DAILY NEWS UPDATE

03rd December 2014

Dream IAS
Disclaimer : The content of this document is a compilation from various sources. The creator of the document
does not take any credit for these articles.

National
Perception of corruption improving marginally in India

India has marginally improved its ranking on the global Corruption Perception Index this year, on
the back of prosecutions of high-level officials and hope that the new leadership will reduce
corruption, Transparency International said.

Indias two-point improvement (on a total possible score of 100) did not count as a significant
change unlike that in countries like Egypt, Jordan and Afghanistan.

With a score of 36, India now ranks 85 among 178 countries, with countries like Sri Lanka, Thailand
and Burkina Faso for company.

Denmark ranks first, as it did in 2013, while Somalia and North Korea share the bottom spot. India
is ranked better than all its South Asian neighbours except Bhutan.

The composite index is made up of a combination of surveys and assessments of public sector
corruption by international agencies including the World Bank and the World Economic Forum.

Of the nine surveys and assessments used for India, most relied on expert opinion on the extent of
corruption and the rule of law and only one polled the general public.

Amendments to Regional Rural Banks Act, 1976

The Union Cabinet, chaired by the Prime Minister, recently approved the amendments in the
Regional Rural Banks (RRBs) Act, 1976.
Why the amendments are necessary?

To enhance authorized and issued capital to strengthen their capital base and to bring flexibility in
the shareholding between Central Government, State Government and Sponsor Bank.

The amendments will ensure financial stability of RRBs which will enable them to play a greater
role in financial inclusion and meeting credit requirements of rural areas and the Board of RRBs
will be strengthened.

The term of the non-official directors appointed by the Central Government will be fixed not exceeding
three years.
RRBs:
Regional Rural Banks were established under Regional Rural Banks Act, 1976 (the RRB Act).
Aim:
To create an alternative channel to the cooperative credit structure and to ensure sufficient
institutional credit for the rural and agriculture sector.
Ownership
RRBs are jointly owned by Government of India, the concerned State Government and Sponsor
Banks with the issued capital shared in the proportion of 50 %, 15% and 35 % respectively.

As per provisions of the Regional Rural Banks Act, 1976, presently, the authorized capital of each
RRB is Rs5 crore and the issued capital is maximum Rs 1 crore.

Introduction of comprehensive Anti-hijacking Bill 2014

The Union Cabinet chaired by the Prime Minister has given its approval for introduction of the
comprehensive Anti-Hijacking Bill 2014.

The current law, the Anti-Hijacking Act, 1982, was last amended in 1994.

Why is it required?

After the hijacking of Indian Airlines Flight IC-814 in December, 1999, it was felt necessary for
providing the award of death penalty to perpetrators of the act of hijacking..
The incident of 9/11, where aircrafts were used as weapons, also created the need to further
amend the existing Act.

About the Bill:

The Anti-Hijacking (Amendment) Bill, 2010 was introduced in the Rajya Sabha in August,
2010.
The Bill seeks to amend the Anti-Hijacking Act, 1982.
The Act states that any person who unlawfully, by force or intimidation seizes an aircraft
commits the offence of hijacking. The Bill adds that any person (whether alone or in a group)
who attempts to commit hijacking is guilty of the offence. Any person who abets such an
offence is also guilty.
The Act stipulates a penalty of life imprisonment and fine for the offence of hijacking. The Bill
enhances the penalty for hijacking to death or life imprisonment and fine.

International
UN tells Israel to renounce nuclear arms

The UN General Assembly overwhelmingly approved an Arab-backed resolution calling on Israel

to renounce possession of nuclear weapons and put its nuclear facilities under international
oversight.

The resolution, adopted in a 161-5 vote, noted that Israel is the only Middle Eastern country that is
not party to the Treaty on the Non-Proliferation of Nuclear Weapons.

It called on Israel to accede to that treaty without further delay, not to develop, produce test or
otherwise acquire nuclear weapons, to renounce possession of nuclear weapons and put its
nuclear facilities under the safeguard of the UNs International Atomic Energy Agency (IAEA).

The United States, Canada, Palau and Micronesia joined Israel in opposing the measure, while 18
countries abstained.

The resolution, introduced by Egypt, echoed a similar Arab-backed effort that failed to gain approval
in September at the IAEA.

At the time, Israel criticised Arab countries for undermining dialogue by repeatedly singling out the
Jewish state in international arenas.

