Current Affairs for BANK, IBPS Exams

26 May 2016

:: National ::

One of the strongest El Niño in the history ended

• Australia’s weather bureau said the withering El Nino — among the strongest in history and responsible for two years of consecutive droughts and record summer temperatures in India — had ended.

• While that bodes well for the monsoon, weather officials in India said this could also be a precursor to floods during August and September and monsoon possibly spilling over to October.

• The Australian Bureau of Meteorology said on Tuesday that there was “…little chance of [sea surface temperatures] returning to El Niño levels, in which case mid-May will mark the end of the 2015–16 El Niño.”

• Typically, an El Nino — marked by above-average temperatures in the Pacific — that begins to cool is followed by a neutral phase before transitioning into La Nina.

Assocham study says India discards 18.5 lakh tones of e-waste annually

• India, which has emerged as the world’s second largest mobile market, is also the fifth largest producer of e-waste, discarding roughly 18.5 lakh tonnes of electronic waste each year, a study says.

• Telecom equipment alone accounts for 12 per cent of the e-waste, a joint study by Assocham-KPMG said.

• The rising levels of e-waste generation in India have been a matter of concern in recent years. With more than 100 crore mobile phones in circulation, nearly 25 per cent end up in e-waste annually, it said.

• The Ministry of Environment, Forest and Climate Change has notified e-waste management rules, 2016, in which producers are for the first time covered under extended producers’ responsibility (EPR).

• The rules prescribe a waste collection target of 30 per cent waste generated under EPR for the first two years, progressively going up to 70 per cent in the seventh year of the rule.

• The rules prescribe stringent financial penalties for non-compliance. However, the study said the unorganised sector in India is estimated to handle around 95 per cent of the e-waste produced in the country.

• Given the huge user base and vast reach of telecom in India, it is practically difficult and expensive for the handset manufacturers to achieve the targets prescribed in the rules from first year, the study said.

Govt does not agree with SC’s estimate about judges vacancy

• Union Law & Justice Ministersaid observations in the Law Commission report, on the basis of which Chief Justice of India Tirath Singh Thakur had said that 40,000 judges were needed in 1987, were not based on scientific data.

• In an emotional appeal to the government to increase number of judges, the Chief Justice of India referred to the report stating it had recommended 40,000 judges in the country to tide over the problem of pendency.

• The report said there were only 10 judges to a million when there should be at least 50 judges per 10-lakh population.

• Mr. Gowda said the Law Commission observations relied upon expert opinions. “In the report itself they said that this has to be calculated on the basis of scientific data. But no scientific data was available.

• Even in the Imtiaz Hussain case, the Supreme Court asked the Law Commission to once again look into the matter. They once again said it may not be possible unless we get the scientific data.

• Mr. Gowda said the Ministry is yet to receive the Supreme Court Collegium’s comments on the revised memorandum of procedure.

• Stating that the government had expedited the process of judicial appointments, the Minister said 86 additional judges were made permanent and 51 new judges had been appointed.

• “Appointment of another 170 judges in the higher judiciary is being processed. Judges’ sanctioned strength in the High Courts has been increased from 906 in June 2014 to 1,065 in April 2016. In the case of district/subordinate courts, the sanctioned strength has been increased from 17,715 in 2012 to 20,502 in 2015, he said.

• On “ease of doing business”, the Minister said the Commercial Courts, Commercial Division, and Commercial Appellate Division of High Courts Act (2015) was enacted by Parliament to ensure speedy and fair disposal of commercial disputes.

• Also, the Arbitration and Conciliation Act has been amended. This Bill was pending before the government since 2003.

Modi to address joint session of congress in US

• Prime Minister Narendra Modi’s busy day on Capitol Hill on June 8 will underscore the significance the U.S. legislature has acquired in promoting ties between the two countries.

• The Obama administration has to balance its policies to accommodate Pakistan, but the Congress has no such ambivalence. A series of legislative measures in the recent past demonstrates the bipartisan consensus in India’s favour.

• Mr. Modi will spend almost the entire day on the Capitol. Speaker will host him for an interaction with Congressional leaders in the morning; then there will be the address to the joint session of Congress, followed by a lunch.

