Current Affairs Update - 20 Dec, 2014

• Despite the sprouting of green shoots, a robust recovery is still to fully take hold, says the Mid-Year Economic Analysis for the current year, tabled in Parliament by Union Finance Minister Arun Jaitley.
• The Review projects 2014-15 growth will be 5.5 per cent. India faces challenges that are mostly domestic, says the Review.
• India grew at sub-5 per cent for the last two years. Growth bounced to 5.7 per cent in the April-June quarter before slipping again to 5.3 per cent in the July-September quarter.
• We see some signs of private consumption stirring, Chief Economic Advisor (CEA) Arvind Subramanian told reporters after the Review was tabled.

• E-commerce major Flipkart on Saturday announced filing application with Singapore based companies’ regulator ACRA to become a public company after raising USD 700 million for long term strategic investments in India following which its number of investors exceeded 50.
• “Flipkart Limited (incorporated at Singapore) has filed with ACRA Singapore for conversion to a Public Company. This is a mandatory procedure for all companies where the number of shareholders exceeds 50,” Flipkart said in a statement.
• The USD 700 million fund raised by Flipkart added new investors — Baillie Gifford, Greenoaks Capital, Steadview Capital, T. Rowe Price Associates and Qatar Investment Authority — on company’s board.
• Its existing investors DST Global, GIC, ICONIQ Capital and Tiger Global also participated in this latest financing round.

• The Foreign Investment Promotion Board has cleared HDFC Bank's proposal to raise Rs 10,000 crore, ending months of struggle by India's most valuable bank by market cap to enhance its capital base.
• Shareholders in May this year allowed the lender to raise Rs 10,000 crore through routes that may include public or private placement as well as domestic or international markets.
• RBI, Department of Industrial Policy & Promotion and Department of Economic Affairs all said parent HDFC's 22.5% stake in the bank was foreign investment under latest policy. According to a 2009 FDI policy guideline, any investment by a company in which foreign investors have majority ownership or control is considered foreign investment.
• HDFC has more than 50% foreign investment and that qualifies it as a foreign-owned company. Total foreign investment in HDFC Bank was estimated at 73.2% at the end of September 2014. Subsequently, HDFC Bank sought fresh approval to increase the foreign investment limit to 74%. FIPB okayed that proposal in November.

• Asian Development Bank (ADB) has granted a whopping Rs. 6,000 crore soft loan for strengthening and building road network in Madhya Pradesh, state public works department minister said here today.
• Singh said that roads under limits of big cities would be transferred to municipal corporations for construction and maintenance work.
• Currently, half of the roads in big cities come under the PWD department while remaining under the civic body, which has often led to ambiguity over maintenance work, he added.
• He said that four cases of bridge collapse have been reported in last 12 months in the state.
• Inquiries have been ordered and the guilty will be punished, he added.
• Singh said the Central government had allotted Rs. 206 crore to his department last year and they are anticipating a Rs. 300 crore grant against their demand of Rs. 450 crore in the current fiscal.
• He said that 3,086 km of new roads have been laid against the target of 2,500 kms in the current calendar year, adding, similarly 39 big bridges have been built against the target of 38 in the state.

• India's Defence Research and Development Organisation (DRDO) on 19 December 2014 successfully tested an indigenously built 1000 kg glide bomb. The bomb had successfully hit a target 100 km away in the Bay of Bengal off the Odisha coast.
• The bomb was dropped by an Indian Air Force (IAF) aircraft in the ocean. It glided for nearly 100 km before hitting the target with great precision. The bomb was guided by an on-board navigation system.
• The flight of the glide bomb was monitored by radars and electro-optic systems stationed at Integrated Test Range (ITR) at Chandipur in Odisha’s Balasore district, about 230 km from Bhubaneswar.

• The glide bomb was designed and developed by Defence Research and Development Organisation (DRDO).
• Multiple DRDO laboratories including Avionics Research Establishment (DARE), Pune-based Armament Research and Development Establishment (ARDE) and Terminal Ballistics Research Laboratory (TBRL) have contributed towards development of the glide bomb.
• The complete avionics package and navigation system for the testing of bomb was designed and developed by Research Centre Imarat (RCI).

• Union Government introduced the Constitution (122nd Amendment) Bill, 2014 in the Lok Sabha on 19 December 2014. The introduction of this Bill will facilitate the introduction of the Goods and Services Tax (GST) regime in India.
• The 122nd Constitution Amendment Bill seeks to inserts Article 246A, 269A, Article 279A and omits Article 268A which was inserted by the Constitution (88th Amendment) Act, 2003. It also omits Entry 92 and 92C from the Union List and Entry 52 and 55 of the State List of the Seventh Schedule
• Besides, it amends Article 248, 249, 250, 268, 269, 270, 271, 286, 366, 368, Sixth Schedule and the Entry 84 of the Union List and Entry 54 and 62 of the State List of Seventh Schedule of the Constitution.

