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1 August 2014

Current Affairs: July 27- 30, 2014

Key points in proposed Judicial Appointment Commission Bill

The controversy over the efficacy of the collegium system for appointing Supreme Court judges has gained momentum with many leaders and even eminent jurists including well-known names such as Markandey Katju have been candid on the failure of the current collegium systemThere are demands for overhaul of the existing provisions.

To address this issue the government has proposed Judicial Appointments Commission (JAC) Bill as an alternative to the existing system.
Highlights of JAC Bill:
  • Establishment of a six-member Judicial Appointments Commission (JAC) to make recommendations to the President on appointment and transfer of judges to the higher judiciary.
  • It will encourage collaborations between the judiciary and executive.
  • The Chief Justice of India, two other senior most judges of the Supreme Court, the Union Minister for Law and Justice, and two eminent persons to be nominated by the Prime Minister, and the Leader of Opposition of the Lok Sabha will be its members. Law Commission of India Chairman and former Delhi High Court Chief Justice AP Shah have suggested raising the strength of the body to seven.
  • JAC basic function: Making recommendations for appointments of the CJI, SC judges, Chief Justice and other High Court judges, and even the transfer of HC judges.
  • It would be empower the Parliament to pass a law providing for the composition, functions and procedures of the JAC.
  • Transparency will be the underlining feature of the entire process under the JAC. As per suggestions, the entire record of the process, starting from the nominations received up to the final recommendation made to the President, must be publicly disclosed.
  • As per Katju’s recommendation, JAC should hold a meeting and it should be televised so that all people in India can see it and there is total transparency. They should call the prospective candidate and ask him questions about his earlier functioning as a High Court judge and also his personal life, as is done in the United States.
  • Consensus will be criteria for arriving at decisions. In the case the consensus not clear, a simple majority may help decide, with all dissenting notes accompanied by reasons being recorded in writing.
  • The JAC will work in a stipulated time frame. It provides time periods within which vacancies will be filled up. Even the government has time limit of upto 2 months to intimate the Commission of the vacancy.
  • There are other suggestions to provide constitutional validation to the JAC, thus making it a permanent body and not an ad hoc measure. It is also suggested that its decision be made binding on the President and in case the President rejects any name, the same should be open to judicial review.

In December 2013, the Standing Committee report to Rajya Sabha noted that because of intrinsic deficiencies in the collegium, as many as approximately 275 posts of judges in various High Courts were lying vacant, which has direct impact upon justice delivery system and thereby affecting the 13 institutional credibility of judiciary.

World has only 3,200 tigers left: WWF report

In a sharp contrast to the 100,000 tigers that once lived in the wild a century ago, the number now has reduced to just 3,200. This was revealed by a latest report released by the World Wide Fund (WWF).
WWF has also expressed their willingness to assist the conservation efforts being made by the 13 tiger-range countries – IndiaBangladeshBhutan,ChinaCambodiaIndonesia, Laos, MalaysiaMyanmarNepalRussia,Thailand, and Vietnam – which in 2010 set the target of doubling of wild tiger population by 2022.
The report which coincided with the International Tiger Day on July 29 warns that the largest of all the Asian big cats could go extinct in the wild mainly due topoaching and habitat destruction.
WWF considers ‘poaching’ as the biggest threat to wild tigers since their parts are used for traditional medicine, folk remedies, and increasingly as a status symbol among some Asian cultures.

