Jan 13, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 13th January, 2016

ArchivesIASbaba’s Daily Current Affairs – 13th January, 2016 ECONOMICSTOPIC: General studies 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests; Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora. General studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.Gear up for changes in tax laws, treaties The international community led by the G20 had initiated the Base Erosion and Profit Shifting (BEPS) project a few years ago with the aim of ensuring that profits are taxed where economic activities are performed and where value is created. Governments, tax authorities and social groups have been voicing their concern over the past decade that multinational enterprises are shifting profits to low tax jurisdictions where there is no or little value-creation, and consequently not paying their fair share of taxes. As a member of the G20, India is an active participant in the BEPS project.What is BEPS? Base Erosion and Profit Shifting (BEPS) refers to tax planning strategies that exploit these gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity, resulting in little or no overall corporate tax being paid. BEPS is of major significance for developing countries due to their heavy reliance on corporate income tax, particularly from multinational enterprises (MNEs). Research undertaken since 2013 confirms the potential magnitude of the BEPS problem. Estimates conservatively indicate annual losses of anywhere from 4 - 10% of global corporate income tax (CIT) revenues, i.e. USD 100 to 240 billion annually. The most common practices and structures identified by India from a BEPS perspective are: Excessive payments to foreign-affiliated companies in respect of interest, service charges and royalties; Aggressive transfer pricing, including supply chain restructuring that contractually allocates risks and profits to affiliated companies in low tax jurisdictions; Digital enterprises facing zero or no taxation in view of the principle of residence-based taxation; Treaty shopping; Incentives in the tax laws for attracting investment; and Assets situated in India but owned by companies located in low tax jurisdictions with no substance.What should India do? To implement BEPS actions around these issues, India is likely to amend its domestic tax law as well as tax treaties (either through the multilateral instrument being developed as part of the BEPS project, or bilaterally). It is important that taxpayers take note of these developments and prepare accordingly.Way ahead: The new BEPS guidance will have a significant impact on Indian taxpayers. Taxpayers need to be aware of and constantly monitor the ongoing BEPS Action Plans as well as the changes that India is bringing about in its domestic law and tax treaties.Background: Transfer pricing: Transfer pricing is the practice of setting up prices for trading valuables between two entities across different tax jurisdictions. The valuables can be tangibles, intangibles, services and financial transactions and the entities can be company divisions and departments, or parent companies and its subsidiaries. For Example: When a US-based subsidiary of Coca-Cola, buys something from a French-based subsidiary of Coca-Cola. When the parties establish a price for the transaction, this is transfer pricing. Transfer pricing is not, in itself, illegal or necessarily abusive.The Arm’s Length principle: If two unrelated companies trade with each other, a market price for the transaction will generally result. This is known as “arms-length” trading, because it is the product of genuine negotiation in a market. This arm’s length price is usually considered to be acceptable for tax purposes. But when two related companies trade with each other, they may wish to artificially distort the price at which the trade is recorded, to minimise the overall tax bill. This might, for example, help it record as much of its profit as possible in a tax haven with low or zero taxes. This is when transfer pricing becomes illegal or abusive.   Treaty shopping: The practice of structuring a multinational business to take advantage of more favourable tax treaties available in certain jurisdictions. A business that resides in a home country that doesn't have a tax treaty with the source country from which it receives income can establish an operation in a second source country that does have a favorable tax treaty in order to minimize its tax liability with the home country. Most countries have established anti-treaty shopping laws to circumvent the practice.India has now initiated the process of renegotiating some of its existing bilateral tax treaties to combat treaty shopping by inserting anti-abuse rules.Some of the BEPS suggestions on this aspect are similar and need to be evaluated by taxpayers closely in light of their current structure.Connecting the dots: What do you understand by Base Erosion and Profit Sharing? Explain its impact on global economy with special focus on India. Explain the terms transfer pricing and treaty shopping along with measures taken by Indian government to prevent their abuse. NATIONALTOPIC: General studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation; Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential; General studies 3: Science and Technology - developments and their applications and effects in everyday life Achievements of Indians in science & technology; indigenization of technology and developing new technology.  National Fibre Optic Network Information and communication technology (ICT) is a powerful facilitator for meeting the Millennium Development Goals by facilitating a roll-out of Internet access as an enabler of development But some services are dependent upon the availability of other complementary services and provisioning of basic services using ICT is also dependent on the availability of other complementary inputs.National Optical Fibre Network? This is part of the Digital India initiative of the Government of India. NOFN is envisaged as a non- discriminatory Telecom infrastructure which will bridge the gap in rural access. NOFN, which is being funded by the Universal Service Obligation Fund (USOF), Department of Telecom, Ministry of Communications & IT, Govt. of India, is envisaged to provide non- discriminatory access to bridge the digital divide across rural IndiaUniversal Service Obligation in the Age of Broadband—Establishes two criteria that could be used to support the build-out of networks in advance of the ability of target populations to use themTime to build- If ICT infrastructure takes a long time to deploy- then the project needs to be initiated in anticipation of future absorptive capability Prove to be a “durable” solution- Once deployed, it would take care of rural connectivity needs for many years to comeTechnological Discontinuity- The capabilities of the technologies used for providing access develop in a discontinuous, step-wise manner with each step representing discontinuous jumps in access speed per dollar of investment. Therefore, rural areas must switch from lower to higher technologies due to the constraint of download speeds (Earlier- Lower the total capital costs of connectivity)And, thus the expenses Fundamental driving force for government intervention- Stems from the role of connectivity as an enabler of development. Hence, the government’s financial obligation needs to be limited to the level of connectivity required to enable the provision of the requisite amount of developmental goods The degree of production and demand externalities that accrue after threshold penetration levels are reached; as well as the liabilities in question may also not justify the expenses Therefore, the cost should be shared between the public and private sector with the public sector paying for the basic level of connectivity required to provide development inputs and to internalize the positive impact arising from demand and supply externalities (Liability of the government needs to be limited) But the lack of a purely commercial venture may lack the conviction to deploy and bear the initial high investment and thus, the government should intervene and pay for the upfront costs of building the network and collect a revenue share for a specified number of yearsBasic necessities- Need to be provided and a wireless network closely aligned with complementary inputs and the absorptive capacity of the target population should be rolled out to provide basic necessities immediately and prepare the population for the coming of the fibre optic network The operating competence of the private sector should be leveraged by tendering projects for building and maintenance through a reverse auction process.A rural set-up & NOFNBuild-Own-Operate-Transfer model for building the national optical fibre network is not recommended on account of—Operating challenges of rural networks- Being designed as a top-down model with no specific designing implemented for it to be successful on the ground Citing the difference between laying and installing optical fibre cable being just one part of the task; breathing life into the cables by having free flow of data is another matter altogether Serious lack of planning and strategy to make sure that these are fully functional and available to the people, organisations and government offices Panchayat as a base- Has not been able to spread connectivity beyond the Panchayat building in many villages when there is a need for each panchayat point of broadband to be fired up, functional, used and distributed Only 67% of the panchayats were connected to the fibre-optic backbone in the pilot phase of the NOFN project Connected Villages-Average broadband speed was found to be 50Mbps, half of what the government has promised Low ability to pay Uncertainty regarding the availability of complementary inputsInfrastructural Challenges of National Optical Fibre Network Inadequate Spectrum High Price of Spectrum Non availability of contagious spectrum Non allocation of back haul spectrum Government auctioning spectrum in small chunks IASbaba’s Views: There is a need to develop— Digital Bharat programme-We usually relate Bharat with our rural folk and since the majority of the population live in rural areas often called Bharat, we actually need a Digital Bharat programme to ensure that Bharat is as connected and digital as India, which lives in its metros and cities. Digital India Year- As to realize Digital India, we need a Digital India decade, or even to create and keep the momentum sustainable and action oriented, we need at least a Digital India Year There exists a direct correlation between broadband connectivity and GDP growth where broadband would result in bringing best in class of healthcare, education and banking reaching rural masses which would help in elevating poverty and improving standard of livings in the rural India. Therefore, it is imperative that focused; persistent attention is given to each of its pillars so that the big programme does not end up in as a failure. To build infrastructure is a small part of its sustained functionality for which the approach has to be well-planned, executed and monitored and following steps can be taken for the same- The national optical fibre network should be divided into a number of state-level projects in order to secure the buy-in of state governments, crucial for obtaining right-of-way permissions. Vertical integration of the private infrastructure operator and the service provider should be permitted in order to strengthen the business case and trigger operational efficiencies A phase-wise roll-out should be planned and the economically well-off subset of the specified set of gram panchayats should be targeted and after demonstrating success in these clusters and incorporating lessons learnt, further roll-out should take place.Connecting the Dots: Discuss how the NOFN Model be implemented in a manner that keeps the absorptive capacity of target regions in mind Discuss the potential NOFN captures within it to transform the e-commerce sector of India. MUST READ Parrikar's proposed defence procurement policy breaks new ground- At least 40% of a product must be manufactured in India for it to qualify for the Indian Designed, Developed and Manufactured categoryHinduBusiness StandardNote: Since the issue is still under discussion, a detailed analysis of this issue will be covered in the coming week A boon for small players- Mudra is a redesign of policy in order to re-target the audience, restructure processes and, most importantly, rejuvenate the mission of lending to the small, poor budding entrepreneurIndian ExpressNuts and bolts- The Uttar Pradesh Lokayukta controversy highlights the need for greater attention to anti-corruption systems and processes.Indian Express A terror strike, a misdirected debate- Going by this viewpoint, the army is the sole repository of competence and commitment in anti-terror operations in the country.Indian ExpressSri Lanka: Time to look within, not westwardsHinduIs there a coherent science policy?- Prime Minister Narendra Modi has come out strongly in favour of harnessing science to take forward sustainable development, which will rid India entirely of povertyBusiness StandardWe’ve beaten polio, but let’s move on - Lessons from the campaign should have a bearing on other aspects of India’s healthcare system and practicesBusiness LineRelated Articles:Is India actually free of polio? The sunrise sector - More than capital subsidy, solar power needs superior grid infrastructureBusiness LineRelated Articles:A Solar-y AlternativeSolar systems mandatory on roof-topsMIND MAPS1.Good Governance - DeliveryBusiness Standard 2.India's Strategy - Near WestThe Hindu 

