(General Awareness For Bank's Exams) National Events

January - 2014

Amendment of Article 371(D) is needed for bifurcation of Andhra Pradesh

The Union Law Ministry on 14 November 2013 told to the Group of Ministers (GoM) about the necessity of amendment of Article 371 (D) of the Constitution of India for bifurcation of Andhra Pradesh. The Article 371D of Constitution of India writes Special provisions with respect to the State of Andhra Pradesh. Twothird majority of Parliament will be needed for the passage of the constitution Amendment Bill, which will be the biggest political inference in passage. The GoM will seek the advice of Goolam Vahanvati, the Attorney General before they proceed with the Bill. As they want to enquire that a single bill on bifurcation is sufficient or a separate
bill will be required to be amendment.

RBI buying dollars in spot market & selling it in forward market to stabilise rupee

• The Reserve Bank of India, under Governor Raghuram Rajan, seems to have changed its strategy when it comes to defending the fragile rupee and managing liquidity.

• The central bank, which earlier used to sell dollars in the local markets, is now increasingly buying the US currency in the spot market and selling it in the forward market. The revised strategy seems to be having a bearing on the non-deliverable forwards, or NDF, market.

• The move, experts say, is aimed at not only stabilising the local currency but also managing liquidity, as there was a surge in inflows after banks were allowed to swap Foreign Currency (Non-Resident) Accounts (Banks), or FCNR (B), proceeds for a premium.

Sebi tightens norms

• Tightening norms for issue of participatory notes (P-Notes) by overseas investors, Sebi has barred "unregulated" foreign funds from dealing in offshore derivative instruments even if their investment managers are appropriately regulated by their concerned regulators.

• The guidelines, which are part of the newly notified Foreign Portfolio Investor (FPI) Regulations, have come into force with immediate effect. They provide for stricter oversight of P-Notes, the preferred route for overseas high net worth individuals (HNIs) and hedge funds for investing in the Indian market.

• Earlier, according to the draft regulations by the Securities and Exchange Board of India, it had been proposed that only 'Category-III,' or high-risk foreign investors, would be barred from issuing P-Notes.

• However, the gazette notification that brought the FPI guidelines into force also prohibits certain entities under 'Category-II,' or medium-risk investors, from issuing P-Notes.

• P-Notes, or offshore derivative instruments, are mostly used by overseas HNIs, hedge funds and other foreign institutions to invest in Indian markets through registered foreign institutional investors (FIIs), while saving on time and costs associated with direct registrations.

• The new FPI regime has classified foreign investors into three groups based on their risk profile and would eventually replace existing categories such as FIIs, their sub-accounts and qualified foreign investors.

• Category-I FPIs, entities with the lowest risk, would include foreign governments and government-related foreign investors.

• Category-II FPIs would include appropriately regulated broad-based funds, university funds, university-related endowments and pension funds, among others.

• Category-III FPIs would include all others not eligible under the first two categories.

Land transfer for Dr B. R.Ambedkar Memorial approved

Union Cabinet on 25 November 2013 approved a proposal to transfer Indu Mill land in Mumbai to Maharashtra government for constructing Dr B R Ambedkar memorial. The decision was taken in the meeting of the Cabinet chaired by the Prime Minister Dr Manmohan Singh. It would empower the Centre to acquire certain area of the Mill belonging to National Textile Corporation Limited in Mumbai for facilitation of construction of the memorial. Over 48000 square metres of land will be acquired for the purpose. According to the cabinet note, NTCL will be paid 45.77 crore rupees for the land. In this regard, Dr. B R Ambedkar Memorial Bill, 2013 is likely to be introduced in Parliament in the winter session beginning on 5 December 2013. The legislation is aimed at empowering the Central government to acquire a portion of the land belonging to the National Textile Corporation Limited (NTCL) for facilitation of the construction of a memorial for Ambedkar. The ashes of Dr Ambedkar are interred at Chaitya Bhoomi, which is situated in the vicinity of the Indu Mill.

India's growth will be over 6% in 2014-15: World Bank

• The World Bank has projected India's economy will grow over 6 per cent in 2014-15 and 7.1 per cent by 2016-17 as global demand recovers and domestic investment increases.

• In China, growth is estimated to stay flat in 2014 at 7.7 per cent, slowing to 7.5 per cent for the next two years, reflecting deleveraging and less reliance on policy-induced investment.