RBI regresses to multiple price method for bond auctions

The RBI will revert to the Multiple Price method for bond auctions on August 1, 2014, a year after it adopted the present method of Uniform Price.
On August 1, 2014, the central bank will auction a 10-year bond with a coupon rate of 8.40% for a notified amount of Rs 9,000 crore using this method. Two more bond auctions for a total of Rs 5,000 crore will be conducted on the same day.
Bond auctions could be classified as either Uniform Price-based or Multiple Price-based.
  • In the Uniform Price-based, all successful bidders are required to pay for the allotted quantity of securities at the same rate, the auction cut-off one, irrespective of what they’d quoted.
  • In a Multiple price auction, the successful bidders are required to pay for the allotted quantity at the respective price or yield at which they bid.​
It was in June 2013 when RBI adopted the uniform price method, when bond yields were volatile, with foreign institutional investors leaving the domestic markets amid a dwindling currency. However, the macro fundamentals have improved since September2013​, with the rupee stabilizing after recovering most of the losses. A new government at the Centre has reestablished hope among foreign investors. It is expected to speed up the opening to foreign investment and control the fiscal deficit. The fiscal deficit for the current financial year is targeted at 4.1% of GDP, as compared to 4.5% in 2013-14. The recent Union Budget set the target at 3.6% for 2015-16 and 3% for 2016-17.
Using a different method RBI would also be able to observe how the market reacts to different methods of auction.

Sixth C-17 Globemaster III aircraft delivered to IAF

Indian Air Force received its sixth C-17 Globemaster III aircraft at the Palam Airbase in New Delhi in the presence of the Union Defence Minister Arun Jaitley. 
About C-17 Globemaster III
  • It has the potential to carry 75 tonnes of load which is almost double the capacity of Russian IL-76 in the IAF inventory which can carry only around 40 tonnes.
  • It will boost up IAF’s flexibility in terms of operational response and with the heavy lift capability it could easily move troops and heavy tanks to required locations.
It will have a greater strategic reach of up to 4000 kms and will also be very useful in relief operation with its capabilities of being operational under all conditions and abilities to take-off from short runways with heavy loads.

Science Express for raising biodiversity awareness flagged off

The third phase of Science Express Biodiversity Special (SEBS) was flagged off from Safdarjung Railway Station in Delhi.
The train with its innovative exhibition aims to spread awareness amongst masses in general and youth in particular about the exceptional biodiversity ofIndia.
Science Express is a flagship programme of Ministry of Environment, Forests and Climate Change, Ministry of Science and Technology and IndianRailwaysThe train covering a span of 194 days at 57 locations would reach out to 30 lakh students.
In fact, the train was the brand ambassador of the COP-11. It exhibited India’s rich biodiversity to delegates from over 190 nations.

Vincenzo Nibali wins 101st Tour de France

Italian Vincenzo Nibali won the 101st edition of Tour de France, becoming the first Italian in 16 years to win the championship.
Nibali’s triumph comes after 2013 champion Chris Froome and two-time winner Alberto Contador crashed out with injuries in the first half of the Tour.
Nibali is only the sixth rider to win all three Grand Tours – France, Italy andSpain. The last Italian to win the Tour de France was Marco Pantani in 1998.
The 2014 Tour de France began in Yorkshire, England, and guided riders over 3,664 kilometers (2,277 miles) including cobblestones, wind-swept flats and climbs in the Vosges, Alps and Pyrenees.

RBI rejects Andhra’s request for farm loan waiver

The Reserve Bank of India (RBI) communicated the Andhra Pradesh government that there was no case for considering its request for restructuring of agricultural loans in the state.
A refused to consider the request even before the state government could prepare clarifications the apex bank had sought from it on crop yields for year 2013.
RBI, on its own, examined crop yields and bank savings patterns during the period the state government said farmers were under stress. The central bank found no parameter that justified a loan restructuring.
As per RBI, crop yields should be less than half the normal for banks to consider farm loan relief. RBI found no evidence of a drop in crop yields to that level in areas declared as calamity-hit by the Andhra Pradesh government. This conclusion was based on data generated by state government bodies like the Directorate of Economics and Statistics.
RBI scrutinized the waiver request in detail since the government was trying to use rescheduled loan payments as a proxy for its promise of farm loan waivers. Rescheduled farm loans were routinely implemented by banks in the past.
Following the Cabinet meeting, CM N. Chandrababu Naidu announced his government would waive over Rs 40,000 crore of loans at Rs 1.5 lakh per farming family and Rs 1 lakh per self-help group.
Farm loans overdue in Andhra Pradesh are pegged by banks at Rs 87,000 crore. As per banks, these dues surged after the Telugu Desam Party made loan waiver a manifesto promise in the recently-concluded state elections.
RBI Chief has spoken to the Chief Election Commissioner on how to prevent political parties from making such promises in future polls.