Jan 12, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 12th January, 2016

ArchivesIASbaba’s Daily Current Affairs – 12th January, 2016 NATIONAL TOPIC: General studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. General studies 3:  Conservation, environmental pollution and degradation, environmental impact assessment.What needs to be done to upgrade to BS-VI? Four years from now, the government wants to leap directly to BS-VI auto emission norms from the existing BS-IV, skipping BS-V. But the challenges, before both oil companies and automakers, are enormous.What is the issue? Recently the government took a decision after a meeting of the Ministers for Road Transport, Petroleum, Heavy Industries, and Environment to bring forward the nationwide rollout of BS-VI vehicular emission norms. The decision is in line with promises made by India at the Climate Change Conference in Paris last month, and indicates a step against the dangerously high levels of air pollution in major Indian cities like Delhi etc.Bharat Stage (BS) Emission Norms: The Bharat Stage emission standards are norms instituted by the government to regulate the output of air pollutants from internal combustion engine equipment, including motor vehicles. India has been following the European (Euro) emission norms, though with a time lag of five years. BS-IV norms are currently applicable in 33 cities in which the required grade of fuel is available; the rest of India still conforms to BS-III standards.An historical outlook into emission norms: India introduced emission norms first in 1991, and tightened them in 1996, when most vehicle manufacturers had to incorporate technology upgrades like catalytic converters to cut exhaust emissions. Fuel specifications based on environmental considerations were notified first in April 1996, to be implemented by 2000, and incorporated in BIS 2000 standards. Following the landmark Supreme Court order of April 1999, the Centre notified Bharat Stage-I (BIS 2000) and Bharat Stage-II norms, broadly equivalent to Euro I and Euro II respectively. BS-II was for the NCR and other metros; BS-I for the rest of India. From April 2005, in line with the Auto Fuel Policy of 2003, BS-III and BS-II fuel quality norms came into existence for 13 major cities, and for the rest of the country respectively. Subsequently, BS-IV and BS-III fuel quality norms were introduced from April 2010 in 13 major cities and the rest of India respectively.Emission norms for future: As per the roadmap in the auto fuel policy, BS­V and BS-VI norms were to be implemented from April 1, 2022, and April 1, 2024, respectively. But in November 2015, the Ministry of Road Transport issued a draft notification, advancing the implementation of BS­V norms for new four-wheel vehicle models to April 1, 2019, and for existing models to April 1, 2020. The corresponding dates for BS-VI norms were brought forward to April 1, 2021, and April 1, 2022, respectively.But the government’s unanimous decision to leap-frog to BS-VI directly from 01/04/2020, has skipped the BS-V stage all together.The challenges:The government could face two key challenges in implementing the decision There are questions about the ability of oil marketing companies to quickly upgrade fuel quality from BS-III and BS-IV standards to BS-VI, which is likely to cost upwards of Rs 40,000 crore. More challenging is the task of getting auto firms to make the leap. Automakers have clearly said that going to BS-VI directly would leave them with not enough time to design changes in their vehicles, considering that two critical components — diesel particulate filter and selective catalytic reduction module — would have to be adapted to India’s peculiar conditions, where running speeds are much lower than in Europe or the US.Fuel Quality Costs:The government has been unable to move completely to BS-IV because refiners have been unable to produce the superior fuel in the required quantities.BS-IV petrol and diesel essentially contains less sulphur, a major air pollutant. Sulphur also lowers the efficiency of catalytic converters, which control emissions. Broadly, BS-IV petrol and diesel have 50 parts per million (ppm) of sulphur, as compared to 150 ppm for petrol and 350 ppm for diesel under BS-III standards. Oil companies are learnt to have put in Rs 30,000 crore between 2005 and 2010 to upgrade; the auto industry has made investments of a similar size. Oil firms will have to invest another about Rs 40,000 crore to upgrade fuel quality to BS-VI; additional investments by automakers to upgrade will inevitably raise the prices of vehicles.Practical industry arguments: The auto industry argues that the huge improvements in vehicular technology since 2000 have had little impact in India due to Indian driving, road and ambient conditions. BS-V diesel vehicles were to have engine upgrades, particulate filters, lots of sensors, and electronic control. Petrols were to have catalyst and electronic control upgrades. Industry estimates of required investment to upgrade from BS-IV to BS-V are to the tune of Rs 50,000 crore.Case of DPF (Diesel Particulate Filter): Vehicles must be fitted with DPF (diesel particulate filter). DPF is a cylindrical object mounted vertically inside the engine compartment. In India, where small cars are preferred, fitting DPF in the limited bonnet space would involve major design and re-engineering work. Bonnet length may have to be increased, which would make vehicles longer than 4 metres, and attract more excise duty under existing norms.Case of SCR (Selective Catalytic Reduction): BS-VI vehicles also have to be equipped with an SCR (selective catalytic reduction) module to reduce oxides of nitrogen, which would be cumbersome and needs extra work by the auto engineers.Way ahead: At every stage, the technology is getting more complex. To attain the specified super low emissions, all reactions have to be precise, and controlled by microprocessors. If BS-V were to be skipped entirely, then both DPF and SCR would need to be fitted together for testing, which, auto firms say, would make it extremely difficult to detect which of the technologies is at fault in case of errors in the system. Ideally, the technologies must be introduced in series, and then synergised. So, even if oil companies manage to leap, auto firms claim they need 6-7 years to switch to BS-VI. Overall this is a good move by government considering the amount of air pollution in Indian cities.Connecting the dots: Write a note on Bharat stage emission norms in India. Recently the government’s decision tries to introduce Bharat stage VI emission norms by 2020 skipping stage V norms from present stage IV norms. Critically examine the impact of above decision on air pollutions levels in India.ECONOMICSTOPIC: General Studies 2: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.  Inclusive growth and issues arising from it. Investment models. General Studies3: Important International institutions, agencies and fora- their structure, mandate. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Improve the Investment ClimateWhen we talk about the growth rate that has been projected by the International Monetary Fund (IMF) being 3.1 per cent, we understand that the end of 2015 has not only ended at an all-time-low but has also exhibited the crying need to be corrected as early as possible.What does the figure say— Advanced economies are growing at around 2 per cent Developing economies are growing at 4 per centStumbling Blocks— Economic crisis of Greece (Europe) Sharp decline in oil prices (Oil-exporting countries) Countries which had gained as a consequence of a fall in crude oil prices have not been able to exhibit faster growth as well Concerns regarding China and Yuan Devaluation (Competitive Devaluation)Let’s talk about 2016IMF: Projected the global growth rate for 2016 to be 3.6 per cent with Advanced economies growing at 2.2 per cent Developing economies growing at 4.5 per centWorld Bank Report: Shows lower numbers for both 2015 and 2016United States: Recent decision to hike the policy rate by the Fed is some indication that monetary policymakers believe that the U.S. economy is on a recovery path But the Fed has not yet relaxed its accommodative posture, which indicates that the recovery is fragile Since oil prices are not expected to rise (oil-producing countries will continue to deal with losses), concerns regarding China will continue (though ‘Shale’ might come to the rescue) Hiking the Policy Rate might spell out its own effects on capital flows to developing economies and lead to financial markets witnessing greater volatilityCan India show a better performance—BRICS Block- India is the only country that has shown a good performanceMid-year economic analysis estimates India’s growth rate in 2015-16 to be between 7 and 7.5 per centConcerns—Supply Side Indicators like agriculture maynot contribute much in enhancing the growth rate and with the erratic weather playing spoil-sport in 2015; this scenario is quite likely to repeat itself in 2016.Services sector: There will not be much difference in the growth rate but ‘concentration and efforts’ in the industrial sector carries the possibility of carrying the growth rate forward Index of Industrial Production (IIP) for April-October 2015 shows a distinct improvement but external demand, as reflected in the performance of exports, has been weak and overall, exports during the period of April-October declined by 17.6 per cent The decline is mostly due to the decline in the export of petroleum products, by more than 50 per cent Also, non-oil exports have declined by 8.7 per cent during this period and this does not auger well for many industries Good Signs: Private Consumption could pick up partly because of the benefit accruing to consumers due to the fall in petroleum prices Consumption goods sector of IIP has done well and Public sector investment has shown a rise Capital expenditure of the Central government during the period April-October 2015 rose by 31 per centPublic Sector EnterprisesBulk of the public investment came from the public sector enterprises but public investment alone will not be able to reverse the current trend falling in the negative end of the scaleIn 2015-16: Revenue Growth: Close to budgetary expectations (despite a lower-than-expected growth in nominal GDP)Expenditure Side: Subsidy burden came down because of a fall in crude pricesGovernment expenditures: Stayed at budgeted levels Could stick to the fiscal consolidation path Witnessed the rise in Capital expenditures substantiallyBurden of the Pay Commission’s Promises:The additional burden imposed by the Seventh Pay Commission is substantial and can pose to be a real hurdle—Expenditure on pay and pension: Will increase by 20 per cent and will amount to a burden of 0.4 per cent of GDP, after taking into account the additional tax revenue on the increased emoluments.Ability of the government to raise money for capital expenditures is limited and relaxing the fiscal consolidation path is not a solution-Why: Larger fiscal deficit will not only take up a greater share of the available pool of savings but also cause an increase in the interest rates. (Not conductive to a growth in private sector investment)Rise in Private consumption: Because of the additional income in the hands of government employees, thus the behaviour of private corporate investment or private investment in general will be witnessing an increase from their end.Private Corporate Investment:While there has been some improvement in relation to stalled projects, there is no strong pick up in the new projectsIssues: Slow growth in nominal sales revenue High levels of debtIASbaba’s Views: A strong recovery is possible in 2016 with growth rate exceeding 7.5 per cent but that is contingent on private investment, particularly private corporate investment, showing substantial improvement. Government needs to adopt a pro-active approach in creating a proper investment climate: Enhance investors’ confidence in the system Removal of cumbersome rules and procedures Toning up the delivery system MUST READIndia’s strategy for the near westHindu Disability is not divinityHinduRelated Articles:Disability Law & the Invisible People Delhi Air Pollution: Trying and testing the car formulaHinduRelated Articles:Delhi’s traffic experiment – Will this reduce the Emission Levels?Clearing the Air: An alarming rise in pollution levelsThe Peshawar, Paris, Pathankot linkHinduRelated Articles:Save security from the establishmentTransfer pricing rules with wider ambit soon- Changes in I-T Act likely to curb tax evasion by multinational companiesBusiness StandardCentre plans trash cleaning machines, law on Ganga rejuvenation - The legislation will be for riparian states to rejuvenate the national river & also lay down a common water diversion planBusiness StandardThe Kelkar Committee finally grabs the public-private partnership bull by the hornsBusiness StandardRelated Articles:Kelkar panel to revive PPP in infra projectsAir India - If you can't fix it, shrink it- Let it gradually pull itself out of international routes and focus on linking remote towns and citiesBusiness StandardRelated Articles:Draft National Civil Aviation Policy (NCAP) 2015Russia In The Frame- Perceptions that the Modi government has moved Westwards are misplacedIndian ExpressRelated Articles:Does India need Russia anymore?India Russia ties: New energy in old friendshipWorking together to solve global problemsState finance ministers must watch out for 2017- State government finances could come under significant strain due to the twin burdens of UDAY scheme and 7th Pay CommissionLive MintMIND MAPS1. Insolvency & Bankruptcy Bill - Is it a Money Bill? Indian Express2. Startup Industry - ThreatsBusiness Standard