• Unlike in the past, when the India Caucus hosted the Prime Ministers for Capitol Hill receptions, this time the U.S. Congress and its various committees host the entire series of events.

• The other recent Congressional initiatives that favour India include a Bill encouraging the administration to help India join the Asia Pacific Economic Cooperation, one restricting U.S. military aid to Pakistan and another one that blocked U.S. funding for a proposed sale of F-16 fighter aircraft to Pakistan.

• Unlike in India, U.S. foreign policy decisions made by the executive are subject to approval by the legislature.

• U.S. lawmakers are, however, increasingly impatient with India on one count: trade liberalisation.

• The lawmakers have also raised concerns over the reported incidents of intolerance in India. In February, six Senators and 26 Representatives wrote to Prime Minister, asking him to condemn religious violence.

:: International ::

President begins his Chinese visit

• President Pranab Mukherjee was given a rousing welcome by Chinese officials as he landed in Beijing on the second of a four-day visit to China.

• Speaking at a reception in Beijing presided over by Chinese Vice-President Li Yuanchan, the President emphasised cultural and people-to-people links as key to expanding relations between the two countries.

• Mr. Mukherjee harked back to the past to refer to strong cultural linkages between India and China, including the exchange of knowledge to set the context for the present.

• Arguing that Indians and Chinese today “rely on borrowed prisms and secondary sources to understand each other”, he emphasised the need for direct exchanges between the civil societies.

• Mr. Li said that both India and China were engaged in the projects of national rejuvenation and domestic reform. China had increased its investment and participation in railway projects and industrial parks in India, he said.

• Mr. Mukherjee wrapped up his visit to Guangzhou, by inviting Chinese investors to expand their foreign direct investment in India and to leverage the various flagship initiatives launched by the Indian government such as Make in India, Digital India and the Smart City projects.

• While the trade deficit between the two countries was a concern, “India would like to see a greater market for our products … in IT and IT-related services, pharmaceuticals and drugs and agro-products... in China”, he said.

• He added that he was confident about greater engagement and enhancement of ties between Guangdong and India.

• Initiatives such as sister-province relationship, for example between Gujarat and Guangdong which was established in 2014, were also discussed in the meeting.

Pakistan condemns drone attack on Pakistan’s soil

• The U.S. drone attack on Pakistan’s soil to kill Afghan Taliban chief Mullah Mansour is detrimental to bilateral ties, Pakistan army chief GeneralRaheel Sharif said.

• Gen. Sharif told this to U.S. Ambassador David Hale who visited the military’s General Headquarters in Rawalpindi, the Army said, adding that the situation arising after U.S. drone strike in Balochistan on May 22 came under discussion.

• While expressing his serious concerns over the said drone strike, the Chief of the Army Staff said such acts of sovereignty violations are detrimental to relations between both countries and are counter-productive for ongoing peace process.

• It is for the first time that Army has spoken on the issue.

Indian investment in Chabahar port assessed positively

• Two commentaries: one on Xinhua and another in Global Times , assessed positively the Indian investment in the Chabahar port project in Iran.

• The Global Times commentary strongly objected to the perception that the project “is aimed at countering the [Gwadar sea port project in Pakistan that is part of the] China-Pakistan Economic Corridor”.

• It argued that the port offers a strategic foothold for India in the “northern Indian Ocean [the Arabian Sea]” and access to Central Asia and this must not be seen as detrimental to Chinese interests in the region.

• The Xinhua commentary blamed the West for the distorted narrative on the perceived competition between India and China with respect to the Chabahar and Gwadar ports.

:: Business and Economy ::

Cabinet approved the first-ever policy for capital goods sector

• The Cabinet approved the first-ever policy for the capital goods sector in the country that aims to triple the value of production of these goods to Rs.7.5 lakh crore by 2025 and create more than 21 million jobs.

• The policy also envisages increasing exports to 40 per cent of production from the present 27 per cent.

• The share of domestic production in India’s demand will also be increased from 60 per cent to 80 per cent, making India a net exporter of capital goods.