Flipkart raises $1 billion, largest in Indian e-commerce field

India’s home-grown e-retailer Flipkart announced that it has raised funds worth$1 billion (over Rs.6,000 crore), the largest-ever by an Indian e-commerce firm.
Flipkart has been raising fund aggressively as it raised $210 million in May 2014. This year the e-retailer also surpassed $1 billion in gross merchandise value in March 2014 and then went on to acquire rival Myntra.com in one of the biggest deals in the e-commerce space.
As per experts, with this the company is valuated between $6 billion and $7 billion.
Flipkart co-founder Sachin Bansal, described the deal inked last week as a milestone for the Indian Internet as a whole and said that the company hoped to become one of India’s first $100 billion company in the next five years or more.
Comparing Indian Internet business with that of Chinese both Bansals believed the Indian Internet is picking up with Internet speeds on the increase, more users connecting and with ascending mobile traffic. As per them, the Indian e-commerce is still at least nine years behind Chinese.

Rs 150 crore allocated for Rashtriya Gokul Mission for 2014-15

The “Rashtriya Gokul Mission” which aims to conserve and develop indigenous breeds in a focused and scientific manner will be allocated Rs 150.00 crores for 2014-15.
The Rashtriya Gokul Mission is a focused project under National Programme for Bovine Breeding and Dairy Development, with an outlay of Rs 500 crore during the 12th Five Year Plan.
The objectives of Rashtriya Gokul Mission:
  • Development and conservation of indigenous breeds
  • Undertake breed improvement programme for indigenous cattle breeds so as to improve the genetic makeup and increase the stock
  • Enhance milk production and productivity
  • Upgrade nondescript cattle using elite indigenous breeds like Gir, Sahiwal, Rathi, Deoni, Tharparkar, Red Sindhi
  • Distribute disease free high genetic merit bulls for natural service.
The Mission will be implemented through the “State Implementing Agency”(SIA viz Livestock Development Boards).

Gokul Grams to be set up for developing indigenous cattle breeds

The Ministry of Agriculture has a proposal to set up Integrated Indigenous Cattle Centres or Gokul Grams in the breeding tracts of indigenous breeds.
Key features of Gokul Grams:
  • These centres will be established in the native breeding tracts and near metropolitan cities for housing the urban cattle.
  • Centres for development of Indigenous Breeds and a dependable source for supply of high genetic breeding stock to the farmers in the breeding tract.
  • Self sustaining and will generate economic resources from sale of A2 milk, organic manure, vermi-composting, urine distillates, and production of electricity from bio gas for in house consumption and sale of animal products.
  • To function as state of the art in situ training centre for Farmers, Breeders and MAITRI’s.
  • Each Gokul Gram will be set up by the EIA and function under the auspices of the SIA/ EIA or in a PPP mode.
  • Each centre will maintain milch and unproductive animals in the ratio of 60:40 and will have the capacity to maintain about 1000 animals.
  • In house fodder production to provide for the nutritional requirements of the animals in the Gokul Gram.
  • Regular screening of animals for important diseases like brucellosis, TB and JD.
  • Inbuilt dispensary and AI centre at each Gokul Gram.
  • Gokul Gram near metropolitan cities for managing urban cattle. It will focus on genetic upgradation of urban cattle.  
Background
Traditionally, cattle-rearing has been an important source of livelihood in India and is closely associated with agricultural economy. India with 199 million cattle has 14.5% of the world cattle population. Of this, 83% i.e. 166 million are indigenous. Nearly 80% of the indigenous cattle are non- descript and only 20% belong to breeds recognized by National Bureau of Genetic Resources. The cattle genetic resource of India is represented by 37 well recognized indigenous breeds and there are 13 recognized buffalo breeds.  Indigenous cattle, in India, are robust and resilient and are particularly suited to the climate and environment of their respective breeding tracts. They are endowed with qualities of heat tolerance, resistance to diseases and the ability to thrive under extreme climatic stress and less than optimal nutrition.