Jan 12, 2016 RSTV Video

The Big Picture - Juvenile Justice Bill

ArchivesThe Big Picture - Juvenile Justice Bill 2014Juvenile justice bill 2014 is the most awaited amendment to JJ act 2000 in the wake of release of Juvenile convict in Nirbhaya case. Some claim the bill is need of the hour to act as a perfect deterrent against juvenile crimes while we also certain sections of the populations claiming the bill violates the basic tenets of child rightsThe Juvenile justice bill 2014 mainly amends five important aspects of the Juvenile justice bill 2000 The Bill replaces the Juvenile Justice (Care and Protection of Children) Act, 2000.  It addresses children in conflict with law and children in need of care and protection The Bill permits juveniles between the ages of 16-18 years to be tried as adults for heinous offences.  Also, any 16-18 year old, who commits a lesser, i.e., serious offence may be tried as an adult only if he is apprehended after the age of 21 years. Juvenile Justice Boards (JJB) and Child Welfare Committees (CWC) will be constituted in each district.  The JJB will conduct a preliminary inquiry to determine whether a juvenile offender is to be sent for rehabilitation or be tried as an adult.  The CWC will determine institutional care for children in need of care and protection. Eligibility of adoptive parents and the procedure for adoption have been included in the Bill. Penalties for cruelty against a child, offering a narcotic substance to a child, and abduction or selling a child have been prescribed.Issues of the bill The bill is an attempt to strike a perfect balance between punishing and reforming of the juvenile however there are certain aspects of the bill which needs to addressed in a holistic approach to make it more sensible and just. There are differing views on whether juveniles should be tried as adults.  Some argue that the current law does not act as a deterrent for juveniles committing heinous crimes. Another view is that a reformative approach will reduce likelihood of repeating offences. The bill talks about establishing Juvenile justice boards in every district. However nowhere in the bill it is clearly mentioned about the functioning and how the juvenile boards are constituted.This needs to be addressed. Even though the bill fixes frequency of meetings of child welfare committees. The credible functioning of child welfare committees is highly disputed and again the bill does not address this issue. The UN Convention on the Rights of the Child requires all signatory countries to treat every child under the age of 18 years as equal.  The provision of trying a juvenile as an adult contravenes the Convention Article 20(1) of the Constitution states that a person cannot be subjected to a penalty greater than what would have been applicable to him, under a law in force at the time of commission of the offence Under the Bill, if a juvenile between the ages of 16-18 years commits an offence and is apprehended at a later date,he may face a higher penalty than what would be applicable to him if he had been apprehended at the time of commission of the offence. This provision in the bill is against the spirit of article 20(1)of Indian constitution The bill is in contravention with article 14 as the bill creates distinction between two juveniles who have committed the same offence on the basis of the date of apprehension. This needs to be addressed The bill is also in contravention with article 21. It states that no person can be deprived of their right to life or personal liberty, except according to procedure established by law. The differentiation based on the date of apprehension may fail this standard. The definition of the term Orphanage is highly controversial. This definition is literally shouldering away the responsibility,safety and security of the child. This needs to be tweaked. “After care” is another issue that needs to be addressed properly. Vast majority of intellectuals are questioning that how One time financial assistance which will be given to the child after his term at child care centre will help him in getting education or vocational skills. By leaving a child who has no education or skill to society this bill is doing more bad than good. The bill does not talk about the welfare of the children who are already present in the juvenile homes or children who are leaving on streets. The bill majorly focuses on the children who have committed serious offences.ConclusionJuvenile justice bill is the much needed reform. With some minor changes in the bill this can play a very important role in creating an awareness in the society and also among the children who commits such serious offence. It is the collective responsibility of  parents ,Society and state in nurturing the kids in true spirit so that they do not become detrimental to the welfare of the nation.It is  high time that the bill should be passed and then the focus should tilt towards the right implementation of it.

Jan 11, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 11th January, 2016

ArchivesIASbaba’s Daily Current Affairs – 11th January, 2016 ECONOMICSTOPIC:   General studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Effects of liberalization on the economy General studies 2: Important aspects of governance, transparency and accountability; Important International institutions, agencies and fora- their structure, mandate; Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests; Government policies and interventions for development in various sectors and issues arising out of their design and implementation.  Illicit Financial FlowsReport by Global Financial Integrity (GFI) on Illicit Financial Flows (IFFs): $510 billion of black money flowed out of India from 2004 to 2013; that means an average annual outflow of $51 billion, or Rs. 3.3 lakh crore. But the estimate did not include or cover mis-invoicing of: Trade in services Trade of Goods- Accounted for 83.4 per cent of the $510 billion of IFFs from India Cash transactions Hawala transactionsHuge Mis-interpretations—Of the mainstream discourse on Tax evasion (which is illegal) Tax avoidance (which is legal but could be equally abusive) Ignorance towards entities accounting for the lion’s share of illicit capital flight: Multinational Enterprises (MNEs) Organisation for Economic Cooperation and Development (OECD) estimates that more than 60 per cent of global trade occurs within MNEs — that is, between the subsidiaries of an MNETherefore, the numbers indicate a massive shifting of profits from jurisdictions with higher tax rates to those with zero or very low tax ratesCase of MNE: An integrated entity that coordinates the businesses of hundreds of subsidiaries spread across jurisdictions For tax purposes- These businesses are assumed to be separate economic activities Leads to a single group of companies with 500 subsidiaries assumed to consist of 500 independent taxable entities in diverse locations, thus, leaving plenty of scope for profit shifting and tax games Added to this, an evasion-friendly tax regime leads MNEs to enjoy an effective tax rate in the low single-digitsFinance Ministry’s Data: Received: $392.2 billion in FDI in the 15 years from 2000 to 2015Loss in illicit outflows: $512 billion in just the 10 years from 2004 to 2013TJN Report: “The problem is that the assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments”So what should be the best way to make ordinary people shoulder the state’s debt burden?Ans: Tax ‘consumption’ more heavily than wealth(Goods & Services Tax comes into the picture as one would argue that it is the only way to make up the direct tax revenue that the state is either unable or unwilling to collect from treaty-shopping MNEs)Transfer PricingMost popular mechanism for shifting profitsMechanism of Transfer Pricing-For IT giants such as Google or Microsoft (engaged in services), transfer pricing takes the form of: a licensing fee or a royalty payment or interest paid..by a subsidiary to a parent company located offshorePayments are then treated as a cost in the jurisdiction where revenues are being generated, thereby slashing profits (arbitrary and dictated, with no relation to cost and added value, diverge from the market forces)Transfer Pricing Regulations (TPR)- Applicable to the all enterprises that enter into an 'International Transaction' with an 'Associated Enterprise' (all cross border transactions entered into between associated enterprises) Aim: To arrive at the comparable price as available to any unrelated party in open market conditions and this price is thus, known as the Arm's Length Price (ALP) Arm’s Length Price: Price that would be charged in the transaction if it had been entered into by unrelated parties in similar conditionsBasically, transfer pricing channels a subsidiary’s profits through a cascade of companies incorporated in different jurisdictions, to eventual safety in a tax havenDrawbacks: Loss of taxation revenue to Govt. Loss of foreign exchange Unethical corporate governance Examples (illegal): Google has used Bermuda Amazon uses Luxembourg Microsoft uses BermudaThis equals to a lethal combination of transfer pricing and tax havens thus, making it impossible to curb illicit capital flowsEuropean Union: Estimated to be losing €1.1 trillion of income to tax-dodging every yearBigger losers: Developing countries in Africa, Asia and Latin AmericaConsequences (India)— Country would be seen as possessing a combative tax administration Discourages overseas investors portraying the country as a troublesome investment destination Increase in tax litigation – causing valuable expenditure in (tareekh e tareekh)Development of a Tax Regime: With global trade being dominated by MNEs, it was found necessary to put in place a tax regime that ensured revenue for every country while avoiding double taxation Two model tax treaties were developed: One by the United Nations— Favoured taxing income at the ‘source country’ that is, wherever the income-generating economic activity took place, regardless of the residence of the enterprise’s owners In favour: Of developing countries which, for years, had allowed their natural resources to be extracted by foreign capital, only to see the profits flow to offshore entities without doing much to enrich the local population Another by the OECD— Residents: Would be taxed on their worldwide income Predominant in tax treaties- Suits the MNEs Asked to pay little tax in their own residence jurisdiction, since the bulk of their revenue is generated overseas Non-residents: Would be taxed only on their domestic income MNEs make money here- and they end up avoiding paying the taxes owing to them being Non-residents and therefore, not eligible to pay taxes Occurrence of discrepancy of double tax avoidanceIndia’sDouble Taxation Avoidance Agreements have opted for a predominantly OECD model: FDI we seek will pay very little or no tax in India on the income it generates from India Place of Effective Management: Essentially a residence taxation conceptIs there any Alternative Arrangement that could have been opted for?Yes; Linking taxation to sales and assets in India rather than the (putative) residence of ‘effective’ managementIASbaba’s Views We need to understand that curbing illicit capital flight is to be given a higher priority than courting foreign capital as what is rightfully ours should be brought back first (not a minimal amount- Which can be easily diverted towards creation of more social capital) India also needs to consider reducing the transfer pricing related litigations and enhance MNC’s confidence to invest in India. Shome Panel’s ‘retrospective cases formulation’ (recovery of dues only without additional penalty demand) seems to be a good way ahead for the same.Connecting the Dots:Write a short note on the following: GAAR Parthsarthi Shome Panel Recommendations UNCITRALNATIONALTOPIC:   General studies 2: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein; Separation of powers between various organs dispute redressal mechanisms and institutions. Statutory, regulatory and various quasi-judicial bodies. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.Making Commercial Courts work Recently the parliament in 2015 winter session passed Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015. The law creates commercial courts at the district level to deal with commercial disputes. The success of the new commercial courts system that seeks to expedite settlement of commercial disputes and improve ease of doing business is critically dependent on how well the states respond to the need for setting up new courts and divisions. The financial threshold, which some litigants feel is too low for such cases, and a wide range of issues that are brought under their ambit could also pose challenges.What the new law tries to do? The law creates commercial courts at the district level to deal with commercial disputes. These courts would be equivalent to the district courts and serve as the courts of original jurisdiction for all commercial disputes. For the high courts of Bombay, Delhi, Calcutta, Himachal and Madras, which are vested with original jurisdiction for commercial disputes over a certain value (rupees 50,000 before and now rupees 1 crore), the new law contemplates the setting up of a special commercial division to exercise such jurisdiction. This has the effect of streamlining the dispute resolution process as well as cutting down the time for which a dispute may be pending in the system.Magnitude of the problem: The 253rd report of the Law Commission submitted in January last year lays down the magnitude of the task before the courts."Of the total of 32,656 civil suits pending in the five High Courts with original jurisdiction in India, we find that a little more than half (16,884) or 51.7 per cent of them are commercial disputes," the report said, adding that this figure would have been far higher if not for the 35,072 suits that were transferred out of the Bombay High Court in 2012 when the pecuniary jurisdiction of the high court was raised to Rs 1 crore and above. Multitude of cases in the High Courts: The commission observed that "the above data makes it evident that most high courts are still grappling with the issue of high pendency of cases on the original side, including writ petitions, arbitration cases etc, and have not been able to reduce the pendency in the last decade. Rather than increasing the burden of the courts, the focus should be on reducing the number of cases by increasing the pecuniary jurisdictional threshold of civil suits in such high courts."What the new law can do? The commercial courts Act has fixed a pecuniary threshold of Rs 1 crore. According to the Law Commission report, this limit, which was as low as Rs 50,000 earlier, alone would reduce the pendency in the five high courts of original jurisdiction namely Bombay, Delhi, Calcutta, Madras and Himachal Pradesh from around 17,000 cases to about 4,200 cases.Implementation challenges: Implementation will remain a challenge, as right amount of infrastructure will be required to back up the intent and to ensure that the timelines as provided for are adhered to. This is paramount in making the law effective, and not letting it follow the patterns of other such failed attempts.Where will the money come from? Though the statute itself does not provide for any specific financial allocation for setting up of these courts, it puts the onus on the state governments. The state government shall provide necessary infrastructure to facilitate the working of a commercial court or a commercial division of a high court. The state government may, in consultation with the high court, establish necessary facilities providing for training of Judges who may be appointed to the commercial court, commercial division or the commercial appellate division in a high court.Improvements that has happened over the years: The Delhi High Court was the first off the blocks designating four of its benches as commercial division in March, based on the Law Commission recommendations in January 2015. It added two more benches to the division in November, soon after the Centre passed the commercial courts Ordinance in October. Lawyers feel that considering that 11 states have the same political party in power as the Centre, the passage of the law would be an opportunity for states to demonstrate their willingness to add to ease of doing business in the region. These states are likely to soon constitute such commercial courts in the region. The High Court of Bombay has also designated judges for the divisions. The other high courts with original jurisdiction such as, Madras-Chennai, Calcutta-Kolkata are also expected to follow soon. For other states, given the recent competition to attract business, constitution of commercial courts should be of high priority. Other practical issues: One of the biggest problems could be the threshold Rs 1 crore. This is too small This limit could mean that there would still be too many cases for the commercial courts to handle. The number of cases could drop to around 1,600 if the threshold was raised to Rs 5 crore. Even this might take years to clear. If not Rs 50 crore, it should be at least Rs 20-25 crore so that the bigger cases get quicker decisions. The huge coverage area could be an issue  The law lists some 20 areas ranging from carriage of goods to intellectual property rights that could produce 'commercial disputes' that come under the ambit of commercial courts besides adding a residual clause, which says "any other disputes so notified by the Central government."Way ahead: A key challenge is acceptance and adoption of the new regime and global practices introduced by all the stakeholders including the judiciary and lawyers. As there are new processes and cost regime being introduced, it is crucial that all stakeholders quickly understand and implement the law, in letter and spirit.Connecting the dots: Critically examine the judicial reforms that is expected in India with special reference to the recently passed Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015.MUST READWidening the net beyond the income normHindu Sri Lanka’s historic opportunityHindu 1Hindu 2Speaking of science- Controversies about Indian Science Congress point to a deeper problem in science administrationIndian ExpressPathankot attack: A terror strike, some hard truths- At Pathankot, lessons unlearnt from 26/11, and mistakes repeated, albeit on a smaller scaleIndian ExpressRelated Articles:Save security from the establishmentIs a 2008-like financial crisis in the making?Volatility in the financial markets shows fears over China are widespreadLive MintNot good economics or politics- Stalling the introduction of better emission standards is based on specious logic, especially in a country that has 13 of the world's most polluted citiesBusiness StandardMIND MAPS1. Way Ahead - Terrorism/InsurgencyThe Hindu2. LPG Subsidy ReformsThe Hindu