• Global GDP growth may firm up to 3.2 per cent this year from 2.4 per cent in 2013, stabilising at 3.4 per cent and 3.5 per cent in 2015 and 2016, respectively, the World Bank said in its Global Economic Prospects (GEP) report released

India declared itself free from Bird Flu

India on 12 November 2013 declared itself free from Notifiable Avian Influenza (H5N1), commonly called bird flu and notified the same to World Organisation for Animal Health (OIE). India notified the outbreak of the Avian Influenza (H5N1) at poultry production unit, College of Veterinary Sciences and Animal Husbandry, Anjora, Durg and Government Poultry Farm, Jagdalpur, Chhattisgarh on 05th August, 2013. The control measures adopted in the outbreak was taken in form of stamping of the entire poultry population and it included the destruction of eggs, litters, feed and other infected materials within the radius of one kilometer around the
location of the outbreak, restriction of the poultry movement, disinfection and cleaning up of the infected premises and subsequently issuing of the Post Operation Surveillance Plan (POSP). On 12 August 2013 the POSP was issued. Although India is free from the bird flu, but regular surveillance will be continued across the country especially in the vulnerable areas that is bordered by the infected countries and in areas which are visited by migratory birds.

RBI reference rate

• The Reserve Bank of India fixed the reference rate of rupee against U.S. dollar at 61.3518 and the euro at 83.5223 as against 61.5325 and 83.8395.

• In a press release issued by RBI, the exchange rates for the pound and yen against the rupee were quoted at 100.2120 and 58.78 per 100 yen, based on reference rates for the dollar and cross-currency quotes at noon.

• The reference rate is based on the noon rates of select banks here and the SDR-Rupee rate would be based on this rate.

Bharat Ratna for Tendulkar on Feb 4

• Sachin Tendulkar will be conferred with the Bharat Ratna on February 4 at the Rashtrapati Bhavan in New Delhi by President Pranab Mukherjee.

• Tendulkar, who retired from international cricket on November 16 after an illustrious career spanning 24 years, is also a Member of Parliament in the Upper House. The Rashtrapati Bhawan announced the award for Tendulkar on the day he retired, making him the first sportsman get the honour.

• Tendulkar, who called it a day after his historic 200th Test match will receive the award along with eminent scientist Professor CNR Rao. Many believed hockey legend Dhyanchand should have got the Bharat Ratna ahead of any other sportsman but when Tendulkar's name was announced, few disagreed on the historic nomination.

• The last recipient of the Bharat Ratna was legendary musician Bhimsen Joshi back in 2009.

FDI in high-speed trains, other projects

• The government is likely to allow Foreign Direct Investment in high-speed trains and other projects including development of rail lines between project sites and existing network.

• Besides, proposing 100 per cent FDI through automatic route in the cash-starved railway sector, the Department of Industrial Policy and Promotion (DIPP) has also proposed to de-licence and de-reserve few areas of the sector.

• However, FDI will not be allowed in train operations and safety. At present, there is a complete ban on any kind of foreign direct investment (FDI) in the railways sector except mass rapid transport systems.

• According to the proposal, foreign investment would also be allowed in suburban corridor, high speed train systems and dedicated freight line projects implemented in PPP mode.

• It has also suggested widening the definition of ‘infrastructure’ by including railway line and railway sidings.

• As per the proposal, foreign companies would be allowed to pick up 100 per cent stake in the special purpose vehicle (SPV) that will construct and maintain rail lines connecting ports, mines and industrial hubs with the existing rail network.

• First-to-last mile connectivity would mean smooth movement of raw materials from mines to ports.

• The move will help in attracting more and more FDI besides development of infrastructure for industrial purposes.

• Indian Railways has been facing a cash problem. Industrial development and exports have been suffering on account of poor infrastructure which hampers output and raises the cost of production.

• Welcoming the development, experts said the government should come out with clear rules for Public-Private-Partnership (PPP) projects.

Sebi’s focus areas for 2014

• Looking to safeguard the interest of small investors and overall market place, Sebi has identified a greater oversight mechanism on insider trading and a stronger risk management framework as among key focus areas for 2014.

• Sebi is currently in the process of overhauling its nearly two decade old insider trading norms, pursuant to which those indulging in unlawful insider trading activities would be dealt with severely.

• Many new categories of persons, including public servants, regulatory officials, judiciary and government officials dealing with unpublished price-sensitive information are being brought under the purview of insider trading.

• At the same time, new norms would also seek to clearly differentiate between 'innocent mistakes' and genuine transactions of company executives from the unlawful and serious trading offences.

