June 2014 CA

VISIONIAS
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CURRENT AFFAIRS
JUNE 2014
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TABLE OF CONTENTS
POLITY .................................................................................................................................................. 4
Administrative Reforms ...........................................................................................................................................................................4
Repealing the unecessary laws................................................................................................................................................................................................... 4
One Lokpal not enough to weed out corruption ................................................................................................................................................................ 5
PM dissolves 4 cabinet panels after EGOM dissolution .................................................................................................................................................. 5
33% quota for women in police force in Gujarat ............................................................................................................................................................... 6
Legislations and policies..........................................................................................................................................................................6
AFSPA and its woes .......................................................................................................................................................................................................................... 6
Land Acquisition Act- Should it be diluted? ......................................................................................................................................................................... 7
Collegium System and the Controversy ................................................................................................................................................................................. 7
Polity Miscellaneous ..................................................................................................................................................................................8
NGOs stance to affect development projects: IB report ................................................................................................................................................ 8
Appointments to Human Rights institutions in the country ........................................................................................................................................ 8
CRPF- State police distrust might be affecting anti-Maoist operations .................................................................................................................. 9
Office of Governor and its politicization ................................................................................................................................................................................ 9
ECONOMY.......................................................................................................................................... 11
Policy Guidelines by RBI........................................................................................................................................................................ 11
RBIS Bi-Monthly Monetary Policy Review.........................................................................................................................................................................11
Avoid excessive legal supervision on financial regulators: RBI ...............................................................................................................................11
RBI fixes timelines for Regulatory Approvals Implementation of FSLRC recommendations ................................................................12
Many Changes to Stability RBI biannual Financial Stability Report ...................................................................................................................13
Milk production rises to 140 million tonnes in 2013-14 ........................................................................................................ 13
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IMF, World Bank urge China to reduce finance risk................................................................................................................ 14
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Centre to review all FTAs and SEZs ................................................................................................................................................. 14
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SEBI announces new set of ESOP regulations ............................................................................................................................ 15
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12th Plan spending to fall short of target .................................................................................................................................... 15
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Report of committee on rationalizing the definition of FDI and FII: Mayaram panel ............................................ 15
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Make Power Distribution Reforms a top priority World Bank ....................................................................................... 16

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CCEA hikes paddy MSP by Rs 50 a quintal to Rs 1,360 ........................................................................................................... 16

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SOCIAL ISSUES ................................................................................................................................. 17

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Comprehensive approach needed for Domestic Workers ..................................................................................................... 17

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National Policy for Domestic Workers .................................................................................................................................................................................17

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What ails Indias Higher Education ................................................................................................................................................ 17

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HEALTH ................................................................................................................................................................................................... 19
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Six step formula for better healthcare ........................................................................................................................................... 19

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Tobacco Use and its menace in India.............................................................................................................................................. 19

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Sanitation Bringing a behavioral change................................................................................................................................. 20

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Overcoming neo-Natal Deaths in india ......................................................................................................................................... 21

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ENVIRONMENT ............................................................................................................................... 22
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E-waste problems for India ................................................................................................................................................................. 22

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Cleaning up Ganga- Top priority for Ministry ....................................................................................................................... 22

El-Nino may affect Coral Reefs adversely ..................................................................................................................................... 23
UN concerned over dumping in the Great Barrier Reef ...............................................................................................................................................24
World heritage site status for Himachal Park ........................................................................................................................... 24
No lessons learnt from Uttarakhand Disaster ............................................................................................................................ 24
Whale shark killing on a rise .............................................................................................................................................................. 25
Pest Sprays poisoning world food supplies .................................................................................................................................. 25
INDIA AND WORLD ........................................................................................................................ 26
India China .............................................................................................................................................................................................. 26
Vice President Hamid Ansari visits China ...........................................................................................................................................................................26

Chinese Foreign Minister visits India ....................................................................................................................................................................................26
India-China industrial park ........................................................................................................................................................................................................26
First encyclopedia of cultural contacts .................................................................................................................................................................................27
India Bhutan ........................................................................................................................................................................................... 27
India France ............................................................................................................................................................................................ 28
Indo-French Air Exercise Garuda V ........................................................................................................................................................................................28
India Iraq ................................................................................................................................................................................................. 28
India Russia ............................................................................................................................................................................................. 29
Russia seeks China and India as partners of emerging energy alliance ...............................................................................................................29
Russia gives in-principle nod to Indias nuke liability law..........................................................................................................................................30
India Bangladesh.................................................................................................................................................................................. 30
India becomes permanent member of Washington Accord ................................................................................................. 31
What is Washington Accord?.....................................................................................................................................................................................................31
India to open civilian nuclear programme to greater scrutiny ......................................................................................... 31
India Part of Cultural Project to Connect Indian Ocean Nations ...................................................................................... 32
WORLD AFFAIRS ............................................................................................................................ 33
US Issues ....................................................................................................................................................................................................... 33
US Taliban Prisoner Swap .......................................................................................................................................................................................................33
US aims for 30% carbon emissions cut ................................................................................................................................................................................33
IAEA welcomes Irans nuclear compliance .................................................................................................................................. 33
China Issues ................................................................................................................................................................................................ 34
China accuses US and Japan of destabilizing the region...............................................................................................................................................34
China takes Vietnam row to UN ...............................................................................................................................................................................................34
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Iraq ISIS Issue......................................................................................................................................................................................... 35
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Ukraine Crisis ............................................................................................................................................................................................. 36
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Egypt after the Presidential Election.............................................................................................................................................. 36
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Karachi Airport attacked by terrorists .......................................................................................................................................... 37
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Palestinian unity government sworn in ........................................................................................................................................ 38

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Bangladesh China Partnership .......................................................................................................................................................... 39

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The World of Work Report 2014 ...................................................................................................................................................... 40

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SCIENCE & TECH ............................................................................................................................. 41

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PSLV C23 ...................................................................................................................................................................................................... 41

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Gravitational Waves And Cosmic Inflation .................................................................................................................................. 42

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Gamma Ray Telescope To Be Flagged Off To Ladakh............................................................................................................. 42

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POLITY
ADMINISTRATIVE REFORMS
REPEALING THE UNECESSARY LAWS
BACKGROUND AND IMPORTANCE
India has been characterised as one of the most over-regulated countries in the world.
Burdensome and unnecessary laws and regulations not only impose heavy economic costs, but also provide
fertile grounds for corruption, contribute to red-tapism and the classical Indian malaise of the Inspector
Raj.
In his first meeting with all government secretaries, PM called for the identification of 10 laws from each
ministry that are burdensome and should be repealed.
Some of the best practices with regards to this have been mentioned below.
UK- BETTER REGULATION EXECUTIVE
There is a need for a dedicated deregulation agency to tackle the issue of burdensome laws.
The U.K.s Better Regulation Executive is a case in point. Its agenda includes adoption of a one in, two out
rule for business regulation to control the creation of new rules that inflate costs for business and voluntary
organisations. This rule mandates that when new regulation which imposes increased costs needs to be
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introduced, the department has to remove or alter existing regulations to introduce a saving of two pounds
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for every pound of cost imposed.
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Further an impact assessment is carried out by every department with the guidance of Better Regulation
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Executive
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The purpose of this impact assessment is to understand the probable costs and benefits of a proposed
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intervention and fully understanding the consequences of any new regulation.

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In order to ensure that obsolete laws do not linger in the future, drafting techniques like the systematic
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incorporation of sunset and review clauses into new laws are also encouraged.
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A sunset clause results in the automatic repeal of a law after a specified period of time unless the law is
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expressly extended by Parliament.

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A review clause mandates formal periodic review, but does not result in automatic repeal.
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AUSTRALIAN GOVERNMENT OFFICE OF BEST PRACTICE REGULATION

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Australia has committed to cut a billion Australian dollars of red tape every year.
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This effort is assisted by an Office of Best Practice Regulation, in the Department of the Prime Minister and
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Cabinet, an agency similar to the U.K. body, and assists in regulatory impact analysis and prepares best
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practice guidelines to assist lawmakers.

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The Australian Parliament has also scheduled a biannual Repeal Day. On the first such day in 2014, the
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Prime Minister introduced omnibus legislation to repeal more than 10,000 pieces of law and regulation and
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save over an estimated $700 million (Australian) in compliance costs, in one stroke.
WAY AHEAD IN INDIA
It is important to have a body whose chief focus is on deregulation and which can be held accountable for it,
is essential if the government is serious about its intention to meet this aim on a sustained basis.
Such a body would have a two-fold mission: first, it would identify onerous laws and regulations for repeal
for which it would make recommendations to both the Union and the State governments
Second, the authority would have to create and implement a framework for regular impact assessment of
new Union laws, and review of existing ones. This would involve designing a methodology for assessment,
introducing it across all government departments, and acting on the results.
To ensure that the authority is effective, the importance of review must be recognised statutorily. Review
clauses will have to be systematically incorporated into certain categories of laws.
For example, it must be made mandatory that all laws, and provisions in laws, that impose a significant new
cost on government, businesses or civil society organisations include a clause that requires a review every
five years
Such a review will establish whether the policy objectives of the law are still relevant, and whether, and in
what form the law should remain on the books
These systemic changes will hold lawmakers accountable for the laws they draft, curbing excessive and
mindless law-making. This in turn will lead to a pruned statute book, which will play a significant role in
catalysing the governments stated objective of achieving maximum governance through minimum
government.
ONE LOKPAL NOT ENOUGH TO WEED OUT CORRUPTION
In recently held elections , corruption was one of the top agenda as can be clearly seen in a poll where 96%
of the Indians thought that corruption was holding the country back
The idea of the Lokpal as an institution was mooted by the Anna Hazare movement and all the political
parties also coalesced around the idea looking the at the public opinion
But there is a misconception going around that one lokpal would be enough to weed out corruption from
the economy
India already has a number of institutions of governance that have the mandate and the ability to deal with
corruption. This list includes the Central Bureau of Investigation, the Central Vigilance Commission, the
Comptroller and Auditor General of India, courts, information commissions, and Lokayuktas at the State
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If these institutions have failed then how will the Lokpal alone help in this cause is the question to be
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The answer is that all these institutions attack those visibly corrupt, but not the three root drivers of
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corruption, which are mentioned below.

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POSSIBLE SOLUTIONS
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Complex rules and regulations that burden citizens and that are difficult or even impossible to comply with
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is the first driver, there is need to simplify them and IT can be exploited to achieve this.
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Civil servants have been given unbridled powers combined with the insatiable demands of corrupt political
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leaders and complex laws and regulations. This provide them ample opportunities to make personal gains in
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return for unethical favours. Civil servants should be allowed to take decisions without any fear or favour.
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Local governments and institutions enjoy virtually no autonomy of action. There is a need to bring in
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decentralization in governance in the country.

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What is needed is a limited and focussed government, decentralisation of powers to local governments and
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communities, greater transparency, more right to information and empowerment of citizens and citizen
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groups. Most importantly, good leadership that is willing to subject itself to public scrutiny will set a good
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example.
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PM DISSOLVES 4 CABINET PANELS AFTER EGOM DISSOLUTION

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Prime Minister has announced discontinuation of four Standing Committees of the Cabinet.
Functions of Cabinet Committee on Management of Natural Calamities which stands discontinued will be
handled by the Committee under the Cabinet Secretary whenever natural calamities occur
Functions of Cabinet Committee on Prices will be handled by the Cabinet Committee on Economic Affairs.
Functions of the Cabinet Committee on World Trade Organisation Matters by the Cabinet Committee on
Economic Affairs
Cabinet Committee on Unique Identification Authority of India has also been discontinued since major
decisions in this area have already been taken and the remaining issues will be brought to the Cabinet
Committee on Economic Affairs.

ANALYSIS
Government has sent out a clear message that it intends to end the policy paralysis and achieve its goal of
minimum government, maximum governance.
Prime Ministers Office has said this would empower the Ministries, expedite decision-making and usher in
greater accountability.
But at the same time an omniscient super-PMO must not destroy the Cabinet system that envisages
decisions through consensus. Rather, PMO should act as a facilitator, using persuasion
33% QUOTA FOR WOMEN IN POLICE FORCE IN GUJARAT
Gujarat government has announced 33 per cent reservation for women in the police force.
The path-breaking initiative comes at a time when crime against women is on the rise in several States and
is under media spotlight following alleged rape and murder of two minor girls in Badaun in Uttar Pradesh.
LEGISLATIONS AND POLICIES
AFSPA AND ITS WOES
WHAT IS AFSPA?
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AFSPA confers special powers on the armed forces to respond at will in disturbed areas in order to
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maintain law and order.
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In a disturbed area, a military officer can fire upon an unlawful assembly of five or more people if the
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need arises or even for illegal possession of fire arms.
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The military is free to use force, even causing death to those suspected of possible violence.
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No arrest and search warrants are required for any operation as in the provisions of the law.
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The law is presently in force in whole or in parts of the States of Arunachal Pradesh, Assam, Manipur,
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Meghalaya, Mizoram, Nagaland and Tripura.

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Under the blanket powers it confers on soldiers, there is always the fear of its misuse.
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CONTROVERSY OVER REPEAL

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In 1990, an amendment Bill was passed to include the State of Jammu and Kashmir under its purview.
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Ms. Irom Sharmila started a fast unto death in 2000, and would not withdraw her hunger strike unless the
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law itself is repealed and not its repeal from some parts of Manipur
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The Central government appointed a five-member committee under the former Supreme Court judge,
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Justice B.P. Jeevan Reddy, to review the Act and whether it needed to be toned down or repealed
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completely and replaced by a more humane legislation. It recommended for the repeal of the Act.
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But the serving military establishment has fiercely stalled AFSPAs repeal, as viciously as it would fight a war
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against an enemy
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ARGUMENTS FOR REPEAL OF AFSPA
A draconian law like AFSPA is inconsistent with the structure and spirit of our democracy and brings down
Indias image at the global high table at a time when it is looking to be a permanent member of the U.N.
Security Council
The primary focus of a counter-insurgency operation should be WHAM (winning hearts and minds), and not
liquidation or elimination.
AFSPA lets troops get away with murder and its frequent use encourages a culture of impunity and the
disconnect between the forces and the local population.

With AFSPA around, military or paramilitary units do not feel the need for restraint or fire control that leads
to a sharp drop in professionalism and actually dehumanises and corrupts the Army
The reason for the failure of Indian military units to effectively root out insurgent groups in Kashmir or the
Northeast stems from its failure to evolve an appropriate doctrine for counter-insurgency even after
fighting insurgents for 60 years and AFSPA is hardly going to help in it.
WHAT THE GOVERNMENT SHOULD DO?
Repeal of AFSPA should be seen as the first step in an effort to create a smarter and more effective counter-
insurgency capability that draws more on information technology, psychological operations, political
persuasion and conflict resolution rather than on overkill and mindless indiscretion.
The government will have to evolve a counter-insurgency doctrine which will not only seek to keep the
Army out of the internal security matrix to the extent possible and deploy other specifically trained and
highly skilled forces that observe the principle of minimum force, but also not insist on an AFSPA-type
legislation as a prerequisite for their deployment and demonstrate a respect for human rights and
accountability in keeping with the letter and spirit of the Constitution.
LAND ACQUISITION ACT- SHOULD IT BE DILUTED?
There have been increasing demands to dilute the provisions of the Land Acquisition Act 1894, these
demands are unreasonable
The earlier law has been used several times by the State Governments to acquire the land and there has
been alleged misuse of the Public Purpose clause in the law
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It was repealed in 2013 and replaced by Right to Fair Compensation and Transparency in Land Acquisition,
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Rehabilitation and Resettlement Act, a progressive law in January 2014.
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It has enhanced compensation, insisted that governments should obtain consent from at least 80 per cent
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of the project-affected families, streamlined procedures and mandated social impact assessment
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Equally important, it seeks to ensure the compulsory rehabilitation of affected families. As a result, land
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acquisition has become relatively fair, and not impractical as detractors often complain.
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For those who ask for its dilution forget that many of the provisions have already been diluted. For example
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the compensation to be provided in the rural areas has been reduced from six times the market value to 3
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times.
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It has lifted the prohibition on acquiring irrigated multi-crop areas and overlooked contentious aspects of
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acquiring land to be given to private companies for industrial and housing development
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Attempts to reduce transparency, deny stakeholder participation and impose unjust compensation cannot
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pass for efforts to reduce anomalies and improve the efficiency of the acquisition process.
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The government should allow the Act in its present form and make any changes if required after a certain
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point of time, after studying its impact.