India and France agreed to fast-track Rafale deal

Indian and France to overcome differences and fast-track ongoing negotiations for the purchase of
126 Rafale fighter jets from France, a Defence Ministry spokesperson said.

The decision came during discussions between visiting French Defence Minister Yves Le Drian
and his Indian counterpart, Manohar Parrikar. Both sides also decided to expand strategic
cooperation, the official added.

Negotiations have been going on since 2012 when India selected Dassault Rafale from among
competing medium multi-role combat aircraft. Differences cropped up between the two sides on
delivery guarantees and price.

The tender stipulates that the first 18 jets should come in fly-away condition from France, while
the remaining 108 will be manufactured by Hindustan Aeronautics Ltd. (HAL) in India over seven
years with Transfer of Technology (ToT).

Dassault has refused to give delivery guarantees for HAL-made aircraft, which the Air Force is
insisting on. With the ToT, the cost too escalated from the initial estimate of $10 billion to almost
$30 billion.

India must show proof of fraud: Von Castelmur

The Swiss government will continue to withhold information on Swiss bank account holders, unless
the Indian government shows independent investigations of fraud in each case, Switzerlands
Ambassador to India Linus Von Castelmur said.

In his first interview on the issue, Mr. Castelmur acknowledged that the Indian government had sent
some queries based on investigations on black money to the Swiss government, but many were
part of a fishing expedition.

There are several cases of alleged fraud, where the Indian authorities have done independent
investigations and those cases are going fine.

We are cooperating on them, Mr. Castelmur told. When they come to us on the basis of the stolen
[HSBC] list, or data not from proper sources, Switzerland cannot cooperate.

Mr. Castelmur said some of the processes would be speeded up since the Swiss federal council
agreed to join the global framework on automatic exchange of tax information in November, which
would become the world standard by 2017.

However, despite the NDA governments push for bringing back black money, it has yet to join
the Organisation for Economic Cooperation and Development-led framework, partly because the
Supreme Court has taken cognisance of the matter.

China, Maldives sign preliminary accord on bridge construction

China and Maldives a major element of the Beijing-sponsored Maritime Silk Road project
have signed an accord to conduct preliminary study on constructing a bridge that would connect
capital Male with the citys international airport. Xinhua is reporting that the Memorandum of
Understanding (MoU) for a pre-feasibility study of the project has been signed. This would be
followed by a full-scale project feasibility study, yielding a design plan, which would result in the two
sides exploring possible funding options for the project.

Deepening engagement

In September, Chinese President Xi Jinping said in Male that he hoped that the bridge would be
named China-Maldives Friendship Bridge. Analysts point out that the project underscores a
deepening engagement between China and Maldives, which is a major cog in the establishment of
the 21st century Maritime Silk Route visualised by China.

Chinese hope to revive a maritime route that would start from its Fujian province, cross the Malacca
Straits and transit through the Indian Ocean via India, Sri Lanka, Maldives, and Nairobi in Kenya.
It would finally cross the Mediterranean via the Suez Canal to terminate at Venice. Venice would
also be end of the New Silk Route a land corridor that would start in Xian in China and travel
through Central Asia, before entering Europe.

Indias concerns

Chinas Maritime Silk Route has raised concerns in India, which opposes the militarization of the
Indian Ocean. Speaking at a conference in Galle, Sri Lanka, on Monday, National Security Advisor
Ajit Doval stressed during his keynote address that Indian Ocean must remain a zone of peace.

Evoking a 1971 UNGA resolution on the Declaration of the Indian Ocean as a Zone of Peace, Mr.
Doval said it was important to revisit the resolution mooted by Sri Lanka then calling upon great
powers not to allow escalation and expansion of military presence in the Indian Ocean.

Business & Economy

Shome panel: Tax cash withdrawal beyond limit in a day

A high-level official panel proposed levying of banking transaction tax on withdrawal of cash beyond
a specified limit in a day to check black money, and was not in favour of the tax amnesty scheme.

A report by the Parthasarathi Shome Committee, appointed by the previous UPA government,
suggested taxing farmers with large land holdings in addition to a host of measures to widen the
net.

Taxpayers keep waiting for amnesty schemes to be announced and take advantage of these
schemes to build their capital.

Amnesty schemes also cause inequity among taxpayers, and there is no proof that they improve
taxpayer behaviour among evaders.