• Often, comparisons have been made between regulatory action against insider trading in India and the US, where some high-profile cases including that of former banker Rajat Gupta has come to light in recent months.

MoU between Sports Ministry & Department of AIDS Control

The Union Ministry of Youth Affairs and Sports on 29 November 2013 signed a Memorandum of Understanding (MoU) with Department of AIDS Control. The MoU was signed between Secretary, Department of Sports Ajit M Saran, and Secretary, Department of AIDS Control, Lov Verma, in New Delhi. The MoU’s objective is to “reach a large number of youth engaged in sports activities” at village, district and state level with information on STI/HIV/AIDS prevention and related services. Other objectives included building the capacity of sports educators, administrators and coaches on “Minimizing the risk of HIV transmission on and outside the sports field, involve youth organisation, sports federations in HIV/AIDS prevention activities, promote awareness generation through hoarding and banners at eminent places and sports infrastructure during state/national events and tournaments, and involve eminent sports personalities for addressing social stigma and discrimination associated with HIV/AIDS. For fulfillment of objectives of MOU, the Department of Sports would issue directives to Sports Authority of India (SAI), National Anti Doping Agency (NADA), Lakshmibai National University of Physical Education (LNUPE), National Sports Federations (NSFs) and other sports bodies for creating awareness. The Department of AIDS Control provide technical support in capacity building on HIV/AIDS for sportspersons, trainees and staff of sports organisations and federations, by sharing of Information Education and Communication (IEC) materials for awareness generation activities.

RBI to ease liquidity

• The Reserve Bank of India (RBI) has decided to ease the liquidity conditions by purchasing Rs 10,000 crore of government securities under Open Market Operations (OMOs) on January 22. This would be the first OMO auction since the last two months.

• Lately, the liquidity conditions had tightened in absence of government spending. For current financial year, the government aims to contain fiscal deficit at 4.8% as strongly emphasized by the finance minister, P Chidambaram, recently. This may lead to cuts in planned expenditure as was the case last financial year when the government managed to keep fiscal deficit was at 4.9% of gross domestic product.

• According to RBI, there has been a build-up of government’s cash balances which may not be utilized in order to meet the fiscal deficit target for this financial year too. This would, in turn, impact credit growth.

• The government’s cash balance with RBI shot up to around Rs 51,000 crore in December owing to advance tax collections. The central bank has been conducting 7-days, 14-days and 28-days term repo auctions in order to address the liquidity crunch.

• The central bank has projected credit growth of 15% and deposit growth of 14% for the current financial year. So far, banks have been able to clock 9.4% of growth in advances and 11.1% in deposits since the start of this financial year.

• Liberalising the export-import payment norms, the Reserve Bank has extended the time limit to complete such transactions to nine months from six months earlier.

National Portal on Maulana Abul Kalam Azad launched

Union Minister of Minority Affairs K Rahman Khan on 11 November 2013 launched a National Portal on Maulana Abul Kalam Azad. The portal was inaugurated to mark 125th birth anniversary of the great national
leader- Maulana Abul Kalam Azad. Maulana Abul Kalam Azad, (11 November 1888 – 22 February 1958) was a scholar and a great Indian freedom fighter, an eminent educationist and the first Education Minister of India. He was one of the greatest national leaders of his time in the cause of Hindu Muslim unity as well as secularism and socialism.

China grows 7.7 per cent in 2013

• China's economy grew 7.7 per cent in 2013, the lowest in 14 years, with tapering growth in the last quarter underlining the challenges faced by the world's second-largest economy as it grapples with rebalancing and reviving a slowing down economy.

• This marks the slowest growth since 1999, when China grew 7.6 per cent. The previous decade saw record double-digit growth, with the country defying the global slowdown to grow 10.4 per cent in 2010 as it unveiled a massive $ 586 billion stimulus.

• Growth slowed in the fourth quarter to 7.7 per cent, down from 7.8 per cent in the previous quarter. This brought annual growth to 7.7 per cent, down from last year's 7.8 per cent.

• Ma Jiantang, head of the National Bureau of Statistics (NBS), attributed the slower growth to a “complex and severe situation” at home and abroad, as he announced last year's data.

• Data showed the government had made modest progress in its goal of transforming the State-led investment model and boosting domestic consumption, services and innovation industries.

MCX-SX starts Interest Rate Futures

• The MCX Stock Exchange (MCX-SX), on Monday, started live trading in cash-settled Interest Rate Futures (IRF) in its Currency Derivatives Segment, which witnessed a turnover of Rs.928.39 crore.