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COLLEGIUM SYSTEM AND THE CONTROVERSY

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BACKGROUND
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In an unprecedented decision, the collegium headed by Chief Justice of India RM Lodha had suggested
names of two previous solicitors general, Gopal Subramaniam and RF Nariman, to the government for
appointment as judges of the Supreme Court.
Government was not in favour of appointing Senior Counsel Gopal Subramanium.
He was an amicus curiae in the Sohrabuddin Sheikh encounter case and had pointed out several missing
links in the charge sheet filed by the Gujarat Police and had strongly recommended a fresh investigation by
the Central Bureau of Investigation.
The government segregated his name from the list of four and went on to appoint rest of the names as
Supreme Court Judge
This led Subramaniam to ask the court to withdraw his name from such a race for he didnt want to get
embroiled in a political controversy
WHAT THE CONSTITUTION SAYS
The Constitution of India provides for appointment through three categories of persons, namely high court
judges, lawyers and academics. But it has usually not been a practice to appoint judges from among the
lawyers.
Presently, the appointment of judges to the Supreme Court and the High Court in India is governed by the
collegium system.
WHAT IS THE CONTROVERSY ALL ABOUT
Earlier there were reports that the government wanted to send back the name to the judiciary for
reconsideration.
But, experts believe that the collegium is not known to reconsider its decision in face of government
opposition or disapproval. The government knows that very well. So the best it can do is not to send back
the file and just sit on it. There is no time limit in which the government has to clear it
POLITY MISCELLANEOUS
NGOS STANCE TO AFFECT DEVELOPMENT PROJECTS: IB REPORT
As per an IB report, opposition by to several development projects by NGOs including Green Peace will have
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a negative impact on economic growth by 2-3 %
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As per the report, NGOs work for stalling development projects along with agitations against nuclear power
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plants, uranium mines, coal-fired power plants and hydel projects.
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crore from abroad in the last seven years.

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In its defence GreenPeace says that report is designed to muzzle and silence civil society who raise their
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voices against injustices to people and the environment by asking uncomfortable questions about the
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current model of growth

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APPOINTMENTS TO HUMAN RIGHTS INSTITUTIONS IN THE COUNTRY

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Recent changes in the government and a number of governors, chairperson of NDMA etc. being asked to
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resign brings back memories of what happened in 2005 when similar actions were taken up.
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Several times in the past there has been scant respect being shown towards the autonomy of the human
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rights institutions by the government.

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These institutions are used by the governments to favor their own people and that explains the brazenness
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with which they are removed from the posts too

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It is possible because of the lack of clarity on rules with respect to appointments and removals to these
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institutions.
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In two separate judgments (Association for Development v. Union of India, 2010 and 2013), the Delhi High
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Court emphasized the need for fair and transparent appointments and urged the Ministry of Women and
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Child Development (MWCD) to develop objective evaluation methods to appoint members to the NCPCR
There were instances of the selection committee making no efforts to verify the credentials of the
candidates.
After being judicially rebuked thrice, the MWCD amended the NCPCR rules twice this year (in March and
May) to specify eligibility and selection norms.
Most of the eligibility norms being cosmetic in nature but are at least a step in the right direction.
In many States, appointments are being challenged for having been made on political grounds and this
should compel State governments to amend their rules and include selection guidelines in order to insulate
appointments from political interference.

According to the Paris Principles Relating to Status of National Institutions (1993), which serve as an
international benchmark, independence from the government is one of the most crucial elements in
building effective human rights institutions.
Judiciary has shown the way now it is on the executive and the legislature to comply with the idea of
independence of these institutions.
CRPF- STATE POLICE DISTRUST MIGHT BE AFFECTING ANTI-MAOIST OPERATIONS
GRIEVANCES FROM CRPFS END
CRPF faces problems at various levels from sharing of intelligence to execution of operations.
Also, there have been rare instances when movements of the CRPF were leaked from the police station
Ideally a large posse of the State police should accompany the CRPF for patrolling or operations but the
reality is far from this
WHAT THE STATE POLICE COMPLAINS
The State police complains that CRPF personnel have a superiority complex since they are a central force
even though their mandate is to assist the State police.
The distrust is not limited to the ground level, senior officers from CRPF have publicly criticised the State
polices top brass in the past.
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MANY CRPF SOLIDERS LOOKING TO QUIT
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Sources in the CRPF say there are thousands of jawans and officers who are looking out for an opportunity
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Direct recruits in the CRPF have grievance against the top posts being taken up by the people from the IPS
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who come in for a deputation for 2-3 years and have no connect with the ground solider
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Also grievances come specially from those who are posted in the anti-maoist operations
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The terrain is extremely inhospitable and the threat of a Maoist ambush looms large most of the time
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Once they return to their barracks, there are hardly any facilities to enable them to take proper rest
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The conditions which they survive are inhumane and leave them with little motivation to work for the
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forces.
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OFFICE OF GOVERNOR AND ITS POLITICIZATION

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The debate on the politicization of the office of governor has been rekindled with the action of the central
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government to ask the incumbent governors to resign from their posts

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This was the similar kind of action taken up the erstwhile government in 2004 but there is a small difference
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between the situation then and now

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Until 2010, the predominant notion was that since a Governor holds office at the pleasure of the President,
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subject to a five-year term, she could be removed at any time and for no reason at the Centres instance
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In B.P. Singhal vs. Union of India (2010), the Supreme Court ruled that a Governors removal is justiciable
and there should be good, valid and compelling reasons for such a removal. The power should not be
exercised arbitrarily, capriciously or unreasonably.
ANALYSIS
The view that a new regime can remove a Governor on the ground that she is out of sync with the policies
and ideology of the party in power at the Centre or that the ruling party has lost confidence in her, has been
rejected by the Supreme Court
Several Governors have acted as partisans of the ruling party at the Centre and hindered the smooth
functioning of State governments.
The Sarkaria Commission on Centre-State relations suggested that a Governor should be someone eminent
in some walk of life, one not too intimately connected with the local politics of the State, and should not
be one who has taken too great a part in politics generally, and particularly in the recent past.
It suggested that a politician from the ruling party at the Centre should not be appointed Governor of a
State run by another party. If only these norms are followed in practice, the need to ease out
inconvenient Governors will not arise
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ECONOMY
POLICY GUIDELINES BY RBI
RBIS BI-MONTHLY MONETARY POLICY REVIEW
Statutory Liquidity Ratio (SLR): SLR for banks has been reduced from 23.0% of Net Deposit and Time
Liabilities (NDTL, i.e. roughly all deposits) to 22.5%, to give banks more freedom to lend to private sector
and households. SLR is the amount of deposits banks have to hold as government securities.
Export Credit Refinance (ECR): Access to ECR has been reduced from 50% of export credit outstanding to
32%. This decrease has been compensated fully with a special term repo of 0.25% of NDTL for banks. This
has been done in accordance with the Urjit Patel Committee recommendations to move away from sector-
specific refinance towards a more general provision of system wide liquidity. RBI provides ECR to banks
based on their export credit extended to the export sector.
Other decisions: RBI plans to allow greater participation of foreign portfolio investors in domestic exchange
traded currency derivatives. In addition, the limit on foreign exchange remittances is to be increased from
USD 75,000 to USD 1,25,000
ANALYSIS
The move to cut SLR by Reserve Bank would be propitious for growth, as it will give more room to banks for
onward lending to the corporate sector which may lead to revival of the Capital Expenditure Cycle
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The RBI by slashing the SLR has unlocked Rs. 40,000 crore of funds parked by the banks in Government
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Securities which will enthuse some liquidity in the market.
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Changes in ECR would improve access to liquidity from the Reserve Bank for the system as a whole without
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the procedural formalities relating to documentary evidence, authorisation and verification associated with
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the ECR.
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Further, it should also improve the transmission of policy impulses across the interest rate spectrum and
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engender efficiency in cash/treasury management.

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BACKGROUND
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Export Credit Refinancing (ECR) provides an alternative short term pre-and post-shipment financing to
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direct/indirect exporters to promote export of manufactured products, agricultural products and primary
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commodities. It is available to a manufacturer or trading company with ECR credit line duly established with
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any participating commercial bank.

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AVOID EXCESSIVE LEGAL SUPERVISION ON FINANCIAL REGULATORS: RBI

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The Reserve Bank of India (RBI) has warned against excessive legal supervision on financial regulators as it
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would hamper policy-making and increase systemic risks.

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REASONS
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As per the RBI governor there is a need to guard against asking tribunals to make judgments.
Tribunals do not have the capability, experience, or information to make, and where precise evidence may
be lacking. Doing this, will undermine the very purpose of a regulator.
Encouragement to appeal could paralyse the system and create distortions.
As a result the private parties with their high-priced lawyers can check the regulator, and healthy respect
(for the regulator) dissipates and the regulator could become a paper tiger, and lose its power of influencing
good behaviour, even in areas that are not subject to judicial review.
SEE OTHER CRITICISMS OF BURGEONING TRIBUNALS

ON FSLRC RECOMMENDATIONS
The creation of a Financial Sector Appellate Tribunal would hamper the policy decisions taken by the
regulator.
RBI governor also criticized the suggestion to merge all regulation of trading under a new Unified Financial
Agency, so that the Forward Markets Commission, as well as the bond regulation activities now undertaken
by the RBI, would move under a new roof, as would the Securities and Exchange Board of India (SEBI).
As per him moving the regulation of bond trading at this time would severely hamper the development of
the government bond market, including the process of making bonds more liquid across the spectrum, a
process which the RBI is engaged in.
He also feels that this balkanisation would hamper regulatory uniformity, the supervision of credit growth,
and the conduct of monetary policy.
CONCLUSION
The Tribunal should only question administrative decisions such as the size and proportionality of penalties.
But if it goes beyond, and starts entertaining questions about policy, the functioning of a regulator like the
RBI, which has to constantly make judgments intended to minimise systemic risk, will be greatly impaired.
RBI FIXES TIMELINES FOR REGULATORY APPROVALS IMPLEMENTATION OF FSLRC

RECOMMENDATIONS
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Moving to a time-defined process, the Reserve Bank of India, fixed schedules for various regulatory
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approvals, including grant of private bank licence, and also released a citizens charter for its various
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services such as clearing of transactions.
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The release of Timelines for Regulatory Approvals and Citizens Charter for delivery of services on the
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RBIs website is a part of implementation of non-legislative recommendations of the Financial Sector

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Legislative Reforms Commission (FSLRC).

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SALIENT FEATURES
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Applicant for private bank licence should be given in-principle nod within 90 days
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It should be noted that these timelines are indicative. If departments are likely to exceed the timeline, they
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will revert to the applicant.

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In case an applicant does not get a response within the indicated timeline, they can approach the head of
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the department, who will respond with status of the application, the reason for delay, request for additional
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information and likely time for disposal of the application.

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As per the citizens charter for RBIs departments which have public interface, deposit accounts department
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should issue cheque book within 20 minutes and demand draft should be issued in an hour, among others.
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Besides, refinance facility and disbursement of loans should take place in the same day of application while
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clearing should be completed by three days.

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With regards to timeline for regulatory approvals, an applicant for private bank licence should be given in-
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principle approval within 90 days after receipt of report from the independent external advisory committee.
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Similarly, timelines have been fixed for in principle approval to banks for IPO, preferential issues of capital
and qualified institutional placements (30 days) and authorisation for import of gold and silver by banks (60
days).
As per one recommendation of the FSLRC, all regulators are required to move to a time-defined approval
process, subject to applicable laws, for all permissions including licence to do business, as well as launch of
products and services.

MANY CHANGES TO STABILITY RBI BIANNUAL FINANCIAL STABILITY REPORT
The ninth edition of the Reserve Bank of Indias Financial Stability Report (FSR), a bi-annual publication,
reflects the collective assessment of an expert sub-committee on risks to financial stability.
The periodic publication of such reports by the RBI is in line with best practices around the world for major
central banks.
OBJECTIVES
To promote awareness about vulnerabilities in the financial system.

To examine the resilience of the financial institutions
To encourage a debate on the development and regulation of the financial sector.
ISSUES HIGHLIGHTED
Bank Governance - which has a substantial bearing on financial sector stability, has been dealt with
extensively by the P.J. Nayak Committee whose report is now being discussed at several level
The deteriorating asset quality of public sector banks (PSBs) can affect financial sector stability.
Although issues of recapitalising them and their ownership are within the domain of government policy, the
FSR points out that there is a case to review the governance structures of PSBs with a greater emphasis on
market discipline.
POSITIVE OBSERVATIONS
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The FSR notes that by many yardsticks the level of capital with commercial banks remains well above the
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regulatory minimum even under adverse macroeconomic conditions.
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The post-election scenario marked by political stability has improved the economic outlook. The
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government is in a better position to resolve supply-side issues and help the RBI in its battle against
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inflation.
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The capital markets reflect the expectations on policy measures to address the adverse growth-inflation
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dynamics and saving-investment balance as also efficient implementation of policies and programmes.
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At the global level, the financial markets are showing signs of improved stability although economic growth
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has not picked up uniformly everywhere.

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Easy monetary conditions prevail in many jurisdictions. Their potential unwinding can pose a threat to
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financial stability in many emerging markets.

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CONCLUSION
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Perhaps for the first time a stability report has called for a vigil over shadow banking entities, which are
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inaccurately perceived as being regulated by the RBI. There is an urgent need to eliminate ambiguities
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relating to these entities.

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The FSR calls for better monitoring of the lending operations of insurance companies and the money-
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spinning treasury operations of large corporations.

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The issues flagged by the FSR will have to be addressed in the budget and the RBIs credit policies.
MILK PRODUCTION RISES TO 140 MILLION TONNES IN 2013-14
Milk production is estimated to have increased by 6 per cent to about 140 million tonnes in 2013-14 fiscal
helped by normal monsoon and increase in demand for dairy products.
Among states, Uttar Pradesh continued to remain the leading milk producer, followed by Rajasthan and
Gujarat, whereas, the per capita demand was maximum in Punjab followed by Haryana in 2013-14.

