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.