They, therefore, should not be encouraged through amnesties, said the report of the Tax
Administration and Reform Commission (TARC). It was the third report in the series.

Highlighting that there is no instrument at present that captures details of cash withdrawals from
bank accounts, it said such information would help the Income Tax department widen its
information base on the use of black money.

Making a case for banking cash transaction tax (BCTT), it said: ...IT Act should be suitably revised
to include in its ambit cash withdrawals exceeding specified amounts in a day from bank accounts
other than savings accounts.

Alternatively, BCTT should be reinstated as an effective administrative measure.

BCTT was introduced in June, 2005, to track unaccounted money and trace its source and
destination, but was withdrawn in April, 2009. BCTT was levied in respect of cash withdrawals in a
day exceeding Rs.50,000 in the case of an individual and Rs.1 lakh in the case of other persons.

Lower oil prices will boost global economy: Christine Lagarde

The recent decline in oil prices will help boost global economy, IMF chief Christine Lagarde has
said, as global oil prices have tumbled to multi-year low.

It is good news for the global economy, Ms. Lagarde said at The Wall Street Journal CEO Council
annual meeting.

For the United States, low energy prices would help accelerate the economic growth to a 3.5 per
cent next year from the October forecast of 3. 1 per cent, she said, adding that Europe is also
expected to benefit from lower oil prices.

Ms. Lagarde, however, noted that the Eurozone also faces a risk of the new mediocre, and
described it as an economy marked by slow growth, low inflation and high unemployment.

But at the same time, she asserted that reluctant political leaders need to adopt more job-friendly
labour market reforms, aggressive and innovative monetary policy and other structural reforms.

Where they are at the moment they need to use all available tools. They have to get on with it and
do it, Ms. Lagarde said.

During the meeting, the International Monetary Fund Managing Director was highly critical of Japan
for being slow on implementation of fiscal and labour market reforms.

On Russia, Ms. Lagarde said lower prices are adding to their fragility and their vulnerability.

Oil prices tumbled to multi year lows last week after the Organisation of the Petroleum Exporting
Countries decided to maintain its production quotas, rather than lowering its output target.

Crude oil has fallen about 40 per cent since mid June and the price yesterday touched its lowest
level since mid 2009 before U.S. oil prices posted their biggest one-day gain in two years overnight.

One Plus expects India will be its biggest market in next few months

Bullish on the multi-billion dollar opportunity in the Indian smartphone segment, Chinese handset
maker OnePlus said it expects India to become its biggest market in the next few months.

At present, China is the biggest market for OnePlus, which announced its foray into India on
Tuesday with the launch of its One smartphone at Rs 21,999.

In the next few months, we expect India to be our biggest market, it will overtake China, OnePlus
India General Manager Vikas Agarwal said.

In line with its global practice, users in India will receive India-specific invites through OnePlus and
Amazon.in.

The two platforms have been integrated so that invites can be used to purchase the device
exclusively on eCommerce major, Amazon.in.

We will bring in as many devices as possible in sync with our production capacity. Cumulatively,
till mid-October, we have already sold 500,000 devices (globally), he added.

This is the first time that OnePlus has entered a new market with local presence and collaboration
with a local partner.

It has set up a local team in India, led by Mr. Agarwal, for marketing and sales. The Chinese startup
is also putting together an engineering team in Bangalore in the next few months.

OnePlus One sports a 2.5GHz Qualcomm Snapdragon 801 processor, 5.5-inch display, 3GB RAM,
64GB memory, 13MP rear and 5MP front camera, 3,100 mAh battery, 4G support and NFC.

It runs CyanogenMod 11S, a custom aftermarket version of Android, developed by Cyanogen.

OnePlus is developing its own version of Android Lollipop-based OS (the latest version), which will
be released for Indian users next month. A final build of the OS will be released in February next
year.

Cabinet clears changes to Companies Act for ease of doing business

Within months of the new Companies Act coming into force, the government, on Tuesday, cleared
a slew of changes to this law to make it easier for corporates to do business and to ensure severe
punishment for those raising illegal deposits from the public.
This would be among the first major initiatives by the government to make changes in the countrys
regulatory framework to improve its global ranking for ease of doing business, where India has
been ranked very low at 142nd position in the latest World Bank report.

14 amendments

The 14 proposed amendments, which were approved by the Union Cabinet this evening, also
include provision to ensure that frauds beyond a certain threshold would need to be mandatorily
reported by the auditors to the government. It has now included a provision that prescribes specific
punishment for deposits accepted under the new Act. This was left out in the Act inadvertently.