DEMAND ON A RISE
In last few years, there has been continuous increase in milk production in the country as demand for dairy
products has risen substantially.
With rising income the demand for new and diversified dairy products like mozzarella cheese is rising and
hence private investment in the sector has also gone up.
Recently, all major milk producers including Mother Dairy and Amul have raised milk prices by Rs. 2 per litre
across all variants due to increase in procurement costs.
NATIONAL DAIRY PLAN
NDDB is running a programme National Dairy Plan to increase milk production for meeting the growing
demand which is estimated to rise by 180 million tonnes by 2021-22.
The phase-1 of the plan was launched in 2012 at Anand in Gujarat. It involves total investment of Rs. 2,242
crore and aims at increasing milk production by increasing productivity of milch animals. The World Bank is
also financing this plan.
IMF, WORLD BANK URGE CHINA TO REDUCE FINANCE RISK
The World Bank and the International Monetary Fund have urged China to focus on controlling risks from
rapidly rising debt due to its reliance on credit-fuelled growth.
The comments add to warnings by private sector analysts that Chinas run-up in debt, especially since the
2008 global crisis, could lead to financial problems and disrupt economic growth that already is slowing.
By the countrys broadest measure, total outstanding debt rose from the equivalent of 124 percent of gross
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domestic product in 2007 to more than 200 percent in 2013.
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China needs to pay close attention to rising credit, especially in its largely unregulated informal lending
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market, and reduce debts owed by local governments. @
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Rising debts owed by local governments and uncertainty about informal lending have fuelled concerns that
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Chinas economic slowdown might cause a rise in defaults and hurt its financial system.
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Chinese regulators have taken steps to cool credit growth but still are allowing a relatively fast expansion to
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support economic growth that slowed to 7.4 percent in the three months ending in March.
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Corporate debt, at the equivalent of 125 percent of GDP, is among the highest in Asia.
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ANALYSIS
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Reforms to reduce financial risks might slow growth but the impact could be dampened by changes to open
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Chinese industries to more competition.

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These policy measures will improve the quality of Chinas growth, making it more balanced, inclusive and
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sustainable.
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CENTRE TO REVIEW ALL FTAS AND SEZS

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The Centre is in the process of reviewing all free trade agreements (FTAs) and special economic zones (SEZ)
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to see if they have provided the benefits for which they were created.
It has been observed that not every FTA was seen as beneficial to India.
The government believes that in some cases, we have leveraged the FTAs lesser than the other side. Hence,
there is a need to understand what the status of each of these FTAs is.
On the front of SEZs, there is a need to understand why they could not provide the impetus to economic
growth to the extent that they were expected to.

SEBI ANNOUNCES NEW SET OF ESOP REGULATIONS
SEBI finalised an easier set of regulations for employee stock option schemes that among other things
would classify Employee Stock Options (ESOP) Trusts as a separate category of shareholding entities.
With the new norms, the Securities and Exchange Board of India (SEBI) has allowed companies to have
employee stock option programmes where they can buy their own company shares subject to certain
conditions.
Employee Stock Options is a practice followed world over and the market regulator has outlined certain
safeguards to improve the governance and transparency of the schemes and also address concerns
regarding potential market abuse.
SALIENT FEATURES
A new category of ESOP trust that is whatever shares are held in the ESOP Trust they will be neither
counted as a promoter group or counted as a public it will be counted as a separate group and for meeting
the requirements of our regulations we have given them five years time
Requirement of shareholders approval through special resolution for undertaking secondary market
acquisitions; restrictions on sale of shares by trusts; at least six month holding period for shares acquired
from secondary market.
Among other safeguards include, stricter disclosure and other regulatory obligations; a limit of 10 per cent
of the assets held by general employee benefit schemes other than ESOS type of schemes and certain limits
on secondary market acquisitions.
To ensure a smooth transition for complying with the new regulatory framework, the existing employee
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benefit schemes have been provided with a time period of one year from the date of notification.
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Further a longer transition period of five years has been provided for re-classifying shareholding of existing
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employee benefit schemes separately from promoter and public category.
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12TH PLAN SPENDING TO FALL SHORT OF TARGET

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According to the Planning Commission estimates even with a 20% increase in spending over next two years,
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plan expenditure, the government spending on social sector schemes, is likely to fall short by Rs. 6.58 lakh
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crore in the 12th Plan period (2012-17),

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During the first three years of the five-year policy period which began on April 1, 2012, government has
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allocated 40.48 per cent of the total outlay of Rs. 35.68 lakh crore.
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Earlier during the UPA regime, the Plan expenditure since the beginning of the 12th Plan was curtailed for
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two years in a row to keep a tab on fiscal deficit.

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The Plan outlay flows through 70 ministries and 66 centrally sponsored schemes.
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The Plan expenditure of Rs. 35.68 lakh crore envisaged in the 12th Plan is 124.53 per cent more than the
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spending of Rs. 15.89 lakh crore during the 11th Plan (2007-12).
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REPORT OF COMMITTEE ON RATIONALIZING THE DEFINITION OF FDI AND FII:

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MAYARAM PANEL
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BACKGROUND
The Committee for rationalising the definition of Foreign Direct Investment (FDI) and Foreign Institutional
Investment (FII) under the chairmanship of Dr. Arvind Mayaram has submitted its report.
The government in its 2013-14 budget, had proposed to adopt the international practice of recognising less
than 10% stake in a company by a foreign investor as FII investment and more than 10% stake as FDI
investment. The Committee was constituted to examine the application of this principle.

KEY RECOMMENDATIONS
Foreign Portfolio Investment (FPI): An investment constituting less than 10% stake in a listed Indian
company by eligible foreign investors be classified as FPI (equivalent to FII).
FDI: All foreign investments constituting more than 10% stake in a listed Indian company should be treated
as FDI. All existing investments made under the FDI route, irrespective of the level of stake, should continue
to be treated as FDI. All foreign investment in an unlisted company should be treated as FDI.
Others: The current RBI regulations restricting Foreign Venture Capital Investors (FVCI) investments to 10
sectors should be relooked. The guidelines for pricing of share sales by FVCI investors should be brought at
par with those for FDI investors. Non-repatriable NRI investments should be treated as domestic
investments.
Regulation: An investor can invest in a company either under the FPI route or under the FDI route, but not
under both. The investee company should be responsible for adherence to the overall FPI limit.
MAKE POWER DISTRIBUTION REFORMS A TOP PRIORITY WORLD BANK
As per World Bank, Electricity distribution to the end consumer in India needs reform in order to achieve
the target of electricity to all by 2019
Total accumulated losses in the sector stood at $25 billion in 2011. These losses are concentrated among
Discoms and bundled utilities State Electricity Boards (SEBs) and the State Power Departments.
Today, Indias annual per capita power sector consumption is at around 800 units, which is among the
lowest levels in the world
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WHAT NEEDS TO BE DONE?
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Power distribution in India needs sweeping reforms if it is to bring back the country to a high growth
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trajectory and meet its goal of expanding access to electricity to all by 2019 @
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There is a need for freeing utilities and regulators from external interference, increasing accountability and
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enhancing competition in the sector to move it to a higher level of service delivery.

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Revitalising the power sector by improving the performance of distribution utilities, and ensuring that
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players in the sector are subjected to financial discipline is the need of the hour
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By tackling the losses through a focused approach, it should be possible to make a marked difference in
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sector performance
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CCEA HIKES PADDY MSP BY RS 50 A QUINTAL TO RS 1,360

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The Cabinet Committee on Economic Affairs (CCEA) has approved the Minimum Support Prices (MSPs) for
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Kharif crops for 2014-15 season.

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These prices are based on the

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recommendations of Commission for

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Agricultural Costs and Prices.

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MSPs for paddy have been raised by

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about 4%, for millets by 0-3%, for

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pulses 1-2% and for oilseeds 0-3%.

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For some Kharif crops like jowar,

ragi, and urad, the percentage
increase in 2014-15 MSPs is higher
than the increase in 2013-14.
For others like paddy, bajra, and tur (arhar), the percentage rise in 2014-15 MSPs is lower than the
corresponding rise in 2013-14.
The percentage rise in MSPs for all 18 Kharif crops or varieties in 2014-15 is lower than the average MSP
growth during the last five years

SOCIAL ISSUES
COMPREHENSIVE APPROACH NEEDED FOR DOMESTIC WORKERS
In India, official figures show that there are 4.75 million domestic workers, out of whom three million are
women in urban areas even though they may be huge under representation. The actual number is probably
closer to 90 million.
The problems that are faced by the domestic servants are numerous, some of them explained below.
Caste Factor: Domestic workers face huge discrimination on the basis of caste in Indian society. It is very
difficult for women from the Scheduled Castes to find a job as a cook, and such a denial of opportunity
often confines them to their caste occupation or tasks closer to that.
Prejudices: State machinery and agencies very often embody similar prejudices but in more subtle forms.
For example, the association of domestic workers as a group linked with crimes (theft in particular) and the
consequential, institutional responses exemplify how official structures actively feed into perpetuating
these forms of stigma and stereotypes. But it misses the point that even domestic servants can be subjected
to crime from their employers. violence against women workers has shown an increase from 3,422 cases in
2010 to 3,564 in 2012
NATIONAL POLICY FOR DOMESTIC WORKERS
A National Policy for Domestic Workers was drafted by the Ministry of Labour and Employment that
addresses the issue of discrimination in the workplace and in various other domains
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But policy falls short on many aspects and the approach needs to be much more comprehensive.
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The policy, for example, does not engage with the complex and more prevalent forms of discrimination, like
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police verification or any effort to counterbalance the same.
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While suggestions to build common facilities like toilet and rest area might seem progressive, what they
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do is to institutionalise the separateness of the domestic worker

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The policys repeated reference to workers right to work with dignity and respect as citizens of India,
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naturally makes one expect that the policy will make their long due claim over dignity and respect,
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substantive and not merely rhetorical, but it cannot succeed without targeting the biases against workers
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that have prevailed for so long

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WAY AHEAD
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Home as workplace: Recognising home as workplace is the first step in taming that susceptibility of being
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humiliated or being subject to degrading treatment. A set of measures to protect workers at their place of
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work is a great beginning, but the larger objective should be to empower workers to have a sense of
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entitlement and claims over their site of work just like many of us at our respective formal workplaces do.
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Any policy on domestic work that doesnt address the stigma and discrimination originating from large-
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scale, structural forms of prejudices against these workers will result in nothing but failure.
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Cosmetic changes will not help: Merely replacing terms like servant with more sophisticated terms like
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domestic help does not really rid domestic work of its stigma, nor confer protection on the work.
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WHAT AILS INDIAS HIGHER EDUCATION
Even though no Indian university features in the top 200 universities of global rankings, last two decades
have seen a dramatic increase in the number of universities in Asia, which have begun to figure among the
top universities of the world. It is not enough to talk about pursuing excellence; to establish and build
world-class universities of excellence, the ecosystem of higher education has to change dramatically. Some
of the problems and solutions to those problems have been highlighted below.

PROBLEMS AILING INDIAN HIGHER EDUCATION
Lack of Inspiration: Most Indian universities are not spaces that are inspiring enough for knowledge
creation, nor have they been designed to ensure the pursuit of serious research and scholarship.
Lack of Collaboration: Indian universities are generally timid in seeking collaborations which are necessary
for the development of new ideas and perspectives.
Lack of Interdisciplinary teaching: There is also lack of interdisciplinary teaching among different faculties
and schools. The bureaucratic approach of university managements and regulators has led to the creation
of too many hurdles in the pursuit of any meaningful collaboration.
Emphasis on quantity: The core emphasis has been to expand the diverse higher education sector with a
view to increasing the gross enrolment ratio (GER). Mindless expansion has led to a situation where there is
mediocrity.
Faculty Crunch: Central universities may be well funded, but suffer from a crisis of governance in which over
40 per cent of faculty positions lie vacant. The problem is even more serious when it comes to the state
universities they suffer from a lack of resources among other things.
Archaic Rules: The biggest challenge is to create an enabling environment to promote innovation. Archaic
rules and regulations that are constantly flouted have given rise to opportunities to dubious institutions to
be engaged in corruption
POSSIBLE SOLUTIONS
Effecting transformation involves five things: substantial resources, a progressive regulatory environment in
which higher education regulators begin to trust universities, a new governance model for creating
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opportunities and space for research and scholarship, an enabling environment within universities that will
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significantly incentivise research and publications, and an attitudinal change among all stakeholders in the
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higher education sector.
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Faculty Recruitment: The new government must ensure that all faculty appointments are filled up within a
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time-bound framework. This will involve tactful engagement with the institutions and a creative approach
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to faculty recruitment. Archaic policies that have outlived their time should be dispensed with while
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recruiting faculty.
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Moratorium on building new universities: Until the crisis of a lack of adequate infrastructure and faculty is
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addressed, there should be a short moratorium on establishing more central universities, IITs and IIMs.
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Industry- Academic Partnership: It is not enough to focus only on building laboratories and knowledge
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parks, promoting an industry-academia interface and pursuing research grants and creating incubators; we
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need to go beyond these reforms in order to create a culture of research. Existing policies relating to
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research collaborations both within and outside India need to be re-examined and made more progressive
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and inclusive. They should be made progressive vis--vis ensuring greater autonomy and freedom to
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universities to determine who they want to collaborate with and what the terms of collaboration should be
on
Removing distinction between private and public universities: There is a need to remove the distinctions
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that exist in relation to public and private universities; instead, universities ought to be differentiated on the
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basis of their performance and contribution.

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Governance Reforms: There is a need to seek a change in the attitude of government departments that are
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involved in policymaking, and regulatory bodies that are monitoring and ensuring standards in higher
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education.
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HEALTH
SIX STEP FORMULA FOR BETTER HEALTHCARE
Tax payer Financed Services: There is a need to introduce Universal Health Insurance. Government should
declare a deadline before which most private spending can be replaced by taxpayer-financed health service.
India already spends about 6 per cent of its GDP on health care. But 80 per cent of this is out-of-pocket and
drives over 40 million Indians below the poverty line every year. In addition, the quality of health care also
differs. UHI should not be about insurance for the well-off, but instead prevent large expenses for the poor.
UHI will free the current out-of-pocket spending and channel funds toward far more productive uses.
A single-payer system is an example of enhancing the reach of health care through a wide range of private
providers. It is also a fine way to weed out unscrupulous practices in the health-care
system. Gujarats Chiranjeevi Yojana is one example of how private services can be delivered using public
finance.
Vaccines: A second priority should be to include a rapid scale-up of the introduction of new vaccines against
diarrhea and pneumonia among children. If they are used in India, perhaps the deaths of 2,00,000 children
(between the ages of 1-59 months) can be avoided. Novel delivery models, such as the one for polio, must
be tested and scaled to deliver vaccines to every doorstep.
Reduce Smoking: Smoking kills about 1 million Indians every year. The number of cases of tuberculosis has
risen because of smoking. All cigarettes must be taxed on their tobacco content and not length. The Asian
Development Bank has found that tripling the tax rate can save about 8 million lives. Tripling of the tax
would yield another 0.3 per cent of GDP in revenue.
Preventing Vascular Deaths: A fourth priority should be to tackle adult vascular deaths the leading cause
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of deaths in the country, killing over 1 million Indians between the ages of 30 and 69 per year. Low-cost
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generic risk pills that combine aspirin with a statin drug in order to reduce cholesterol and lower blood
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pressure can reduce by two-thirds the chances of suffering another stroke or even dying.
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Controlling Malaria: A fifth priority should be to control malaria. There is a need to bring change in the
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Indian malaria programme to a proper use of combination drugs. These treatments must be made widely
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available in rural areas, particularly in Odisha and the northeast. Also, India can lead in fighting resistance to
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effective malaria drugs that are emerging from the Greater Mekong Region. We need to substantially boost
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Indias foreign aid to combat drug and insecticide-resistant malaria in Asia. India can contribute $100 million
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to a regional malaria fund, and establish a public-private partnership to provide subsidies to reputable drug
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manufacturers, this will enhance Indias health profile in the region.