Jan 11, 2016 PIB

IASbaba Press Information Bureau (PIB)- 4th to 10th January 2016-Week 2

ARCHIVES   GS-2 eNPS-Online Subscriber Registration and Contribution Facility under NPS developed  (Topic: E-governance- Application, Models, Successes, Limitations and Potential; Citizens Charters, Transparency and Accountability and Institutional and other measures)   Pension Fund Regulatory Development Authority (PFRDA) has been pursuing the development and operationalization of online transaction facilities for the prospective as well as existing subscribers of NPS Online platform for registration of subscribers and receipt of contribution under National Pension System (eNPS) through NPS Trust at www.npstrust.org.in has been developed Through this platform, a prospective subscriber can register for NPS; contribute to his/her Permanent Retirement Account Subscribers who already have an NPS account can make contributions through eNPS directly Functioning- Subscriber while registering, will provide his/her name & Permanent Account Number (PAN) details which will be validated online with the Income Tax Department Then will select the Bank (through which KYC verification to be done), fill up the personal details and upload photograph & signature After this, the Subscriber will make contribution through net banking from the account of the selected Bank Once payment made, PRAN will be provided online to the Subscriber Details submitted by the subscriber will be sent through CRA system to the selected Bank for KYC verification After verification of KYC by the Bank, the PRAN will become active and operational Subscriber will be required to print the form, paste photograph, affix signature and submit the physical form to CRA within a specified period while continuing contributing online Banks with online KYC verification- Allahabad Bank, Bank of India, Bank of Maharashtra, Oriental Bank of Commerce, South Indian Bank, State Bank of Travancore, State Bank of Hyderabad, State Bank of Patiala, Tamilnadu Mercantile Bank United Bank of India PFRDA has advised all other Bank POPs to join the eNPS platform and provide online verification of KYC for the customers of their Banks willing to open NPS account online Advantages- Seamless on boarding experience where need not visit a Point of Presence and can register from anywhere through an internet connection, contribution with minimum cost of transaction and reduction in errors resulting from various manual activities Subscriber can make subsequent contribution online through net banking /debit card/credit card at any time and the same will be credited in the subscriber’s PRAN account on T+2 basis   Petroleum and Natural Gas Ministry launches an online initiative to engage LPG consumers and citizens  (Topic: Government policies and interventions for development in various sectors and issues arising out of their Design and Implementation)  Launched by- Ministry of Petroleum & Natural Gas (MoPNG) About Online Initiative- To engage the LPG Consumers and Citizens of India in providing efficient and citizen friendly services in LPG distribution Two online discussion forums have been launched and are available on myGov.in and mylpg.in for Citizen-Friendly Services Increasing LPG Coverage in the Country LPG Consumers/ Citizens requested to participate and share their thoughts on the respective forums online Valuable suggestions/ comments are welcome and will be considered for improving the customer oriented services related to LPG Coverage & Delivery Initiative is one of the many initiatives for observing 2016 as the“Year of LPG Consumers”     Enemy Property Ordinance, 2016 Promulgated  (Topic: Constitutional Amendments)   President of India has promulgated the Enemy Property (Amendment and Validation) Ordinance, 2016 on January 07, 2016 to make amendments to the Enemy Property Act, 1968 About Amendment- Ordinance include that once an enemy property is vested in the Custodian, it shall continue to be vested in him as enemy property irrespective of whether the enemy, enemy subject or enemy firm has ceased to be an enemy due to reasons such as death etc Law of succession does not apply to enemy property; that there cannot be transfer of any property vested in the Custodian by an enemy or enemy subject or enemy firm and that the Custodian shall preserve the enemy property till it is disposed of in accordance with the provisions of the Act Help- Amendments to the Enemy Property Act, 1968 will plug the loopholes in the Act to ensure that the enemy properties that have been vested in the Custodian remain so and they do not revert back to the enemy subject or enemy firm History- Enemy Property Act was enacted in the year 1968 by the Government of India, which provided for the continuous vesting of enemy property in the Custodian Central Government through the Custodian of Enemy Property for India is in possession of enemy properties spread across many states in the country Movable properties also categorized as enemy properties To ensure that the enemy property continues to vest in the Custodian, appropriate amendments were brought in by way of an Ordinance in the Enemy Property Act, 1968 by the then Government in 2010 This Ordinance lapsed on 6th September, 2010 and a bill was introduced in the Lok Sabha on July 22, 2010 Bill was withdrawn and another bill with modified provisions was introduced in the Lok Sabha on 15th November, 2010. Bill was thereafter referred to the Standing Committee. However, the said bill could not be passed during the 15th term of the Lok Sabha and it lapsed In the wake of the Indo-Pak war of 1965 and 1971, there was migration of people from India to Pakistan. Under the Defence of India Rules framed under the Defence of India Act, the Government of India took over the properties and companies of such persons who had taken Pakistani nationality These enemy properties were vested by the Central Government in the Custodian of Enemy Property for India After the 1965 war, India and Pakistan signed the Tashkent Declaration on 10.01.1966 Tashkent Declaration inter alia included a clause, which said that the two countries would discuss the return of the property and assets taken over by either side in connection with the conflict Government of Pakistan disposed of all such properties in their country in the year 1971 itself   Cabinet approves Stand Up India Scheme  (Topic: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes, mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections) Approved by- Union Cabinet, chaired by the Prime Minister Shri Narendra Modi Promote     Entrepreneurship among SC/ST and Women entrepreneurs To facilitate at least two such projects per bank branch, on an average one for each category of entrepreneurs Scheme provides for- Refinance window through Small Industries Development Bank of India (SIDBI) Creation of a credit guarantees mechanism through the National Credit Guarantee Trustee Company (NCGTC) Handholding support for borrowers both at the pre loan stage and during operations Include increasing their familiarity with- Factoring services, Registration with online platforms and e-market places as well as sessions on best practices and problem solving Details of the scheme- Focus is on handholding support for both SC/ST and Women borrowers. The overall intent of the approval is to leverage the institutional credit structure to reach out to these under-served sectors of the population by facilitating bank loans repayable up to 7 years and between Rs. 10 lakh to Rs. 100 lakh for greenfield enterprises in the non farm sector set up by such SC, ST and Women borrowers The loan under the scheme would be appropriately secured and backed by a credit guarantee through a credit guarantee scheme for which Department of Financial Services would be the settler and National Credit Guarantee Trustee Company Ltd. (NCGTC) would be the operating agency Margin money of the composite loan would be up to 25%. Convergence with state schemes is expected to reduce the actual requirement of margin money for a number of borrowers Over a period of time, it is proposed that a credit history of the borrower be built up through Credit Bureaus   ‘Anubhav’ – showcasing outstanding work done during service  (Topic: Public Grievance and Pensions)   Launched by- Department of Pension & Pensioner’s Welfare (launched on the directions of the Prime Minister Shri Narendra Modi) Launched for- Showcasing outstanding work by retiring employee and sharing experience of working with the Government Over a period of time, this will create a wealth of institutional memory with replicable ideas and suggestions Gives opportunity to the retiring employee to invest his experience, skill and time for growth of social capital of the country Steps Taken- Workshops on ‘Anubhav’ have been organized during early last year for the Head of Offices/ Head of Departments of Ministries/ Departments and retiring employees to introduce the concept and the software application as well as to facilitate submission of write-ups by retiring employees Ministries/ Department have been requested to conduct workshops on ‘Anubhav’ for their retiring employees to facilitate them to upload their write-ups Anubhav-  A format comprising of few questions that can be used to build up write-ups for ‘Anubhav’ has been circulated to all Ministries/ Departments for use by their retiring employees Feature of uploading audio file has been added to the ‘Anubhav’ software Provides facility to upload recorded voice message of 3 to 4 minutes (3MB) duration by the retiring employee   Signing of MoU between India and Singapore in the field of Civil Aviation (Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests) Memorandum of Understanding (MoU) signed between: Airports Authority of India (On behalf of Government of India) and Singapore Cooperation Enterprise (On behalf of Government of Singapore) in Civil Aviation Objective of MoU: Establish mutual cooperation in the field of civil aviation,to begin with, the airports of Jaipur and Ahmedabad, cooperation will be extended to other airports with mutual consent Features of the MoU include collaboration in Civil Aviation Sector in the areas of – Master-planning and design Traffic development Commercial development , Service quality improvement Training and development Cargo handling and Management Maintenance, repair and overhaul Operation and management and Other areas with mutual consent Government of Singapore owns one of the best managed airports in the world, which has consistently maintained its ranking for last many years Help- Ensure high standards of service at Ahmedabad and Jaipur airports, Airport Authority of India (AAI) may enter into operation and maintenance (O&M) contracts, either with or without the responsibility of maximization of non-aeronautical revenue in the terminal building (excluding land on city side and air side) City side and airside will continue to be managed directly by AAI   Cabinet gives ex-post facto approval to India-Bahrain Agreement on Cooperation in Combating International Terrorism, Transnational Organized Crime and Trafficking in Illicit Drugs, Narcotic and