• This is first ever policy for Capital Goods sector with a clear objective of increasing production of capital goods from Rs.2,30,000 crore in 2014-15 to Rs.7,50,000 crore in 2025.

• “The policy will help in realising the vision of ‘Building India as the World class hub for Capital Goods’. It will also play a pivotal role in overall manufacturing as the pillar of strength to the vision of ‘Make in India’,’ according to the statement.

• The objectives of the policy will be met by the Department of Heavy Industry in a time-bound manner through obtaining approval for schemes as per the roadmap of policy interventions.

• The Union Cabinet also approved financial restructuring of Hindustan Steel Works Construction Limited (HSCL) and its takeover by National Buildings Construction Corporation Limited (NBCC), which is a PSU under the Ministry of Urban Development.

• HSCL will become subsidiary of NBCC with the latter holding 51 per cent equity. The shareholding of Government of India in HSCL will be reduced to 49 per cent.

• As per the proposal, the government’s loan along with accumulated interest and outstanding guarantee fee worth Rs.1,502.2 crore will be converted into equity and equity capital of the company will be raised to that extent.

• The paid-up equity capital of the company will become Rs.619.3 crore from Rs.117.1 crore at present. After writing off of the accumulated losses, the equity and paid up capital of HSCL will become Rs.34.3 crore.

• Further, NBCC will infuse funds of Rs.35.7 crore as equity into HSCL. The equity and paid up capital of HSCL will become Rs.70 crore.

• The Cabinet also approved waiving off of loan Rs.1,916.14 crore and the outstanding interest of Rs.7,163.35 crore on the loan owed by Hindustan Fertilizer Corporation Ltd (HFCL) as part of a financial restructuring package for the PSU.

• The transfer of 56 acres of ash dyke land of Barauni unit to Bihar State Power Generation Company Limited (BSPGCL) to settle dues of HFCL for faster revival of Barauni Unit was also given a nod.

• The Cabinet also granted ex-post facto approval to the proposal for undertaking cadre review of the Indian Postal Service.

• It will also reduce the existing stagnation and improve the career prospects of Indian postal service officers.

• The proposal will be implemented through measures that include creation of various posts at different levels. However, there will be no change in overall number of posts in the cadre.

Govt to auction small and marginal oil fields

• The first round of auctions of discovered small and marginal fields will start on July 15 and conclude on October 31, the government said. As many as 67 fields,clubbed into 46 contract areas, will be auctioned.

• Bids are being invited for developing and monetising these contract areas having an estimated 625 million barrels of oil and oil equivalent gas in-place volumes spread over 1,500 square kilometers in on-land, shallow water and deepwater areas.

• India is now moving towards a new era of hydrocarbon production, driven by a forward-looking Hydrocarbon Exploration and Licensing Policy (HELP) and a new fiscal model based on revenue sharing contracts,” Mr. Pradhan said.

• The fields, with resources worth Rs.70,000 crore, were surrendered by the ONGC and Oil India after being deemed non-renumerative, he said.

• In March 2016, the Cabinet approved HELP which replaced the existing New Exploration Licensing Policy and introduced significant reforms in the sector.

• The main changes made to the previous policy include a uniform policy for the exploration and production of all hydrocarbons, both conventional (oil and gas) and unconventional (shale oil, shale gas and coal bed methane).

• “The contracts would not allow the production of unconventional hydrocarbons because they were meant only for conventional sources. “The new policy does away with this distinction.”

• The second major change had to do with the time period of exploration.

:: Sports ::

India enters final of Asian snooker championship

• Pankaj Advani and Aditya Mehta combined to power India into the final of the Asian snooker team championship in Abu Dhabi thrashing Pakistan 3-0.

• India will take on Iran in the final.Mehta gave India a grand start, drubbing Mohammed Asif 73-16.

• Advani, recently-crowned continental 6-Red champion, outclassed Asjad Iqbal 83-25 and joined hands with Mehta to trounce Asif and Asjad 92-8.

• Meanwhile, Iran defeated Malaysia 3-0 margin in the other semifinal.Earlier, India had defeated the UAE 3-0.

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