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Improve health reporting: The Census should be strengthened, expanded and paired with the economic
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census and other surveys. This new central information hub will help track and report on development and
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progress.
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TOBACCO USE AND ITS MENACE IN INDIA

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Over 27 per cent of tobacco consumers in India fall in the 15-24 year age bracket.
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This clearly demonstrates how successful the tobacco companies have been in continually enticing the
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vulnerable sections of the population into the suicidal practice.

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Besides the high levels of mortality and morbidity, there is a huge economic cost involved in treating people
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with diseases caused directly or indirectly by tobacco use.

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As a result, the out-of-pocket expenditure on medical treatment results in higher poverty rates.
Nearly, 9.3 lakh people in India are affected by the health costs of tobacco.
The total health expenditure burden of tobacco in the year 2011 was a little over Rs.100,000 crore which is
12 per cent more than the combined State and central government expenditure on health in 2011-12
WAY AHEAD
Central government, should implement multiple strategies to prevent people, particularly children as young
as 15 years, from getting addicted to nicotine and help the existing users to quit smoking and/or chewing
tobacco.

To bring down the prevalence by 15 per cent by 2020 and 30 per cent by 2025, the most effective way of
achieving it is by raising taxes.
But for any tax increase to become effective, the price difference between various brands and different
tobacco products must be minimal.
Because India follows a different tax regime for different forms of tobacco ranging from beedi, cigarettes to
chewing tobacco.
SANITATION BRINGING A BEHAVIORAL CHANGE
Sangita Vyas and Ashish Gupta of the Research Institute for Compassionate Economics (r.i.c.e.), led a
Sanitation Quality Use Access and Trends (SQUAT) survey in 13 districts of the five States of Haryana,
Rajasthan, Uttar Pradesh, Madhya Pradesh and Bihar.
Some of their findings have been mentioned below.
A full 40 per cent of households in the sample that had a latrine had at least one person who was still
defecating in the open
This number was the highest for Rajasthan (57 per cent) and the lowest for Haryana (35 per cent)
86 per cent households did not have toilets
BUILDING TOILETS WITHOUT CHANGING BEHAVIOUR IS USELESS
Dozens of households that have a toilet, either built through the NBA or from their own money, do not use
the toilet because they believed that it is much healthier to go in the open.
Of those who had a toilet but defecated in the open, 74 per cent gave pleasure, comfort, and convenience
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as the reason for this, and another 14 per cent said it was because of habit, tradition, and because they
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have always done so.
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Indias Nirmal Bharat Abhiyan focused on building toilets to overcome the problem of open defecation but
survey findings bring forth a different aspect to the problem.
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Survey findings show that the lack of money to build a toilet is not the only thing that is holding rural
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households back from building toilets; large parts of the population do not seem to have as yet made the
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association between good health and using toilets.

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IGNORANCE REGARDING THE RELATIONSHIP BETWEEN HEALTH AND SANITATION

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Even though relationship between health and sanitation has been clearly established through studies in the
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Less than a quarter of households with a toilet in the survey said that they had constructed it for health
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In a village, protecting the modesty of their daughters-in-law was the most common reason cited for
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TOILETS LOW ON PRIORITY FOR HOUSEHOLDS

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Many households did not consider building a toilet a priority until they had built themselves a bigger and
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better house and taken care of other expenses.

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But Bangladeshs Demographic and Health Survey (DHS) shows that sanitation in Bangladesh has been taken
up by the rich and the poor alike.
Poor Bangladeshis are more likely to use latrines than poor Indians. Of these impoverished Indians (21 per
cent of the whole), 84 per cent defecate in the open. In contrast, a mere 28 per cent of the Bangladeshis
living in homes with dirt floors and no electricity similarly defecate in the open
To succeed he will have to focus on behaviour change not construction and commit to learning and
tinkering with new behavioural solutions.

OVERCOMING NEO-NATAL DEATHS IN INDIA
India leads a group of high-burden countries with respect to one more health indicator neonatal (0-27
days of age) death
Of the three million neonatal deaths globally in 2012, some 779,000 were in India.
Nigeria comes second with about one-third of Indias figure. Also, globally there were 2.6 million stillbirths
in the same year, of which 600,000 were in India.
Of the one million newborns dying globally on the first day of birth, nearly one-third are in India.
ANALYSIS
56 per cent of all under-five deaths in India happen during the neonatal period which reveals the
vulnerability of the neonatal period
Not only that but India had a neonatal mortality rate of 29 per 1,000 live births in 2012, recorded an
average annual rate of reduction of just 2.6 per cent during 1990-2012 which shows inability to bring down
this number
India is one of the 10 countries with an estimated 100,000 to 250,000 preterm births, as in 2010. The high
number of preterm births is one of the reasons for the very high numbers of newborn deaths in the country.
Poverty, adolescent pregnancy, inadequate spacing of deliveries, and lack of medical care are some of the
risk factors involved with the preterm births
STEPS TAKEN
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Over 500 special-care newborn units have been set up in district hospitals, and about 600,000 admissions
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take place a year
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Because of initiatives such as cash transfer, institutional deliveries have increased since 2006
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But many deliveries still take place at home, especially in the States of Uttar Pradesh and Bihar.
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There is therefore is a dire need to increase the number of well-trained birth attendants.
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Also, the lack of well-trained healthcare workers and well-equipped healthcare centres has proved to be a
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barrier to improving newborn survival. There is, hence, an urgent need to improve the quality of care.
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ENVIRONMENT
E-WASTE PROBLEMS FOR INDIA
As per a research paper in just over a decade India will have on its hands 130 million obsolete desktop
computers and 900 million laptops to dispose of.
Current estimate shows that 2.7 million tonnes of e-waste are generated annually in India. The
apprehension arising is not of volume alone, but also of the nature of toxicity associated.
Besides the sheer volume of non-biodegradable material this entails, e-waste involves distinctly hazardous
substances such as cadmium, mercury, lead, arsenic and a blend of plastics that are difficult to remove from
the environment
EXISTING CAPACITY GAPS
India has a total installed recycling capacity of just 66,000 metric tonnes, which takes care of less than 10
per cent of the total e-waste produced in the country.
Only 16 formal e-waste recycling companies exist in the country.
The paper proposes that a recycling capacity for 1030 million obsolete PCs should be planned by 2025
TOP COMPANIES FLOUT E-WASTE RULES : ANOTHER STUDY
As per a study, Reputed electronic and electrical equipment companies in the country are doing little to
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safeguard the environment against the irresponsible dumping of e-waste
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16 out of the 50 leading companies were found to be wanting in their role on e-waste management
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The study rated companies on the basis of five criteria: sufficiency of information on website, ease of
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accessibility of information, take-back system, number of collection points and information on customer care
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or helpline provided.
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The study revealed that 16 brands, have not set up any take-back system even after two years of the rules
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coming into effect

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WHAT IS TAKE BACK MECHANISM?

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The take-back mechanism, is a system to collect e-waste from the consumers,

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It is blatantly ignored by a number of companies; one third of the brands assessed had no take-back
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mechanism at all, and more than half of them did not provide any information on physical collection points
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ROLE OF STATE POLLUTION CONTROL BOARDS

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Most SPCBs (regulatory agencies) have failed to carry out inventories of waste, mandated under the e-
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waste rules. No action has also been initiated against any of the defaulting companies by the regulatory
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agency.
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In fact, most SPCBs have not set up any mechanism in their respective States to monitor the collection and
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processing units. Many of them have not even uploaded e-waste rules on their website to educate different
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stakeholders
CLEANING UP GANGA- TOP PRIORITY FOR MINISTRY
Cleaning up Ganga river finds a prominent place in first 100 day priority list of Ministry of Water Resources
Earlier NGRBA was under the control of Ministry of Environment and Forests would be shifted to Ministry of
Water Resources

WHAT ARE THE ISSUES FACING GANGA?
Issues affecting the river are myriad and complex. Some of them have been discussed below:
Untreated sewage and industrial waste are dumped into the waters without remorse.
Reduced flow and rampant underground water withdrawals affect millions of people who depend on the
rivers water
Further, floods and droughts, which endanger lives and cause serious damage to crops, livestock and
infrastructure, are a common phenomenon in the river basin.
There is now clear evidence that climate change is already affecting the Himalayan ice cover. This will have a
profound impact on the river.
WHAT IS THE WAY AHEAD?
Basin approach: The Ganges is a complex trans-boundary basin which flows across different jurisdictions.
Therefore, a basin-scale approach would help manage the water resources better. This would require close
coordination with all the neighbouring countries sharing Ganga, so that the interests of both upstream and
downstream users are taken into consideration. The existing treaties on sharing water resources could be
renegotiated as shared management of water resources.
Problem of Sewage: It is estimated that sewage constitutes the largest portion (80 per cent) of the pollution
load followed by pollution caused by industrial discharge agricultural activities. With agricultural activities
intensifying in areas near the river, particularly in urban and peri-urban areas, farmers frequently rely on
waste water for irrigation. This has cause several public health concerns. However, this waste can be used as
a bio input for farming which would not only solve the sewage problem but also help agriculture.
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Maintaining Environmental Flows: Deteriorating water quality in the Ganga due to domestic, industrial
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and agricultural effluents is also a major threat to riverine ecosystems and to people whose livelihoods
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depend on water. Innovative methods for maintaining environmental flows and the quality of water during
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environmentally critical periods, along with procedures for implementing these methods, need to be
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investigated.
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Involvement of other stakeholders: Successful implementation of this task of cleaning the Ganga would
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require partnerships with various stakeholders. Multiple agencies working to address the problem could be
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brought on board. The private sector has also shown its willingness to be a partner in cleaning the river,
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especially at critical points such as Varanasi. Similarly, the public at large, along with civil society groups, also
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need to be actively engaged in these efforts.

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EL-NINO MAY AFFECT CORAL REEFS ADVERSELY

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A growing number of scientists are predicting a major El Nio weather event this year, which could wreak
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havoc across South America and Asia

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One of the major impacts of this could be on the worlds coral reefs in form of coral bleaching
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WHAT IS EL-NINO?
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A band of warm water develops in the western Pacific, while the Indo-Pacific Warm Pool a blob of heat
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that spans much of Indonesia starts oscillating wildly

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EL-NINO AND BLEACHING
The last big El Nio in 1997-98 caused the worst coral bleaching in recorded history. In total, 16 per cent of
the worlds coral was lost and some countries like the Maldives lost up to 90 per cent of their reef coverage
This event could spell disaster for Coral Triangle, a southeast Asian bioregion thats the underwater
equivalent of the Amazon, home to more marine species than anywhere else on Earth
The Coral Triangle sees prolonged periods of temperature anomaly during an El Nio because the equator
passes through the middle of it, so it experiences both northern and southern hemisphere summers.

WAY AHEAD
The only meaningful solution in the long term is to drastically reduce carbon emissions worldwide
Not much can be done to mitigate the impact of an impending El Nio, but some of the other non-climate
related stresses can be removed.
Establishing a number of areas of undisturbed marine habitat and reducing pressure on fisheries is one of
the solutions
If no action is taken then corals worldwide could be on the verge of extinction by as early as 2050.
UN CONCERNED OVER DUMPING IN THE GREAT BARRIER REEF
UN has expressed alarm at Australias proposal to dump 3m cubic metres of dredged material into the Great
Barrier Reef world heritage site.
Australian and Queensland governments have granted approval for dumping as part of the expansion of the
Abbot Point coal port, which lies on the fringes of the reef.
The reef survives on a delicate symbiosis between its plants and animals. Corals provide the skeleton on
which the entire ecosystem is built. These interactions are already significantly threatened by the runoff of
agricultural chemicals and destruction of increasingly fragile corals by cyclone and this move can further
endanger them.
WORLD HERITAGE SITE STATUS FOR HIMACHAL PARK
The Great Himalayan National Park (GHNP) in Kullu district of Himachal Pradesh has been accorded the
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Unesco World Heritage Site status
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It has been granted the status under the criteria of exceptional natural beauty and conservation of
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biological diversity.
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GHNP has now come in the league of Indian World Heritage Sites (WHS) such as the Taj Mahal, Ellora,
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Kaziranga National Park, Keoladeo National Park, Manas National Park, Nandadevi Biosphere Reserve and
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the Sunderbans.
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OTHER DETAILS
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It is home to a number of threatened species, providing them with habitats critical to their survival.
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The park has been inscribed under category 10 of the World Heritage Convention that covers areas that
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contain the most important and significant natural habitats for in-situ conservation of biological diversity,
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including those containing threatened species of outstanding universal value from the point of view of
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science or conservation
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It supports self-sustaining populations of near-threatened, vulnerable and endangered species like leopard,
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Himalayan Black Bear, Royles Vole, Himalayan Tahr, Himalayan serow, Himalayan goral, Himalayan musk
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deer, western tragopan and cheer pheasant.

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The endangered snow leopard and the critically endangered Red-headed vulture are also present.
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NO LESSONS LEARNT FROM UTTARAKHAND DISASTER

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The June 16-17 deluge last year was one of the worst calamities the State has witnessed which resulted in
flash floods and landslides.
The deluge left Uttarakhand in shambles. Flash floods pummelled the Alaknanda, Bhagirathi, Mandakini,
Gori Ganga, Pindar, and Kali rivers. According to official data, 4,190 people died in the disaster, more than
2,500 buildings were completely destroyed, and 2,070 roads and 145 bridges were damaged.
UTTRAKHAND A HIGH RISK PRONE AREA

The Earthquake Risk Map of India places 13 districts in Uttarakhand under seismic zone IV (severe intensity
zone) and V (very severe intensity zone). Despite this, several dams and roads have been constructed along
fault lines
Other than earthquakes, the State is vulnerable to hailstorms, cloudbursts, flash floods, forest fires, and
avalanches. In 2012, a landslide in Ukhimath and flash floods in the Assi Ganga and the Bhagirathi rivers
killed about a 100 people and caused extensive damage to livestock and property.
NO LESSONS LEARNT
Locals continue to remain the governments second priority. Rehabilitation of villagers is still incomplete.
Locals continue to make trips to their tehsildars, patwaris, sub-divisional magistrates, and district
magistrates for pending compensation issues.
In last one year roads have been reconstructed, but by boring deeper into the mountains, already subject to
constant erosion by the river flowing beside them. At some places, protection walls have been built; at
others, debris from landslides has been left as it is, blocking the roads this monsoon season too.
A biometric registration system has been introduced this year to keep track of the pilgrims, and the State
Disaster Response Force has been deployed on the yatra routes. However, the meteorological equipment
has not been upgraded since last year.
Little seems to have been done by the State governments, past and present, in the area of disaster
prevention, mitigation and management.
Nothing more than regular training and awareness programmes are being conducted on disaster
management in case of an earthquake.
The State is in dire need of a fast-paced development plan that is also sensitive to the fragile ecosystem.
WHALE SHARK KILLING ON A RISE
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From February 2013, as many as 15 whale sharks (Rhincodon typus) have been slaughtered in the Godavari
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The number of giant fish being slaughtered in a period of 100 years from 1890 was 20
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MORE ABOUT WHALE SHARK

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The whale shark is the biggest fish (largest living non-mammalian vertebrate) in the world reaching lengths
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of 40 feet (12 meters) or more and a weight of more than 21.5 metric tonnes.
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International Union for Conservation of Nature (IUCN) considers the species vulnerable as it is protected as
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Schedule-I species on a par with tiger under the Indian Wildlife (Protection) Act, 1972.
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PEST SPRAYS POISONING WORLD FOOD SUPPLIES

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As per a scientific assessment the worlds most widely used insecticides have contaminated the
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environment across the planet so pervasively that global food production is at risk
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The researchers compare their impact with that reported in Silent Spring , the landmark 1956 book by
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Rachel Carson that revealed the decimation of birds and insects by the blanket use of DDT and other
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pesticides
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WHY IS THIS HAPPENING?