Psychotropic Substances and Precursors Chemicals, and ratification of the same (Topic: India and its Relations, Agreements involving India and/or affecting India’s Interests)   Agreement between India and Bahrain on Cooperation in- Combating International Terrorism, Transnational Organized Crime and Trafficking in Illicit Drugs, Narcotic and Psychotropic Substances and Precursors Chemicals and its ratification  Agreement aims – Improve the effectiveness of both countries in the prevention, Investigation, Prosecution and Suppression of crimes including crime relating to terrorism, Transnational organized crime and drug trafficking. Help establish framework for enhancing cooperation between the officials of intelligence and law-enforcement agencies of the two countries   GS-3   Shri Nitin Gadkari inaugurates the first River Information System of India  (Topic: Science and Technology- Developments and their applications and effects in everyday life)   Inaugurated by: Union Minister of Shipping, Road Transport and Highways Shri Nitin Gadkari Implemented by: Inland Waterway Authority of India (a statutory body administered by the Ministry of Shipping) Aims: To streamline the exchange of information between waterway operators and users River Information Services (RIS) First of its kind in India, the new system will facilitate safe and accurate navigation on National Waterway – 1 on the Ganges River Combination of modern tracking equipment related hardware and software designed to optimize traffic and transport processes in inland navigation. Enhances swift electronic data transfer between mobile vessels and shore (Base stations) through advance and real-time exchange of information Trained operators would monitor the activities round the clock and provide the necessary instructions and guidance to the vessel for safe navigation   Facilitate:- Enhancement of inland navigation safety in ports and rivers. Better use of the inland waterways Environmental protection RIS enables achievement of safe and efficient inland water transport by avoiding the following risks:- Ship- to - Ship collisions Ship - Bridge collisions Groundings Covers- RIS system is subsequently being extended upto Varanasi in two more phases Phase-II stretch from Farakka to Patna (410 Km.) will be covered by establishment of six base and one control stations Phase-III cover from Patna to Varanasi (356 Km.) with 4 base and one control stations   Cloud Computing Would be a Solution for BIG Data Problem Opines Experts at the Indian Science Congress Being Held at Mysore (Topic: Science and Technology) “Big Data and Cloud Computing in Agri-Bioinformatics” in the plenary talk session of 103rd Indian Science Congress at the University of Mysore Cloud computing can be the solution to Big data problem Cloud computing very important in BIG data analytics due to its application sharing and cost effective properties Help in current genomic data storage and analysis To head towards sustainable livelihood and development, such analyses with respect to agriculture including plants and animals are crucial 90% of the data in the world today has been created in the last two years alon An increasingly valuable tool for processing large datasets Application in- Hundreds of Agricultural institutions across the country should be connected and for this CLOUD is a good option Development of user friendly crop computational algorithms and tools Used by the US federal government, pharmaceutical companies, internet companies, scientific labs and bioinformatics services   MUDRA (SIDBI) Bank to undertake refinance operations and provide support services with focus on portal management and also data analysis (Topic: Government Policies and Interventions, Important aspects of governance, transparency and accountability) Credit Guarantee Fund (CGF) Created by – Union Cabinet (6th January, 2016) Created For- Micro Units Development Refinance Agency (MUDRA) loans and for converting MUDRA Ltd. into MUDRA Small Industries Development Bank of India (SIDBI) Bank as a wholly owned subsidiary of SIDBI What’s next?                                               MUDRA (SIDBI) Bank will undertake refinance operations Provide support services with focus on portal management and also data analysis etc MUDRA (SIDBI) Bank can take -up any other role as may be assigned to it by Government MFIs can now become Member Lending Institutions (MLIs) with MUDRA (SIDBI) Bank for refinance and with NCGTC for credit guarantee Cost of guarantee(on ongoing basis) is linked to rating and recovery performance, to incentivize all MFIs, who join up as MLIs to continue good performance Membership is predicated on the fulfilment of certain criteria such as- Size, Experience, An assessment of internal systems, Processes and procedures, CRAR and other norms, Capacity assessment rating, etc.   Test Firing of New Tank Ammunition for Arjun MBT  (Topic: Challenges to Internal Security through communication networks, role of media and social networking sites in internal security challenges etc) Test firing conducted by- Defence Research and Development Organisation (DRDO) New tank ammunition- Penetration-Cum Blast (PCB) and Thermobaric (TB) Ammunition, specially designed for Arjun Tank at Chandipur, Odisha on 6th Jan 2016 Developed by- Pune based DRDO laboratories Armament Research and Development Establishment (ARDE) and High Energy Materials Research Laboratory (HEMRL) Trials found to be very effective and the damage was devastating with the firing of ammunition successfully destroying the target tank and severely damaging its turret, barrel, tracks, ammunition bin, various sights, antennas etc. An innovative chemical composition has been developed by HEMRL after extensive research for the TB ammunition During the development phase, these ammunitions were extensively evaluated against different simulated targets viz., Armour plates, Concrete structures and Fortifications Trials conducted jointly with Army and aimed to demonstrate the effectiveness of the ammunitions on derelict tank fitted with instrumentation to measure the shocks, blast pressure and temperature at various locations and on advanced imaging systems Trials were unique as for the first time such evaluation is carried out in India which will give a quantum jump in the fire-power of Arjun tanks Technical trials witnessed by Directors of HEMRL & PXE, Director DQRS, Army representatives and other senior officials from DRDO   Indian economy has emerged as one of the fastest growing economies in the world with its GDP growth accelerated at 7.3 percent in 2014-15 (Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment)   Indian economy has emerged as one of the fastest growing economies in the world with its GDP growth accelerated at 7.3 percent in 2014-15 compared to 6.9 per cent growth in 2013-14 and 5.1 per cent in 2012-13, indicating that the economy is firmly on the path of economic revival Information Technology sector is a key pillar in various flagship initiatives like digital India, Make in India, Skill India as well as Start-up India among others Suggestions received during the Pre-Budget Consultative Meeting- Facilitate the exports, Facilitating ease of doing business, Measures for simplifying and Rationalizing tax procedures Scope of POEM(Place of Effective Management) need to be rationalized and made applicable to overseas shell companies GST be implemented at the earliest On the proposal of sunset clause in case of SEZ companies, the tax relief to the eligible development activities and the sales activities by a SEZ unit may be extended till March 2019, as it will be unfair to deny the tax benefits to such SEZ developers who have planned large investments in setting-up SEZ infrastructure Reduction of corporate tax, specific time bound policy to revive the mobile industry, incentive to pollution free industries and vehicles, TRIPS Plus (Agreement on Trade-Related Aspects of Intellectual Property Rights ) Need to create duty differential benefits for Indian (IT hardware) manufacturers especially in case of mobile and tablets  

Jan 11, 2016 AIR

All India Radio- Constitutional Aspects Of DDCA Probe

ARCHIVES CONSTITUTIONAL ASPECTS OF DDCA PROBE Click here and search for 8th January 2016 Spotlight/News analysis for audio. Is the Delhi govt competent to set up a commission of inquiry to probe into DDCA corruption allegations? The Delhi govt has appointed Gopal Subramaniam panel to probe into the allegations against Delhi and District Cricket Association (DDCA). Gopal Subramaniam was the former Solicitor General of India. He wrote to the Central govt asking for officers from CBI, IB and Delhi police to constitute a special investigating team to conduct his enquiry on the DDCA issue. The centre had replied that the Subramaniam Panel appointed by the Delhi govt to probe into the alleged corruption in the DDCA is unconstitutional and illegal. It said that Delhi govt has no powers for enquiry into matters related to central govt. Delhi is neither purely a Union Territory nor a State. It is a mix of both. If we go by the constitutional provisions then it is more of a UT than a State. Article 239AA – there will be an administrator for the National Capital Territory of Delhi and he is the Lieutenant Governor, aided and advised by a Council of Ministers representing the electorate. However, in case there is a difference of opinion between the Lieutenant Governor and the State govt, the matter shall be referred to the President of India, who is aided and advised by the Central govt Council of Ministers/central cabinet. Thus, the central govt has the ultimate say in any matter of difference of opinion between Lieutenant Governor of Delhi and the CoM of Delhi. The Delhi govt has no powers related public order, land, and police. The Commission of Inquiry Act, 1952 talks of Central govt and State govt and who can appoint an inquiry commission. Going by Article 239AA and CoI Act 1952, Delhi govt is neither a central govt nor a state govt. Hence the Delhi govt cannot utilise the powers under CoI Act 1952 to appoint a commission of inquiry. In 2013 Serious Fraud Investigation Office (SFIO) had conducted inquiry into the DDCA issue within the purview of Companies Act and found that there were some irregularities in the accounts which were compounded already. It said there was no serious fraud. However, the SFIO didn’t investigate matters beyond Companies Act provisions. Cricket is a religion in India. The BCCI or DDCA or for that matter any sports administration body is taking the responsibility of public interest and they should be transparent and come under the purview of RTI. Citing Constitutional Provisions and preventing a commission of inquiry to look into the allegations of corruption amounts to setting aside the public interest. Public is not bothered about whether it is central govt’s problem or state govt’s problem. Public wanted a better career in cricket and other sports. Their perception on the administration should be cleared of any suspicion of corruption. It is a high time that India needs a separate Sports Bill which takes care of all these matters related to sports.