PM Modi launches “MyGov” web platform to get citizens’ ideas for governance

A new web platform – MyGov- launched by PM Narendra Modi will now make it much easier for the common man and experts from different fields to reach out to the government with their ideas and suggestions.
The web platform – www.mygov.nic.in- allows the citizens to discuss their ideas with experts within and outside the government and even earn “credit points” for the tasks which would eventually be approved for implementation by concerned departments\agencies.
The platform will enable flow of ideas\suggestions on various issues including different projects like cleaning the river Ganga, education of girl child and job creation.
PM Modi is of the view that the step would enhance people’s participation by bridging the gap between the people and the processes of governance. During his past sixty days as PM he observed that there were many people who wanted to contribute towards nation-building, and devote their time and energy for good governance.
How does MyGov work?
The web platform provides an opportunity to the citizens to both ‘Discuss’ and ‘Do’. There are several theme-based discussions on MyGov where a wide range of people would exchange their thoughts and ideas. Besides, any idea shared by a contributor will also be discussed on these discussion forums, facilitating constructive feedback and interaction. For those who intend to go beyond discussions and wish to contribute on the ground, the MyGov offers several options to do so. Citizens can volunteer for various tasks and submit their entries.
Other members and experts would review these tasks. Once approved, these tasks can be shared by those who complete the task and by other members on MyGov. Every approved task would earn credit points for completing the task.
The platform has been divided into various groups namely Clean Ganga, Girl Child Education, Clean India, Skilled India, Digital India, Job Creation. Each group consists of online and on-ground tasks that can be taken up by the contributors. The objective of each group is to bring about a qualitative change in that domain through people’s participation.
MyGov would also be used as a comprehensive knowledge repository, giving insights from the sharpest and brightest minds across.
The web platform will be managed by the National Informatics Centre (NIC),Department of Electronics and Information Technology (DeitY).

Kaptan Singh Solanki is new Governor of Haryana

The President of India appointed veteran BJP leader and Rajya Sabha memberKaptan Singh Solanki (75) as the Governor of Haryana in place of Jagannath Pahadia whose tenure is over.
Solanki, a former professor, belongs to Bhind district of Madhya Pradesh and was renominated to Rajya Sabha in August, 2012.

IUCN adds 8 more Indian bird species to 2014 Red List

The International Union for Conservation of Nature (IUCN) has added eight new bird species found in India to the 2014 Red List. Now, over 170 species of birds in the country stand threatened.
The eight species of birds newly added to the Red List are:
  1. Woolly-necked stork
  2. Ashy-headed green pigeon
  3. Red-headed falcon
  4. Andaman teal
  5. Andaman green pigeon
  6. Himalayan griffon
  7. Bearded vulture
  8. Yunnan nuthatch.

Tiger population improves in Uttar Pradesh

The number of tigers Uttar Pradesh has improved in the core area of Dudhwa tiger reserve. The initial figures for two years, 2011 to 2013, have shown 72 to 80 tigers in the core area of the reserve.
As per tiger census 2010-11, there were 118 tigers in Dudhwa reserve. In all, 72 to 80 tigers have been estimated in these areas. Once figures for Katarniaghat wildlife sanctuary, North and South kheri forest division come, tiger numbers might increase up to 125.  
UP has a major tiger population in Dudhwa tiger reserve comprising Dudhwa National Park (680 sq km), Kishenpur Sanctuary (204 sq km) and Katarniaghat Wildlife Sanctuary (440 sq km); Pilibhit (720 sq km); North Kheri (350 sq km) and South Kheri (460 sq km).
Bijnor forests in west and Suhelwa (Gonda-Bahraich) and Sohagibarwa wildlife sanctuaries (Maharajganj) in east have smaller tiger populations.