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Billions of dollars worth of the potent and long-lasting neurotoxins are sold every year but regulations have
failed to prevent the poisoning of almost all habitats
The new assessment analysed the risks associated with neonicotinoids, a class of insecticides on which
farmers spend $2.6bn (1.53bn) a year
As a result, creatures essential to global food production from bees to earthworms are likely to be
suffering grave harm and the chemicals must be phased out.

INDIA AND WORLD
INDIA CHINA
VICE PRESIDENT HAMID ANSARI VISITS CHINA
Vice President Hamid Ansari went on a five-day visit to China where he participated in bilateral discussions
with his counterpart Li Yuanchao and attended events to mark the 60th anniversary of Panchsheel
agreement. The trip by the Indian Vice President is marked with high expectations in Beijing that Prime
Minister Narendra Modis government will energise recently troubled trade ties.
This was the first visit of an Indian leader to China after the Narendra Modi government took over last
month. It was also Mr. Ansaris first visit to China, and the first by an Indian Vice President since 1994.
A high-level delegation, which included Commerce Minister Nirmala Sitharaman and Foreign Secretary
Sujatha Singh, also traveled along with the Vice President.
Panchsheel was jointly initiated in 1954 by former Prime Minister Jawaharlal Nehru along with his then
Chinese counterpart Zhou Enlai and the then leadership of Myanmar. In the following 60 years, the five
principles of the peaceful coexistence withstood the test of the vicissitudes, becoming widely accepted in
the basic norms of governance of international relations. Today it still plays an important role in
safeguarding the world peace and development.
These five principles are mutual respect for each other's territorial integrity and sovereignty; mutual non-
aggression; mutual non-interference in each other's internal affairs; equality and cooperation for mutual
benefit and; peaceful coexistence.
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CHINESE FOREIGN MINISTER VISITS INDIA
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Trade and investment drove the first India-China talks under the new government at the meeting between
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visiting Chinese Foreign Minister Wang Yi and External Affairs Minister Sushma Swaraj. The meeting was
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reported to be cordial, useful and comprehensive, covering all important issues, substantive and productive
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India and China have set a target of $100 billion in bilateral trade a year by 2015, a goal which the two
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Ministers spoke about in their meetings. Indias concerns over the vast trade deficit of $ 31 billion out of
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bilateral trade of $ 65 billion last year came up, as Ms. Swaraj is also learnt to have spoken of more
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investment from China into Indian infrastructure, particularly in the Railway sector.
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The two Ministers also discussed the next steps on the long-standing border row as well as a road map for all
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the upcoming meetings between high-level Indian and Chinese dignitaries in the next few months of 2014, a
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year designated as the China-India Year of Friendly Exchanges.

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Besides, there was optimism that India and China, under the new leadership of Mr. Narendra Modi, could
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find a solution to the vexed boundary question, by showing strong will and resolve. The meet highlighted
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that Indo China relations have more strategic consensus than differences.
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INDIA-CHINA INDUSTRIAL PARK

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The Indian government has decided to sign a MoU with the Chinese counterpart for setting up an Indo
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China industrial park in India.

According to Law and Justice and Telecom Minister Ravi Shankar Prasad , the trajectory of discussions has
led to the Chinese agreeing to allow India to set up industrial parks there as well but officials said this is a
futuristic proposal and could take a couple of years to materialise.
The proposal had been on work since Chinese Premier Li Keqiang visited India in May last year. Then Prime
Minister Manmohan Singh took up the proposal during his visit to Beijing in October last year and agreed
with the Chinese leadership that inward investments would be the best way to bridge the widening trade
deficit from Indias point of view.

FIRST ENCYCLOPEDIA OF CULTURAL CONTACTS
India and China released the first encyclopedia on their age-old cultural contacts, tracing back their history
to over 2,000 years, starting from the visit of Chinese scholar Huen Tsang to India in the 7th century to bring
Buddhist scriptures to China.
The two volumes of the encyclopedia jointly compiled by scholars of India and China were released by Vice
President M H Ansari and his Chinese counterpart Li Yuanchao during their bilateral meeting.
The idea of encyclopedia of India-China Cultural Contacts, which also covers the trade and diplomatic ties,
was mooted during the visit of former Chinese Premier, Wen Jiabao to India in December 2010.
The book traces back the centuries old civilisation links that started with the visit of Huen Tsang to India in
the 7th century to bring Buddhist scriptures to China. The two sides recognize the importance of expanding
such contacts, thereby contributing towards enhanced mutual understanding.
The encyclopedia was released in both English and Chinese versions. It features over 700 entries,
encapsulating the rich history of contacts and exchanges between the two countries in the trade, economic,
literary, cultural and philosophical spheres.
INDIA BHUTAN
Prime Minister Mr. Narendra Modi visited Bhutan in his first official visit after being elected to the office of
prime minister of India. He declared to expand bilateral ties he termed as "Bharat to Bhutan" (B2B) relations.
It is seen as an attempt to cement India's "unique and special relationship" with the neighbouring country.
During the visit, the two sides explored ways to boost their ties, particularly in trade and hydro-electricity.
The PM also addressed the joint session of the Parliament of Bhutan. He also inaugurated one of India's
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assistance projects -- the building of the Supreme Court of Bhutan. The fact that the Prime Minister chose
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Bhutan as his first foreign destination assumed significance since China has lately intensified efforts to woo it
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and establish full-fledged diplomatic ties with Thimphu.
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He also lauded Bhutan for the smooth transition from monarchy to democracy in a span of seven years
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which showed maturity in governance in that country. Describing the Himalayas as a shared legacy of the
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two countries, he stressed on the need to develop the region and said India is planning to open a university
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for Himalayan studies.

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The bilateral talks are expected to focus on strengthening ties over Bhutan's hydropower plants, which
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supply much-needed clean energy to India. Bilateral trade was worth $1.1 billion in 2012, and Tobgay said
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Bhutan's hydropower industry was "the centrepiece of our bilateral cooperation".

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India, a power-deficit nation with severe outages, has helped Bhutan develop three hydropower plants with
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another three under construction.

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AN OPINION ON MODIS VISIT TO BHUTAN

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Prime Minister Modis decision to make Bhutan as his first foreign destination after becoming Prime Minister
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signals a significant shift in Indias neighbourhood policy. Often, neighbourhood escapes high profile visit as
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Indias attention remains diverted to broader foreign policy issues involving other major powers.
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This shift has two important dimensions which need to be kept in mind while analysing broader parameter
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of Indias engagement with its neighbours. First, it signals that the neighbourhood is going to be extremely
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important as a part of initiative to chart economic development and bolster internal security. Second,
choosing Bhutan as his first destination underlines that India acknowledges its solid friendship with Bhutan
which has significantly cooperated in the counter insurgency initiative by denying space to the Indian
insurgent groups in the past.
Bhutans relationship with India in this context is truly all weather. It is not characterized by the usual anti-
Indianism which the elites in neighbouring countries use to make political business nor has Bhutan ever
adopted a balance-India policy by engaging China.
The India-Bhutan Friendship Treaty, which was redrafted and signed in 2007, set the bilateral relations on a
new course signifying the two countries mutual trust. It has laid the basis for a relationship that is
responsive to each others national interests, a relationship that is consultative, and a relationship that
ensures mutually beneficial cooperation. This treaty does not have the imperial trapping like the previous
1949 treaty. Indias relations with Bhutan represent a synergy that takes an entire gamut of relations, i.e.
foreign policy, security and economic cooperation.
Modis visit to Bhutan is politically significant. After inviting SAARC leaders to his swearing in ceremony; his
choice of Bhutan as the first country came as no surprise. Bhutan is also the only country where the bilateral
relationship is free from tension. Expectations from each other are also easy to attain. Modi, after assuming
power has emphasized internal security would be a major concern. Considering Bhutans help in the past to
flush out militants from the North East, it remains a significant partner in attaining internal stability.
India needs to earnestly complete some of the projects that have already been delayed due to lack of
sufficient fund. Bhutan is the only neighbor that can help India in augmenting internal stability and external
security. The short-sighted policy of cutting fuel subsidy, just before the elections in Bhutan, did much harm
to Indias old age relations with Bhutan. India needs to pursue its relations with Bhutan without strong arms
tactics and should remain committed to a relationship of partnership which will help the Bharat and Bhutan
are made for each other paradigm to consolidate and fructify for the benefit of the two countries
INDIA FRANCE
The Honble Minister of Foreign Affairs and International Development of France, H.E Mr. Laurent Fabius
arrived on an official visit to India from 30 June-1 July, 2014. This was his second visit to India.
India and France share a warm and friendly bilateral relationship. The two countries share common
perspectives on a wide variety of issues in the global arena. The visit of the French Foreign Minister provided
an opportunity for both sides to further strengthen the Indo-French partnership.
In his meetings with the Indian counterparts, the leaders discussed ways to strengthen cooperation in key
areas such as defence, trade and investment with India expressing keenness on setting up industrial bases
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for it to boost ties.
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Among other issues, they discussed climate change, anti-terrorism and people-to-people exchanges.
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During the Mumbai leg of the visit, the French Minister met with leading tour operators and explains steps
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being taken to get more Indians to visit France, including having more VFS centres and how to deliver visas
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faster. France receives 80 million tourists annually and is keen to get more Indian tourists.
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Meanwhile, it was announced that an Indian space launcher will launch a French satellite from Andhra
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Pradesh. This will be the second time that India will be launching a French satellite. India had earlier
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launched French Satellite SPOT -7 using the PSLV programme. Incidentally, this is the 50th year of India-
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France space collaboration.

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INDO-FRENCH AIR EXERCISE GARUDA V

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Indo-French Air Exercise, Garuda V concluded on 13 June 2014 in Jodhpur Air Base. The exercise between
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the air forces of both countries started on 2 June 2014 saw various combat roles including Air to Air
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refueling.
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During the exercise Arup Raha the IAF chief Air Marshal and his French counterpart General Denis Mercier
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flew combat sorties in Rafael and Su30 respectively. They also interacted with the pilots and technicians of
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both the Air Force

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The Representatives of the two countries during the 2014 edition of the Garuda V exercise were-
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o French Air Force was comprised of 4 Rafaels and 1 C-135 French Refueller aircraft.
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o The Indian Air Force (IAF) fielded 4 Su-30MKI, 4 MiG 21 Bison, 4 MiG 27 (Upg) as well as an IL-78
tanker aircraft and an Airborne Warning and control system IL-76 (AWACS)
The objectives of the exercise are to exchange know-how of French and Indian pilots and to enhance
interoperability and cooperation between French and Indian air forces, including in the field of air refueling.
INDIA IRAQ
On June 10, a shadowy jihadi group, till then known for its violent activity in the Syrian conflict, captured
Iraqs premier town of Mosul. After this, over the next few days, there were reports of the capture of other
towns Baiji, Tikrit, and then north to Tal Afar on the Syrian border so that within a week,

the jihadis seemed to be grouping just outside Baghdad. The group was identified as ISIS the Islamic
State of Iraq and [Greater] Syria, a jihadi grouping affiliated with al-Qaeda.
According to observers, at least since 2012, ISIS has functioned more as a militia organised on military lines
than as a terrorist organisation. Instead of random acts of violence against soft targets, ISIS cadres now
launch strategic attacks to augment their food, weaponry and cash resources.
Indias immediate concern is for the security and safe return of its nationals who are stranded in different
cities of Iraq under ISIS occupation.
Over the period of last month, more than 100 Indians have been abducted by the group ISIS; involved in the
power struggle in Iraq. The detention of 40 Indians, along with the entrapment of 46 nurses in a Tikrit
hospital, is cause for deep anxiety; the crisis has dwarfed the 2004 abduction and release of three Indian
truck drivers near Baghdad. Apart from India, countries such as China and Turkey, whose nationals have
been detained in large numbers, are experiencing the pain. The blowback of the incident has hit the
government hard, persuading External Affairs Minister Sushma Swaraj to meet the distraught families of the
victims, who have no option but to seek solace from the Central government.
The government is facing a complex crisis that has to be tackled at multiple levels. In order to get the
hostages released, New Delhi is apparently using the channels of the Iraqi Red Crescent to communicate
with the militants. Its immediate worry is to ensure safe passage that would allow the evacuation of the
workers from their present locations to the Kurdish-dominated Erbil airport, which is much safer,
geographically and otherwise, than the battle-hit route to Baghdad heading towards the south.
But the government has to worry beyond the immediate; for a crisis of much larger proportions can emerge
should fighting spill into the oil-rich south, where a large proportion of the 20,000 Indians in Iraq live. The
danger of an escalation of regional upheavals is real if Iran, in supporting the Shia-dominated south, gets
embroiled in the crisis possibly creating a spiral of tensions with rival Saudi Arabia.
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Finally, New Delhi has also to be prepared for the internationalisation of the events in Iraq, as well as a sharp
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and painful spurt in oil prices, especially if the United States chooses to launch air strikes against opposition
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strongholds. For this could raise concerns in Russia and China that have been reacting vigorously to events in
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West Asia, especially Syria, in the aftermath of the 2011 fall of Qadhafi in Libya.
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Apart from the humanitarian crisis, the escalating civil war in Iraq sent crude prices to a nine-month high of
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$120, potentially signaling tough times ahead for Indias economy that has been struggling with high
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inflation. It led to immediate increase in price of petrol and diesel in the country. The IEA has said that OPEC
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would need to produce one million barrels per day (bpd) more oil on average in the second half of 2014 to
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balance the global market, which will see a steep seasonal spike in demand.
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INDIA RUSSIA
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RUSSIA SEEKS CHINA AND INDIA AS PARTNERS OF EMERGING ENERGY ALLIANCE

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Russia has signaled that its proposed giant gas pipeline to China could be extended to India, setting the stage
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for a triangular energy partnership among three core members of the Brazil-Russia-India-China-South Africa
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(BRICS) grouping.
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Russian Deputy Prime Minister Dmitri Rogozin, who

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has concluded a visit to India as President Vladimir

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Putins envoy told reporters that the construction of

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a gas pipeline from Russia to India would be one of

the largest infrastructure projects that could be
conceived. His comments follow media reports that
during his anticipated meeting with Prime Minister
Narendra Modi in Brazil during the BRICS summit
next month, Mr. Putin may propose the extension of
the Russia-China gas pipeline to India.
The move, if it materialises would feed into Russias
discernable strategic shift towards the East,
especially after the Ukrainian crisis, which has sent
Moscows ties with the Atlantic Alliance in a tailspin.
Leveraging its position as a global energy supplier, Russia has already identified China as one of its core
partners its inclination evident in the $ 400 billion gas deal that it has signed with Beijing.
Besides Mr. Rogozin acknowledged that going beyond a buyer seller relationship, India as approaching
Russia as partner in co-developing weapons, which include joint forays in making a fifth generation fighter
jet and a multi-role transport aircraft. He also said that negotiations on establishing two more nuclear
reactors in Kudankulum are underway, to fulfill an ambitious plan to set up 14 to 16 Russian designed
nuclear power units in India.
RUSSIA GIVES IN-PRINCIPLE NOD TO INDIAS NUKE LIABILITY LAW
Russia has in-principle agreed on the Indian nuclear liability law, which had been impeding progress in the
units 3 and 4 of Kudankulum nuclear power plant.
According to Mr. Kirill Komarov, deputy director general on development and international business,
Rosatom State Corporation, the (liability) law enacted is certainly challenging; but we are working with our
colleagues (counterparts) in India and the issue has been resolved.
India and Russia signed a general framework agreement on unit 3 and 4 in April this year after crossing the
initial hurdles of the Civil Liability Nuclear Damage Act 2010. The agreement could not be signed in October
last year when the then Indian Prime Minister Manmohan Singh visited Russia, as Moscow had raised
objection over some clauses of the Civil Liability for Nuclear Damage Act.
According to officials in Rosatom, Russia was waiting for a nod from India to go ahead before implementing
the general framework agreement. The Indias over view authority (Atomic Energy Regulatory Board) is yet
to give its nod.
Unit 1 of the KKNPP has attained 100% capacity of 1000 MW while the second unit should start generating
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power from this year. Units 1 and 2 of Tamil Nadu-based Kudankulum power plant have been built with the
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help of Russian assistance at the cost of Rs.17,200 crore.
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INDIA BANGLADESH @
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External Affairs Minister Sushma Swaraj visited Bangladesh on her maiden standalone overseas tour with an
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attempt to addressing each others concerns in the spirit of good neighbourliness.