• “Among the first to trade on the product were IDBI Bank and ICICI Securities Primary Dealership Ltd from the institutional side and the East India Securities Ltd from the intermediary side.

• The product witnessed turnover of Rs.928.39 crore on the exchange, with total traded volume at 45,642 lots. At the end of trading day, the Open Interest (OI) position stood at 10,690 lots,” MCX-SX said in a release.

About the National Portal

This portal is an initiative to digitise the heritage of the Maulana Abul Kalam Azad, and make his life and legacy available online. Along with a biographical account on Maulana Azad, the portal contains titles and information on over 20 books written by Maulana Azad, in Urdu and English, as well as information on over 45 books written on Maulana Azad in Urdu, Hindi and English. Portal also contains over 60 photographs some of which are with contemporaries like Pandit Jawaharlal Nehru, Mahatma Gandhi, C Rajagopalachari amongst others. The portal also has excerpts of rare writings by Maulana Azad – his address on the Mahatma’s Birthday on All India Radio, his message on the day that marked the anniversary of the JallianwalaBagh massacre, his insights on the history of philosophy – to name a few. Additionally, the portal enlists the institutions, scholarships and other initiatives named after the leader. The portal is a collaborative effort by the Union ministry of minority affairs, the Office of Advisor to the Prime Minister, the National Commission for Minorities, the Ministry of Culture). The national portal www.maulanaazadheritage.org a one stop point collating all knowledge and resources available on Maulana Azad, is now available to the public.

India's average economic growth 7.7 %

• A report card titled '10 Years of Progress and Growth' highlighting achievements of the government led by Prime Minister Manmohan Singh said that average GDP growth rate during the period of UPA government (2004-05 to 2013-14) has been 7.7 per cent despite two global slowdown in this period.

• India's average economic growth rose to 7.7 per cent in the 10-year regime of the UPA government as compared to 6.2 per cent recorded in the previous decade, report says.

• Agriculture growth rate has been rising consistently and the sector expanded by 2.5 per cent and 3.7 per cent during the 10th and 11th Five Year Plans, respectively, and expected to touch 4 per cent in the ongoing 12th Plan period.

• It further said the country's GDP at the current price has increased almost three times to Rs 100.28 lakh crore during the last nine years from Rs 32.42 lakh crore in 2004-05.

• Similarly, per capita income has risen almost three-fold during the period. The per capita income has gone up to Rs 68,747 in 2012 from Rs 24,143 in 2004, the report card said.

• Referring to large projects, it said the UPA government has expedited and cleared as many 293 projects involving investment of Rs 5.7 lakh crore in 2013.

• It said that in the last two years, 80,000 micro enterprises have been supported by Prime Minister's Employment Generation Programme, creating job opportunities for 9.23 lakh people.

Higher Base Price for upcoming Spectrum Auction

The Empowered Group of Ministers (EGoM) on 22 November 2013 approved hiking by up to 25 per cent the reserve or start price for the auction of mobile phone spectrum in January 2014. An Empowered Group of Ministers (EGoM) on Telcom headed b y Defence Minister A K Antony agreed with the recommendation of the Telecom Commission to better regulator TRAI’s suggested reserve or base price for the auction of spectrum in the 1800 MHz and 900 MHz bands used by GSM operators such as Bharti Airtel and Vodafone. The EGoM also asked the Telecom Regulatory Authority of India (TRAI) to suggest a base price for the 800 MHz spectrum, which is used by CDMA operators such as Sistema. TRAI had not recommended a reserve price for the 800 MHz band, saying there was no need to auctionthese airwaves now. The Telecom Commission had earlier this month  (Nov 2013) suggested fixing a minimum 1765 crore Rupees per MHz as the price for pan-India spectrum in the 1800 MHz band, 15 per cent higher than the TRAI’s suggested rate of 1496 crore Rupees.

ATM transactions

• While India Banks’ Association (IBA) is voicing solidarity over raising ATM service fees post Bengaluru ATM assault case, Finance Ministry is of different opinion. Secretary, Financial Service, said that he would like ATM services to be free’.

• Interestingly, ever since the proposal was raised, no bank has officially approached the government for approval to raise ATM fees. The Reserve Bank of India (RBI) is the final authority to take the call on the matter.

• Presently, banks charge no fees for ATM service to their own respective customers. Also, RBI has regulated that in a month a bank customer may avail ATM service including cash withdrawal and balance inquiry from any other bank for free.