Corporates

To address concerns raised by the corporates, the government has also agreed to relax a number
of norms, including those pertaining to related party transactions. Also, resolutions passed by the
companies boards would not be subjected to public inspection. Also, a provision is now included
for writing off past losses/depreciation before declaring dividend for the year.

The new Companies Act, which came into force with effect from April 1 with some provisions yet to
become operational, has faced stiff criticism for many provisions. The new law, put in place by the
previous government, has replaced a nearly six-decade-old Companies Act, 1956, but the new
government has been indicating for quite some time that it would bring in necessary changes to
address concerns raised by various stakeholders, including corporates.
The Companies (Amendment) Bill, 2014, cleared by the Union Cabinet, chaired by Prime Minister
Narendra Modi, would now go to Parliament to bring into effect necessary amendments to the
existing Act.

Science & Technology

Ability of HIV to cause AIDS slowing found study

A research study has found that HIV and as a consequence AIDS is slowly becoming less
aggressive in parts of Africa.

These are the significant findings of a study conducted by Professor Philip Goulder and his team
at the Nuffield Department of Medicine at Oxford University that have been published in the journal
Proceedings of National Academy of Sciences.

Based on a study of about 2,000 pregnant women in Botswana and South Africa, the team has
demonstrated that the weakening of the immunodeficiency virus is due to its rapid evolution and
ability to mutate over time.

In Botswana the epidemic took off in the 1980s, a decade before it hit South Africa. Overall we are
bringing down the ability of HIV to cause AIDS so quickly, Prof. Goulder told Reuters.

Scientists were aware that a gene known as HLA-B*57 in a person acted as a protection against
the HIV virus. The new study finds that the virus has adapted to the gene, which therefore no longer
offers protection.

However, the unforeseen result of this is that the mutation of the virus also weakens it and reduces
its ability to replicate. One reason for this could be because of the growing use of HIV drugs.

HIV adaptation to the most effective immune responses we can make against it comes at a
significant cost to its ability to replicate, Prof. Goulder told Reuters.

Artificial intelligence could eliminate human race: Hawking

Efforts to develop artificial intelligence to create thinking machines pose a threat to the very
existence of human race, famed British theoretical physicist Stephen Hawking warned.

The development of full artificial intelligence could spell the end of the human race, the 72-yearold cosmologist and author said when asked about a revamp of the technology he uses to
communicate, which involves a basic form of artificial intelligence (AI).

Hawking, who has a motor neuron disease, is using a new system developed by Intel to speak.
Machine learning experts from the British company Swiftkey were also involved in its creation.
Their technology learns how the professor thinks and suggests the words he might want to use
next.

Hawking says the primitive forms of artificial intelligence developed so far have already proved very
useful, but he fears the consequences of creating something that can match or surpass humans.

Delhi students to study about organ donation

If all goes as planned, Delhi students will soon study about organ donation as part of their
curriculum. This, according to Delhi Lieutenant-Governor Najeeb Jung, is a foolproof mechanism
for creating awareness about organ donation, and keeping track and proper upkeep of the organs.

Mr. Jung also appealed to the residents to opt for organ donation. He was speaking at the one-day
Organ Transplant Stakeholders Conference organised by the Delhi Governments Department of
Health and Family Welfare.

Mr. Jung also launched an e-reporting portal and released a compendium on organ transplant,
complete with details about organ transplant, their proper upkeep, and details of hospitals and
experts entrusted with ensuring the same.

Mr. Jung stressed that an organ donated is better than an organ consigned to flames or buried after
death.

The function was presided over by Chief Secretary D. M. Spolia. Also present at the event was AllIndia Institute of Medical Sciences director M. C. Misra. Mr. Spolia highlighted the need for
continuous awareness campaigns on the issue.

He announced that instructions will be issued to all Head of Departments, that while issuing
advertisements a line at the bottom should read prominently Donate your organs generously to
save human lives.

Dr. Mishra noted that there was need to issue proper guidelines to all the hospitals and medical
intuitions to give daily report of brain dead patients.

Hayabusa 2 launched to explore how earth was formed

A Japanese space explorer was launched on a six-year roundtrip journey to blow a crater in a
remote asteroid and collect samples from inside in hopes of gathering clues to the origin of earth.