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Though there are no pacts to be signed and no big outcome expectations, the trip, which is termed as a
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goodwill visit is aimed at taking forward the bilateral ties which are on a positive trajectory for past few
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years.
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During her meetings, Swaraj gave a commitment to address Bangladeshs concerns over sharing of Teesta
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waters and implementation of the Land Boundary Agreement (LBA) in a manner that improves the welfare
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and well-being of both our people. Significantly, it was BJPs opposition, coupled with that of Trinamool
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Congress and Asom Gana Parishad which prevented the previous Congress from formalising the land
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boundary agreement and signing the Teesta water sharing deal with Bangladesh. The LBA, which is yet to be
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approved by Parliament, is aimed at redrawing the international boundary between India and Bangladesh by
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exchanging areas of adverse possession and enclaves along with population on either side, thus making the
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highly incongruous and porous Indo-Bangla border more manageable.

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India also agreed to relax its visa regime, allowing Bangladeshi citizens in the 13-65 age-groups five-year
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multiple entry visas, especially for those who intend to come here on education and medical purposes. They
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would be granted a stay allowance for a maximum of 90 days.

She also handed over Prime Minister Narendra Modis letter to Hasina in which he pledged to further
strengthen the framework of ties. PM Mr. Modi, while thanking Hasina for her letter of felicitation on his
assumption of office, also accepted her invitation to visit Bangladesh. He also extended an invitation to her
to visit India at her earliest convenience.
India is working on granting Bangladesh a $1 billion credit line, the largest ever given to any country, for 15
projects. Standard operating procedures have been signed to facilitate road and rail traffic between Nepal,
Bhutan and Bangladesh. Grid connectivity has been established for 500Mw of power across the border.
Besides, India is planning to take other such power and energy initiatives.

INDIA BECOMES PERMANENT MEMBER OF WASHINGTON ACCORD
A long wait for India ended when the country became a permanent member of the Washington Accord, an
esteemed international treaty on engineering studies and mobility of engineers across signatory countries
including the US, the UK and Australia. Permanent membership reflects on the countrys stature in the
technical education space. Until now, India has been just a provisional member since 2007.
The meeting of the International Engineering Alliance of WA member nations met in Wellington, New
Zealand and gave India the signatory status to join the select group of nations who are permanent
signatories to the Washington Accord (WA).
This will ensure highest quality assurance standards to be implemented in our technical and engineering
programmes and provide global mobility to our engineering graduates. It will significantly enhance their
employment opportunities around the world.
WHAT IS WASHINGTON ACCORD?
It is an international accreditation treaty for professional engineering academic degrees, between the bodies
responsible for accreditation in its signatory nations. Initially when the Washington Accord came into force
in 1989, only 6 developed countries were its members.
As of 2014, the signatories are: Australia, Canada, Chinese Taipei, Hong Kong China, India, Ireland, Japan,
Korea, Malaysia, New Zealand, Russia, Singapore, South Africa, Turkey, the United Kingdom, and the United
States.
The accord acknowledges that there is significant uniformity of programs accredited by those signatories.
Every signatory country recognizes the graduates of accredited programs by every other signatory country as
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having met the academic requirements for entry to the practice of engineering. Recognition of accredited
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programs is not retroactive but takes effect only from the date of admission of the country to signatory
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The treaty covers undergraduate engineering degrees under Outcome-based education approach. The
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accord doesnt take into account engineering technology and postgraduate programs, although some
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engineering technology programs are covered under the Sydney Accord and the Dublin Accord. Only
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qualifications granted after the signatory country or region became part of the Washington Accord are
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recognized. The pact is not directly responsible for the licensing or registration of Professional Engineers and
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Chartered Engineers, but it does cover the academic prerequisites that are part of the licensing processes in
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countries party to the accord.

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INDIA TO OPEN CIVILIAN NUCLEAR PROGRAMME TO GREATER SCRUTINY

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India has decided to ratify an agreement with the International Atomic Energy Agency (IAEA) to expand
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oversight of its civilian nuclear programme, in a move aimed at unblocking a major nuclear partnership with
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the United States.

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With the proposal languishing for over five years, the new government has decided to go ahead with the
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ratification process, clearing the decks for large imports of nuclear technology, boosting power generation
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and other civilian purposes.

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The ratification sends a strong signal that Prime Minister Narendra Modi wants to bolster strategic and trade
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ties with the United States when he meets President Barack Obama in Washington in September.
The MEA officials commented that the move signals India's commitment "to the responsible use of nuclear
power. However, no comments were available from IAEA.
This action marks another important step in bringing India into the international nonproliferation
mainstream. The United States said that it remains fully committed to expanding our civil nuclear
cooperation with India. The United States also confirmed its strong support for India's full membership in the
four multilateral arms export control regimes, in a phased manner, as India takes the steps necessary to join
each regime.
The four control regimes are: the Nuclear Suppliers Group; the Missile Technology Control Regime; the
Australia Group, which covers chemical and biological materials; and the Wassenaar Arrangement covering
dual-use items and conventional weapons.
However, the critics of the IAEA pact say it fails to allay concerns that India could get its foot in the door of a
club of countries that trade in nuclear materials, without first signing the Non-Proliferation Treaty, which
seeks to curb the spread of nuclear weapons.
Following the U.S.-India nuclear deal, the IAEA in 2009 approved the Additional Protocol, intended to clear
the way for the NSG to grant India a waiver to trade with other countries in the civilian nuclear field.
Ratification is a key step towards separating civilian and military nuclear operations, and could help unlock
tens of billions of dollars in U.S.-led investment in new nuclear generation capacity. Yet as recently as a year
ago, talks on India joining the group were being slowed by the prospect that its accession might trigger
similar demands by other countries that have not signed the NPT, such as Pakistan, to join. But the lack of
verification of India's weapons programme, which contrasts with tighter controls on NPT signatories, would
continue to be a concern.
The Additional Protocol will cover only those facilities which are monitored by the IAEA, and will have no
bearing on the non-safeguarded facilities which are used for building weapons.
The new arrangement would also facilitate regular entry and exit of the IAEA personnel by providing them
with multi-entry visas, apart from guaranteeing free communication generated by the surveillance or
measurement devices of the IAEA that are already in place in facilities that are under international
safeguards.
The earlier safeguards agreement with the IAEA covered 20 facilities that include the Nuclear Fuel Complex
in Hyderabad, Tarapur atomic power plant, Rajasthan Atomic Power Station, both units at Kudankulum, and
the Kakrapar Atomic Power Station.
INDIA PART OF CULTURAL PROJECT TO CONNECT INDIAN OCEAN NATIONS
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Secretary, Ministry of Culture Shri Ravindra Singh on 20th June, 2014 presented Mausam, a Ministry of
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Culture project to an international audience at the 38th session of the World Heritage Committee at Doha,
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Qatar. One of the main deliverables of this project is nomination of maritime cultural landscapes across the
Indian Ocean as a trans-national property on the World Heritage List of UNESCO. @
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Director General UNESCO, who was present at the launch function, expressed a great interest in this project.
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Ambassadors of several countries including China, UAE, Qatar, Iran, Myanmar, and Vietnam also expressed
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keen interest in the multifaceted cultural project.

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The endeavour of Project Mausam- Mausam: Maritime Routes and Cultural Landscapes is to position itself
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at two levels: at the macro level, it aims to re-connect and re-establish communications between countries
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of the Indian Ocean world, which would lead to an enhanced understanding of cultural values and concerns;
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while at the micro level, the focus is on understanding national cultures in their regional maritime milieu.
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The central themes that hold Project Mausam together are those of cultural routes and maritime
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landscapes that not only linked different parts of the Indian Ocean littoral, but also connected the coastal
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centres to their hinterlands. More importantly, shared knowledge systems and ideas spread along these
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routes and impacted both coastal centres, and also large parts of the environs.
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Preliminary works on this new project has already been initiated. A monthly lecture series has been
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organized at India International Centre (IIC), New Delhi in collaboration with IGNCA, National Monuments
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Authority (NMA), New Delhi and IIC. The first international conference, scheduled in February 2015, would
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be organized with national and international research partners and collaborators. The central theme of this
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conference is Great Centres of Learning: Knowledge Societies and the Making of the Indian Ocean region.
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This workshop proposes to focus on great centres of learning in the Afro-Asian world and their function in
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creating syncretic forms of religious and secular knowledge in the Indian Ocean region (IOR).
Project Mausam is an exciting, multi-disciplinary project that rekindles long-lost ties across nations of the
Indian Ocean world and forges new avenues of cooperation and exchange. The project, launched by India in
partnership with member states, will enable a significant step in recording and celebrating this important
phase of world history from the African, Arab and Asian-world perspectives.

WORLD AFFAIRS
US ISSUES
US TALIBAN PRISONER SWAP
U.S. administration negotiated a deal with Taliban for a prisoner swap. It is widely considered that freed
soldier Bowe Bergdahl could create an opening for direct talks with the Taliban as the leader of the
insurgents hailed the exchange as a big victory.
Mr. Bergdahl, the only U.S. soldier captured by the Taliban since the war began in 2001, was freed in
exchange for five senior insurgent detainees as both parties claimed success for the dramatic deal, brokered
by Qatar.
But the swap was criticised by several Republican lawmakers who demanded to know whether the Taliban
prisoners would return to fighting the United States.
Mullah Mohammad Omar, the spiritual leader of the Taliban, also issued a rare statement praising the big
victory for the Afghan Muslim nation in a sign seen by a government negotiator and some analysts as
potential confidence building measure.
The five Guantanamo prisoners were named as Mohammad Fazl, Norullah Noori, Mohammed Nabi,
Khairullah Khairkhwa and Abdul Haq Wasiq, all influential former officials of the Taliban regime toppled by
the U.S.-led invasion of Afghanistan after the 9/11 attacks.
US AIMS FOR 30% CARBON EMISSIONS CUT
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Taking a historic step to fight climate change, the Obama administration proposed a plan that aims to slash
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carbon dioxide emissions from existing power plants 30% by 2030 and could accelerate the nation's shift
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away from coal. It could be the most ambitious action yet on climate change.
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The Environmental Protection Agency gave states the leeway to choose their own plans but said that they
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must include enforceable restrictions to curb emissions by a national average of 30 per cent by 2030 from
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2005 levels. Power plants account for some 40 per cent of U.S. emissions of carbon dioxide, the most
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common greenhouse gas that contributes to climate change. Cuts are politically sensitive as coal, among the
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dirtiest energy sources, remains a major U.S. industry.
The move comes amid mounting signs of climate change. A U.N. panel of scientists warned in April that
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polluters needed to act urgently to avoid worst-case scenarios, which could include increased droughts,
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storms and coastline destruction. The environmental regulator said that the cuts would prevent up to 6,600
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premature deaths and up to 150,000 asthma attacks in children.

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These will put America on course to meet its international climate goal, and put U.S. diplomats in a better
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position to leverage climate commitments from big polluters such as China and India
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IAEA WELCOMES IRANS NUCLEAR COMPLIANCE

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U.N. atomic watchdog chief Yukiya Amano welcomed Irans compliance with measures to lift suspicions
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about its nuclear programme on Monday, but cautioned that some doubt remained. He also appealed for
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patience ahead of a July 20 deadline for a deal between Western powers and Iran, as the IAEA analyses data
that Iran may have sought a nuclear bomb.
In a report last month, Mr. Amano revealed that Iran had so far stuck by its agreements with the IAEA and
implemented all recently agreed measures, even addressing matters related to bomb-making for the first
time in six years. Tehrans further agreement in May to implement five new practical measures is a further
welcome step forward, he also said.
The so-called possible military dimensions (PMDs) of Irans nuclear programme including the use of
detonators have long been of concern to the international community, although Iran insists the aims of its
programme are purely peaceful.

Iran and western powers the so-called P5+1, including the five permanent members of the U.N. Security
Council and Germany are striving to draft a potentially historic nuclear deal by July 20. Several rounds of
talks have already been held in Vienna but the latest in mid-May ended with no apparent progress on a deal.
The United States welcomed Irans recent efforts to alleviate concerns about its nuclear programme, but
urged it to increase the pace of cooperation.
CHINA ISSUES
CHINA ACCUSES US AND JAPAN OF DESTABILIZING THE REGION
Top Chinese Army General has slammed the United States and Japan for provoking China, a day after U.S.
Defence Secretary Chuck Hagel had accused China of destabilising the region. China says US and Japan are
singing notes in chorus to adversely impact Chinese prospects.
Mr. Chuck Hagel, speaking at the Shangri-La Dialogue, a top regional security forum in Singapore, said China
had, in recent months, undertaken destabilising, and unilateral actions asserting its claims in the South
China Sea. He was referring to recent spats involving China, Vietnam and the Philippines.
At the conference, Japanese Prime Minister Shinzo Abe also hit out at China over the disputes, pledging
support to Vietnam and the Philippines. Mr. Abe said Japan will supply naval patrol vessels to both countries
and boost its security presence in the region.
The Chinese officials said, They were corroborating and colluding and using the opportunities to speak first
at the Shangri-La Dialogue to take the initiative to provoke and challenge China. From the speeches of Abe
and Hagel, we can see who on earth are aggressive. It is the United States and Japan corroborating with each
other, and not China. The PLA official was particularly aggrieved by the Japanese leaders speech, which did
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not directly mention China but warned of elements that spawn instability in the region.
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CHINA TAKES VIETNAM ROW TO UN @
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China has accused Vietnam of damaging peace and stability as it sought to drum up support at the United
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Nations (U.N.) in an ongoing territorial row.

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In a position paper sent to U.N. Secretary-General Ban Ki-moon, China alleged that Vietnam rammed Chinese
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vessels more than 1,400 times near oil drilling operations in the South China Sea.
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Hanoi and Beijing have been embroiled in a bitter war of words as the two sides have traded accusations
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concerning maritime confrontations near an oil rig that China moved into contested waters near the Paracel
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Islands. Earlier, Vietnam released dramatic footage showing a large Chinese ship chasing and ramming one
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of its fishing boats, which then sank near the rig.