• Thus, with RBI and now Finance Ministry both voicing their non-conformity with the proposed move of IBA, customers may breathe a sigh of relief. Chances of levying ATM fee by banks on their customers are lowered with high authorities sounding against it.

Diaspora data bank

• The Kerala government will prepare a data bank of the Malayali diaspora to provide details of their qualifications and expertise.

• The budget proposals have allocated Rs.6 million for advertisements in the print and electronic media here to create awareness among those who aspire to go abroad for jobs.

• Rs.1 billion will be set aside for a rehabilitation package for the returning diaspora and another Rs.2.5 million for conducting investor seminars and for promotion of Kerala culture in the US and Europe.

India’s 1st Synthetic Rubber Plant in Panipat

Union Petroleum Minister Veerappa Moily on 29 November 2013 inaugurated the first “Synthetic Rubber Plant” of the country at Panipat in Haryana. The country’s first e-SBR (styrene butadiene rubber) unit was set
up by Indian Synthetic Rubber Ltd (ISRL), a joint venture promoted by Indian Oil, TSRC Corporation, Taiwan, and Marubeni Corporation, Japan. The plant will produce 120 kilo tonnes synthetic rubber annually, which would be used in industrial units for manufacturing automobile and daily need products. It is planned to increase the capacity of the plant to 220 KT in next two years. The project, which is estimated to cost 958 crore rupees, has been funded through debt raised from Japan Bank for International Cooperation and Mizuho Corporation Bank. Technology for the manufacturing unit is being provided by TSRC Corporation.

Raj Jain: new CEO of Bharti Retail

• Former Walmart India president Raj Jain will be heading the retail operations of Bharti Enterprises.

• Bharti Retail had roped in Jain as its group advisor after the company split with world’s top retailer Walmart last year, but the company appointed him as the CEO.

• Jain will report to Rajan Bharti Mittal, vice-chairman and managing director, Bharti Enterprises.

• In fact, Jain will not be the first former Walmart India official to join Bharti Group.

Evidence of Slowdown in China’s Economy

• China’s economy showed clear signs of a slowdown in December, with business surveys across both manufacturing and services sectors weakening together for the first time in months.

• Four purchasing managers’ indexes—two compiled by the government and two by HSBC Holdings PLC—all dropped last month, the first time that has happened since April. The HSBC Services PMI,, fell to 50.9 for December, compared with 52.5 the month before. A figure above 50 indicates expansion, while below that level indicates contraction.

• HSBC’s privately collected manufacturing and services PMIs compete for the attention of markets with the government’s official measures. The PMIs are based on responses from thousands of companies about changes in business conditions. Taken together, the indexes suggest a softening of China’s economy.

• China looks set for gross domestic product growth of about 7.6% in the final quarter of 2013, down from 7.8% in the third, economists say. That slowdown partly reflects tightening credit conditions as China’s central bank tries to bring a rapidly growing debt pile under control.

• The seven-day repo rate, a benchmark of banks’ funding costs, reached 8.9% in December, its highest level in six months. With banks struggling to find liquidity, they are reluctant to extend credit to customers.

• All four PMIs remained in narrowly positive territory for December, indicating that expansion continues, albeit at a slow pace. But that masks difficulties for individual companies in some sectors. Conditions are worsening for small and medium-size businesses, according to the official manufacturing PMI. The subindex for large companies, which has performed best in recent months, also fell in December, though it remains above the 50 mark that separates growth from contraction.

• The data show manufacturers cut back stocks of both raw materials and finished goods, suggesting they are expecting weaker sales ahead.

Dual Cab Freight Diesel Locomotive Vijay Flagged Off

The Minister of Railways Mallikarjun Kharge flagged off the first ever Dual Cab 4500 HP Freight Diesel locomotive called Vijay from Diesel Locomotive Works (DLW), Varanasi, a production unit of Indian Railways, on 6 November 2013. At the same time, the Minister announced to stop the Swatantrata Senani Express at Bhulanpur Railway Station, Sub-way at DLW administration. It is important to note that the DLW has not only increased its production in large but also developed latest state-of-the-art technologies. Building of this WDG4D High Horse Power freight locomotive is a breakthrough for DLW as well as for the Indian Railways.

New regulation for PAN card

• The government has tightened security measures to issue new permanent account number (PAN) card effective from 3 February 2014. The new regulations have been issued in the wake of growing number of fake cases of the 10 digit alphanumeric identity proof.