Amitabh Bachchan is Maharashtra’s horticulture ambassador

Bollywood megastar Amitabh Bachchan (71) has been appointed as the horticulture ambassador of the state of Maharashtra.
Big B, who is also the brand ambassador of Gujarat Tourism, would be promoting the horticulture sector in Maharashtra.

India C&AG of assumes office as Member of UN Board of Auditors

India’s Comptroller & Auditor General (C&AG) took charge as Member of the United Nations Board of Auditors for a six-year term upto June 2020. Mr.Shashi Kant Sharma assumed this prestigious office as he took over from Mr. Liu Jiayi, the Auditor General of the People’s Republic of China at the United Nations Headquarters at New York. Mr. Sharma was elected to this position defeating Philippines by a convincing margin of 62 votes in November 2013.
United Nations Board of Auditors
The United Nations Board of Auditors was established by the United Nations General Assembly (UNGA) to audit the accounts of the United Nations Organization and its funds and programmes and to report its findings and recommendations to the UNGA. For this, 3 members were appointed by the Assembly, each of whom must be the Auditor-General of a Member State. Other two members of the Board are Mr. Amyas Morse, Comptroller and Auditor General, United Kingdom of Great Britain and Northern Ireland and Mr. Ludovick Utouh, Controller and Auditor-General of United Republic of Tanzania.
C&AG’s international presence
India’s C&AG has been the external auditor of various international organizations.    At present, besides being a Member of the UN Board of Auditors, he is the external auditor of the World Food Programme, World Intellectual Property Organization, International Atomic Energy Agency, UN World Tourism Organization and the International Organization for Migration.  Recently, he has been the external auditor of major UN Agencies like the World Health Organization, Food and Agricultural Organization, International Maritime Organization, Organization for Prohibition of Chemical Weapons etc.
Benefits for India
The UN Board of Auditors is one of the major supervising organs of the United Nations and its significance has increased in recent years, especially in view of the resource shortage being faced by all Member Nations in the wake of economic crisis.  The reports of the Board provide a key input in policy-making within the UN system.  The election of the Comptroller and Auditor General of India to the UN Board of Auditors is a matter of prestige for the country and would greatly enhance the visibility of India within the UN system.
Unlike most elections in the UN and its Agencies, this election was a rare case where an institution was involved.  With the election of the C&AG of India as a member of the UN Board of Auditors, one of the most prestigious institutions of Indian democracy got its due recognition at the international level.
By auditing international organizations of the UN system, not only would the C&AG add value to the operations of UN, but its own officers would also be further exposed to the best international auditing and accounting practices leading to enrichment of their professional skills.  Deploying of such professionals in India would translate into high quality of auditing and accounting and would promote accountability, transparency and good governance in India.
Benefits for United Nations
The auditors of the C&AG of India bring in rich experience they have in the audit of UN and its Agencies and other International Organizations, which would assist the UN in bringing about greater efficiency, economy and effectiveness in its operations by focussing their audit thrust on key risk areas within the UN.
At present, the UN is in the process of business process transformation by way of shifting to International Public Sector Accounting Standards (IPSAS) for financial reporting and introduction of a SAP based Enterprise Resource Planning solution. C&AG of India has a pool of audit professionals specialising in IPSAS, who have assisted World Health Organization (WHO), International Maritime Organization (IMO) and International Organization for Migration (IOM) in their on-going migration to an IPSAS compliant financial accounting system. Similarly, C&AG of India is known for its expertise in the audit of IT systems. India’s twin strengths in IPSAS and auditing ERP systems would bring immense value to the United Nations in its ongoing migration to IPSAS and implementation of its SAP system, UMOJA.
Credentials of C&AG
With a history over 150 years, the institution of the C&AG of India is regarded as one of the strongest pillars of India’s democratic governance.  It is one of the largest Supreme Audit Institutions (SAI) in the world, with a large human resource pool which is professionally qualified in diverse fields.
Highly respected in the international community of Supreme Audit Institutions, the CAG of India chairs the Knowledge Sharing Committee - one of the four majorCommittees of International Organization of Supreme Audit Institutions (INTOSAI) besides being a member of a number of other standards setting committees/sub-committees. He is on the Governing Board of INTOSAI.  He is member of the UN Panel of External Auditors. The CAG also chairs the Asian Organization of Supreme Audit Institutions (ASOSAI). Due to his active participation in these international forums, the CAG is closely linked with activities in establishing standards, best practices and guidance in various fields of audit for use by the SAI community in general.