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The United Nations says it is willing to

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mediate in the territorial row

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The latest phase of the row focuses on

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China's decision to move an oil rig into

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the disputed Paracel Islands. The

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South China Sea is host to overlapping

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countries. Beijing claims almost the

entire sea, based on a mid-20th
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delineating Chinese territory, and
vague historical claims going back
more than 1,000 years. Vietnam says
it has controlled the Paracel for
centuries.
Both sides have repeatedly accused
the other of aggressive behaviour and
ramming.
Meanwhile China has deployed four new oil rigs in the waters of the South China Sea amid an ongoing
dispute with Vietnam over drilling activities that sparked the most serious tensions between the two
countries in many years.
At least three of the rigs appear to be in waters that are not contested, off the Chinese provinces of
Guangdong and Hainan Island, according to present coordinates listed by the Maritime Safety
Administration. It is unclear whether the rigs may be subsequently moved. One rig is in waters between the
Chinese mainland and the Pratas Islands, which are under the control of Taiwan but claimed by China.
Chinese officials played down the deployment.
IRAQ ISIS ISSUE
The 2014 Northern Iraq offensive began in mid-June 2014, when the Islamic State of Iraq and the Levant
(ISIS; sometimes referred to as ISIL) and aligned forces began a major offensive in northern Iraq against the
Iraqi government, following earlier clashes, which began in December 2013.
ISIS and aligned forces captured several cities and other territory, beginning with an attack on Samarra on 5
June followed by the seizure of Mosul on the night of 9 June and Tikrit on 11 June. As Iraqi government
forces fled south on 13 June, the Kurdish forces took control of the oil hub of Kirkuk, part of the disputed
territories of Northern Iraq.
By late June, Iraq had lost control of its border with Jordan and Syria. Prime Minister of Iraq Nouri al-Maliki
called for a national state of emergency on 10 June following the attack on Mosul, which had been seized
overnight. However, despite the security crisis, Iraq's parliament did not allow Maliki to declare a state of
emergency; many Sunni Arab and ethnic Kurdish legislators boycotted the session because they opposed
expanding the prime minister's powers.
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Some trace the beginnings of current offensive to the Syrian civil war which gave ISIS and other Sunni jihadi
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groups a cause and a battlefield when it looked like their campaign in Iraq was in decline while critics of the
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US-led invasion of Iraq in 2003 believe the root of these events should trace back to unsuccessful nation-
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building as well as sectarian and ethnic division in the aftermath of Saddam Hussein's removal from power.
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On the 29th of June 2014, the ISIL changed their name to Islamic State, and declared a 'Caliphate', which
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includes Syria and Iraq. They then declared Abu Bakr al-Baghdadi as the Caliph and leader of all Muslims.
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The Iraqi government has formally requested help from the US government to tackle the situation. However,
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the request was declined by the US administration. In ruling out the re-entry of U.S. combat troops to quell
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escalating sectarian violence in Iraq, President Barack Obama signaled a delicate shift in Washingtons
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paradigm towards one that viewed the conflict as inextricably bound with the battle against extremists in
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neighbouring Syria.
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Announcing his plan to send 300 military advisers to Iraq, with a mandate to contribute to the efforts of joint
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operation centres in Baghdad and some northern parts of the country, Mr. Obama noted, The key to both
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Syria and Iraq is going to be a combination of what happens inside the country, working with moderate
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Syrian opposition, working with an Iraqi government that is inclusive, and us laying down a more effective
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counterterrorism platform that gets all the countries in the region pulling in the same direction. The
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President added that rather than try to play whack-a-mole wherever such terrorist organisations pop up,
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the focus had to remain on building effective partnerships.

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Analysts also concurred that the White Houses refusal of the request for air strikes made by beleaguered
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Iraqi Prime Minister Nouri al-Maliki reflected the emerging administration view that Washington was actively
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seeking alternatives to Mr. Maliki, given the approaching formation of a new government after recent
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parliamentary elections. Officials also hinted at the possibility of forming new states respecting deep ethnic
divisions, saying that otherwise, Kurds would likely see the upheaval as an opportunity to form their own
state, and some Sunnis would likely join Islamist militants advancing on Baghdad.
Mr. Obama in his briefing came close to hinting at the need for a fresh political perspective of Iraqi leaders,
arguing that the only way to prevent each ethnic group in Iraq from assuming irreconcilable positions and
causing territorial instability was if there were credible Sunni leaders, both at the national level and at the
local level, who have confidence that a Shia majority, that the Kurds, that all those folks are committed to a
fair and just governance of the country. The President said, Right now that doesnt exist. Theres too much
suspicion and mistrust.

UKRAINE CRISIS
Western-backed tycoon President Petro Poroshenko vowed to avert civil war and mend ties with Russia after
being sworn in as Ukraines fifth post-Soviet President with the nation facing disintegration and economic
collapse.
Mr. Poroshenko took the oath of office on June 7th, 2014, one day after holding his first meeting with Russian
President Vladimir Putin since a May 25 election victory entrusted him with taming a bloody crisis that has
shaken the post-Cold War order and redrawn Europes map.
In his first steps, he vowed to give an amnesty to any insurgents who had no blood on their hands as the
first step in a peace initiative designed to save the nation of 46 million which saw its Crimea peninsula
annexed by Russia in March from splitting further along ethnic lines.
Later on 20th June, the President declared a week-long unilateral ceasefire and unveiled a sweeping plan for
curbing a pro-Russian insurgency that killed 13 more soldiers in fierce clashes in the eastern rustbelt. Mr.
Poroshenkos ambitious push for peace followed two calls he had placed to Putin within 72 hours in the
belief that no truce would work without the Russian strongmans support.
Mr. Poroshenkos announcement automatically enacted a 14-point plan that demands the rebels disarm and
promises to decentralise power through constitutional reform. The initiative drops criminal charges against
fighters who committed no serious crimes and provides a guaranteed corridor for Russian and Ukrainian
mercenaries to leave the conflict zone. And it establishes a 10-km border buffer zone to stem the flow of
gunmen and military equipment. But it also calls on local government bodies to resume their operations
a demand rejected by separatist leaders who have proclaimed their independence from Kiev and occupied
administration buildings in about a dozen cities and towns in the east.
On 27th June, Mr. Poroshenko signed a landmark EU pact whose rejection by his pro-Moscow predecessor
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plunged the ex-Soviet country into turmoil and sent East-West relations to their lowest level since the Cold
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War. Ukraine President Petro Poroshenko hailed the deal, which pulls Kiev out of Kremlins orbit, as a turning
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point for the strategic country sandwiched between Europe and Russia. But the agreement bursts Russian
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President Vladimir Putins dream of enlisting Kiev in a Kremlin-led alliance that could rival the European
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Union and NATO and Moscow warned it would have serious consequences. The Association Agreement is
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also deeply unpopular in Ukraines heavily Russified eastern rustbelt, where pro-Russian insurgents are
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battling Kiev government troops.

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The European Union also sealed similar partnership agreements with Georgia and Moldova two former
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Soviet nations with similarly complicated relations with Russia.

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The deals were signed in Brussels just hours after pro-Russian rebels released four monitors from the
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Organisation and Security and Cooperation in Europe (OSCE) they had abducted on May 26. Another four
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European observers and their Ukrainian translator are still being held captive by the gunmen and Mr. Putin
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has personally urged the militias to secure their release. The Kremlin chief denies exerting control over the
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fighters and is yet to address in public reports from Kiev and Washington of rocket launchers and even tanks
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crossing the Russian border into the conflict zone.

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The European Union argues that the deal will boost Ukraines exports to the 28-nation bloc by $1.35 billion
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(1.0 billion Euros) a year and save the country roughly half that amount in revoked customs duties. But
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Russia has warned that it will have no choice but to slap punishing trade restrictions on Ukraine after already
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nearly doubling its gas price a step Kiev disputed and that led to a cut in its supplies this month.
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EGYPT AFTER THE PRESIDENTIAL ELECTION
Egypt's former military chief Abdel Fattah el-Sisi was sworn in Sunday as President, vowing to lead the
country through important changes. He said, In its next phase, Egypt will witness a total rise on both
internal and external fronts, to compensate what we have missed and correct the mistakes of the past."
Despite the political upheaval Egypt has faced in recent years, el-Sisi celebrated the transition from interim
President Adly Mansour. "In the long history that goes back thousands of years, our homeland did not
witness democratic transfer of power. Now, for the first time, the President-elect shakes hands with the
outgoing President, and together they sign a power transfer document in an unprecedented occasion," he
said in an address in front of the Supreme Constitutional Court's General Assembly in Cairo.

El-Sisi won 96% of the vote in last month's presidential election for a four-year term. When he was declared
the winner last week, a boisterous celebration erupted in Cairo's Tahrir Square, filled with fireworks and
balloons bearing his image. Military and security personnel watched from the edges as crowds danced and
sang.
Approximately 47 per cent of the 54 million voters turned out, and intimidation as well as gross inequalities
in resources and media coverage marred the process; European Union observers said the election did not
meet the Egyptian constitutional principles of free association and expression.
Public distrust and suspicion may well have found expression in a turnout so low on the two designated
polling days that officials ordered a third days voting, which the NGO Democracy International (DI)
concludes was only one of many unusual steps which damaged the credibility of the election. Members of
the public said openly that their participation would make no difference, and official attitudes could not have
helped; one judge who is also on the election commission has said in print that poverty and low levels of
education among the population make democracy unsuitable for Egypt.
In any case, the Muslim Brotherhood, which clearly showed that it has the strongest popular support by
winning the Constituent Assembly elections in 2011-12 and then the June 2012 presidential election,
remains under a ban; it is very likely that Brotherhood supporters boycotted the poll. Meanwhile, many of
the organisations senior figures are in prison or in exile, and Mr. Morsi is under trial on charges which could
lead to the death penalty.
The new President is highly unlikely to make any significant policy changes. The blockade of the Gaza Strip
will almost certainly continue, depriving Gazans of essential supplies. Secondly, the relevant global and
regional powers can be expected not to criticise Cairos main policies or its domestic repression.
Despite a current Senate freeze, the United States government wants to continue its $1.5 billion annual aid
to Egypt, most of which goes on arms purchases from U.S. firms; for their part, Saudi Arabia, the United Arab
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Emirates and Kuwait, all of which are very hostile to the Brotherhood, have donated over $12 billion in
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recent years.
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All the countries concerned, including Israel, value stability above democracy in Egypt, mainly because
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democracy would enable the Egyptian public to call for a fair and just Israel-Palestine settlement and could
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revive demands for democracy in West Asia. It appears that neither the worlds major powers nor the main
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regional ones are prepared to allow Egypts 84 million people the right to choose their own leaders freely.
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KARACHI AIRPORT ATTACKED BY TERRORISTS

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On 8 June 2014, militants attacked Jinnah International Airport in Karachi, Pakistan.

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The militant organisation Tehrik-i-Taliban Pakistan (TTP) initially claimed responsibility for the attack. The
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attackers were foreigners of Uzbek origin who belonged to the Islamic Movement of Uzbekistan (IMU), an Al
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Qaeda-linked militant organisation that works closely with TTP. The TTP later confirmed that the attack was
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a joint operation they executed with the IMU, who independently admitted to having supplied personnel for
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the attack.
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Following the attack, the Pakistani military conducted a series of aerial strikes on militant hideouts in the
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tribal areas along the Afghan border. At least 25 militants were killed on 10 June, including foreign fighters.
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Two drone attacks on 12 June also killed Uzbek, Afghan and some local militants. On 15 June, the Pakistani
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military intensified air strikes in North Waziristan.

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At least 105 insurgents were reported killed, a majority of who were Uzbeks, including those linked to the
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airport attack. Some other foreign militants were also reported killed. According to military sources, a key
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Uzbek commander and mastermind of the attack, Abu Abdur Rehman Almani, was killed in the operation.
These military responses culminated in Operation Zarb-e-Azb, a comprehensive Pakistan Armed Forces
operation against militants in North Waziristan.
Jinnah International Airport is Pakistan's largest and busiest airport, and serves as the hub for Pakistan
International Airlines (PIA), the national flag carrier of Pakistan. Many domestic and international flights
transit through the airport daily. This attack was the first large-scale incident in the airport in years, with the
last major incident being the hijacking of the Pan Am Flight 73 in 1986. Earlier in 2011, a similar attack had
taken place on the Mehran naval airbase in Karachi, and in 2012, the Bacha Khan International Airport in
Peshawar, northwest Pakistan, was attacked by militants.

WHAT WAS THE MOTIVE FOR THE ATTACK?
As usual, the outlawed Tehreek-i-Taliban Pakistan (TTP) claimed responsibility for the Karachi carnage.
"This was revenge for Hakimullah Mehsud's martyrdom" (Mehsud was killed in a U.S. drone strike in
November, 2013), and a warning against the impending military operation the government is preparing
against the "helpless and innocent tribes in Waziristan," a TTP statement sent to media via email said.
In an earlier message on their Facebook page, the TTP said: "The biggest reason for attacking Karachi airport
is because it serves as the biggest air logistics center supplying goods for the Crusaders' war in Afghanistan
and Pakistan," referring to the Karachi Port which handles the Afghanistan-bound U.S.-NATO cargo.
IS THE FIRST SUCH ASSAULT?
TTP made a similar claim following a dramatic raid on Peshawar's Bacha Khan International Airport on December
15, 2012.
The group also took responsibility for similar commando raids on the Pakistan Navy airbase PNS Mehran near
Karachi in May 2011, followed by a deadly assault on a Pakistan Air Force base at Kamra, 70 kilometers north of
the capital, in August 2012.
All three resulted in damage to several air-surveillance and combat aircraft, including a multi-million dollar
Saab 2000 surveillance aircraft.
The TTP justified the three attacks as "revenge" for the May 2, 2011 secret U.S. raid that killed Osama Bin
Laden in his Abbottabad compound.
WERE ATTACKERS TRYING TO DISCREDIT PAKISTAN?
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The TTP again appears to be at the center of a terrorist pattern that ostensibly aims to hurt the country's
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economic interests and isolate it internationally.
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Following a brazen daylight attack on the visiting Sri Lankan cricket team in March 2009, for instance, all foreign
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cricket teams refused to visit Pakistan, thus bringing an end to international cricket in the country.
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"The only message flowing from these strikes is that foreigners and foreign airlines should not fly into
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Pakistan," Talat Masood, a retired general told me.

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WHAT WAS THE INFLUENCE OF RECENT PEACE TALKS?

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The recent breakdown of TTP talks with government also revived a new string of attacks against security and
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strategic targets; despite a several week engagement, the talks offered by Prime Minister Nawaz Sharif in an
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attempt to improve internal security led nowhere.