• It will be much more difficult to get a PAN card now. According to a statement issued by Finance Ministry, for PAN application, a person will have to produce original documents of date of birth and address proof to verify copy of documents submitted. The original documents will be returned to the individual post verification.

• Earlier, an individual was not required to produce original documents corroborating the copies of identity proofs submitted. PAN was launched to estimate total tax generation. An individual can obtain a PAN card by paying a fee of Rs. 85 and service tax at the facilitation centre.

• Lately, a consumer activist group revealed misuse of PANs for passenger reservation in Indian Railways under tatkal scheme. Also, it was brought to light that some jewelers did not furnish information about buyers who did not produce PAN card while buying bullion, thus both parties evaded tax payment.

• There was a time when PAN was almost insignificant and was required only to file income tax returns. However, now PAN is necessary for almost every transaction, i.e. while buying precious metals, property, vehicles and even in stock market.

FDI in e-commerce

• Expediting its efforts to further relax foreign direct investment (FDI) policy regime, the government has circulated discussion paper on FDI in e-commerce among stakeholders, aiming to usher in the reform before the Lok Sabha elections.

• While debating as to whether FDI in e-commerce should be allowed at all, the discussion paper has sought views on the FDI cap in the sector and listed out the merits and demerits of the move.

• Presenting both 51 per cent or 100 per cent cap scenario on the FDI in the sector, the paper has raised sticky questions including whether the "existing retail stores get displaced due to e-commerce".

• At present, 100 per cent FDI is allowed in business-to-business e-commerce, while business-to-consumer is prohibited.

• The government allowed 51 per cent FDI in the multi-brand retail trading (MBRT) in September 2012, with riders including mandatory investment of a minimum 50 per cent towards back-end infrastructure and compulsory 30 per cent sourcing from SMEs.

• Another important issue raised in the paper is geographical restriction for e-commerce, as applicable in the FDI policy for MBRT. According to the policy for MBRT, states have been empowered to take decision on notification of towns and cities with population of more than 10 lakh as per 2011 census.

• At present, 12 states including Andhra Pradesh, Assam, Delhi, Haryana, J&K, Maharashtra, Manipur, Rajasthan, and Uttarakhand allow FDI in multi-brand retail stores.

Highlights of the Dual Cab 4500 HP Freight Diesel locomotive- Vijay

• Vijay, the dual cab freight WDG4D is a trailblazer.

• It is the first dual cab diesel electric freight locomotive to be built by Indian Railways.

• The locomotive has been designed on a 21.7 metre platform to accommodate two cabs and this is about two meters longer than the single cab version.

• The cabs have full width front view.

• Besides the obvious visibility advantages, the locomotive also has several features for crew comfort.

• Vijay has been provided with air conditioned cabs. The AC unit is designed to heat up the cab during winters while cooling it during summers, thus maintaining a comfortable ambient for efficient working.

• The loco also has TFT screen based integrated driver display. This feature which is similar to the one used in the aero planes allows the operating parameters to be displayed on a single screen.

• The system also provides alarm levels for the ease of the crew.

• The display system naturally assists the crew through fault diagnostics. The system reduces eye fatigue, improves reliability and improves crew response.

• The locomotive has been provided with an ergonomically designed control stand and seat. The seat is based on the excavator design (which needs 360 deg view and operability) has been provided with movement on three axis for operational flexibility.

• The locomotive has also been provided with airplane type task light and automotive type auto wash wipers.

• Vijay has been built around the 4500HP 710 G3B engine with inverter controlled three phase traction motor drive.

• The inverter control uses the state of the art IGBT technology. This is the technology being used worldwide by the leading manufacturers i.e. GE, ABB, Alsthom etc.

• The locomotive is provided with the latest Computerised Control Brake system which is the world standard. The brake system uses the latest in the electronics and communication to improve response times and to improve reliability.

• The locomotive has been designed to implement the Indian Railways’ efforts at increasing the speed of loaded trains to 100kmph. It can run at 105 kmph and can be used to haul passenger trains in emergencies.

• The cost of the locomotive is approximately 14.7 crore Rupees as compared to 14.38 crore Rupees for the single cab version.