Jan 9, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 9th January, 2016

Archives   IASbaba’s Daily Current Affairs – 9th January, 2016   DEFENCE/SECURITY   TOPIC: General studies 2: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein. General studies 3: Role of external state and non-state actors in creating challenges to internal security.  Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges, basics of cyber security; money-laundering and its prevention.  Security challenges and their management in border areas; linkages of organized crime with terrorism. Various Security forces and agencies and their mandate.   Save security from the establishment The recent Pathankot incident has again highlighted the security lapses that is prevalent in the country.   Practical mistakes India committed while tackling Pathankot incident: No coordination between the foreign office, the defence forces and the internal security establishment. There is no regular interaction and exchange of messages between the above said three main pillars of any defence establishment. There was no sign of a “single command and control” : The Defence Security Corps re-employs retired jawans who are not much better than armed gatekeepers. The Guard Force is a defensive arm of the air force to protect air force assets. The NSG is a target-specific counter-terrorist force, not a battlefield unit. Yet, these were the units that were called in as the first responders. The one trained battle-ready counter-terrorist force, the army’s Special Forces, was nearby but not deployed to secure the sprawling base or the perimeter.   In short it can be said most terror attacks in India are characterised by three critical missteps: ignored intelligence inputs, inconsistent security response, and heavy casualties.   Reshaping India’s security posture: Though India’s wars with neighbouring countries have played the most important role in impacting its security posture, terrorism has, in fact, been the biggest threat faced by the country on almost all major counts — the number of soldiers killed, duration of engagement with armed movements or the spread of the menace. However, terrorism hasn’t had a commensurate impact on reshaping India’s security posture and tactics, as well as political strategies.   Support for National Counter Terrorism Centre(NCTC) TheNational Counter Terrorism Centre (NCTC) is a proposed federal anti-terror agency to be created in India, modelled on the National Counter Terrorism Centre of the USA. The proposal arose after the2008 Mumbai attacks aka 26/11 attacks where several intelligence and operational failures revealed the need for a federal agency with real time intelligence inputs of actionable value specifically to counter terrorist acts against India. The proposal has however met with much criticism from the Chief Ministers of various states who see this as a means of weakening India's federalism. However with the recent pathankot incident the arguments favouring the establishment of NCTC has been strengthened.   Why states are opposing NCTC? Unlike the American NCTC which deals only with strategic planning and integration of intelligence without any operational involvement or the Joint Terrorism Analysis Centre, which too plays a purely coordinating role, the Indian agency will have not only intelligence functions but also powers to conduct operations. It is this concentration of powers that has had the states objecting to the NCTC, arguing that such sweeping powers vested in a Central agency will violate the autonomy of state governments, given that law and order is a state subject according to the Constitution. It has also been argued that given the establishment of the National Investigating Agency in the aftermath of the 26/11 attacks, the establishment of an NCTC would only add to the bureaucratic tangle in intelligence sharing and counter terrorist action.   A case of strengthening NATGRID: TheNational Intelligence Grid or NATGRID is the integrated intelligence grid connecting databases of core security agencies of the Government of India to collect comprehensive patterns of intelligence that can be readily accessed by intelligence agencies. It was first proposed in the aftermath of theterrorist attacks on Mumbai in 2008.   What NATGRID can do? NATGRID will serve as a valuable platform to trace suspicious cross-border movements of individuals like David Headley, who had made several trips to India before the Mumbai attacks. It will become a centralized database with sensitive information on individuals collected from 21 sources, which include data on immigration, banks and the telecom sector, in addition to data from intelligence agencies. NATGRID will help to collate scattered information into a transparent, accessible, integrated grid and do away with the inefficiencies associated with information asymmetries that hitherto delayed counter-terror operations. Need revamping of NATGRID: In its present form, NATGRID suffers from many inadequacies, some due to bureaucratic red tape and others due to fundamental flaws in the system like consolidating data from a huge population, lack of compatibility with data sets in regional languages, risk of spies ratting out vital information to outside sourcesetc. If government takes enough measures to ensure that information does not fall through the firewalls that guard it, NATGRID has the potential to become India’s go-to grid for a 360-degree perspective to prevent and contain crises.   Need for a documented security doctrine It is time to finally accept the reality and move forward on a broad sweep of reforms in the security establishment. This could be done at three levels — parliamentary oversight, a well-defined national security doctrine and a national security strategy to implement the doctrine, and, finally, an independent federal commission of accountability on security matters.   Parliamentary oversight: There have been several discussions about improving the accountability of intelligence agencies and other federal organisations responsible for the security of the country. Many experts are apprehensive of an adverse effect of parliamentarians being given oversight of intelligence agencies. However, the fact is that there is no better accountability system possible. The diversity of Indian politics will ensure there is robust oversight, and that the mechanism is not held hostage by a few vested interests in Parliament. A well-defined national security doctrine: As many experts recommend, it is time for India to have a documented national security doctrine, like the Constitution, so that successive governments do not forget the fact that they are mere custodians of an idea called India, and not revolutionaries mandated with recreating the nation-state. National security strategy: The doctrine should be accompanied by a security strategy that should spell out the state response to various kinds of security challenges. If it is a terrorist strike, then the decision-makers must know the responses expected of them, and not try to improvise based on their limited awareness. Command and control for such operations should also be spelt out in the document.   Finally, and most importantly, India must constitute a very credible, and permanent, federal commission of accountability on security matters. This is important not just to bring in accountability to the security establishment, but also to ensure that the many insurgencies and terrorist challenges do not result in the intelligence and security apparatus getting a free hand to misuse their powers. Such a commission can also be a watchdog in places like Kashmir and the Northeast, where repeated allegations of human rights violations are haunting political efforts to find peace, and feeding terrorism.   Way ahead: India, and its security forces, can’t any more trust the wisdom of a few wise men to tackle terror threats, secure our assets and safeguard national interests. The first step is to write down what the rulers of the day should do when a terror threat occurs. Connecting the dots: Critically examine the growing need for national counter terrorism centre with special reference to security lapses in the recent Pathankot attack. Explain the various intelligence agencies in India along with their mandate. Even though India has an extensive intelligence infrastructure, attacks like 26/11, Pathankot etc make us doubt our intelligence systems. At this backdrop explain the various drawbacks in our intelligence system. Suggest measures to revamp the same.   INTERNATIONAL   TOPIC: General studies 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests Effect of policies and politics of developed and developing countries on India’s interests   Devaluation of Yuan China’s has surprisingly moved to peg the yuan at its lowest value against the U.S. dollar since 2011 and this move has, as a result triggered a selloff in global markets, bringing alive the fears of competitive devaluation among emerging economies Since 2005, China’s currency has appreciated 33% against the US dollar and the first devaluation on August 11 marked the largest single drop in 20 years The depreciation of the yuan is par for the course as it becomes increasingly market-linked (to move towards a more market-oriented economy-allowing the market to have a more instrumental role in determining the yuan’s value) following its induction as a reserve currency by the IMF   Implies— Attempt to stimulate China's sluggish economy—How? Keep exports from falling further Shifting it away from a model of debt-fuelled infrastructure Low-cost exports towards lower but more sustainable growth, Being driven by domestic consumption and services Beginning of a currency war that could lead to increasing trade tensions   Global Impact— Indices: Trading in the Chinese equity market was suspended as soon as the benchmark index breached the 7 per cent circuit limits, leading to the leading Asian indices losing ground Hong Kong’s Hang Seng Index declined more than 3 per cent Japan’s Nikkei and Singapore’s Straits Times lost in the range of 1-2 per cent S. stock markets, including the Dow Jones Industrial Average (DJIA), S&P 500 and Nasdaq, as well as European and Latin American markets fell Prices: Brent crude oil also fell to its lowest level since April 2004 at $33 a barrel in intra-day trading Adverse impact on Commodity prices, China being the biggest consumer of many commodities (including base metals) S: Mortgage rates can stay lower for longer Commodity: China will start trading with cheaper yuan and this might lead to lower demand for commodities Eg: Oil dropped 4 percent and copper dropped 8; but less-valuable Chinese currency is not good for exporters who want to sell manufactured goods that include copper, for example, as impact on their costs will cut into any benefit they get from selling their goods more cheaply to dollar-using buyers Note: Drop in Oil— Proved to be a silver lining for India as it is a net importer   Lead other countries to devalue their currencies— Competitive Devaluation Currencies of Australia, Malaysia and South Korea fell in tandem after China's move What is it: An abrupt national currency devaluation by one nation is matched by a currency devaluation of another Why: To not let its exports lose the competitive value in international markets (as High prices may pave way for fewer sales) More likely: Countries that have managed exchange-rate regime Major threat to the stability of the global economy   Theory of Devaluation— Devaluation is a deliberate downward adjustment to the value of a country's currency, relative to another currency, group of currencies or standard Causes— Country's exports to become less expensive As price of the country's product in international market falls And products become more competitive in the global market. Imports become more expensive, making domestic consumers less likely to purchase them   Negative consequences of Devaluation— By making imports more expensive, it protects domestic industries who may then become less efficient without the pressure of competition Higher exports relative to imports can also increase aggregate demand, which can lead to inflation   Devaluation & Yuan Reserve Currency by IMF- following its induction in the SDR Portfolio Flexibility in settling all its international obligations with its own currency Other countries can diversify their forex reserve portfolios to include yuan IMF wants China to be willing to progress towards a “freely floating exchange rate” 2010- Rejected ‘yuan’ to be a part of the official reserves by IMF on the basis that it was not “freely usable”   Special Drawing Rights (SDR)- International Reserve Asset Created by- IMF in 1969 Why: To supplement its member countries official reserves (restricted to members) IMF re-evaluates the currency composition of its SDR basket every five years (last time being-2010) Basis of Value: Basket of 4 key international currencies (Euro, Japanese Yen, Pound Sterling, U.S. Dollar) SDRs can be exchanged for freely usable currencies   India& Yuan Devaluation— Indian stock indices: Fell sharply and the rupee hit a three-week intraday low of 66.93 a dollar as foreign funds continued their exodus from emerging markets. The 30-share Sensex flirted with a 19-month nadir during the day, before closing 554.50 points lower at 24,851.83. India’s inherent resilience put to test— India is firmly on the path of economic revival and has emerged as one of the fastest growing economies in the world but it could face the following issues— Currency Volatility can be aggravated due to the fact that the volume of exports has remained the same in many sectors Sharp increase in cheap imports (reasons below) hurting Indian Industries Cheaper goods of China Excess capacity of China might lead it to dump its goods in other countries Could affect India’s exports making it expensive Expansion in the country's deficit with China Hurt ‘Make in India’ plan - Indian manufacturers already suffer significant cost disadvantages and their competitiveness will now diminish further against imports from China   IASbaba’s Views: India should take the following broad steps to contain the differences that suddenly arises out of this arrangement— Consider proposals to protect steel manufacturers from cheap steel imports from China(India had increased the import duty on certain steel products by 2.5 per cent in August, 2015) Decision should be taken on a case-to-case basis based on ground facts for a case of anti-dumping duty or any other policy to be put into effect Focus on global trade and policy related efforts in boosting competitiveness There is also an urgent need to develop global safety nets to protect nations from negative spill-overs of the devaluation and ‘competitive devaluation’.   Connecting the Dots: With ‘Yuan Devaluation’ effectively spooking the world financial markets, make a case for the importance of strong domestic institutions in the country   MUST READ   Tashkent syndrome- Unable to apply transformative pressures, subjected to strong external pressures ourselves, we reverted to the status quo ante Indian Express   Simply put: What needs to be done to upgrade from BS-IV : Four years from now, the government wants to leap directly to BS-VI auto emission norms from the existing BS-IV, skipping BS-V. But the challenges, before both oil companies and automakers, are enormous Indian Express   Insider Trading: New rules confound India Inc- There has been a virtual freeze in communication when it comes to price-sensitive information under the changed rules Business Standard   Isn't liberalisation meant to be liberal?- The new AIF rules lay down the red carpet for foreign investors to make a grand front-door entry into the booming Indian start-up space Business Standard   MIND MAPS   1. India- Indonesia The Indian Express   2. Inflation Policy Business Standard