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The government and the security forces found it impossible to accept TTP demands like enforcement of
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Sharia across the board, withdrawal of the army from the tribal regions and a peace zone for itself. And
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soon after the stalemate became evident, the army began pounding IMU and Chinese Uyghur hideouts in
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the Waziristan Mountains, where the TTP provides them social cover.
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The East Turkestan Islamic Movement (ETIM) represents Uyghur Muslims who want an independent
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Xinjiang and have been reportedly waging a war on Chinese interests from the Pakistan-Afghan border
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region.
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PALESTINIAN UNITY GOVERNMENT SWORN IN
After seven years of a bitter and at times lethal rivalry between the two main Palestinian factions, Fatah and
Hamas, a historic Palestinian unity government has been sworn in, ending years of division. The signing
ceremony, which seems likely to complicate relations with the Palestinian Authoritys international aid
donors in Europe and the U.S. and increase tensions with Israel, was broadcast live in both Gaza and the
West Bank.
The U.S. indicated over the weekend that it would wait to see the policies of the new unity government
before deciding whether to recognise it, because of Hamass involvement. Before the ceremony the U.S.
Secretary of State, John Kerry, telephoned the Palestinian president, Mahmoud Abbas, to express concern
about Hamass role in any such government.
Israel, which suspended peace negotiations in April when a surprise reconciliation deal was signed, opening
the way to the appointment of the new government, has threatened punitive sanctions against any
government backed by Hamas, saying it would serve as a front for the group and strengthen terrorism. Mr.
Abbas, who heads the mainstream Fatah movement, has said the 17-member cabinet would comprise
unaffiliated ministers and would strive to pursue peace, despite Hamass refusal to accept co-existence with
Israel.
The announcement of the new government, ending a long and debilitating political and territorial division in
Palestinian affairs, opens the way for long-delayed Palestinian elections, slated for 2015.
The new government will reunite Gaza and the West Bank under a single political authority for the first time
since 2007, when Hamas which won Palestinian legislative elections in 2006 asserted control over the
Gaza Strip, forcing out Fatah.
Since then the West Bank has been governed by Mr. Abbas and Fatah and Gaza by Hamas, which is regarded
as a terrorist group in many capitals. The swearing-in ceremony in the West Bank city of Ramallah came as
the Israeli Prime Minister, Benjamin Netanyahu, appealed to the international community not to rush into
recognising the new government, largely made up of technocrats.
BANGLADESH CHINA PARTNERSHIP
Declaring to the Chinese Premier that Bangladesh would be an active partner in a China-led Asian
century, Prime Minister Sheikh Hasina has underlined her willingness to deepen her countrys strategic and
economic engagement with China, signing major agreements for the construction of roads, railway lines and
power plants on a three-day visit to the Chinese capital.
Ms. Hasina, who met President Xi Jinping and Premier Li Keqiang, also discussed with Beijing the
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construction of a second deep-sea port off the Coxs Bazar coast at Sonadia China is already involved in a
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port project at Chittagong that will give China further access to the Indian Ocean, and an alternative route
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for energy imports.
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While Ms. Hasina has pledged to boost ties with India, even reaching out to Prime Minister Narendra Modi
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with a congratulatory letter following his electoral victory, her reported reference to being an active
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partner in a China-led century in her meeting with Premier Li is likely to be noticed in New Delhi.
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The two countries this week signed five deals, including for Chinese assistance for the construction of a
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power plant in Patuakhali and building a multi-lane road tunnel under the Karnaphuli River. The two sides
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are yet to reach an agreement on the Sonadia port project, which is, however, likely to take off soon,
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Chinese experts believe.

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Mr. Xi described Bangladesh as an important country along the maritime silk road project that he has been
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championing, which envisages deepening connectivity, building ports and free trade zones, and boosting
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trade with littoral countries in the Indian Ocean region and in Southeast Asia.
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AN ANALYSIS OF THE RECENT THAW IN BANGLADESH CHINA RELATIONS

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For 40 years, Dhaka has maintained strong ties with China, which has been a major partner in Bangladeshi
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defence procurement, and communications and infrastructure projects. But foreign relations analysts in
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Dhaka see the latest trip as part of an effort by Hasina to strengthen ties with countries that do not share
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Western concerns about the legitimacy of her government, such as China, Russia, and Japan.
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Observers say it represents a strategic manoeuvre by Dhaka in response to criticism in the US and European
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Union to parliamentary elections in Bangladesh in January, which were boycotted by the opposition. After
violence marred the polls and amid allegations of widespread electoral fraud, the US and EU described the
results as "not credible", and Washington has become a vocal critic of the human rights situation in the
South Asian country.
This means the recent visit to China by Prime Minister Hasina is about more than just business, said Imtiaz
Ahmed of the international relations department at the University of Dhaka, making Beijing a "predictable"
destination. "After the parliamentary elections on January 5, Sheikh Hasina's maneuverability is limited,
particularly when it comes to the US and the European Union," he told Al Jazeera. "China is not so much
bothered about Bangladeshs governance.

During a visit by Hasina to Japan earlier this year, Tokyo pledged to lend Bangladesh up to $5.8bn for
infrastructure and other projects over the next five years. Russia has also signed a deal to build the country's
first nuclear power plant in Rooppur, 200km northwest of Dhaka, which is expected to be operational by
2020.
The prevailing government in Bangladesh is looking for its own legitimacy to survive. It is seen that as China,
Japan, and Russia are not particularly concerned by the election outcome or governance in Bangladesh, they
are most likely going to see better relations with these nations.
THE WORLD OF WORK REPORT 2014
The World of Work Report 2014 catalogues the impressive strides developing countries are making to catch
up with advanced nations. But the International Labour Organisation study also contains important caveats
on the cost from continuing sharp inequalities.
Per capita income has grown on average by 3.3 per cent per annum in 140 countries over the past three
decades, as against 1.8 per cent in the advanced economies. But this process of global convergence has by
no means been uniform, as some least developed countries have performed well below the advanced
economies. Such sharp variations are accounted for in terms of the presence or absence of quality jobs, the
report contends.
Vulnerable employment presents a formidable challenge, as more than half the workforce in the developing
world numbering 1.45 billion is either self-employed or undertakes unpaid economic activity. That is to
say, such a large population goes without a guaranteed income, social protection or adequate investments in
the health and education of families, putting in jeopardy the future of coming generations.
Senegal, Peru and Vietnam are instances cited in the report where there has been an increase in the
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proportion of wage and salaried workers over the past two decades, leading to significant reductions in
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working poverty and higher productivity. Better wages did not merely cushion these countries from the
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impact of the global meltdown. Working in tandem with other determinants, they in fact enabled these
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economies to grow one percentage point faster than other emerging economies since 2007.
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Instructive is the finding that a sizeable proportion of wage-earners in a society help to reduce income
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inequality and under-employment in the workforce. The obverse is also true. Widening inequalities also
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produce adverse effects on economic growth in terms of low consumption, not to mention the detrimental
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effects on social cohesion and stability.

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A significant increase in regular wage employment in both rural and urban India over the two-year period
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ending in 2012, as reported by the latest round of the National Sample Survey Organisation, is indeed
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encouraging. The findings also point to faster growth in employment in the manufacturing and services
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sectors. It is critical for State governments to consolidate on this momentum.

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Not in the least because the developing world is set to account for 90 per cent of the total jobs to be
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generated in the next five years and Indias share in it may not be insignificant. Enforcement of statutory
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minimum wages across different economic sectors would be critical to strengthening the workforce as well
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as to raising overall productivity

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SCIENCE & TECH
PSLV C23
PSLV-C23, will launch SPOT-7 a French earth observation satellite, into an 655
km Sun-Synchronous Orbit (SSO). It will be the tenth flight of PSLV in 'core-
alone' configuration (without use of solid strap-on motors).
Along with SPOT-7, there will be four co-passenger satellites viz. AISAT from
DLR Germany, NLS7.1 and NLS7.2 from UTIAS/SFL Canada and VELOX-1 from
NTU Singapore.
PSLV- C23 Stages at a Glance
STAGE-1 STAGE-2 STAGE-3 STAGE-4
Nomenclature PS1 PS2 PS3 PS4
Propellant Solid Liquid Solid Liquid

(HTPB (UH25 + (HTPB (MMH +
Based) N2O4) Based) MON-3)
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HTPB : Hydroxyl Terminated Poly Butadine
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UH 25 : Unsymmetrical di-methyl hydrazine + 25% Hydrazine Hydrate
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MMH : Mono Methyl Hydrazine @
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MON-3 : Mixed Oxides of Nitrogen
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SITVC : Secondary Injection Thrust Vector Control

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SPOT 7
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SPOT 7 is a French optical Earth Observation satellite identical to SPOT 6 launched earlier onboard PSLV C21 during
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September 2012. SPOT-7, after its injection into Sun Synchronous Orbit, will be phased and placed diametrically
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opposite to SPOT-6 and will form part of the existing earth observation Constellation. SPOT-7 satellite is built by
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AIRBUS DEFENCE & SPACE, a leading European space technology company.

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AISAT DLR GERMANY

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Mission Objectives: Global Sea-traffic monitoring system with special emphasis on high traffic zones using AIS signals.
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First DLR satellite in the nano-satellite class

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NLS7.1 (CAN X4) & NLS7.2 (CAN X5)

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Mission Objectives Two spacecraft precision formation flying using differential GPS with cm-level relative position
and sub-metre level accurate position control system.
VELOX-1 NTU SINGAPORE
Mission Objectives: Technology demonstrator for in-house design of image sensor, MEMS-based attitude
determination and control system, inter-satellite RF link

GRAVITATIONAL WAVES AND COSMIC INFLATION
Gravitational waves are ripples that carry energy across the universe. They were predicted to exist by Albert
Einstein in 1916 as a consequence of his General Theory of Relativity. Although there is strong
circumstantial evidence for their existence, gravitational waves have not been directly detected before. This
is because they are minuscule a million times smaller than an atom.
They are like tiny waves on a lake from far away, the lakes surface looks glassy smooth; only up very
close can the details of the surface be seen. Particularly exciting are primordial gravitational waves, which
were generated in the first moments of the universes birth. These carry vital information about how the
universe began.
Discovery of gravitational waves, it is significant for two reasons. First, this opens up a whole new way of
studying the Universe, allowing scientists to infer the processes at work that produced the waves. Second, it
proves a hypothesis called inflation. This can be used to give us information about the origin of the universe,
known as the big bang.
Cosmic inflation refers to the idea that the cosmos experienced an exponential growth spurt in its first
trillionth, of a trillionth of a trillionth of a second. This theory holds that this would have taken the infant
universe from something unimaginably small to something about the size of a marble. Space has continued
to expand for the nearly 14 billion years since.
Inflation was first proposed in the early 1980s to explain some aspects of Big Bang Theory that appeared to
not quite add up, such as why deep space looks broadly the same on all sides of the sky. The contention was
that a very rapid expansion early on could have smoothed out any unevenness. The inflation theory was
proposed to solve this horizon and flatness problems.
The theory came with a very specific prediction - that it would be associated with waves of gravitational
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energy, and that these ripples in the fabric of space would leave an indelible mark on the oldest light in the
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sky - the famous Cosmic Microwave Background.
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The theory is in news because of the recent findings of BICEP2, which announced the detection of a distinct
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signature of cosmic gravitational waves, possibly originating during an explosive phase of expansion dubbed
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inflation, occurring at the earliest moments after the big bang.

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The new findings has huge Implications for the physics of the early universe. Through the paradigm of
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inflation, the BICEP2 observations provide us with a window to physics at very high energies, a thousand
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billion times higher than the energies that are currently achieved by the Large Hadron Collider at CERN.
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Interestingly, the inferred energy scale of inflation of the order of 10 million billion Giga electron Volts
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(GeV) is close to that expected in the grand unified theories of three of the four fundamental forces.
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These energies are unlikely to be explored by even the most monstrous man-made particle colliders that
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can be set up in the conceivable future.

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GAMMA RAY TELESCOPE TO BE FLAGGED OFF TO LADAKH

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The worlds largest high-altitude telescope for detection of gamma ray emissions is all set to be transported
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to Hanle, Ladakh where it will be installed by 2015 summer and

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The Major Atmospheric Cherenkov Experiment (MACE) Telescope will be the second largest in the world
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and the largest at high altitude with a 21m diameter.

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The largest telescope of the same class is the 28m diameter HESS telescope in Namibia.
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The responsibility for design, manufacturing, installation and commissioning of the telescope is with the
Bhabha Atomic Research Centre to Electronics Corporation of India Limited here.
Very high energy gamma rays offer a unique insight into some of the extreme phenomena of the universe
and the MACE telescope would enable scientists to study exotic objects like pulsars, super nova remnants
and active galactic nuclei.
It will provide a better understanding of high-energy processes in the universe and help gain more insight
into cosmic ray origins.
When gamma ray photons enter the earths atmosphere, they generate a shower of secondary charged
particles which cause a flash of blue Cherenkov light, lasting a few nano seconds.
Made up of 356 indigenously manufactured mirror panels and a high-resolution imaging camera capable of
detecting extremely short duration light flashes such as Cherenkov events.
The 45-metre tall telescope is designed to operate in winds speeds up to 30 kmph and retain structural
integrity in the parking position in winds speeds up to 150 kmph.
R.Koul, head of astro-physical sciences division, BARC, said that another similar telescope would be installed
at Hanle in 2018.
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June 2014 CA

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VISIONIAS

Copyright by Vision IAS

1 www.visionias.in Vision IAS

Make Power Distribution Reforms a top priority World Bank ....................................................................................... 16

CCEA hikes paddy MSP by Rs 50 a quintal to Rs 1,360 ........................................................................................................... 16

SOCIAL ISSUES ................................................................................................................................. 17

Comprehensive approach needed for Domestic Workers ..................................................................................................... 17

National Policy for Domestic Workers .................................................................................................................................................................................17

What ails Indias Higher Education ................................................................................................................................................ 17

Six step formula for better healthcare ........................................................................................................................................... 19

Tobacco Use and its menace in India.............................................................................................................................................. 19

Sanitation Bringing a behavioral change................................................................................................................................. 20

Overcoming neo-Natal Deaths in india ......................................................................................................................................... 21

E-waste problems for India ................................................................................................................................................................. 22

Cleaning up Ganga- Top priority for Ministry ....................................................................................................................... 22

2 www.visionias.in Vision IAS

Palestinian unity government sworn in ........................................................................................................................................ 38

Bangladesh China Partnership .......................................................................................................................................................... 39

The World of Work Report 2014 ...................................................................................................................................................... 40

SCIENCE & TECH ............................................................................................................................. 41

PSLV C23 ...................................................................................................................................................................................................... 41

Gravitational Waves And Cosmic Inflation .................................................................................................................................. 42

Gamma Ray Telescope To Be Flagged Off To Ladakh............................................................................................................. 42

3 www.visionias.in Vision IAS

REPEALING THE UNECESSARY LAWS

BACKGROUND AND IMPORTANCE

UK- BETTER REGULATION EXECUTIVE

intervention and fully understanding the consequences of any new regulation.

expressly extended by Parliament.

AUSTRALIAN GOVERNMENT OFFICE OF BEST PRACTICE REGULATION

practice guidelines to assist lawmakers.

WAY AHEAD IN INDIA

ONE LOKPAL NOT ENOUGH TO WEED OUT CORRUPTION

corruption, which are mentioned below.

decentralization in governance in the country.

PM DISSOLVES 4 CABINET PANELS AFTER EGOM DISSOLUTION

5 www.visionias.in Vision IAS

33% QUOTA FOR WOMEN IN POLICE FORCE IN GUJARAT

LEGISLATIONS AND POLICIES

AFSPA AND ITS WOES

Meghalaya, Mizoram, Nagaland and Tripura.

CONTROVERSY OVER REPEAL

ARGUMENTS FOR REPEAL OF AFSPA

6 www.visionias.in Vision IAS

WHAT THE GOVERNMENT SHOULD DO?

LAND ACQUISITION ACT- SHOULD IT BE DILUTED?

point of time, after studying its impact.

COLLEGIUM SYSTEM AND THE CONTROVERSY

WHAT IS THE CONTROVERSY ALL ABOUT

NGOS STANCE TO AFFECT DEVELOPMENT PROJECTS: IB REPORT

crore from abroad in the last seven years.

current model of growth

APPOINTMENTS TO HUMAN RIGHTS INSTITUTIONS IN THE COUNTRY

rights institutions by the government.

with which they are removed from the posts too

8 www.visionias.in Vision IAS

CRPF- STATE POLICE DISTRUST MIGHT BE AFFECTING ANTI-MAOIST OPERATIONS

GRIEVANCES FROM CRPFS END

WHAT THE STATE POLICE COMPLAINS

OFFICE OF GOVERNOR AND ITS POLITICIZATION

government to ask the incumbent governors to resign from their posts

between the situation then and now

10 www.visionias.in Vision IAS