VVPATS to be used on largescale for 1st time

Election Commission decided to use Voter-Verified Paper Audit Trail (VVPAT) on a largescale for the first time in the country in the Mizoram Assembly polls on 25 November 2013. The VVPAT is a machine attached to EVMS which allows voters to verify that their vote has been cast in the way they wished. As soon as the voter casts his vote, the VVPAT will show a small slip in a glass covered screen with the symbol and the candidate he has voted for in a form of a small ballot paper, which after 3 to 4 seconds would automatically fall into an attached closed box. The VVPATs are being used in only ten assembly constituencies of Aizwal District of
the total 40 assembly segments in Mizoram. The VVPAT system was first experimented in the Noksen Assembly bypoll in Nagaland on 4 September 2013 and Mizoram would be the first state where it would be introduced on a large scale.

RBI panel

• A committee on comprehensive financial services for small businesses and low-income households, set up by the Reserve Bank of India (RBI), has suggested that each low-income household and small business should be provided with convenient access to formally regulated lenders who have the ability to assess and meet their credit needs and offer a full-range of suitable credit products at an affordable price.

• The committee, headed by Nachiket Mor, Central Board Member of the RBI, submitted its report and has set January 1, 2016, as the deadline for achieving this.

• By that date, each district and every significant sector (and sub-sector) of the economy would have a credit to GDP ratio of at least 10 per cent. This ratio would increase every year by 10 per cent.

• The committee was hopeful that by January 1, 2016, each district would have a total deposits and investments to GDP ratio of at least 15 per cent.

• On priority sector, the committee recommended adjusted priority sector lending target of 50 per cent against the current requirement of 40 per cent with sectoral and regional weightage based on the level of difficulty in lending. It also recommended risks and liquidity transfers through markets. ``In view of the fact that banks may choose to focus their priority sector strategies on different customer segments and asset classes,’’ the committee recommended the regulator to provide specific guidance on differential provisioning norms at the level of each asset class.

Voter Verifiable Paper Audit Trail System (VVPAT)

1. The VVPAT system is a new initiative of the Election Commission to ensure free and fair elections.

2. The VVPT will enable electors to see a printout of their ballot - displaying the name, election symbol and serial number of the chosen candidate. However the voter cannot take the  printout home.

3. In case there is a dispute about the voting and a petition is filed, the votes can be tallied electronically and physically with the ballot slips that fall into the compartment.

4. The cost of each VVPAT, manufactured by Bharat  Electronic Ltd and Electronics Corporation of India (ECIL) is estimated at about 12000 rupees.

5. At present, EVMs are used for voting and counting is based on the results in the machines. In comparison the VVPAT will print a voter’s selection, thus also allowing for physically verification of the vote.

Election Commission of India with an objective of free and fair polls,  the VVPAT System is introduced. This new voting system is a step towards winning the public trust in election process. VVPAT system will also help to resolve the election disputes by providing physical verification of the votes in EVMs. For introducing VVPAT systems throughout the country would cost around 2000 to 3000 crore rupees.

SC directed to Fix the tenure of bureaucrats

The Supreme Court of India on 31 October 2013 directed the Government of India and the States to pass order within three months on giving the fixed tenure to civil servants. The Supreme Court has also directed to constitute a Civil Services Board at nation and state levels for management of the transfers, posting, reward, inquiries and process of promotion, punishment and disciplinary matters of bureaucracy. The decisions were taken to bring bureaucracy out from political interference and to give end to regular transfers of the civil servants from political executive. The Supreme Court bench headed by Justice K S Radhakrishnan said that the fixed tenure of the bureaucrats would help to promote the professionalism, efficiency and good governance. The Parliament has been also directed by the Supreme Court to enact a law to regulate transfer, posting and disciplinary action on the IAS officers and to  immunize them from political interference.

As the Supreme Court held that the condition of bureaucracy is deteriorated due to the interference from the political people. The court also said that the civil servants should not act on the verbal orders given by the political executives and all the  actions taken by the political executives on the basis of written communication. The Court directed on a petition submitted by 83 former civil servants, like former cabinet secretary T S R Subramanian, former Indian ambassador to the US Abid Hussain, former chief election commissioner, N Gopalaswami and others, demanding reforms to ensure bureaucracy to get them out from the political influences.

RBI hikes repo rate and keeps CRR unchanged

• In an unexpected move, the Reserve Bank of India RBI raised the repo rate---its key lending rate—by 0.25 percentage points to 8%, raising fears of yet another rise in home loan EMIs.

• The surprise hike in the benchmark lending rate came in despite lower inflation rates in December. The central bank cut its growth forecast to less than 5% for 2013-14, but placed its bets firmly on the turnaround in the broader economy in the next financial year.