• It provides for constitution of a Goods and Services Tax (GST) Council to recommend to the Union and States on the inclusion and exclusion of goods and services
• It brings petroleum crude, high speed diesel, motor spirit, natural gas, aviation turbine fuel and tobacco and tobacco products within the purview of Union List and State list.
• It proposes an additional tax on supply of goods, not exceeding one percent, in the course of inter-State trade will be levied and collected by the Union for a period of two years and apportioned to the States
• The net proceeds of additional tax on supply of goods, except the proceeds from Union Territories, will not form the part of Consolidated Fund of India and shall be deemed to have been apportioned to States from where the supply originates.
• It proposes that Parliament by Law on the recommendation of the GST Council provide for the compensation to the States for loss of revenue arising on account of implementation of GST for a period of five years.
• It subsumes all the Central indirect taxes, levies and Central Sales Tax and State Value Added Tax and Sales Tax
• It dispenses with the concept of declared goods of special importance under the Constitution
• It covers all goods and services except alcoholic liquor for human consumption for the levy of GST.
• In case of petroleum products, these goods will not be subjected to GST till a date is notified on the recommendation of the GST Council

• Union Finance Minister: Chairperson
• Union Minister of State in charge of Revenue or Finance: Member
• Minister in charge of Finance ot Taxation or any other Minister nominated by each State government: Members

• The Bombay High Court on 19 December 2014 appointed a team of 17 lawyers to function as Commissioners of Court to help in removing the illegal hoardings.
• The court also ordered that all civic bodies should have a toll-free number to enable people to register complaints against illegal hoardings.

• These Commissioners of Court were asked by a bench of judges headed by Justice Abhay Oka to visit various places in the state and detect illegal posters, banners and hoardings put up by political parties.
• After detecting the illegal hoardings, these Commissioners will then have to inform the concerned civic body so that steps can be initiated to remove them.
• The Court Commissioners have also been asked to check whether the concerned municipal body has taken action against such illegal hoardings or not.
• The commissioners of court have to submit a report in this regard by the end of February 2015.

• Union Home Ministry on 19 December 2014 issued guidelines to step up security in Schools.  The guidelines were issued across the country in the wake of attack on an Army-run school in Peshawar.
• The guidelines spell out steps to be taken in case of random firing, armed intrusion, hostage crisis or bomb attacks.

• Each school should have concrete boundary wall, with 3 to 4 gates and each gate should be manned by at least 3 guards, on a 24- hour basis.
• There should be proper illumination along the perimeter so that nobody can jump over the wall into the school in the night for any nefarious activity.
• Details of telephone number of the Police Control Room and local police station should be maintained and updated regularly by the school authorities.
• A telephone connection should be provided at the main gate of the School so that the guards can inform the Police in case of any emergency without waiting for informing the nodal officer or the Principal.
• Concertina wire may be fixed on the iron grills above the boundary wall to deter any one from jumping over the wall.
• Installation of CCTV systems all along the boundary as well as some additiona locations inside the premises.

• Coimbatore-based pump manufacturer Aquasub Engineering has won the first prize for energy conservation in the manufacture of BEE Star labelled appliances (pumpset) sector for 2014.
• It is for the second consecutive year that the company has won the award given by the Ministry of Power, Government of India.
• In a release, the company said that the National Energy Conservation Awards were given to the manufacturers of electrical appliances such as air conditioners, pumpsets, and fans and also to user industries such as hotels, and hospitals to promote energy saving.
• The Minister of State for Power, Coal and New & Renewable Energy (independent charge), Piyush Goyal, was the chief guest at the award function held in New Delhi on December 14 when V Krishna Kumar, V-P (Sales & Marketing), Aquasub, received the award on behalf of the company.

• Indian-American Richard Rahul Verma has been sworn in as the US Ambassador to India by Secretary of State John Kerry.
• 46-year-old Verma is the first ever Indian-American to be the top US diplomat in New Delhi.
• He is scheduled to arrive in India ahead of Kerry’s visit to Delhi next month. US President Barack Obama will arrive in late January to attend the Republic Day Parade on January 26 as the Chief Guest.
• He was confirmed by the US Senate by a voice vote last week. Last week he met Obama at the White House.
• Verma, who quietly played an important role in the Congressional passage of civil nuclear deal with India, had advocated for strong Indo-US ties when in the administration and recently started “India 2020” project at Centre for American Progress — a top American-think tank.
• He will replace Nancy Powell, who resigned in March after a damaging row over the treatment of diplomat Devyani Khobragade over visa fraud charges.
• The US Embassy in New Delhi is currently headed by a charge d’affaires, Kathleen Stephens.
• Verma’s association with Obama goes back to 2008 when he worked on presidential debate preparations for the then Illinois senator.

• President Barack Obama declared Friday that Sony “made a mistake” in shelving a satirical film about a plot to assassinate North Korea’s leader, and he pledged the U.S. would respond “in a place and manner and time that we choose” to the hacking attack on Sony that led to the withdrawal. The FBI blamed the hack on the communist government.
• The U.S. decision to openly blame North Korea which involved agreement by the State Department and intelligence agencies escalated a global game of brinkmanship. It happened after the disclosure of confidential Sony emails and business files and threats of terror attacks against U.S. movie theaters until Sony agreed to cancel the Christmas Day release of its comedy, “The Interview.
• Obama spoke not long after the FBI provided the most detailed accounting to date of the digital break—in. The president’s pointed criticism of Sony shifted focus to whether the studio would modify its decision, as some leading celebrities including actors George Clooney and Sean Penn have recommended.