Jan 9, 2016 PIB

IASbaba Press Information Bureau (PIB)- 28th to 3rd January 2016

GS-2Smt. Maneka Sanjay Gandhi launches e-Office in the Ministry of Women & Child Development (Topic: Important Aspects of Governance, Transparency and accountability, e-governance- applications, models, success, limitations, and potential; citizens charters, transparency and accountability and accountability and institutional and other measures)E-Office: Launched by Ministry of Women and Child DevelopmentImportance – Bring paperless functioningBrings transparency and accountability, which help to step up the delivery mechanismsThe legacy data of all the files of the ministry has been digitized and the entire file movement is now taking place electronicallyGood system for processing of files and that DeitY is continuously striving to bring new areas within the ambit of digitizationFunctioning- Under the e-office, every receipt of any paper is scanned and digitized and the new file is openedFile is then processed electronically as per specified procedure and specified hierarchyProject was initiated in July, 2015 and over 12,000 files of the Ministry have been digitizedSeveral modules of e-office –File Management System,Knowledge Management System,Leave Management System,Tour Management System,Benefits– Reduction of processing timeA file takes only 4-5 days for processing as compared to 30-40 days earlierPossible to locate the point at which the file is held up and avoid delay by expediting the sameDirectly impacts the delivery mechanism of the ministry, both for the State Governments as well as related civil society organizationsThe e-office has also resulted in better accountability and transparencyResults in higher manpower efficiencyOther Steps- To bring other organizations like National Commission for Women within the ambit of e-Office soonAll the attached offices of the ministry are also going to come on the e-office platform shortlyPersonnel Information Management System (e-Service Book) is expected to start from the 1st of January, 2016Union Health Minister reviews the preparedness on Seasonal Influenza (H1N1)(Topic: Issues relating to Health, Diseases and Medical Enhancement)Union Health and Family Welfare Minister issued necessary directions related to- Procurement,Training,Issuing of advisories andGuidelines for the state governments to review the preparedness for tackling seasonal Influenza (H1N1)Steps Taken – Monitoring the situation and adequate steps have been takenStrengthen nationwide awareness campaign on Seasonal Influenza (H1N1)Support to the state governmentsIssue necessary advisories to the state governments at regular intervals and review their strategy and plansThe Ministry has also undertaken adequate steps to augment capacity of health facilities to manage cases of Influenza (H1N1)Strengthened testing facilitiesAvailability of PPE Kits and N95 Masks for healthcare workers dealing with the casesSufficient tablets of Oseltamivir for early treatment of Influenza (H1N1) casesDirected the Central government institutions to earmark sufficient number of beds for H1N1 patients with additional capacity which may be used quickly whenever requiredMemorandum of Understanding between India and Jordan for promoting cooperation In the field of Information Technology and Electronics(Topic: Regional and Global Groupings and agreement involving India and affecting India’s Interest)MoU’s develop and strengthen– Industrial,TechnologicalCommercial cooperation between the two countries in- Information Technology + Electronics (IT&E) sectorImplement institutional + capacity building cooperation programme aimed at fostering partnerships between the two countriesAreas of co-operation include- Identifying Capacity Building areas and specific needs of-Jordanian IT sector,Design,Plan ,Implement IT Capacity Building Programmes for the benefit to JordanCooperation among : Private + Public entities of both countries in the areas of-InvestmentBusiness promotionStrengthening Collaboration in: IT&E sector in the areas of-E-education,E-Governance,M-Governance,E-health,Telemedicine etc.;Sharing of best practices in the areas of –Regulatory policy andInstitutional framework with special emphasis on developing internationally competitive IT&E manufacturing and services industryParticipation in : International events organized by each countryOther areas as jointly decided by the PartiesAreas of cooperation realized through: Establishing a Working Group on IT&E composed of representatives of the PartiesNational School Games to be organised at Four to Five venues every year(Topic: Issues Relating to Health, Education, Human Resources, Sports and others)Organised by: Union Government in a big way at four to five venues in the country every yearObjective – To ensure proper promotion and development of various games at the school levelHelp early identification of talent and ensuring physical fitness of childrenIt is expected that participation of large number of children in the proposed National School Games from various parts of the country will not only contribute to the objective of sports promotion but also national unity and harmonyPurpose of efficient organisation made possible by: National School Games, the Department of Sports with the School Games Federation of India (SGFI) for conduct of the games and with the selected state governments for infrastructureHealth Ministry issues Draft Guidelines for Kidney Donors(Topic: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources)About- The National Organ and Tissue Transplant Organisation (NOTTO) under the Ministry of Health & Family Welfare issued Draft GuidelinesAnother major step towards easing rules and procedures to encourage organ donation among the massesThe draft guidelines have been posted on the website of NOTTO-notto.nic.inand comments/suggestions/views have been invited to fine tune the guidelines. These may be sent to the Director, NOTTO at dir@notto.nic.in by 16th January 2016Draft guidelines include: Recipient registration, listing and scoring system in the waiting listScoring system for making priorityAllocation principlesAllocation algorithm, including criteria for urgent listing, andInter-state issuesSteps Taken- List of the government and non-government hospitals in DelhiCovers area: Neighboring area of the NCR (Gurgaon, Ghaziabad, Faridabad, Noida) listed in the draft guidelines Hospitals in the NCR cities will be included in the networking along with hospitals of Delhi for the purpose of organ sharing and allocation with the concurrence and MOU with the respective State Governments and institutions in due course of time GS-3Science & Technology for Indigenous Development in India(Topic: Science and Technology, Resources, Growth, Development and Employment)Under Theme: Science & Technology for Indigenous Development in India (103rd edition of Indian Science Congress)Held from: January 3 to 7 January, 2016Host: University of Mysore at its campusThe Minister for Science & Technology and Earth Sciences, Dr. Harsh Vardhan will unveil the Indian Science Congress Mega Expo “Pride of India-Frontier Science & Technologies”Pride of India Expo: Some major attractions like Hall of Pride, Vigyan Jyot and GenesisHall of Pride (HoP)- Dedicated to the eminent personalities related to science and technology who have contributed immensely towards the progress and welfare of the nationSome of the personalities portrayed in the earlier editions of HoP are Pandit Jawaharlal Nehru, Dr. Vikram Sarabhai, Shri Dhirubhai Ambani, Shri G. D Birla, Prof. Satish Dhawan, Shri Acharaya Prafulla Chandra Ray, Sir Mokshagundam Visvesvaraya etcAt the 103rdIndian Science Congress this prestigious hall will be dedicated to Hon’ble APJ Abdul KalamGenes- One day symposium which is organized concurrent to the ISC with complimenting theme to the main science congressThe theme of XIV Genesis has been aptly chosen as “Realising the Make in India Mission through Indigenous Development – Role of MSME”keeping in view the focal theme of this year’s congressObjective to bring- Scientists,Industrialists,Academicians andPolicy makers on a common platform to exchange ideas and explore collaborative opportunitiesVijyan Jyot-the flame of knowledge – A novel initiative of MM Active which was initiated in the year 2010. TheAim To introduce pure science as a career choice amongst the youth and encourage them to opt for this career, thus preparing scientists and innovators for the futureThe Vigyan Jyot is inspired by the vision 2020 of our former President Dr. A.P.J Kalam of making India a powerful and prosperous nation by reaching the benefits of science and technology to every Indian and enriching the quality of lifeGovernment constitutes Committee for Holistic interpretation of the provisions of the Cinematograph Act/ Rules(Topic: Science and Technology- Developments and their Application and effects in everyday life)Issue – In most countries of the world there is a mechanism of certifying feature films and documentariesIt has to be ensured that in doing so, artistic creativity and freedom do not get stifled/curtailed and the people tasked with the work of certification understand these nuancesA whole lot of Indian films have enriched the cultural milieu of the country besides making astonishing advances in technical aspects of film makingSteps Taken- A committee headed by Shri Shyam Benegal has been constituted to suggest the paradigm for ensuring such a milieuThis in view and in sync with the vision of Hon’ble Prime MinisterRecommendations of Committee – To provide a holistic frameworkEnable those tasked with the work of certification of films to discharge their responsibilities keeping in view this frameworkCommittee would be expected to take note of the best practices in various parts of the world, especially where the film industry is given sufficient and adequate space for creative and aesthetic expressionThe Committee would recommend broad guidelines / procedures under the provisions of the Cinematograph Act / Rules for the benefit of the chairperson and other members of the Screening CommitteeThe staffing pattern of CBFC would also be looked into in an effort to recommend a framework which would provide efficient / transparent user friendly servicesThe Committee has been requested to submit their recommendations within two monthsCommittee set up to Review Wage Structure of Gramin Dak Sevaks(Topic: Communication and Information Technology)Committee- One man Committee to examine- Wage structure,Service conditions, etc Gramin Dak Sevaks in the Department of Posts has been constituted by the Government of IndiaDepartment of Post has 2.6 lakh Gramin Dak SevaksAll these GDSs will come under the purview of GDS CommitteeThe Committee will go into the service conditions of Gramin Dak Sevaks and suggest changes as considered necessaryTerms of reference of the Committee will include the following:- To examine the system of Branch Post Offices, engagement conditions and the existing structure of wage and enrolments paid to the Gramin Dak Sevaks and recommend necessary changesTo review the existing Services Discharge Benefits Scheme/other social security benefits for the Gramin Dak Sevaks and suggest necessary changesTo review the existing facilities/welfare measures provided to the Gramin Dak Sevaks and suggest necessary changesTo examine and suggest any changes in the method of –Engagement,Minimum qualification for engagement as Gramin Dak Sevaks and their conduct and disciplinary rules,Particularly keeping in view the proposed induction of technology in the Rural Post OfficesEnvironment Minister Holds Brainstorming Meetings to Formulate Action Plan for 2016 (Topic: Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment)Action plan for 2016 Increasing public participation,Bringing down delays andAiming for zero delaysSteps Taken- Review the Comprehensive Environmental Pollution Index (CEPI) and install machines to gauge pollution levels in 66 cities with a population of more than one million.New Waste Management Rules will achieve the Clean India campaign envisioned by the Prime Minister, Shri Narendra ModiSolid Waste Management Rules, Construction Waste Management Rules, Plastic Waste Management Rules, Bio-medical Waste Management Rules and Hazardous Waste Management Rules have been revamped and will be declared soonDirections will be issued soon to State governments under Section 5 of Environment Protection Act, 1986 on Sewage Treatment Plants (STPs) that are not workingIt is the responsibility of State governments to ensure that the STPs become functionalMeetings reviewed the Coastal Regulation Zone (CRZ) policyDAVA project wins 2015 eASIA Award (Topic: Achievements, Indigenization of Technology and Developing New Technology) Department of Commerce’s DAVA (Drug Authentication and Verification Application) project has won the 2015 eASIA Award under Trade Facilitation category as announced by Asia Pacific Council for Trade Facilitation and Electronic Business (AFACT) in Tehran, IranAward administered by: AFACTAbout DAVA Project- A significant step in the direction of Pharmaceuticals Authentication and VerificationContribute considerably in enhancing the brand image of our pharmaceutical exportersIt is in the pilot stage and will be subsequently made mandatory for all pharmaceutical exports from IndiaIndian Pharmaceutical industry has approximately 250 large units and more than 8,000 small and medium scale unitsApplication Launched has value-added features like –Availability of stocks for a drug in an area/wholesalers/retailers at a point of time; whenever required,Drugs can easily be identified and recalled due to traceability of stocks,Prevention of black marketing which especially arises during epidemicsAn initiative of: Government of India which aims to cover all the drugs manufactured in IndiaDAVA project launched on: June 29, 2015Help in: Creating an integrated platform for implementation of the Track and Trace system both for exports + domestic markets of Drugs and PharmaceuticalsProject provide simpler means to the consumer and regulatory agencies for establishing drug authenticationProtect the India’s Brand image in international tradeWhen fully implemented, the export of fake or spurious drug from the country, will not be possible and in case it happens it would be easily traceable