RBI to designated six bas as Systemically Important Banks (SIBs)

The Reserve Bank of India will designate at least six banks as Systemically Important Banks (SIBs), for the domestic financial market which will need to have higher capital than other banks to prevent the financial system from collapsing in the event of a crisis. The central bank would now work on identifying these banks which are too big to fail and would release a list of names in August 2015.
As per experts, the list may include State Bank of IndiaPunjab National Bank,CitibankStandard Chartered BankICICI Bank and HDFC BankBanks classified under SIB category will have to set aside more capital per loan than their peers. Size, interconnectedness, lack of readily available substitutes or financial institution infrastructure and complexity will determine the systemic importance of banks as determined by Basel global standards. But, as per RBI, in India, size would be given higher weightage than other factors.
Based on the category it is relegated, a bank will have has to set aside 0.2% to 0.8% of the loan as capital buffer. In simpler terms, if a bank was setting aside Rs 1 earlier, it would now have to set aside between Rs 1.20 and Rs 1.80. As per RBI, banks having a size beyond 2% of GDP will be selected in the sample. However banks whose size is less than 2% of GDP may also face rigorous norms. After the 2008 credit crisis, banking regulators across the globe are tightening capital norms for banks and other key financial institutions.

Narendra Modi uses idea of ‘zero hour’ at Cabinet meetings

Prime Minister Narendra Modi has introduced the concept of “zero hour” at Cabinet meetings.
The “zero hour” will be the free-wheeling discussions where ministers can bring up any issue they feel relevant for the Cabinet’s informal consideration.
The practice come from Gujarat when Modi was  state’s chief minister, the difference being that then the zero hour happened at the start of cabinet meetings and Modi absented himself during the deliberations to let ministers speak up without feeling hesitant due to his presence.
The concept is almost same with a change that now Modi also attends the discussions to listen to ministerial colleagues though he does not speaks too often. The objective behind is to bring issues to the PM’s notice and getting a sense of the cabinet on how a particular situation or development is evolving in terms of its public perception or political ramifications. The Modi cabinet holds its discussions without officials barring the cabinet secretary and national security advisor who are permanent invitees to ministerial discussions.

Government has no proposal to integrate Aadhaar project & NPR

Government has informed that it is not considering any proposal to integrate theUID (Aadhaar) project with National Population Register (NPR). In December 2010, the National Identification Authority of India Bill 2010 was introduced in theRajya Sabha and was thereafter referred to the Standing Committee on Finance. The UPA government had to freeze Aadhaar-based direct benefit transfers in the wake of reservations over certain issues.
The new government is likely to continue Aadhaar registrations as Rs 2,039.64 crore has been provided in the budget 2014-15 for the Aadhaar for the current fiscal, as against Rs 1,550 crore allocated in 2013-14. Around 73.71 crore Aadhaar enrolments have been done till mid-July, with 8.45 crore rejections by the Unique Identification Authority of India implementing the project.
Since its beginning, UIDAI has generated 64.05 crore Aadhaars and incurred an expenditure of Rs 4,620.61 crore so far. The Aadhaar enrolments are being conducted in all districts of 22 states and union territories allocated to the project. The authority was tasked with collecting biometrics of 60 crore residents and remaining India’s population was to be covered under the NPR project.
During UPA rule, it was decided by the Cabinet Committee on UIDAI that all residents would be provided National Multi-purpose Identity Cards under NPR, and UIDAI would generate Unique identification number for entire population. Both UIDAI and NPR were to share the biometric data gathered by them for issuing NMIC and generating unique identification number.
The NPR is a comprehensive identity database preserved by the Registrar General and Census Commissioner of India under the Home Ministry.

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