Current Affairs Update – 20 Dec, 2014

Finance/Business/Economy News
1. Mid-Year Economic
Review projects 5.5 per cent growth

  • 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.

2. Flipkart files
application to become public, raises USD 700 mn

  • 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.

3. FIPB clears HDFC
Bank’s proposal to raise Rs 10,000 crore

  • 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.

4. Madhya Pradesh gets
Rs. 6,000 cr soft loan from ADB
  • 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.

News Related to India and Indian Polity
5. DRDO successfully
tested an indigenous 1000 kg glide bomb

  • 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.

About the Glide Bomb

  • 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).

6. Union Government
introduced Constitution (122nd Amendment) Bill to facilitate introduction of
GST
  • 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.


Main Provision of the
Bill
  • 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

About Goods and
Services Tax (GST) Council

The GST Council comprises of following members
  • 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

7. Bombay High Court
appointed a team of 17 lawyers to function as Commissioners of Court
  • 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.

Tasks to be served by
the Commissioners of Court

  • 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.

8. Union Home Ministry
issued guidelines to step up security in Schools
  • 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.

Major Highlights of
the guidelines are

  • 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.

9. Aquasub Engineering
wins award for energy conservation
  • 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.

International News
10. Richard Rahul
Verma sworn in as US Ambassador to India

  • 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.

11. North Korea hacked
Sony: Obama
  • 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.

12. US and Cuba
restored ties by ending 50 years hostility

  • 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.


Restrictions lifted

  • 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.


Restrictions remained

  • 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.

13. Pakistan became
Associate Member Sate of CERN
  • 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.


Benefit of being a
member

  • 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.

14. President Pranab
Mukherjee hands over war recordings to Bangladeshi President

  • 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.

Sports News

15. India lose 2nd
Test against Australia by four wickets

  • 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.

16. Alastair Cook
removed as England captain for World Cup

  • 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.