• The central bank, however, made it clear that any action on interest rate movements will be determined by future price data.

• Equity markets reacted sharply with the benchmark Sensex falling by over 100 points shortly after the RBI’s rate hike announcement.

• Higher borrowing costs will likely hit consumers squeezed by high prices, flat salary hikes and costly mortgage financing rates.

• The RBI’s latest move, however, will likely draw strong reactions from business leaders who have been clamouring for an interest rate cut arguing that costly borrowing and high raw material costs have crimped expansion and hiring plans.

• India’s wholesale inflation rate eased to a five-month low of 6.16% in December on plunging vegetable prices, giving some reason to smile for the UPA government battling to help the economy fight through a period of low growth and high prices ahead of national elections.

Committee to Deal with Sexual Harassment Complaints

The Supreme Court of India on 26 November 2013 constituted a tenmember Gender Sensitisation and Internal Complaints Committee (GSICC) to deal with complaints of sexual harassment within its premises. The committee was constituted by the Chief Justice of India P. Sathasivam. The committee is headed by Justice Ranjana Prakash Desai.

The committee has six other female members. Two members are outsiders and not connected with the Supreme Court. The panel is in consonance with the guidelines laid down by the apex court in its judgment in the Vishaka case for dealing with complaints of sexual harrassment at the workplace.

New Delhi to host 12th Edition of Pravasi Bharatiya Divas 2014

The 12th edition of Pravasi Bhartiya Divas will be held in New Delhi from 7th to 9th of January 2014. This was announced by Vayalar Ravi, Minister for Overseas Indian Affairs on 5 Novemeber 2013 in New Delhi.
The theme of the convention is - Engaging Diaspora - Connecting across Generationswith a special focus on the younger generation. Prime Minister Dr Manmohan Singh will inaugurate the convention and President Pranab
Mukherjee will give his valedictory address. Pravasi Bharatiya Samman will also be bestowed on 15 persons during the convention. The PBD Convention provides a unique of India showcases investment opportunities in India and its potential in various sectors. The 11th edition of Pravasi Bharatiya Divas (PBD) was held at Kochi, Kerala from 7th to 9thof January 2013.About Pravasi Bharatiya Divas Pravasi Bharatiya Divas (PBD) is
celebrated on 9th January every year to mark the contribution of Overseas Indian community in the development of India. January 9 was chosen as the day to celebrate this occasion since it was on this day in 1915 that Mahatma Gandhi the greatest Pravasi, returned to India from South Africa, led India’s freedom struggle and changed the lives of Indians forever. PBD conventions are being held every year since 2003. These conventions provide a platform to the overseas Indian community to engage with the government and people of the land of their ancestors for mutually beneficial activities. These conventions are also very useful in networking among the overseas Indian community residing in various parts of the world and enable them to share their experiences in various fields.

During the event, individuals of exceptional merit are honoured with the prestigious Pravasi Bharatiya Samman Award to appreciate their role in India’s growth. The event also provides a forum for discussing key issues concerning the Indian Diaspora.

Rapid Metro-India’s First Private Metro service

Rapid Metro-India’s First Private Metro service started operation from Gurgaon, Haryana on 14 November 2013. Rapid Metro is India’s first fully privately financed Metro system connecting NH-8 to Delhi Metro via
Cyber City, Gurgaon. Rapid Metro, with an elevated route and six stations with a frequency of every four minutes, can carry 800 passengers in each trip. The 5.1 km long route covers six stations-Sikanderpur, Phase-2,
Belvedere Towers, Cyber City, Moulsari Avenue and Phase 3. The Rapid Metro is using a common ticketing system with Delhi Metro. The launch of Rapid Metro Gurgaon will boost connectivity within Cyber City, which is the corporate and the retail hub of Gurgaon -nearly one lakh people work or visit the hub each day.

About Rapid Metro Rail System

Rapid Metro is a metro rail system in the Indian city of Gurgaon, Haryana, linked with the Delhi Metro system’s Yellow Line. Built and operated by Rapid MetroRail Gurgaon Limited (RMGL), the system is India’s first fully privately financed metro. It was built at a cost of 1100 crore rupees and construction was completed in 30 months. Originally planned to open in 2012, the first phase of the system opened on 14 November 2013.
The Haryana Urban Development Authority (HUDA) provided the land and the infrastructure was built by Rapid Metro, a partnership between IL&FS and construction major DLF. The project has been leased to Rapid
Metro for 99 years.

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