Jan 9, 2016 Motivational Articles

MOTIVATIONAL: YOU ARE THE GLADIATOR- MAINS 2015

Dip in temperature, goosebumps, craving for warmth and the yearning for the ever-so-cosy bed and your blanket— the freezing cold weather has finally made way in our lives; except that for some, this period brings a lot more to the table than just the dipping temperature.Yes, you my dear friend— adorning the winter clothes, sipping a mug of coffee or tea at moments, forcing yourself away from your bed, travelling the distance between the table and your bed that seems to keep growing every single time… The Roll number might have been memorised by now and the stationary to be carried, packed and ready. What seems to be a normal lowering of temperature must feel like ‘the’ moment of anticipation—My future – The questions – My memory – The result…………more and yet, more anticipation!And as you stand on the threshold of what can happen or what might not happen, let us talk to you about things we would want you to know-“There were two young fish swimming along and they happen to meet an older fish swimming the other way, who nods at them and says “Morning, boys. How’s the water?” And the two young fish swim on for a bit, and then eventually one of them looks over at the other and goes “What the hell is water?”What do you think the story wants to tell us—Importance of Water – Courtesy of wishing – Activeness of YouthDid you miss the obvious too?Often, our mind travels with such speed and restlessness that we tend to ignore most relevant and the most basic things, taking them for granted. These are nothing but the ‘obvious’ scenarios that we keep letting go, in pursuit of our future actions. Yes, my friend, one of the fish didn’t know the obvious answer to its question- ‘What the hell is water’Well the time has come when the yearlong efforts will materialize and fates will be sealed.This is the time when most of you will be anxious of what is going to happen. Will I be able to perform as expected? Being human it is natural. But one needs to realize that this is not the time to panic. Rather this is the time to be positive.Have faith in yourself. Have faith in your preparation and knowledge. It is a fact, that even the topper doesn’t know whether he/she is going to clear it or not. So believe that you are going to top this year.Civil Services aspirants are like Gladiators. They choose their weapons; train hard in seclusion for their one deciding battle. Their opponents are their friends, as they are the only ones who can understand each other. Only an aspirant can understand the amount of hard work, pain, pressure, tension, apprehensions and expectations, the other person is going through.So don’t care about the world. Don’t think about your past and don’t dream about your future. This is the time when you need to leave all the negativity behind and focus on the task at your hand: The Civil Services Mains Examination.There are some general tips that can come handy Don’t study anything new now and don’t involve in group discussions.Try to sleep well before exam. Good sleeps is essential in refreshing the mind and prepare it for a strenuous day.Have a good breakfast and keep a light lunch on the D-Day.Writing for six hours a day can cause cramps and fatigue in the arms. So keep a spray or moov. Give proper rest to your body.Before leaving check you admit card, pens, pencils etc.If you don’t know anything, don’t panic. Believe that one cannot know 100% and there must be things which other aspirants might not know too. Don’t waste time in over thinking about a question that you don’t know. And start with the ones that you know properly. Take 10 minutes initially to calmly understand all questions. Know which to answer on priority basis.Solve the questions which you know better.Solve 60% of questions in 70% of time – this is 100% qualitative part .Your conversion rate for marks is highest hereNext 25% should take 20% time.Last 15% should take 10%. This is least of conversion.Trust your guts and try to join the dots and link different concepts.Believe that the battle is yours- Win it this time.Believe in yourself and all that you are. Know that there is something inside you that is greater than any obstacle.The fact that you aren’t where you want to be should be enough motivation.We are not telling you it’s going to be easy. But it is going to be worth it.Sometimes there is no second chance, no time outs, no exit time; sometimes it’s now or never.We wish you all the very best. And hope that our association with you will continue even after you become a successful civil servant.Mohammed Ali, was asked, “How many sit-ups do you do?”He said, “I don’t count my sit-ups. I only start counting when it starts hurting. When I feel pain, that’s when I start counting, because that’s when it really counts.”The Road Not TakenTwo roads diverged in a yellow wood,And sorry I could not travel bothAnd be one traveller, long I stoodAnd looked down one as far as I couldTo where it bent in the undergrowth;Then took the other, as just as fair,And having perhaps the better claimBecause it was grassy and wanted wear,Though as for that the passing thereHad worn them really about the same,And both that morning equally layIn leaves no step had trodden black.Oh, I kept the first for another day!Yet knowing how way leads on to wayI doubted if I should ever come back.I shall be telling this with a sighSomewhere ages and ages hence:Two roads diverged in a wood, and I,I took the one less traveled by,And that has made all the difference-Robert Frosthttps://www.youtube.com/watch?v=ie2Mspukx14

Jan 9, 2016 AIR

North Korea's Nuclear Test

Click here for audio and search 6th January 2016 Spotlight/News analysis for audio.Also learn about CTBT herehttp://iasbaba.com/2015/10/iasbabas-daily-current-affairs-2nd-3rd-october-2015/North Korea has recently detonated its first hydrogen bomb. This is a serious issue and has security repercussions for the world and the region in general. North Korea argued that it was for its own security purpose.This has to be looked from a historical perspective. This is the fourth time that North Korea has conducted atomic explosion. First was in 2006, then in 2009, 2013 and now in January 2016.We also need to remember the fact that after the Korean War from 1950-53 there was only armistice and not peace agreement. North Korea and South Korea have no diplomatic relations and they are still in a state of virtual animosity.In the year 2002 US President George Bush called the three countries – North Korea, Iran and Iraq – as “Axis of Evil”.The regime in North Korea feels that it is surrounded on all sides by hostile forces, except China. For example, Japan is trying to expand its military forces by reinterpreting its Pacifist Constitution. It has disputes with China over islands in South China Sea. China is aggressively expanding its military strength. The burgeoning relations of Japan with US and India can be seen in this context.It seems that North Korea is also threatened by the West and the way they destroyed Iraq, Libya and Syria. Hence, nuclear power with North Korea serves them as insurance.China is the only country, probably, that has relations with North Korea. 80% of NK’s foreign trade is with China. NK is dependent on China for refined petrol and kerosene. Even food exports take place from China to NK. So China has the capacity to pressurize North Korea to relax. But it seems that China is not doing enough to stop NK. It has only voted in the UNSC condemning the tests by the NK in 2013 and now gave official statements condemning the present test.The DPRK is trying to miniaturize the nuclear devices and also simultaneously developing ICBMs (Inter Continental Ballistic Missiles) capacity to hit the mainland of USA.The issue has the potential to destabilize peace in the region because it can create a race for acquiring nuclear weapon power capacity. Also, in the past there were some worrisome incidents like North Korea exchanging missile technology with Pakistan which in turn had exchanged uranium enrichment technology with North Korea.The UN/UNSC doesn’t seem to have the capacity to take effective measures to check DPRK. This is because the UNSC is losing relevance. It didn’t have as its member, important countries like India. It is the coalition led by West that is largely determining many issues like that of Iraq, Syria, and Libya.One important question is: what makes the small country which is economically not well to go for nuclear arsenal?The answer is, the whole country is based on the principle of army first; it is a very authoritarian regime; one family, which now runs into 3rd generation, is controlling the country. People are forced to follow the diktats of the regime and they do not have any freedom/human rights.In this situation, the only thing that the world can do is express its anger through UN resolution. If at all UN can do anything, it can do only with the intervention of China.