-Economic Caste Census (SECC) is given a deposit-free LPG connection with financial assistance of Rs 1,600 per connection by the Centre.

      Identification of households: Eligible households will be identified in consultation with state governments and Union territories. The scheme is being implemented by the Ministry of Petroleum and Natural Gas.

      Some of the objectives of the scheme are:

      Empowering women and protecting their health.
      Reducing the serious health hazards associated with cooking based on fossil fuel.
      Reducing the number of deaths in India due to unclean cooking fuel.
      Preventing young children from significant number of acute respiratory illnesses caused due to indoor air pollution by burning the fossil fuel.

      What makes LPG adoption necessary?

      A large section of Indians, especially women and girls, are exposed to severe household air pollution (HAP) from the use of solid fuels such as biomass, dung cakes and coal for cooking. A report from the Ministry of Health & Family Welfare places HAP as the second leading risk factor contributing to India’s disease burden.

      According to the World Health Organization, solid fuel use is responsible for about 13% of all mortality and morbidity in India (measured as Disability-Adjusted Life Years), and causes about 40% of all pulmonary disorders, nearly 30% of cataract incidences, and over 20% each of ischemic heart disease, lung cancer and lower respiratory infection.

      Significance of the project:

      PMUY has been a revolutionary initiative that has transformed the lives of more than 3.57 crore households spanning across the length and breadth of the country. The initiative is in line with Governments aim to eradicate energy poverty, thereby promoting economic empowerment.

      Way ahead:

      The PMUY is a bold and much-needed initiative, but it should be recognised that this is just a first step. The real test of the PMUY and its successor programmes will be in how they translate the provision of connections to sustained use of LPG or other clean fuels such as electricity or biogas. Truly smokeless kitchens can be realized only if the government follows up with measures that go beyond connections to actual usage of LPG. This may require concerted efforts cutting across Ministries beyond petroleum and natural gas and including those of health, rural development and women and child welfare.

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