• The United States and Cuba agreed on 17 December 2014 to restore diplomatic ties between the two countries. The US President Barack Obama and Cuba President Raul Castro announced the restoration of full diplomatic relations between the two countries.
• The US President Obama called for an end to the long economic restriction against its old Cold War enemy Cuba. He also announced the opening of an embassy in Havana for the first time in more than a half-century by ending the hostility between two countries.
• Obama announced that a rigid and outdated policy of isolating Cuba had failed to achieve change in Cuba. The Vatican and Canada facilitated the deal where Pope Francis played an active role in pressing for American Alan Gross release from Cuba.

• Both the countries Presidents Obama and Raul Castro agreed on a breakthrough prisoner exchange, the opening of embassies in each other's countries, and an easing of some restrictions on commerce.
• The US administration policy shift includes an opening to more commerce in some areas, allowing use of US credit and debit cards, increasing the amount of money that can be sent to people of Cuba and allowing export of telecommunications devices and services.
• The deal includes Cuba to release American Alan Gross, 65, who had been imprisoned in Cuba for five years and the US in return to release three intelligence agents of Cuba held in the US.

• Travel restrictions for most Americans to visit Cuba will be eased but the restrictions will not yet be open for broad US tourism to Cuba.
• The US trade restrictions will remain same that has been in force more than 50 years until t it gets congressional approval of the US.

• Pakistan on 19 December 2014 became Associate Member Sate of CERN (European Organization for Nuclear Research).
• CERN Director-General Rolf Heuer and the Chairman of the Pakistan Atomic Energy Commission, Ansar Parvez, signed a document in the presence of Prime Minister Nawaz Sharif.
• The decision to grant associate membership to Pakistan was taken in lieu of Pakistan’s contribution to building the CMS and ATLAS experiments since it signed a Co-operation Agreement with CERN in 1994. Pakistan is also involved in accelerator developments, making it an important partner for CERN.
• Pakistan had applied for the CERN associate membership in February 2013.
• By 2010, CERN membership was exclusively restricted to European countries. However, it is now open to non-European states as well.
• The status of associate member is also the pre-stage to full membership. In May 2014, Turkey became the Associate Member state of CERN.

• Associate Membership will allow Pakistan to participate in the governance of CERN, through attending the meetings of the CERN Council.
• Moreover, it will allow Pakistani scientists to become members of the CERN staff, and to participate in CERN’s training and career-development programmes.
• Finally, it will allow Pakistani industry to bid for CERN contracts, thus opening up opportunities for industrial collaboration in areas of advanced technology.

• President Pranab Mukherjee on Friday handed over the recordings of transmissions made by All India Radio and Doordarshan during the Liberation War of 1971 to Bangladeshi President Abdul Hamid.
• Receiving the Bangladeshi President at the Rashtrapati Bhavan here, Mr. Mukherjee recalled how the “valiant” Mukti Bahini soldiers fought hand in hand with Indian troops for Bangladesh’s liberation.
• He expressed hope that these recordings would remind the people of Bangladesh of those momentous times.
• Mr. Mukherjee complimented Mr. Hamid for the role played by him in the consolidation of India-Bangladesh relations. He said India attached the highest importance to bilateral relations with Bangladesh, a close friend and neighbour.

• A listless India capitulated to a four-wicket defeat in the second Cricket Test against Australia with an inept batting display by the top-order to give the hosts an invincible 2-0 lead in the four-match series here today.
• Resuming at the overnight score of 71 for one, the visitors lost four wickets in quick succession with an addition of only 16 runs and were eventually bowled out for 224 in 64.3 overs.
• Chasing a paltry victory target of 128, Australians lost as many as six wickets but were always in control as they knocked off the required runs with more than a day to spare in what turned out to be a miserable fourth day for the Indians at the Gabba.
• The defeat also brought to the fore India’s dismal record outside the sub-continent with their 15th defeat in the last three-and-half years.
• Mahendra Singh Dhoni’s poor track record as Test captain in overseas conditions continued as he lost his 14th Test match outside the sub-continent. Dhoni has now lost seven Tests in England, four in Australia, one in New Zealand, one in South Africa since 2011.
• The two teams will now travel to Melbourne for the ’Boxing Day’ Test with Australia needing a win or at least a draw to regain the Border-Gavaskar Trophy.

• Alastair Cook has been dropped from the England squad for next year's 50-over World Cup in Australia and New Zealand with Eoin Morgan taking over as captain, the England and Wales Cricket Board (ECB) confirmed on Saturday.
• Opener Cook, who has been woefully out of form with the bat but will remain as test captain, had widely been expected to lose the one-day captaincy but would have had hopes of retaining his place in the squad, which will be named later on Saturday.
• Cook was at the helm when England lost 5-2 in Sri Lanka in this month's one-day series.
• The 29-year-old Essex batsman has toiled all year in the 50-over format, hitting 523 runs in 20 matches at a mediocre average of 27.52.