The explorer is expected to reach the asteroid in 2018 and spend about 18 months studying it
before returning in 2020.

The research includes shooting a projectile into the asteroid to blast open a crater so the explorer
can collect rock samples from inside.

Asteroids can provide evidence not available on earth about the birth of the solar system and its
evolution. Japans space agency said Hayabusa2 will explore the origin of seawater and how the
planet earth was formed.

UN climate summit begins in Lima (Peru)

Officials from over 190 nations, including India, converged here at the UN climate summit to
negotiate on a new ambitious and binding deal to cut global carbon emissions, in the last chance
to reach on a historic deal to be signed next year in Paris.

Negotiations have been ongoing for 20 years, as the UN continues to bring its member countries
together to help curb the damaging effects of coal burning and petroleum use, among other sources
of pollution.

During the 12day summit in the Peruvian capital, countries will put forward what they plan to
contribute to the 2015 pact in the form of Intended Nationally Determined Contributions (INDCs) by
the first quarter of 2015, well in advance of the Paris conference in December.

The Lima conference needs to provide final clarity on what the INDCs need to contain, including
for developing countries who are likely to have a range of options from, for example, sectorwide
emission curbs to energy intensity goals.

Environment Minister Prakash Javadekar leads Indias 17-member delegation to negotiate terms
for the final agreement to be signed in Paris, which will take effect in 2020.

Ahead of the summit, a report by UN Intergovernmental Panel on Climate Change warned that
populous coastal cities Mumbai and Kolkata are most vulnerable to loss of life and properties due
to flooding in the second half of the century.

Never before have the risks of climate change been so obvious and the impacts so visible. Never
before have we seen such a desire at all levels of society to take climate action, said Christiana
Figueres, Executive Secretary of the UN Climate Convention.

AGNI 4 Missile
Agni 4 Missile was successfully launched recently.
Details:

It is 4000 kms range Nuclear Capable Ballistic Missile.

It is equipped with state of the art Avionics, 5th generation On Board Computer and distributed
architecture.
It has the latest features to correct and guide itself for inflight disturbances.
The most accurate Ring Laser Gyro based Inertial Navigation System (RINS) and supported
by redundant, highly reliable Micro Navigation System (MINGS), ensures high accuracy.
The re-entry heat shield is capable of withstanding high temperatures that may reach as high
as 4000 degree centigrade and above during reentry of missile in earths atmosphere and
makes sure that the avionics function normally, with inside temperature remaining less than 50
degree centigrade.
With Agni 1, 2, 3 and Prithvi already in Indias arsenal, Agni 4 further extends the reach and
enhances effective deterrence capability.

Ecology
What are the Centre-States doing to curb climate change: NGT

The National Green Tribunal sought response from the Centre, States and Union Territories about
the measures they have been adopting to check climate change and how the governments have
implemented the National Action Plan on Climate Change (NAPCC).

A bench headed by NGT Chairperson Justice Swatanter Kumar issued notices to the Ministry of
Environment and Forests (MoEF), Ministry of Power, Ministry of New and Renewable Energy and
several States.

The Bench was hearing a petition filed by advocate Gaurav Kumar Bansal, who has been raising
various environmental concerns before the NGT. Mr. Bansal sought directions to place on record
the relevant materials and documents relating to steps taken by the Centre and States to implement
the NAPCC.

The plea said, As a part of the international commitment to cut greenhouse gas emissions in India,
the then Prime Minister on June 30, 2008, had released the NAPCC and said it reflects the
importance the government attaches to mobilising the national energies to meet the challenges of
climate change.

In August 2009, the Central Government had directed all States and Union Territories to formulate
individual state action plan on climate change guided by and consistent with the structure and
strategies of the NAPCC, but nothing has been done in this direction, it said.

The idea behind the individual State Action Plan on Climate Change (SAPCC) was that individual
States and Union Territories must lay out sector-specific as well as cross sector time-bound priority
actions along with indicative budgetary requirements, supplemented with details of necessary
institutional and policy infrastructure for operationalisation of actions, it said.

The plea claimed that despite the Central Governments direction, Maharashtra has not drafted its
SAPCC. It further claimed that while preparing the SAPCCs, no States offered a clear, consistent
and well-argued set of recommendations with either a vision or an action plan.

There is a conflict of interest between the Central Government and various States of the country
and because of this an important plan like the NAPCC has failed to get implemented in its true letter
and spirit, the plea said.